Barclaycard Limit Reduction ??

RFU

I am a very new Barclaycard customer, 4 weeks to be exact.
I was offered a credit limit of £2200. Nice I thought, so I went to book a well deserved holiday. After booking the holiday last week (Monday), I recieved a letter from Barclaycard (on Saturday) saying that they had reduced my credit limit to £1290. I have checked my balance and it is in the region of £1330 and I have £70 available to spend. Why have they done this? Why say my credit limit is £1290 when infact the balance is over that and i still have money available.
I have not even recieved my first statement im that new. I phoned customer services. What a joke. Nobody could say why it had happened. I told them im closing the account and they past me to customer loyalty and they were very helpful and said they were investigating it to re enstate the original limit and promised a call today with a result. No call back. Cut an already long story short. They are going to get back in touch no later than wednesday.

Questions
1. Am I liable for any charges if they informed me of the reduction after the spend?
2. Does a reduction in credit limit affect your credit score?
3. Is there a direct number to the customer loyalty department as the last call center rep refused point blank to put me through even though I told them the name of the contact that said if there were any problems to contact them.

Thanks for any help offered.

Once christmas is over, I think im going to cancel all my barclays products. Home insurance, life insurance, mortgage and two credit cards. It seems that you get nothing for being a loyal customer for over 28 years.

brendang_2

hi, the same thing happened to me last week they reduced my credit limit by 2/3rds and without informing me,when i phoned them they said that they were doing this to most new accounts and the decision will not be changed,they did say they would review this after 3 months have passed however,hope this helps

MABLE

I have had the opposite. I asked them to reduce my limit at various times because of non use. What do I find they have increased it higher than it has ever been.

RFU

If I get no joy, I will be closing the account. I can hear the convosation already " why are you leaving ?" my response? "Read my history. I cant be ar**d repeating my gripe. Will let you know what the customer loyalty rep says if they phone me back by wednesday

exel1966

Nothing new in Limit reductions I'm afraid. It's all part of the 'credit crunch' and card companies tightening up.
There is absolutely nothing you can do about it (except go elsewhere) as the card companies have the right to reduce/increase limits at their discretion, just as they have the right to cancel your account and request payment of outstanding debt if they so wish. Normally you should be advised within 30 days and that is usually done when you get your statement. Check your T&C's, you'll find it all in black and white.

It's harsh, but It's a fact of life as nobody has the right to credit.

Read here : http://forums.moneysavingexpert.com/showthread.html?t=458898&highlight=reduced

or : http://forums.moneysavingexpert.com/showthread.html?t=597335&highlight=reduced

Two samples of dozens of threads going back about two years relating to your experience. Use the search facility if you require more.

Dylanwing

A lot must have changed in that 4 weeks! It really is a joke, and I don't blame you for moving all of your other business. They have T&C's, we can vote with our feet.

ric2003

I recently opened an Abbey credit card and I tried to get the credit limit lowered but was told they can't do that!

I also opened a Barclaycard a few weeks ago. In the T&C it states that if any terms of the agreement change, they will inform you by writing and the change will take place at least 30 days from the dat of the written notice.

So in fact your credit limit has not yet been reduced, it will take 30 days before it is reduced.

If I am wrong and they have reduced your credit limit below your current balance, then they are clearly breaking the terms of the agreement and you would be able to take legal action against them.

RFU

Well,while I was out, I was left a message on my answer phone. It was a person from the Customer Loyalty dept asking me to contact them and they even left a direct number. I phoned the number only to find it had been disconnected. I tried the same number yesterday ( Monday) only to find it was always engaged. So, I rang customer services and asked to be put through to CLD only to be asked "why?". I explained as politely as I could that I was returning a call that was left on my answer phone. The reply came back " Did they not mention what it was in connection with". I was fuming. I replied " I hope you dont call my answer phone and leave sensitive financial information in the hope that you have dialed the right number". Cut another long story short, I have had my credit limit reapplied to my account to the original credit limit. I still wanted to be put through so that I could thank the person responsible for sorting things out so I wasnt seen as an ignorant so and so, but still "no able to put through". I asked them to send an email to them, but all I got was " I cant send emails, I will put a message in your notes". What good is that??????

I think that if you canget past the first line of defence, then you stand a better chance of getting things sorted. I had more chance of speaking to Bin Laden than the kind helpful person. Merry Christmas to you all, and I hope you are all financially sorted very soon