Reduction of limit

sachalegge

My credit card limit on my statement in January was £7000. As usual I paid the balance on full, something I have done since 2004
Around 3rd February, whilst on holiday I received a text saying I had exceeded my credit limit. Naturally I panicked thinking I has somehow been scammed. My total was £618 and my credit limit was shown as £600
I rang them from abroad and after going through my all of the various hoops trying to talk to someone they advised me there was no one available to take my call.
My paperless statement arrived in February advising me I had broken my agreement and I had to pay a default charge, my credit limit was now £600
Again I rang them from abroad only to be told that no one was available to take my call.
Can they do this? Creation is a nightmare in my opinion and Marriott do themselves no favours by being associated with them. Anyone else had similar problems?

cymruchris

You say you paid your balance in full - did your statement received show that you'd made the payment? Was it paid by direct debit or a manual payment? Was it on time (as in several days before the due date) or was it made ON the due date or later?

How long until you're back from holiday? It might be worth waiting until you come back to discuss it with them to find out the finer details of why they've done what they've done. 

Do you have other cards to keep you going until then?

lr1277

The following is based on things I have read on this forum and other forums.

A year or 2 ago, Barclaycard were cutting the limits of theie cards to 10-20% of their previous limit. My impression was that they wanted to reduce their credit exposure. I think I read that they should inform you in writing beforehand. I don't know how long you have been away, but there is possibly a letter waiting for you at home.But you need to some some research about whether Creation should have sent you a letter beforehand.

Also I think abot 18 months ago, Creation were closing the accounts of people who had used their card with a Curve card. A rumour at the time was that Creation wanted to get out of the UK market, but I have seen nothing since then to back that up.

On the forums found on the HeadforPoints site, there is a sub board under 'Other payment cards' called something like Creation bashing. I haven't read that thread but you may find useful information on it, or ask questions of other Creation users. But I suspect many/all those users had the IHG card. Also as I said many of the users had their accounts closed because of using Curve. Actually here is the link:

https://www.headforpoints.com/forums/topic/creation-bashing/ 

HTH

grumbler

sachalegge said:

Can they do this?

No, they can't. Check the T&C. I'm sure they say that they must give you a notice well in advance. If there was no any notice, then it's them who broke the agreement, not you.

zagfles

grumbler said:

sachalegge said:

Can they do this?

No, they can't. Check the T&C. I'm sure they say that they must give you a notice well in advance. If there was no any notice, then it's them who broke the agreement, not you.

Why do you think they have to give notice in advance? That would be ridiculous, if they're reducing the limit eg because they're worried about the customer's creditworthiness or ability to pay, they're not going to give them 30 days notice so the customer can max it out before reducing the limit  Look at any card's T&Cs and I'd wager you can't find any that state they must give notice of a reduction in credit limit.

grumbler

zagfles said:

grumbler said:

sachalegge said:

Can they do this?

No, they can't. Check the T&C. I'm sure they say that they must give you a notice well in advance. If there was no any notice, then it's them who broke the agreement, not you.

Why do you think they have to give notice in advance? That would be ridiculous, if they're reducing the limit eg because they're worried about the customer's creditworthiness or ability to pay, they're not going to give them 30 days notice so the customer can max it out before reducing the limit

They can block transactions taking the card over the new limit if they wish

Look at any card's T&Cs and I'd wager you can't find any that state they must give notice of a reduction in credit limit.

How much? I lay.

We’ll tell you what your credit limit is when we first open your account. We’ll then review it from time to time. If we change your credit limit, we’ll write to let you know.

https://www.barclaycard.co.uk/content/dam/barclaycard/documents/personal/existing-customers/terms-and-conditions-barclaycard-core-2020.pdf

Asghar

They'll write to let you know after they have changed the limit.

martinbainbridge1975

had a massive issue with creation, would never use them again, once my current car is sold.

they are massively incompetent, tried to mark my credit file with late payment markers that they caused due to inability to correctly input bank details

older_wiser

i had a similar issue just recently with nationwide they cut my limit by 70% upto my normal monthly usage they didn't inform me at all i could easily have attempted to buy something and either gone over the limit or been refused. i think its sensible for them to warn customers even if its via email then to go into more detail via a letter rather than no communication at all. i'm still awaiting a letter from them.

At the same time TSB have increased my limit and gave me thirty days notice and i was able to opt out if i didn't want it.

my decision was to stop using my nationwide card it won't stop them doing this in future but what else other than complaining can customers do. 

Alexd52

Maybe I have just been lucky, but Cap One have recently emailed me to say that they want to reduce my limit, but I have until 20th March to accept it, or to ring them before that time to retain my existing limit

older_wiser

Alexd52 said:

Maybe I have just been lucky, but Cap One have recently emailed me to say that they want to reduce my limit, but I have until 20th March to accept it, or to ring them before that time to retain my existing limit

i can see banks doing this more regular as its a way to lower their credit exposure if that person isn't using  Anywhere near the full credit limit each month. 

i think communication even if its the same day via email  is essential as it just leaves a bad taste for customers and it just confirms its still very much transactional from their perspective. which is how we should look at them. rather than owing a loyalty to any one bank.