Egg credit limit decrease

normanmark

Do you regulary hit the limit of your card & pay it off?

If you're only using £2,500 of the card regularly then as a company they do not see a reason as to why you should have potentially more of their money when you do not use it.

Tough break, but they're well in their rights to cut the limit. Even without warning.

robin_banks

Quote : I got home yesterday eve to a letter from MBNA saying after a periodic review they have reviewed credit card accounts and feel a new limit of £2500 is more appropriate 'based on your current circumstances'!! To my horror I realised the credit card no they ref was my Virgin Card. Unquote

I think they are reffering to thier current circumstances, do you recall the egg credit card fiasco a few months ago ?

memebaby

i had exactly the same with mbna a couple of weeks ago a reduction from a limit of £17,500 (theyd just increased it) down to £11,500 and no real explanation. Id not bounced a payment or anything.

postit_2

memebaby wrote: »

i had exactly the same with mbna a couple of weeks ago a reduction from a limit of £17,500 (theyd just increased it) down to £11,500 and no real explanation. Id not bounced a payment or anything.

Sorry to hear we are both in same predicament....they must be doing this across the board but I didnt appreciate the tone of the letter 'this reflect our your current circumstances' load of rubbish given they have actually improved since I first took the card out!!

thanks for all advice etc

mike_wall15

I work for a credit card company and created some selection criteria on our customers to decide who should receive limit decreases. in short, we only reduce them if they aren't looking too good.

As mentioned, I could understand that in some of the cases above, if the account were to have a lower utilsation then a reduction in credit limit would not effect the customer. It would help the company in the event of fraud, because the fraudster would not be able to spend to the higher limit.

If the company had both types of selection, and only used the same letter template, then I can see how it would annoy well behaved customers.

Mike

londonuk2008

mike_wall15 wrote: »

I work for a credit card company and created some selection criteria on our customers to decide who should receive limit decreases. in short, we only reduce them if they aren't looking too good.


Mike

So wondering for example Barclaycard were dropping one minute then raising my limit the next , and increasing my APR , as they 'saw' me as a risk . Having no adverse information 'negative' on any of my CRA files and no missed payments etc. Even they admitted my record was 100% with them .

They cited my Experian file - whom they feed a score from and there system score....

So what brought them to there conculsion?

Incidently , I applied to another card company who gave me a limit three times Barclaycard's and half the APR. Obviously I closed Barclaycard , but still could'nt fathom out there logic.

mike_wall15

londonuk2008 wrote: »

So wondering for example Barclaycard were dropping one minute then raising my limit the next , and increasing my APR , as they 'saw' me as a risk . Having no adverse information 'negative' on any of my CRA files and no missed payments etc. Even they admitted my record was 100% with them .

They cited my Experian file - whom they feed a score from and there system score....

So what brought them to there conculsion?

Incidently , I applied to another card company who gave me a limit three times Barclaycard's and half the APR. Obviously I closed Barclaycard , but still could'nt fathom out there logic.

I'm only speaking from experience, but some thoughts:

- The limit increase criteria I apply would take into account a recent decrease, but the other way round there is nothing. If the account went bad then they'd be no hanging around.
If the limit decrease was part of a strategy on "good accounts", to reduce risk, then I think it's stupid of them to increase and then decrease.

- APR increases is a seperate selection at the company I work for. We don't look at whether they are good/bad. We increase APR's to increase income.

- We receive data every 2 months on our active accounts to see how they are doing elsewhere. We usually use this information is selection criteria for things like Cash Cheques, BT offers etc. We also keep the score which is used in limit increase/decrease criteria.

Mike

loveandlight

Posted by londonuk2008
Having no adverse information 'negative' on any of my CRA files and no missed payments etc. Even they admitted my record was 100% with them .

They cited my Experian file - whom they feed a score from and there system score....

So what brought them to there conculsion?

I had exactly this situation with the Co-Op. They slashed my credit limit a couple of months ago by eleven thousand pounds because I wouldn't take out one of their other credit cards nor would I take out a current account with them. I had a £12,500 limit for nearly 20 years so I had it through the last rescession as well. They also admitted my account had always been run impecabbly but they withdrew the limit because I wouldn't take out any more of their other products.
So no-body should agree to a review as they are looking to see what they can take away from you, not give you.
It's a self destruct step for them to take with good payers as I will never take out another card with them and have since taken my business elsehere and got the limit back again.

billysmum

Hi, i have a credit card with littlewoods with a credit limit of £1450. i receiced a letter today stating that my credit limit has been reduced to £260 , but i owe £1333. on this card so i will get charged for going over my credit limit. does anyone know if i can do anything about it apart from paying it off which i cant afford to do all at once.
regards Lisa

James_Brandon

billysmum wrote: »

Hi, i have a credit card with littlewoods with a credit limit of £1450. i receiced a letter today stating that my credit limit has been reduced to £260 , but i owe £1333. on this card so i will get charged for going over my credit limit. does anyone know if i can do anything about it apart from paying it off which i cant afford to do all at once.
regards Lisa

Have you phoned them to explain your situation?