Massive reduction in Barclaycard limit

adamp87

Gary1963 said:

@Barclaycard love how you find out your limit has been reduced when you receive a email saying you're near your limit. Funny how it coincides with the end of the payment holiday! Tweeted... No response! 

What are you expecting them realistically to respond to you with?

Creditors can reduce limits, unfortunate it your situation it is, but they are within their rights.

There seems to be a lot of people having limits reduce my massive amounts. Just saw on Twitter a gentlemen who had a 9k limit reduced to £260. 

I can only assume he might have other limits elsewhere and little use of the card or its maxed and they want repayment.

They certainly need to put more people into their phones, looking the waiting times and contact issues it’s a joke, especially as people are getting back to work more - but I’m guessing this won’t happen till the furlough begins costing employers.

Took me 90 mins the other week to call for an issue I had.

Kunle2004ng

I have a very similar experience with barclaycard. 
Received an email stating thatthat my limit has been reduced from £8,300 to £3,200 three days prior to the email. Checked the app and indeed it was true.

Called Barclaycard to complain that I received no notice. Lady sounded apologetic because my account looked OK - no missed payments ever etc. Told me I would get a letter informing me of the limit change. Said the letter had been sent earlier but didn't reach me before limit reduction took effect. 
I requested that the call be regarded as an official complaint. Lady told me to also expect a letter explaining the status of my complaint. 

The letter explaining the limit change arrived the same time together with the complaint closure letter! Dates on both letters are 1 week apart and same 1st class postages used. 

To make matters worse, reduced limit on letter was £260 while the one on email and actual was £3,200. How sloppy can these people be? 

Barclaycard explanation for reduced limit:
We want to make sure you can comfortably afford the amount you're borrowing. That's why we keep an eye on your account and check your credit limit. We look at things like whether your payments have been missed or made late, and we're sent details from Credit Reference Agencies too.

And based on everything we've seen, we believe a lower limit may work better for you. 

The fact is that, I never missed a payment ever on any credit card or overdraft etc. I received a request to increase my credit limit in February by £3,000 which I turned down. I have also recently been paying off the card in full every few weeks. 

Three questions:
1. Can I take them up on the discrepancy between their letter and email? 
2. Is there a way to seek redress (even an apology) for reducing my limit without notice?
3. Is it wise to request increase in limit or just cancel and lookfor another credit card? I like to have the security of the large sum which comes in handy for large purchases. 

[Deleted User]

1. If you want, but they will reduce it to the level they feel appropriate, so little point.
2. No.
3. Why not request a limit increase AND look for a new card?

inspectorperez

I would love to know what criteria credit card companies use in terms of customer selection and the quantum involved.

There is another thread on this forum where ASDA discontinued their (Creation) credit card. There was a variety of half a dozen or so different template letters sent to affected customers offering different T&Cs on a new style Creation card. Some customers weren't given the opportunity of receiving the new card.

Must say, I would be loath to leave Barclaycard as I find their website is one of the best for customer interaction and ease of downloading information with a variety of date ranges and formats.

sourcrates

inspectorperez said:

I would love to know what criteria credit card companies use in terms of customer selection and the quantum involved.

Someone who pays their balance off every month in full, never paying any interest, must be MSE`s ideal customer, but i doubt the card company would agree.

They want people who regulaly run up large balances, take time to repay them, and miss a few payments, that is how they make money, obviously they would never comment on that in public, but its an obvious path to profit, average takings from charges at Barclaycard were around 30-40% of net profit during the last five years.

However, the covid-19 situation, plus the new persistant debt rules have kinda dropped a clanga in the works, card companies are now having to vet their customers much more closely, so they (A) still make money, and (B) dont fall foul of the FCA.

It must be difficult for them, because one directly conflicts with the other, so its a delicate tightrope to walk.

The limit reductions will be a way of limiting the amount of bad debt against less than expected profits.

Barclays recently revealed a 42% drop in profits for the first quarter of 2020, so a general tightening of the belt all around,  job security has plummeted this year for a lot of people as well, times are hard, and although Barclaycard is backed by Barclays Bank, there must be rumblings about the viability of the brand, and not just Barclaycard either.

jimbo26

Seems to be a pattern across the board. PayPal credit has just dropped my limit from 5K to 1.3K after a review. I have never paid them a bean in interest and only use it to make the most of various interest-free periods. Doesn't bother me TBH, I only ever have a few hundred quid on it, and would never need a 5K limit. I guess they would rather give the limit to someone who will make them money.

powerful_Rogue

Received a letter from Barclaycard today. Going to drop my limit from £4700 to £1000 on the 14th August and then close it on the 13th September.

However it did say if I wanted to keep my account open with my £4700 limit then to text them, which I have done.

Not surpised, think it's been a good few years since I used the card.

Malkytheheed

Pretty glad I don't have a Barclaycard at this point if I am being honest! I was toying with the idea of getting one as I don't actually have a "VISA" credit card. (an extremely minor thing). Think I dodged a bullet. 

wiseonesomeofthetime

No issues with mine.

Now waiting for an email stating that, following the recent drastic reduction in my balance due to a holiday refund, they are reducing the limit on my 0% purchase card lol.

London7766551

Clearly the banks know what is coming, and are looking at customers who work in certain sectors and deciding the risk with these customers has increased, hence a reduction in the amount of money they are willing to lend to you. In other words, they think you might lose your job and won't be able to pay in the money back in the coming downturn. There is nothing that can be done. Banks always have weird risk assessments anyway.

If they are basing it on how much you spend on the card, mine will both be closed I am sure as I never go above £500 with a limit of 13k.