Barclaycard limit reduction post covid

onlyfoolsandparking

mirkle01 said:

I got a letter this morning saying my limit has been reduced on my Barclaycard from £8,800 to £1,600. Coincidentally I moved £5,000 worth of debt off the card to a new zero % account I opened for this purpose. Seems rather vindictive, and I've never seen a warning anywhere that using zero % cards can result in such an action.

'Seems rather vindictive'

I agree and just adds to the many reasons I haven't been a fan of Barclaycard for a long time. I also agree (although it's pointing out the obvious) with other posters that it is Barclaycards choice on who they choose to 'limit cull' but reading through the tone of this thread nobody appears to be presenting as being in financial difficulties and are using their card/s responsibly as indeed I do/did. 

The fact they are reducing limits to as low as £250 !!!!!!!!! that low of a limit is of very little use, wouldn't even pay for a weekend hotel break or a decent family meal out, it's a pathetic move by Barclaycard, might well be helpful to unfortunate people who are struggling financially and need to have the brakes applied on spending but that's a minority, don't tar us all with the same brush Barclaycard!!!

I believe by giving us sub-prime limits they are telling us they don't want our custom anymore but don't have the morals to tell us straight. Don't worry Barclaycard the smarter ones amongst us have already sussed out your strategy, you don't want our business, GOOD, we don't want to use your card, win/win.   

Nebulous2

I could be vulnerable to this. Five figure limit, still getting 0.5% cashback from a historic transfer - possibly from Egg. Use it regularly, but haven't been above £2k in several years. I've just moved home, not yet on the electoral roll and resigned my job - so technically don't have an income. 

No letter so far though.......

kbfanclub

I got the letter as well. Got the card originally for a 0% transfer which I cleared and rarely used since then, always paying in full.

Limit was £11,000 which I agree is too high for my requirements but handy to have just in case I wanted to put a large purchase on it temporarily.

Would be happy with a reasonable limit but the new limit is £250.

When I phoned customer services, they said I could appeal but this involves sending original documents which would not be returned and no guarantee of success.

Way too much hassle so I just cancelled it.

SnowTiger

There's quite a lot of bad reviews over on Trust Pilot written by punters who have had their Barclaycard limit slashed.

A new limit of £250 seems to be most common.

Reducing limits so drastically suggests Barclaycard no longer want the business.

Are they reducing limits with immediate effect or giving notice they intend to do so?

Batesy1976

onlyfoolsandparking said:

I believe by giving us sub-prime limits they are telling us they don't want our custom anymore but don't have the morals to tell us straight. Don't worry Barclaycard the smarter ones amongst us have already sussed out your strategy, you don't want our business, GOOD, we don't want to use your card, win/win.   

Of course they are but Barclaycard is not unique in this. In fact, it's common practice.  In fact, it's so common I don't think I've ever heard of a card provider just closing an account because they've decided you're not profitable etc, it's always people being "encouraged" to leave by limits being slashed.

Why this is is anyone's guess but as I said, pretty standard stuff for the credit card industry.

topcat638

Exactly the same happened to me yesterday. MSE keeping quiet but maybe its their fault also this time with the Refund culture. Search for the story below

moneysavingexpert.com/news/2020/10/refunds-for-barclaycard-customers-whose-credit-limits-were-set-t/

They advised that you could get a rebate if your limit was too high. To me Barclaycard have sold their souls to "Data Analytics" and its a computer algorithm deciding whose is a risk. Tried calling Barclays and the assistant just shrugged her shoulders and didn,t give a !!!!!!.

My limit was £11000 and will be reduced to £1100 which is completely useless if you maybe want to pay for a family holiday or a big ticket item.

I also used my card a fair amount and they got interest from me ,I pay on time and my credit rating is 999 so there is no justification for the action taken. The worm needs to turn that if they keep handing "people" decisions over to computers we will leave in droves. I wont be using that review form which is deliberately made as an ackward barrier.  

Currently I have reduced my balance to £0 and will just leave using it for now. Have made my own online request to have limit reduced to £5000. Lets see if a computer sees my request and cancels the £1100 figure. I rememeber when credit cards were almost a status symbol and a Barclaycard was seen as having a bit of Kudos. Learning to live without it again is great. Thanks Barclays.

CRISPIANNE3

kbfanclub said:

When I phoned customer services, they said I could appeal but this involves sending original documents which would not be returned and no guarantee of success.

This is why it is important to have more than one provider for a credit card. 

PJHilder

Received my letter today. £14,850 reduced to £250. Ah well, time to close it.

PJHilder

onlyfoolsandparking said:

draiggoch said:

Just had my letter today reducing the limit from £13100 to £5650. Strangely enough I had just cleared a balance of £5300 from it so it is sitting with a £0 balance today. They have included a form to appeal the reduction which includes statements concerning an increase in costs or decrease in earnings as well as asking for payslips or bank statements as supporting documentation.
I'm going to keep the card as I've had it almost 20 years (first credit card) but not going to appeal anything. 
It may be that there will be new offers in 12 months when I'll be moving 0% balances.

Or now that you've 'just' cleared the balance maybe they will reduce your limit even further?? appears very suspect that they reduced both my limits to £750 because I only owed around £500 and £350 on each of them.

I suspect it'll be due to just missing the cut off point, else it would have been nearer £250 as you say.

draiggoch

SnowTiger said:

There's quite a lot of bad reviews over on Trust Pilot written by punters who have had their Barclaycard limit slashed.

A new limit of £250 seems to be most common.

Reducing limits so drastically suggests Barclaycard no longer want the business.

Are they reducing limits with immediate effect or giving notice they intend to do so?

I have had about 6 weeks notice of the change in limit. It's about the same time frame as when they inform you of an increase.