Littlewoods revoked credit

[Deleted User]

Due to having to reduce my hours to cover childcare I asked Littlewoods for a 3 month payment holiday. They accepted and it has recently come to an end. I made first payment, which was the minimum (£38) towards a total balance of £120. But the day after I paid this, I received this email; 

“Thank you for making your first minimum payment following the end of your temporary payment freeze. However, based on your current circumstances, we will not be reinstating your credit facility which means you are unable to shop on your account.

 If you have an outstanding balance, please ensure you continue to make payments as agreed.”

I have been able to increase my hours back as both my parents have had both injections and are now able to care for my children, so I can continue to pay for my purchases. Although I don’t want to currently order from Littlewoods, I find having an account with them handy for big purchases (hoover, washer etc.).
Has anyone else experienced this after their 3 month payment holiday has ended? 

ThisnotThat

I'm sure quite a few have.

If you're taking a payment holiday that is a massive red flag to a lender and it's not surprising that some may decide that the sensible course of action is to revoke that line of credit.  Perhaps the fact that you only made the minimum payment is what spooked them, £120 isn't a lot to just clear in one go so paying the minimum after a 3 month holiday may have done it.

[Deleted User]

When you clear the balance, ask them to consider it again but as above, in the scheme of things, £120 is not a big amount and if you are struggling to pay that after a 3 month holiday it comes down to persistent debt rules so they have logically stopped you spending more to prevent running up debts you can't afford to pay back. I'd suggest focusing on clearing debts and building up a good credit history so you could use say a 0% balance transfer or money transfer or purchasing card rather than using a firm like Littlewoods

Dottydoolay

Yes they closed my accounts, accounts that been held for years with no issues with payments until Covid hit.  In fact they closed mine as soon as I requested the payment holiday.