TSB lowers credit limit with one day's notice
Comments
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The reason for the lack of notice is very simple and obvious.
If they have reduced the credit limit then something has caused them to do it. Most probably adverse information on the credit report, adverse conduct of the account or an increase in debt levels to the point where they have concerns as to your ability to repay.
If under such circumstances notice were to be given that the credit limit was to be reduced, what do you think individuals in such a situation would probably do?
There is no legal requirement to give notice of such a reduction in credit limit and many good reasons not to.
Well, most people would stop spending to ensure that they do not go over their new limit.
If someone is in severe financial straits then they are likely to be at the old limit, so giving them no notice won't make any difference. All it does is ensure that they pay penalties and lose any promotional rates as they can't find the money they need in a day.
So they are more likely to default on their loan. How does that help anyone?0 -
TSB are the only people to reduce my credit limit. I had a card on 27 months 0% then about a year later took two further money transfers of over £10k each. Around 3 months after that TSB cut my limit to just above my balance.
I'm quite pragmatic about it. I'd had a good run, was only paying the minimum and they had given me interest free borrowing for over 2 years. As I wasn't using the card the chance of me exceeding the new limit between them sending the letter and me receiving it was small. Overall I was benefitting considerably more from the relationship than they were. My greatly increased borrowing put their money at risk and they took steps to protect it. It's now repaid, but they're still giving me 3% on £1500 of someone else's money.
That's all fine. I have no problem with any lender reducing my credit limit. My problem is them giving me only one day's notice which could cause unnecessary financial difficulties if I could not find the money immediately to pay off the excess balance.0 -
If people are caught out going over their credit limits etc it helps finance the cc company, which in turn helps others to take advantage of promotional rates0
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lookstraightahead wrote: »If people are caught out going over their credit limits etc it helps finance the cc company,
Which is exactly why lenders should not be alllowed to catch people out by giving them only a day's notice. It should be at least 14 days.
I would prefer it if cc companies did not allow people like me to stooze as long as they lowered interest rates and penalties for people who genuinely needed credit. If they were forced not to catch people out then they wouldn't give people like me 0% deals which would be much fairer for everyone.
Similarly, I think everyone should pay bank charges even if they are in credit so that people who need overdrafts don't have to pay extortionate rates.0 -
So you are happy to be more ethical if they are. You could always start first?
Have you ever heard the story of the man who got bored of eating cheese sandwiches? He really did not like them, and every day he moaned to his colleague .. cheese sandwiches again!!!! His colleague said: look, mate, why not ask your wife to make you something different? To which he replied : I make my own!
You are against a system that you are part of.0 -
lookstraightahead wrote: »So you are happy to be more ethical if they are. You could always start first?
Yes, I could but would you really turn down free money (and a lot of it)? I do give more money to charity than I would otherwise because of the free money I get so someone else does benefit.
If I stopped stoozing, cc companies would still behave unethically. They need to be forced to behave ethically and then they won't offer me free money.
I could voluntarily pay bank charges but unless everyone else did too, banks would not reduce their overdraft charges.0 -
I am giving up now and going to watch some more comedy.0
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lookstraightahead wrote: »I am giving up now and going to watch some more comedy.
So I take it that you would turn down free money if someone gave it to you?0 -
No, they are struggling on the whole because of bad choices. To be struggling in modern Britain if you are able bodied and mentally well requires a real effort.I wish. I am at least 20 years older. But I care about Millennials, a lot of whom are struggling financially compared to me simply because they were born at the wrong time.0 -
You are paranoid. They do it in the hope that you stay with them after the promotional rate ends.They allow me to take advantage of the promotional rates in the hope that I will make a mistake and pay them interest or penalties. They aren't doing it out of the kindness of their hearts.
You genuinely seem to not understand the terms that you signed, or you just want an argument. In either case, ai’m out. Your complaint is ridiculous, you come across as entitled and whiney.0
This discussion has been closed.
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