Email - Your balance is over your credit limit

thenugget2018

Hi All

In September I received an email from a Credit Card Provider with the subject line: Your balance is over your credit limit.

After phoning them I found out that my balance was under my limit and that even with interest charges that month, it would still be under the limit.

Was not too happy about the email, as the body of the email stated that the fees and charges may cause me to exceed my balance.

So I complained, I was told that somebody would contact me, nobody did I just got a letter closing the compliant saying that everything was okay with the email and my balance was near my credit limit.

Any thoughts on what to do next.

Or are they allowed to do this?

eskbanker

On the basis of the extracts you've quoted, the subject does seem factually inaccurate, albeit the body sounds more appropriate, but what outcome do you expect from a complaint?

As with any other complaint to a financial institution, if you're dissatisfied with the response, you have the option to escalate to the ombudsman, but that would seem overkill here....

MorningcoffeeIV

thenugget2018 said:

Or are they allowed to do this?

To make a mistake? Yes.  Everyone is, fortunately.

It just needs to be rectified, which seems to have been done.

thenugget2018

To make a mistake? Yes.  Everyone is, fortunately. They would charge me for a mistake!

MorningcoffeeIV

Depends on the mistake. 

If you wrote to them saying you were sorry for going over your limit and you weren't, I reckon they'd let you off.

MrFrugalFever

If you haven't suffered anything other than a moment of anxiety and a short phone call to the lender then I am uncertain as to what else can be done? When you raised your formal complaint, did you ensure you made specific points about what you expect the outcome to be?

Cloth_of_Gold

Forget about it and move on. Honestly, it's not worth expending any more energy over.

dreaMer001

thenugget2018 said:

Hi All

In September I received an email from a Credit Card Provider with the subject line: Your balance is over your credit limit.

After phoning them I found out that my balance was under my limit and that even with interest charges that month, it would still be under the limit.

Was not too happy about the email, as the body of the email stated that the fees and charges may cause me to exceed my balance.

So I complained, I was told that somebody would contact me, nobody did I just got a letter closing the compliant saying that everything was okay with the email and my balance was near my credit limit.

Any thoughts on what to do next.

Or are they allowed to do this?

The subject line is cleary incorrect and causes unnecessary alarm and distress.

Credit card providers use template letters, and there is a strong possibility that another customer (maybe a forumite that frequent these forums) will receive the same incorrect (and alarming/distressing) letter. Simply 'moving on' allows this to continue.

The credit card provider needs to mention in the final response letter your rights to escalate the complaint to the financial ombudsman service (FOS), including how to do so, contact details of the ombudsman etc. Final response letters are accompanied with a leaflet or at least a link to an online version of the leaflet that contains all those requirements. Did any of this happen in your case?

Either way, it's best to escalate it to the FOS to prevent a recurrence (as your letter doesn't say what actions the credit card provider took to prevent it happening again).

If the credit card provider didn't mention your rights to escalate then also state this in your complaint to the FOS as it's against the rules (by Financial Conduct Authority) not to mention those rights.

born_again

Do you have a limit set to warn you when you get close to your limit?

retiredbanker1

OP If you are really fed up with your card issuer why not apply elsewhere and close this card down?