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  • FIRST POST
    • SuzieSue
    • By SuzieSue 7th Mar 18, 10:30 AM
    • 3,831Posts
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    SuzieSue
    TSB lowers credit limit with one day's notice
    • #1
    • 7th Mar 18, 10:30 AM
    TSB lowers credit limit with one day's notice 7th Mar 18 at 10:30 AM
    How is this allowed? I received a letter today saying that my credit limit was being reduced tomorrow (8th March).

    The letter was dated 1 March, but either they delayed putting it in the post or there was a postal delay.

    But even without the delay, how is it acceptable to reduce someone's credit limit with 1 week's notice.

    it doesn't matter to me as I am stoozing and am on a 0% balance transfer deal with a balance below the new limit. But how do the regulators allow this for people who can't suddenly magic up money in a day?
Page 1
    • BoGoF
    • By BoGoF 7th Mar 18, 10:35 AM
    • 3,201 Posts
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    BoGoF
    • #2
    • 7th Mar 18, 10:35 AM
    • #2
    • 7th Mar 18, 10:35 AM
    Why would you need to magic up money in one day if you were below the new credit limit. I doubt very much they would reduce it below someones existing balance.
    • Oakdene
    • By Oakdene 7th Mar 18, 10:37 AM
    • 1,991 Posts
    • 7,336 Thanks
    Oakdene
    • #3
    • 7th Mar 18, 10:37 AM
    • #3
    • 7th Mar 18, 10:37 AM
    How is this allowed? I received a letter today saying that my credit limit was being reduced tomorrow (8th March).

    The letter was dated 1 March, but either they delayed putting it in the post or there was a postal delay.

    But even without the delay, how is it acceptable to reduce someone's credit limit with 1 week's notice.

    it doesn't matter to me as I am stoozing and am on a 0% balance transfer deal with a balance below the new limit. But how do the regulators allow this for people who can't suddenly magic up money in a day?
    Originally posted by SuzieSue
    Perhaps could have been to do with the little bit of cold weather we had last week? I didn't get any post Thursday, Friday or Saturday...
    Does dim arian 'da fi, ond breuddwydion 'da fi.

    Gwlad yr Ia & Columbia (no Welsh word for Columbia)
    • zx81
    • By zx81 7th Mar 18, 10:40 AM
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    zx81
    • #4
    • 7th Mar 18, 10:40 AM
    • #4
    • 7th Mar 18, 10:40 AM
    How is this allowed?
    Originally posted by SuzieSue
    How would it not be allowed? It's their money and they can choose to reduce your credit facility.
    • shortcrust
    • By shortcrust 7th Mar 18, 10:45 AM
    • 1,978 Posts
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    shortcrust
    • #5
    • 7th Mar 18, 10:45 AM
    • #5
    • 7th Mar 18, 10:45 AM
    They lowered mine a couple of years ago - also stoozing - without any notice. I went over my limit as a result. The charge was refunded and no markers left on my file.

    It's annoying - and I wouldn't have a TSB card again because of it - but they lower limits to stop you borrowing. Giving people a long notice period could be considered irresponsible.

    Given that they can close your account immediately for whatever reason they like this isn't really such a big deal. No one should be relying on the available credit on a card to the degree that something like this would cause a problem.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:09 AM
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    SuzieSue
    • #6
    • 7th Mar 18, 11:09 AM
    • #6
    • 7th Mar 18, 11:09 AM
    Why would you need to magic up money in one day if you were below the new credit limit. I doubt very much they would reduce it below someones existing balance.
    Originally posted by BoGoF
    I was below my limit but others might not be.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:10 AM
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    SuzieSue
    • #7
    • 7th Mar 18, 11:10 AM
    • #7
    • 7th Mar 18, 11:10 AM
    Perhaps could have been to do with the little bit of cold weather we had last week? I didn't get any post Thursday, Friday or Saturday...
    Originally posted by Oakdene
    But even so, people should get more than a week's notice.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:11 AM
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    SuzieSue
    • #8
    • 7th Mar 18, 11:11 AM
    • #8
    • 7th Mar 18, 11:11 AM
    How would it not be allowed? It's their money and they can choose to reduce your credit facility.
    Originally posted by zx81
    Because vulnerable borrowers need to be protected. They should be required to give at least 14 days notice and preferably 30 days.
    • zx81
    • By zx81 7th Mar 18, 11:15 AM
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    zx81
    • #9
    • 7th Mar 18, 11:15 AM
    • #9
    • 7th Mar 18, 11:15 AM
    But how are you a vulnerable borrower, as you are not using the credit they have removed?

    It's not as if they are asking anyone to pay back a huge amount of borrowing.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:15 AM
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    SuzieSue
    They lowered mine a couple of years ago - also stoozing - without any notice. I went over my limit as a result. The charge was refunded and no markers left on my file.

    It's annoying - and I wouldn't have a TSB card again because of it - but they lower limits to stop you borrowing. Giving people a long notice period could be considered irresponsible.

    Given that they can close your account immediately for whatever reason they like this isn't really such a big deal. No one should be relying on the available credit on a card to the degree that something like this would cause a problem.
    Originally posted by shortcrust
    Did you lose your promotional rate?

    It is irresponsible to give people one day's notice.

    No, no-one should and I have never paid a penny's interest on a credit card but some people are struggling through not fault of their own (unable to work due to cancer etc) so this should not be allowed to happen.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:18 AM
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    SuzieSue
    But how are you a vulnerable borrower, as you are not using the credit they have removed?

    It's not as if they are asking anyone to pay back a huge amount of borrowing.
    Originally posted by zx81
    I am not vulnerable. I am worried about people who are.

    They don't know that I could pay my credit card off several times over today but they don't care if I couldn't.
    • zx81
    • By zx81 7th Mar 18, 11:21 AM
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    zx81
    I still don't understand what vulnerable people you are talking about.

    An unused amount of credit had been removed. No one has been asked to pay off the debt today or several times over. Nothing has changed apart from not being able to run up further debt.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:25 AM
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    SuzieSue
    I still don't understand what vulnerable people you are talking about.

    An unused amount of credit had been removed. No one has been asked to pay off the debt today or several times over. Nothing has changed apart from not being able to run up further debt.
    Originally posted by zx81
    I am talking about someone who has been unable to work because they are ill. They used their credit card to buy some food yesterday expecting not to have to pay it back until they get their statement but now have to pay it back today as the purchase took them over their new limit. If they don't pay it back today, they will also lose their 0% promotional rate.

    Do they really need the additional stress? Why can't TSB give reasonable notice?
    Last edited by SuzieSue; 07-03-2018 at 1:23 PM.
    • PeacefulWaters
    • By PeacefulWaters 7th Mar 18, 11:28 AM
    • 8,318 Posts
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    PeacefulWaters
    Have you had recent increases in credit availability elsewhere?
    • PeacefulWaters
    • By PeacefulWaters 7th Mar 18, 11:29 AM
    • 8,318 Posts
    • 10,656 Thanks
    PeacefulWaters
    I am talking about someone who has been unable to work because they have just been diagnosed with cancer. They used their credit card to buy some food yesterday expecting not to have to pay it back until they get their statement but now have to pay it back today as the purchase took them over their new limit. If they don't pay it back today, they will also lose their 0% promotional rate.

    Do they really need the additional stress? Why can't TSB give reasonable notice?
    Originally posted by SuzieSue
    I'm sure they'll look at things on a case by case basis.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:32 AM
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    SuzieSue
    Have you had recent increases in credit availability elsewhere?
    Originally posted by PeacefulWaters
    Yes, I have been stoozing for the last 6 years and now have total credit card debts over my annual income. So I understand why they have reduced my credit limit and I am not complaining about that. That is their prerogative.

    I have complaining about the notice that they are legally required to give.
    Last edited by SuzieSue; 07-03-2018 at 11:36 AM.
    • Candyapple
    • By Candyapple 7th Mar 18, 11:33 AM
    • 2,897 Posts
    • 2,233 Thanks
    Candyapple
    They lowered mine a couple of years ago - also stoozing - without any notice. I went over my limit as a result. The charge was refunded and no markers left on my file.

    It's annoying - and I wouldn't have a TSB card again because of it - but they lower limits to stop you borrowing. Giving people a long notice period could be considered irresponsible.

    Given that they can close your account immediately for whatever reason they like this isn't really such a big deal. No one should be relying on the available credit on a card to the degree that something like this would cause a problem.
    Originally posted by shortcrust

    Ditto. Luckily I had a £50 buffer between the stoozing balance and the new limit. I ended up clearing it the next day and closed the account.

    At the time I remember someone else started a thread about it and there were at least 2 other people who had had the same thing happen to them. So that makes at least 6 of us who it has happened to.

    Suzie - nothing you can do about it, all you can do is vote with your feet and close your account and don't take anything out with them again.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:34 AM
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    SuzieSue
    I'm sure they'll look at things on a case by case basis.
    Originally posted by PeacefulWaters
    But people don't need the stress of raising a complaint.
    • Gary_Dexter
    • By Gary_Dexter 7th Mar 18, 11:36 AM
    • 1,288 Posts
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    Gary_Dexter
    Then don't complain and just accept that they've lowered the limit
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:38 AM
    • 3,831 Posts
    • 4,046 Thanks
    SuzieSue
    Then don't complain and just accept that they've lowered the limit
    Originally posted by Gary_Dexter
    Why not? They notice they gave is disgusting and people need to know how they treat their customers.
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