Credit card limits slashed
Card holders with excellent credit histories are amongst those having their limits slashed for no apparent reason.
That’s according to industry experts who say that banks fears of ‘bad debts’ is making them more cautious of lending to customers.
Guardian Money found one teacher from Harrogate who had her limit cut from £5,000 to £300 despite never making a late payment.
And another couple from the West Midlands had their limit cut from almost £11,000 to £750 despite holding the card for almost 20 years.
In response Barclaycard said they will cut a limit if a customer may be experiencing financial difficulty or their circumstances have changed. And card provider Citi said that rates are determined by costs, the rate of borrowing in the wholesale market and customer behaviour.