BarclayCard Withdraw Credit Limits Before Christmas

#1
Several jnrs have been complaining today that their credit lines have been mysteriously revoked before Xmas.

The lads basically paid off their credit card bills with the majority of their wages but have 1 by 1 been contacted to say that Barclays have severely restricted credit limits over Xmas due to the credit crunch.

Former £2000 limits down to £200 etc etc.

Of course the jnrs who have not paid their bills in full are p1ssing themselves.

But just a warning order -

Keep an eye on your limit or maybe the Barclays Grinch will be visiting you this Xmas.

For record - it's not a credit rating thing but apparently company wide policy over Xmas.
 

ugly

LE
Moderator
#2
Its an all year round policy thing, they hate it if they cant charge you interest!
 
#3
Egg did something not dissimilar last year, pulling credit limits, and sometimes cancelling cards, on customers who didn't use them enough or paid off in full each month. These outfits are businesses, in business to make a profit. Of course they're going to shag you senseless if it keeps their profit margins healthy. You might as well blame a cat for licking its own arrse, it's the nature of the beast.
 
#4
Dontdreamit said:
Of course the jnrs who have not paid their bills in full are p1ssing themselves.
Not half as much as the card issuers are...

msr
 
#5
Of course this is one of the companies every one was complaining about for encouraging people to borrow to much, now they try to act in what some would say is a more responsible way they are bl**dy wrong again.
 
#7
Mikal said:
They reduced the repayment period to about 2 weeks several months ago without letting on.
Cash flow is the great god of business, if you can get the money in faster than it has to go out that's good, very good.
 

elovabloke

ADC
Moderator
#8
msr said:
Dontdreamit said:
Of course the jnrs who have not paid their bills in full are p1ssing themselves.
Not half as much as the card issuers are...

msr
Agreed - always wondered why jnrs were not insrtucted in the basics when it comes to finance.
 
#9
pretty sure it is wrong to drastically reduce credit limits without PRIOR warning.

I can imagine quite a few families will be facing a grim Xmas this year because they are responsible lenders and use their credit card as they are instructed to to maintain a healthy credit rating.

So yes. They are wrong again.
 
#10
Surely doing things like this just encourages people to go out and get another credit card with a higher limit and ditch their Barclay Cards?
 
#11
Dontdreamit said:
pretty sure it is wrong to drastically reduce credit limits without PRIOR warning.
Why - if, as you say, the juniors are being sensible and paying off in full their card, then Barclay Card are not making any money off them.

Nothing wrong with a low credit rating when you have a low wage.
 
#12
nice way to treat our troops fighting for our country :x

you'd think they'd see troops would be great being credit worthy sat in a sandpit for months on end with nowt to spend on. Jokers :evil:
 
#13
Just called Barclaycard.

They assured me my credit limit was so low they couldn't be arrsed. :(
 
#14
elovabloke said:
Dontdreamit said:
pretty sure it is wrong to drastically reduce credit limits without PRIOR warning.
Why - if, as you say, the juniors are being sensible and paying off in full their card, then Barclay Card are not making any money off them.

Nothing wrong with a low credit rating when you have a low wage.
Their credit ratings are not low. And yes..if a credit company decide to wait until you repay the money THEN remove the ability to use that facility the day after then it is unethical. The cycle of use CC, repay with wages, reuse CC, repay with wages is pretty much entrenched. So tactics are somewhat underhanded.

Let's be honest, the idea of being punished for using your card responsibly is slightly ludicrous.
 
#15
Since the interim write off in august a number of companies have been doing this. The first i heard of were HBOS and RBOS.

It appears to be an attempt to reduce vulnerabilities and improve cash flow.

With HBOS it was a result of their failings.

With RBOS it was because they at that time owned the credit insurance wing (prior to selling it off).

It is something we will se more of in the not too distant future.

Another thing that is becoming frequent and you should beware of. Banks have been passing their loans onto the borrowers current account (i.e. increasing the overdraft) and then demanding an immediate return of all borrowings regardless of payment history. This was primarily HBOS but i have spoken to individuals from other banks who have been affected.

(appoologies my terminology is not very accurate at the moment)
 
#16
Dontdreamit said:
Let's be honest, the idea of being punished for using your card responsibly is slightly ludicrous.
Not sure if they see it as a punishment. You use all their money to buy goods all month and then pay it off without any cost to yourself. Use the tactic myself every month.

It's an interest free way of using someone elses money.
 
#17
Credit where it's due (See what I did then?) Barclaycard treated me ok recently.
I got caught short and had to get a cash advance of £1300. I knew I would be whacked with a charge but when the bill came in on the next statement, I was charged 32 quid for the privilege!
I paid it off on line in full, found a freephone line to get in the back door and politely informed them that I wished to close the account. I was passed on to the 'please don't leave us' department. Was asked what the problem was and if there was anything they could do as I'd been with them 19 yrs ('kinell!)
Said I didn't want a nasty surprise like that again if I was ever caught short. They refunded the 32 quid there and then!

I like Barclaycard me!
 
#18
maxi_77 said:
Of course this is one of the companies every one was complaining about for encouraging people to borrow to much, now they try to act in what some would say is a more responsible way they are bl**dy wrong again.
They are not stopping people who have "borrowed too much", these people are keeping their credit limit and probably will be offered more.
 
#19
elovabloke said:
Dontdreamit said:
Let's be honest, the idea of being punished for using your card responsibly is slightly ludicrous.
Not sure if they see it as a punishment. You use all their money to buy goods all month and then pay it off without any cost to yourself. Use the tactic myself every month.

It's an interest free way of using someone elses money.
Hardly. In the short term yes, but a finance institution is viewing your profitability over the course of your life. In that respect, once your hooked on plastic - your fukked. They can then push other products onto you, loans, mortgages, broker your insurance, mechanical breakdown cover, the works.
 
#20
Dontdreamit said:
elovabloke said:
Dontdreamit said:
Let's be honest, the idea of being punished for using your card responsibly is slightly ludicrous.
Not sure if they see it as a punishment. You use all their money to buy goods all month and then pay it off without any cost to yourself. Use the tactic myself every month.

It's an interest free way of using someone elses money.
Hardly. In the short term yes, but a finance institution is viewing your profitability over the course of your life. In that respect, once your hooked on plastic - your fukked. They can then push other products onto you, loans, mortgages, broker your insurance, mechanical breakdown cover, the works.
Only if you are soft in the head or still to young to understand the going's on of the financial institutions hence my remark about the proper training of young soldiers.
 

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