Credit Cards -
Card companies cut their limits - 06/03/2008
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Credit card companies are cutting back on spending limits in a bid to curb customer borrowing following a recent report.
"This is Money" an online finance community have recieved complaints from many customers, dismayed at the drastic drop in their credit limits. This is despite in many cases having very good credit ratings.
The cuts are often so drastic that they have been cut to £100 of their existing balance. This has upset many customers who feel that the actions of their creditors goes against their contractual obligations, while leaving them with fewer payment options.
One solicitor informed the community that his limit had been slashed from nearly £5000 to £700 overnight. He had not been informed prior to the change.
He said: "I had to endure the humilation of having it declined twice out shopping. There was a long queue behind, I was embarrassed but luckily had other cards to pay with it."
The complaints add addtional concern to reports last month that card company Egg withdrew cards from customers who had sound credit histories. It was often after transactions had been completed that the company's position became clear.
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