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  • FIRST POST
    • SuzieSue
    • By SuzieSue 7th Mar 18, 10:30 AM
    • 3,822Posts
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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 2
    • PeacefulWaters
    • By PeacefulWaters 7th Mar 18, 11:42 AM
    • 8,320 Posts
    • 10,638 Thanks
    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.
    Originally posted by SuzieSue
    So a disadvantaged cancer sufferer in a similar position could choose to unwind their stooze, reduce their savings and credit utilisation and buy a chicken kiev for tea without needing to even ring the card company.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:47 AM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    So a disadvantaged cancer sufferer in a similar position could choose to unwind their stooze, reduce their savings and credit utilisation and buy a chicken kiev for tea without needing to even ring the card company.
    Originally posted by PeacefulWaters
    Yes, as long as they haven't already used up their savings because they haven't been able to work due to their illnesss.
    Last edited by SuzieSue; 07-03-2018 at 1:23 PM.
    • PeacefulWaters
    • By PeacefulWaters 7th Mar 18, 11:52 AM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    Yes, as long as they haven't already used up their savings because they haven't been able to work due to the cancer.
    Originally posted by SuzieSue
    MacMillan are excellent at helping cancer sufferers through the benefits system at decent speed.
    • BoGoF
    • By BoGoF 7th Mar 18, 11:53 AM
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    • 2,424 Thanks
    BoGoF
    I think you are missing the point of a company reducing a credit limit - they no longer want to offer you further credit. So giving somebody more notice gives that person more time to max that card out.

    Believe it or not credit companies are not there to ensure people are able to buy food.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 11:56 AM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    MacMillan are excellent at helping cancer sufferers through the benefits system at decent speed.
    Originally posted by PeacefulWaters
    The benefit system does not pay mortgages and even the excellent MacMillan can't change that.
    • PeacefulWaters
    • By PeacefulWaters 7th Mar 18, 12:00 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    The benefit system does not pay mortgages and even the excellent MacMillan can't change that.
    Originally posted by SuzieSue
    https://www.gov.uk/support-for-mortgage-interest
    • Gary_Dexter
    • By Gary_Dexter 7th Mar 18, 12:06 PM
    • 1,152 Posts
    • 644 Thanks
    Gary_Dexter
    Read your T's and C's:

    19. CHANGES
    19.1 We may change charges (or introduce new charges), minimum payment
    amounts, statement dates, payment dates and your credit limit.

    These changes may be personal to you and based on a number of factors such
    as increased or decreased credit risk (for example, there will be an increased
    credit risk if you have regularly failed to comply with important obligations to us)
    and the way you use your account (for example, we may reduce the number of
    days between the statement date and the payment date if you always pay off
    your balance in full).
    19.2 We may also make other changes to the conditions to:
    !!!8226; make a change to your benefit, or not affecting your rights or obligations;
    !!!8226; meet legal or regulatory requirements;
    !!!8226; correct errors, omissions, inaccuracies or ambiguities;
    !!!8226; reflect changes to the structure of our group;
    !!!8226; cover service differences for new computer or other processes;
    !!!8226; bring us into line with market practice; or
    !!!8226; reflect changes in customer demand or requirements.
    19.3 Other than a change in interest rates or a change to your credit limit, we will
    give you at least one month!!!8217;s notice of any other change in these conditions
    . If a
    change in these conditions (other than a change in interest rates or a change to
    your credit limit) is to your disadvantage you!can:
    !!!8226; write to us within 60 days to close your account !!!8211; the change in conditions will
    not disadvantage you in the meantime; or
    !!!8226; continue this agreement unchanged if you tell us before the change takes effect,
    return Cards and Cheques, and make no new Transactions.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 12:09 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    Great, yes, you can get a LOAN for the INTEREST on your mortgage up to a certain limit of interest rate and loan amount.

    You still need to use your savings for the capital and for the excess interest payments
    • PeacefulWaters
    • By PeacefulWaters 7th Mar 18, 12:17 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    Great, yes, you can get a LOAN for the INTEREST on your mortgage up to a certain limit of interest rate and loan amount.

    You still need to use your savings for the capital and for the excess interest payments
    Originally posted by SuzieSue
    You're being quite dogmatic about your circumstances matching those of the cancer sufferer.

    Your change to credit limit has left you with savings and options regardless of the notice given.

    Many banks have excellent support structures in place for cancer sufferers (and those with other illnesses) and while they may involve sticking your hand up and sharing news of misfortune with a supposedly faceless finance giant that's not an unreasonable thing to do if finances are stretched.
    • RG2015
    • By RG2015 7th Mar 18, 12:33 PM
    • 1,219 Posts
    • 710 Thanks
    RG2015
    The digression on this thread has become rather uncomfortable. I am sure that posters mean well but the introduction of very serious illness here is hypothetical and unnecessary.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 12:55 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    The digression on this thread has become rather uncomfortable. I am sure that posters mean well but the introduction of very serious illness here is hypothetical and unnecessary.
    Originally posted by RG2015
    It happened to my husband (he has a degenerative condition and had to give up work) and he was under a lot of stress before I met him because of the way he was treated by credit card companies. His mortgage lender helped a lot but the credit card companies did not.
    Last edited by SuzieSue; 07-03-2018 at 12:59 PM.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 1:01 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    Read your T's and C's:

    19. CHANGES
    19.1 We may change charges (or introduce new charges), minimum payment
    amounts, statement dates, payment dates and your credit limit.

    These changes may be personal to you and based on a number of factors such
    as increased or decreased credit risk (for example, there will be an increased
    credit risk if you have regularly failed to comply with important obligations to us)
    and the way you use your account (for example, we may reduce the number of
    days between the statement date and the payment date if you always pay off
    your balance in full).
    19.2 We may also make other changes to the conditions to:
    !!!8226; make a change to your benefit, or not affecting your rights or obligations;
    !!!8226; meet legal or regulatory requirements;
    !!!8226; correct errors, omissions, inaccuracies or ambiguities;
    !!!8226; reflect changes to the structure of our group;
    !!!8226; cover service differences for new computer or other processes;
    !!!8226; bring us into line with market practice; or
    !!!8226; reflect changes in customer demand or requirements.
    19.3 Other than a change in interest rates or a change to your credit limit, we will
    give you at least one month!!!8217;s notice of any other change in these conditions
    . If a
    change in these conditions (other than a change in interest rates or a change to
    your credit limit) is to your disadvantage you!can:
    !!!8226; write to us within 60 days to close your account !!!8211; the change in conditions will
    not disadvantage you in the meantime; or
    !!!8226; continue this agreement unchanged if you tell us before the change takes effect,
    return Cards and Cheques, and make no new Transactions.
    Originally posted by Gary_Dexter
    Those Ts&Cs are unfair and should not be allowed. That is my point. We have regulators to protect the consumer and they are not doing their job.
    • BoGoF
    • By BoGoF 7th Mar 18, 1:04 PM
    • 3,138 Posts
    • 2,424 Thanks
    BoGoF
    Says you, one person.....
    • SuzieSue
    • By SuzieSue 7th Mar 18, 1:04 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    Says you, one person.....
    Originally posted by BoGoF
    Yes, I am one person. Does that invalidate my opinion?
    • BoGoF
    • By BoGoF 7th Mar 18, 1:08 PM
    • 3,138 Posts
    • 2,424 Thanks
    BoGoF
    So the law should change because you say so.

    Its pretty obvious why they give short notice when reducing credit limits.
    • Gary_Dexter
    • By Gary_Dexter 7th Mar 18, 1:11 PM
    • 1,152 Posts
    • 644 Thanks
    Gary_Dexter
    Those Ts&Cs are unfair and should not be allowed. That is my point. We have regulators to protect the consumer and they are not doing their job.
    Originally posted by SuzieSue
    Why?

    You had the option to not agree with them before taking the card out.

    So, whose fault is this really?
    • RG2015
    • By RG2015 7th Mar 18, 1:11 PM
    • 1,219 Posts
    • 710 Thanks
    RG2015
    It happened to my husband (he has a degenerative condition and had to give up work) and he was under a lot of stress before I met him because of the way he was treated by credit card companies. His mortgage lender helped a lot but the credit card companies did not.
    Originally posted by SuzieSue
    Hi SuzieSue,

    Apologies for assuming that this was hypothetical.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 1:22 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    Hi SuzieSue,

    Apologies for assuming that this was hypothetical.
    Originally posted by RG2015
    No problem, but I do see what you mean and it might be difficult reading for some so I will edit my posts. I shouldn't be so blase about saying the word.
    Last edited by SuzieSue; 07-03-2018 at 1:26 PM.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 1:32 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    Why?

    You had the option to not agree with them before taking the card out.

    So, whose fault is this really?
    Originally posted by Gary_Dexter
    It is the fault of the regulators. That is what they are there for - to protect the vulnerable consumer (not me, I am not vulnerable as I am taking advantage of the system because I am allowed to)

    If we don't need to protection then there shouldn't be any regulators but it has been decided that we do, so they should not allow credit limits to be lowered with virtually no notice.
    • BoGoF
    • By BoGoF 7th Mar 18, 1:54 PM
    • 3,138 Posts
    • 2,424 Thanks
    BoGoF
    So to protect customers you are saying the credit card companies should allow customers to run up more debt in the notice period, because that is what would happen.
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