John Lewis - 'Helping' by reducing credit limit
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mickchickuk
Posts: 1 Newbie
in Credit cards
I have held a John Lewis Partnership credit card for many years. I use it only for John Lewis/Waitrose purchases and never once defaulted, never once even late, and I always pay off my card in full every month. Today I received a letter from them, informing me that my £9000 credit limit is henceforth being reduced to £3600 "to help you better manage your card".
Clumsily worded perhaps, as this is the type of patronising phrasing that is used for card holders who have problems paying. Yet the letter goes on to say that a review of my account shows that I do not fully utilise my limit. So that''s all right then. It is true my bill is usually around £500 a month, but in the past I've used it for a couple of big ticket items from John Lewis, each around £6000. And as my house refurbishment is coming up, it would be useful to keep my £9000 limnit, even though, as always, the balance would be fully repaid each month.
So I called the card's help line to ask for my card limit back. "For us to consider your request, you will have to reapply for your card", I was told. "Start from scratch, give us details of your finances and then we will make a decision as to your creditworthiness".
I told them that it was sounding suspiciously like I was being considered a credit risk for some reason, so I wouldn't be applying as a new customer, and in fact I will not be using the card again. "Suit yourself", was their attitude.
Have I missed something here? How is reducing my credit limit helping me to manage my already very well managed finances? John Lewis may not regard me as their best customer, seeing as I have never had to pay a penny in interest or default payments in all the time I have had the card. I fact I have cost them money, what with the vouchers and cashbacks and free coffee and cakes they have given me as a cardholder.
What's going on here?
Clumsily worded perhaps, as this is the type of patronising phrasing that is used for card holders who have problems paying. Yet the letter goes on to say that a review of my account shows that I do not fully utilise my limit. So that''s all right then. It is true my bill is usually around £500 a month, but in the past I've used it for a couple of big ticket items from John Lewis, each around £6000. And as my house refurbishment is coming up, it would be useful to keep my £9000 limnit, even though, as always, the balance would be fully repaid each month.
So I called the card's help line to ask for my card limit back. "For us to consider your request, you will have to reapply for your card", I was told. "Start from scratch, give us details of your finances and then we will make a decision as to your creditworthiness".
I told them that it was sounding suspiciously like I was being considered a credit risk for some reason, so I wouldn't be applying as a new customer, and in fact I will not be using the card again. "Suit yourself", was their attitude.
Have I missed something here? How is reducing my credit limit helping me to manage my already very well managed finances? John Lewis may not regard me as their best customer, seeing as I have never had to pay a penny in interest or default payments in all the time I have had the card. I fact I have cost them money, what with the vouchers and cashbacks and free coffee and cakes they have given me as a cardholder.
What's going on here?
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Comments
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I also have a John Lewis Partnership Card. I also usually only use it for a fairly small amount (typically about £200 pm). I also occasionally buy large items on it. I also pay it off in full every month, and have never paid a penny in interest.
This morning, when I logged on to my account, I was presented with a message inviting me to accept an increase in my credit limit. I didn't yet know what they were increasing it to, because I haven't yet received their offer letter, but I accepted it. More fool me: that turns out to have been a silly thing to do. They've reduced mine to £3,500.
In practice, it doesn't matter to me - I use my AmEx card (credit limit £14,000) for most things, and only use the Partnership Card for John Lewis, Waitrose and places that don't accept AmEx. But it's still irritating.
Is it worth your while applying for another credit card? The AmEx Platinum Cashback Everyday Credit Card, which I have, is a pretty good deal. My initial credit limit was relatively low (£4,000), but they've increased it twice to its present level. The first increase (to £6,000) came within about three months, and the second a year later.0 -
Don't read so much into it!mickchickuk wrote: »So I called the card's help line to ask for my card limit back. "For us to consider your request, you will have to reapply for your card", I was told. "Start from scratch, give us details of your finances and then we will make a decision as to your creditworthiness".
I told them that it was sounding suspiciously like I was being considered a credit risk for some reason, so I wouldn't be applying as a new customer, and in fact I will not be using the card again. "Suit yourself", was their attitude.
Have I missed something here? How is reducing my credit limit helping me to manage my already very well managed finances?
The better management stuff is just marketing spin - they've simply exercised their right to change your limit for their own reasons and prefer to dress this up as something that'll help you.
They're unlikely to be seeing you as a credit risk as such but are just stating the fact that limit increases entail credit checks, i.e. they're unable or unwilling to treat that as reversing a decision but will handle it as a new request.
No harm in checking your credit files though, just in case there's anything visible there that could have spooked them....0 -
The better management stuff is just marketing spin - they've simply exercised their right to change your limit for their own reasons and prefer to dress this up as something that'll help you.
I can't speak for eskbanker, but if my letter (when I get it) says the same, I'll be making a formal complaint of it. It's deeply offensive to suggest that I need any help with managing any of my finances: I do a very good job of it on my own.
And there's nothing in my credit report that could have, as you put it, spooked them. I've had a perfect score for as long as I've been checking them, and there's nothing untoward showing.0 -
John Lewis as a company are limited in how much they can lend.
Lets say their pot is £1 million to lend across 10000 customers. They could go with £100 limit to each customer or what they do do is assess the credit worthiness of the individual some will get a £300 limit others get a £20 limit.
So you had a £9000 limit. Yet admit you rarely spend over £500 per month. This leaves john lewis with £8500 they have set aside for you to spend which you do not spend. Thus they dont make money on that £8500 (hopefully they dont make any money off you but different story.)
Put simply youre not a good customer for them. Theyre not making money off you and would prefer to offer that credit to someone they can make money on.0 -
blue.peter wrote: »I can't speak for eskbanker, but if my letter (when I get it) says the same, I'll be making a formal complaint of it. It's deeply offensive to suggest that I need any help with managing any of my finances: I do a very good job of it on my own.
And there's nothing in my credit report that could have, as you put it, spooked them. I've had a perfect score for as long as I've been checking them, and there's nothing untoward showing.
If you find that “offensive” then you need to find a hobby.
Also your “perfect score” has no influence on any lending decisions.
They are well within their rights to reduce limits as they see fit too, and without reason as well.0 -
blue.peter wrote: »I've had a perfect score for as long as I've been checking them
You really haven't.0 -
They are well within their rights to reduce limits as they see fit too, and without reason as well.
Yes, I know they can, and have not suggested otherwise. That's not the point. What's wrong is dressing up a reduction as helping when it isn't, and when it should be clear that no help is needed.
It's also dishonest of them to say that they're offering an increase when they're actually doing the opposite.0 -
OK. So the for the OP.
How many other cards and what amount of available credit do you have?
Large balances that are unused are a fraud risk.Life in the slow lane0 -
blue.peter wrote: »And there's nothing in my credit report that could have, as you put it, spooked them. I've had a perfect score for as long as I've been checking them, and there's nothing untoward showing.
Ah the good ol'e perfect (read figure that means nothing) credit score.
Each provider uses their own scoring when assessing credit limits.
You can complain, that is your right. But I would expect to get a reply that is our procedure and it will not change.Life in the slow lane0 -
blue.peter
I agree with your opinion that language "dressing up" something considered unpalatable is wrong. However, it's nothing new, and it won't go away just because we believe in calling a spade "a spade".
People used to be "made redundant", but for a long time now the phrase has been "letting them go". There's no "letting" (= "allowing") in it when it's compulsory.
For even longer we have had euphemisms for anything to do with sex or excretion (some more pleasant than others!) and I don't see this changing any time soon.
It's a trait of being human - amplified by marketing, of course. But surely there's no point in getting angry about it! We all understand the phenomenon (I hope) - just leave it and pass on to something more interesting.0
This discussion has been closed.
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