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  • FIRST POST
    • SuzieSue
    • By SuzieSue 7th Mar 18, 10:30 AM
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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 3
    • Gary_Dexter
    • By Gary_Dexter 7th Mar 18, 1:55 PM
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    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.
    Originally posted by SuzieSue
    You're dodging around the question and avoiding to answer correctly.

    You agreed to the T's and C's when you signed up for the card.

    The T's and C's must have been proofread and gone through the regulators to be approved and published.

    So I'll ask again - who is at fault here?
    • bengal-stripe
    • By bengal-stripe 7th Mar 18, 2:00 PM
    • 3,192 Posts
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    bengal-stripe
    Why can't TSB give reasonable notice?
    Originally posted by SuzieSue
    Typical case for reducing the limit would the CC feels uneasy about the risk with a certain customer and thinks it would be prudent to reduce exposure to potential bad debt by reducing their limit.

    If the CC was to advise weeks beforehand of that pending reduction, the customer might just run-up their card to the old limit (or even above), thinking: 'Let them whistle for their money!'

    So the reduction of the limit wouldn't have had any benefit for the card.
    • lookstraightahead
    • By lookstraightahead 7th Mar 18, 2:50 PM
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    lookstraightahead
    Credit card companies are not there because they care. They are there to make as much profit as possible by offering a service people will use. That!!!8217;s why no one should rely on credit (I know only too well how this affected my life for years and years). This is no different to a butcher offering you sausages at one price one day, and a different price the next. In fact, they can stop selling sausages whenever they like and move their shop to a different location. Best not to rely on eating sausages ...
    • SuzieSue
    • By SuzieSue 7th Mar 18, 3:13 PM
    • 3,822 Posts
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    SuzieSue
    Credit card companies are not there because they care. They are there to make as much profit as possible by offering a service people will use. That!!!8217;s why no one should rely on credit (I know only too well how this affected my life for years and years). This is no different to a butcher offering you sausages at one price one day, and a different price the next. In fact, they can stop selling sausages whenever they like and move their shop to a different location. Best not to rely on eating sausages ...
    Originally posted by lookstraightahead
    No, it isn't. There is no regulator for butchers as people don't need protecting from butchers.
    • nic_c
    • By nic_c 7th Mar 18, 3:14 PM
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    nic_c
    So TSB have lowered the limit to above the current balance, so requirement to pay back more than you would normally, just a company limiting exposure.

    Giving too much notice would likely result in people trying to use up their credit to stop it being lowered. As to vulnerability, surely not reducing it quickly, would be more harmful since it would give people more time to use the credit up and so get into more debt? Why this a factor in this, for an account on 0% interest and being kept up to date (assuming no missed payments). I'm sure TSB have a set of guidelines on when to lower it unilaterally, often when it is seen that the debtor has opened up a lot of new credit.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 3:15 PM
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    SuzieSue
    Typical case for reducing the limit would the CC feels uneasy about the risk with a certain customer and thinks it would be prudent to reduce exposure to potential bad debt by reducing their limit.

    If the CC was to advise weeks beforehand of that pending reduction, the customer might just run-up their card to the old limit (or even above), thinking: 'Let them whistle for their money!'

    So the reduction of the limit wouldn't have had any benefit for the card.
    Originally posted by bengal-stripe
    Exactly. It is for the lender's benefit. They decided to lend the money to make money so they need to take the risk.
    • nic_c
    • By nic_c 7th Mar 18, 3:15 PM
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    nic_c
    No, it isn't. There is no regulator for butchers as people don't need protecting from butchers.
    Originally posted by SuzieSue
    Trading Standards?
    • SuzieSue
    • By SuzieSue 7th Mar 18, 3:33 PM
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    SuzieSue
    Trading Standards?
    Originally posted by nic_c
    Trading Standards does not tell butchers how much they can charge their customers. The financial regulators can set limits on what lenders can charge as they have done with pay day loans because vulnerable people need protecting.
    Last edited by SuzieSue; 07-03-2018 at 3:37 PM.
    • lookstraightahead
    • By lookstraightahead 7th Mar 18, 3:44 PM
    • 161 Posts
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    lookstraightahead
    But they!!!8217;re not breaking any of the terms and conditions.
    • Gary_Dexter
    • By Gary_Dexter 7th Mar 18, 3:48 PM
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    Gary_Dexter
    But they!!!8217;re not breaking any of the terms and conditions.
    Originally posted by lookstraightahead
    Exactly - but people like a moan and usually hope to get a bit of compo out of it
    • Nebulous2
    • By Nebulous2 7th Mar 18, 3:52 PM
    • 1,871 Posts
    • 1,126 Thanks
    Nebulous2
    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.
    • nic_c
    • By nic_c 7th Mar 18, 3:53 PM
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    nic_c
    Trading Standards does not tell butchers how much they can charge their customers. The financial regulators can set limits on what lenders can charge as they have done with pay day loans because vulnerable people need protecting.
    Originally posted by SuzieSue
    But financial regulators don't tell them what credit limit to issue or how long to give before lowering the limit, which would be the comparison.
    A butcher charging for 500g of sausage but then only giving 450g because they've wrapped it in 50g of paper, or because they described them as 100% pork but that was before all the additives and water injected to keep the price low. That would be more akin to stepping in to payday loans
    • Ben8282
    • By Ben8282 7th Mar 18, 7:34 PM
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    Ben8282
    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.
    • John-K
    • By John-K 7th Mar 18, 7:46 PM
    • 654 Posts
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    John-K
    I was below my limit but others might not be.
    Originally posted by SuzieSue
    What makes you think that they reduce people’s limit below their balance, though? There’s nothing in your story to even suggest that this happens.
    • John-K
    • By John-K 7th Mar 18, 7:48 PM
    • 654 Posts
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    John-K
    Why not? They notice they gave is disgusting and people need to know how they treat their customers.
    Originally posted by SuzieSue
    Oh dear.

    Read the stories on here about how the customers treat the lenders. You yourself have been taking advantage of promotional rates to extract money from them, it seems, yet bleat when they do something within the terms to which you agreed.

    Are you a millennial by any chance?
    • SuzieSue
    • By SuzieSue 7th Mar 18, 9:04 PM
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    SuzieSue

    Are you a millennial by any chance?
    Originally posted by John-K
    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.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 9:08 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    Read the stories on here about how the customers treat the lenders. You yourself have been taking advantage of promotional rates to extract money from them, it seems, yet bleat when they do something within the terms to which you agreed.
    Originally posted by John-K
    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.
    • SuzieSue
    • By SuzieSue 7th Mar 18, 9:19 PM
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    SuzieSue
    What makes you think that they reduce people’s limit below their balance, though? There’s nothing in your story to even suggest that this happens.
    Originally posted by John-K
    See post #5.
    • lookstraightahead
    • By lookstraightahead 7th Mar 18, 9:24 PM
    • 161 Posts
    • 169 Thanks
    lookstraightahead
    If you!!!8217;re so against credit card companies why do you help finance them
    • SuzieSue
    • By SuzieSue 7th Mar 18, 9:26 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    But financial regulators don't tell them what credit limit to issue or how long to give before lowering the limit, which would be the comparison.
    A butcher charging for 500g of sausage but then only giving 450g because they've wrapped it in 50g of paper, or because they described them as 100% pork but that was before all the additives and water injected to keep the price low. That would be more akin to stepping in to payday loans
    Originally posted by nic_c
    The example about butcher given above wasn't about misleading descriptions, it was about price. A butcher can charge what he wants with no restriction at all. Lenders cannot.
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