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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 5
    • PeacefulWaters
    • By PeacefulWaters 8th Mar 18, 2:45 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    Yes, that is what surprised me. How can it be reasonable to lower someone's limit with 1 day's notice and expect them to pay any excess back immediately?

    The new limit was about 4% over my current balance. I'm not going to dispute that as it doesn't have a negative effect on me.
    Originally posted by SuzieSue
    They've sent a one size fits all letter to account for very recent transactions.

    You're remaining offended by something that hasn't impacted you to any degree and a process that is rightly designed to reign in new spending, most likely where new lines of credit have been recently opened up that TSB have become aware of from credit reporting.
    • SuzieSue
    • By SuzieSue 8th Mar 18, 2:52 PM
    • 3,822 Posts
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    SuzieSue
    You're remaining offended by something that hasn't impacted you to any degree
    Originally posted by PeacefulWaters
    I am not offended at all. I have made it clear throughout that I am not surprised that they lowered my limit as my total credit card debt now exceeds my annual salary.

    If I were TSB I would also lower my credit limit. But I would also give at least 2 weeks notice to take account of any postal delays. I would also send a text as soon as I had decided to lower it.
    • nic_c
    • By nic_c 8th Mar 18, 3:21 PM
    • 1,456 Posts
    • 799 Thanks
    nic_c
    Yes, that is what surprised me. How can it be reasonable to lower someone's limit with 1 day's notice and expect them to pay any excess back immediately?

    The new limit was about 4% over my current balance. I'm not going to dispute that as it doesn't have a negative effect on me.
    Originally posted by SuzieSue
    Because its a credit card and they can - as someone says it isn't like overdrafts where they can ask for immediate repayment. You sign up to T&C, but most don't read them. The HSBC had a negative effect on me as I was getting charged interest on the fee which wouldn't have been clear until the BT was. You can always take your business elsewhere and BT to another card or simply repay it off as you are stoozing. TSB won't have done something different that other CC companies, but it is an eye opener.
    • lookstraightahead
    • By lookstraightahead 8th Mar 18, 3:44 PM
    • 161 Posts
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    lookstraightahead
    What will you do if you lose your job if your credit card debt is more than your annual income? Are you a year in advance of yourself?
    • lookstraightahead
    • By lookstraightahead 8th Mar 18, 3:45 PM
    • 161 Posts
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    lookstraightahead
    And would you tell the cc company of your change in circumstances ?
    • lookstraightahead
    • By lookstraightahead 8th Mar 18, 3:48 PM
    • 161 Posts
    • 169 Thanks
    lookstraightahead
    Or do you have the money in a high interest account
    • Heng Leng
    • By Heng Leng 8th Mar 18, 7:09 PM
    • 4,526 Posts
    • 1,416 Thanks
    Heng Leng
    But they did demand immediate repayment.
    The person in post #5 was over their new limit and had to repay immediately.
    Originally posted by SuzieSue
    They won't purposely do that as it could be deemed unfair.

    It's likely that some offline transactions were still to go through or they spent money immediately before the limit was reduced.

    A call to TSB would almost certainly result in an adjustment.

    A bank is not a friend, especially with their money but that doesn't mean they are acting unfairly.
    • SuzieSue
    • By SuzieSue 8th Mar 18, 7:37 PM
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    SuzieSue
    What will you do if you lose your job if your credit card debt is more than your annual income? Are you a year in advance of yourself?
    Originally posted by lookstraightahead
    I have an offset mortgage and so could get access to my savings if I needed them.
    • SuzieSue
    • By SuzieSue 8th Mar 18, 7:38 PM
    • 3,822 Posts
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    SuzieSue
    And would you tell the cc company of your change in circumstances ?
    Originally posted by lookstraightahead
    No I wouldn't as I wouldn't want to lose my 0% rate.
    • Gary_Dexter
    • By Gary_Dexter 8th Mar 18, 7:42 PM
    • 1,156 Posts
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    Gary_Dexter
    But you're supposed to inform them!

    Heaven forbid you give them no notice of a change in circumstance!!!!!!!
    • SuzieSue
    • By SuzieSue 8th Mar 18, 7:48 PM
    • 3,822 Posts
    • 4,044 Thanks
    SuzieSue
    But you're supposed to inform them!

    Heaven forbid you give them no notice of a change in circumstance!!!!!!!
    Originally posted by Gary_Dexter
    Why, if I can meet the minimum payments and I've still got a couple of years left at 0%?
    • RG2015
    • By RG2015 8th Mar 18, 7:53 PM
    • 1,221 Posts
    • 713 Thanks
    RG2015
    But you're supposed to inform them!

    Heaven forbid you give them no notice of a change in circumstance!!!!!!!
    Originally posted by Gary_Dexter
    Is this standard for credit cards?
    • millaura
    • By millaura 7th Apr 18, 3:09 PM
    • 3 Posts
    • 2 Thanks
    millaura
    This happened to me too about a year ago. I received a letter from TSB saying my credit card limit was being reduced the next day even though the letter was dated over a week before (no postal delays at the time). The new limit was only just above the balance and I had been planning to use the card the next day for a food shop which would have taken me above the new limit.

    I was convinced that this was deliberate and was intended for me to lose the promotional rate. I closed both the credit card account and my current account with them after that and will not take out any further products with TSB.
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