Bank has reduced my credit card balance WHY?

[jessica]

bit of a long tale. earlier this month my card details were used fraudulently to the tune of nearly 2k . Now i always pay my monthly payment on time and have never ever missed on EVER and i always pay at least the min amount and most often more.. because of the fraud the month of the transaction i was told i wouldnt need to pay any payment at all although i could if i wanted. This was because bank had stopped one card and issued another new one. So I thought yeh!! month off pay nominal fee ie £100. normal min pay is 168. I then sign into online banking today to see that my credit limit has been reduced by 3k to just over 8k.
not to impressed as i had just put my sons moped on their and was hoping to pay for a holiday. now i will have to pay a large chunk off before i can use card again. I can luckily afford it. However the bank did not tell me they were going to do this. When i spoke to them today they said it was because i spent over 3k last month. which i didnt. i spent just over 1k on sons bike and then the fraudsters saw to the rest. not my fault. still had my card etc. Am very careful where i use it etc.

My real issue is what is the purpose of having a credit card if you cant use it to pay for things in credit. and dont the banks make money from them. and it would not be in their interest for me to pay back the money in full.
I have written to them and are awaiting a reply. not sure what i will do. its tempting to say here is the money all of it and SOD OFF. However i need to make sure my credit rating has stayed intacked. it should be 100% i have never not paid anything on time or in full. I am very disgusted. the man at the card company today made me feel like some low life. I have of course got his name.
grhhhhhhhhhhhhh Rant over.

[randlemarcus]

The card company doesnt think you fit the profile for that much of a balance, so you have two options - change cards, or suck it up.

[Kermit power]

randlemarcus said:

The card company doesnt think you fit the profile for that much of a balance, so you have two options - change cards, or suck it up.

In theory you may be right, but it would seem odd that she's had this line of credit and absolutely no problems, right up until the moment when there's a fraudulent use of the card?

[HRG.]

You know this huge pile of financial ste we're currently in...

[randlemarcus]

Kermit power said:

randlemarcus said:

The card company doesnt think you fit the profile for that much of a balance, so you have two options - change cards, or suck it up.

In theory you may be right, but it would seem odd that she's had this line of credit and absolutely no problems, right up until the moment when there's a fraudulent use of the card?

Its not like they've asked her to pay the whole lot back. I suspect its precisely like car insurance, in that once your details are in the wild, its more likely to be a fraud target (even if it wont work), so the review suggested a lower limit. Maybe a written complaint would work, maybe she can switch card providers, and tell them why.

[mcflurry]

After my Shell Citicard was cloned they put the APR up from 14.9% to 23.9%
Had great pleasure in telling them where to put their card sideways as the balance was zero, as is paid of every month anyway

[Soovy]

Banks are cutting limits on hundreds of thousands of cards. They are entitled to do it under the terms of the contract.

Don't ever rely on a credit limit.

[AB]

£11k credit limit and you are paying £168 minimum payment on the balance each month?

Sons moped... holiday on credit card, and cant afford one without.

Reality check - no holiday and no moped.

I'm forming a mental image and its incredibly difficult not to.

[limpsfield]

AB said:

I'm forming a mental image and its incredibly difficult not to.

you can see a shrink for that sort of thing - or stop reading the Daily Mail

Edited by limpsfield on Thursday 9th July 13:38

[AB]

limpsfield said:

AB said:

I'm forming a mental image and its incredibly difficult not to.

you can see a shrink for that sort of thing - or stop reading the Daily Mail

Edited by limpsfield on Thursday 9th July 13:38

I've never read the Daily Mail in my life - The Sun is far superior.

[jessica]

AB said:

£11k credit limit and you are paying £168 minimum payment on the balance each month?

Sons moped... holiday on credit card, and cant afford one without.

Reality check - no holiday and no moped.

I'm forming a mental image and its incredibly difficult not to.

you can form as much of a mental image as you like.
i used my credit and keep my savings. i can pay card off now if i want to.
just use it for things that i may need to claim against. so if holiday company go bust covered etc.
I have capital assetts and hard dosh in the bank.. My bank can work for me for a change.

Edited by jessica on Thursday 9th July 22:58

[limpsfield]

jessica said:

i used my credit and keep my savings. i can pay card off now if i want to.

Ignoring the comments of the scouser before and his mental images, but this is a false economy as i am sure you are aware. Your savings are making <3% and you are paying a lot more than that if you have a balance outstanding. If you have the cash you should pay it off

[AB]

limpsfield said:

jessica said:

i used my credit and keep my savings. i can pay card off now if i want to.

Ignoring the comments of the scouser before and his mental images, but this is a false economy as i am sure you are aware. Your savings are making <3% and you are paying a lot more than that if you have a balance outstanding. If you have the cash you should pay it off

Yeah, well this scouser can't understand why anyone would have £11k in credit, paying the MINIMUM off each month when they have hard cash in the bank. A company director with any business sense should realise this. I'm sure.

My credit card gets used for the same reason as mentioned above, holidays etc, but it gets paid off in full at the end of the month.

[jessica]

AB said:

limpsfield said:

jessica said:

i used my credit and keep my savings. i can pay card off now if i want to.

Ignoring the comments of the scouser before and his mental images, but this is a false economy as i am sure you are aware. Your savings are making <3% and you are paying a lot more than that if you have a balance outstanding. If you have the cash you should pay it off

Yeah, well this scouser can't understand why anyone would have £11k in credit, paying the MINIMUM off each month when they have hard cash in the bank. A company director with any business sense should realise this. I'm sure.

My credit card gets used for the same reason as mentioned above, holidays etc, but it gets paid off in full at the end of the month.

Isn't it nice to know we have some diversity.

dont like to tie up all my assetts and its nice to have some credit just in case.
i do however agree its not always the cheapest option.
Five kids to keep dont come cheap.... I can asure you. there is always something that is NEEDED in our household.

[HRG.]

A vasectomy?

[Soovy]

jessica said:

AB said:

limpsfield said:

jessica said:

i used my credit and keep my savings. i can pay card off now if i want to.

Ignoring the comments of the scouser before and his mental images, but this is a false economy as i am sure you are aware. Your savings are making <3% and you are paying a lot more than that if you have a balance outstanding. If you have the cash you should pay it off

Yeah, well this scouser can't understand why anyone would have £11k in credit, paying the MINIMUM off each month when they have hard cash in the bank. A company director with any business sense should realise this. I'm sure.

My credit card gets used for the same reason as mentioned above, holidays etc, but it gets paid off in full at the end of the month.

Isn't it nice to know we have some diversity.

dont like to tie up all my assetts and its nice to have some credit just in case.
i do however agree its not always the cheapest option.
Five kids to keep dont come cheap.... I can asure you. there is always something that is NEEDED in our household.

Yeah, something for you to hold between your knees.

[limpsfield]

anonymous said:

[redacted]

Pure gold. BR, you are comedy genius.

[jessica]

HRG. said:

A vasectomy?

lol.............
very drole....

i have five children and the ones that needed a label to get an appropriate education have a label. dont blame me blame the system.
If i hadnt done this for them then i would as a parent failed in my duty of care to them, for those of you that dont understand additional needs thats fine. Count your blessings that you dont ASD children and have to and Bedford Rascal you should be ashamed. I hope you never have to walk in shoes like mine. I truly do.

Edited by jessica on Friday 10th July 15:46

Edited by jessica on Friday 10th July 15:49

[HRG.]

If you'd spent more time actually walking in your shoes you wouldn't be in this position...

[Davi]

Credit card companies are ste at the best of times. I've got 3 that each have a specific use - one is large purchases, one is internet shopping and one is expenses / stuff that'll get clawed back.

The one for internet shopping I set an artificially low balance - just a few hundred quid - as I trust the internet as far as I could throw it. For the last 5 years I've had to repeatedly ask them to lower the limit as they kept putting it up. Last week I tried to use the card and it was rejected, a quick call and I'm told that I don't use it enough so they've knocked £100 of the limit - to get it put back up I have to spend something on it every week or so for the next 6 months!!!