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Credit Cards & Limit Increase

One in five people with debt problems have had their credit card limit increased without requesting it, new research from Citizens Advice has found – a higher proportion than for cardholders overall. According to a nationally representative opinion poll commissioned by the charity in June this year, some 18% of struggling credit card users had their limit raised in the past year without requesting it, compared with 12% of all credit card-holders.  The survey defined struggling credit card users as those who felt their debts were a burden and had not felt able to afford household bills or debt repayments for more than a year. If you've had your limit increased without requesting it contact us today as you may qualify in getting the remaining balance written off.

What to do if your credit limit's increased without you asking

If your credit limit has been hiked without you requesting it, you can ask for it to be reduced – but before doing so, it's worth weighing up the pros and cons of a higher limit. An increase in your credit card limit means you risk falling into more debt if you can't repay what you've spent – so if you're struggling with debt or failing to regularly make repayments, it may cause you more problems. 

Citizens Advice is campaigning for increases in credit limits to be opt-in, not opt-out – so your credit card provider would have to get your permission before raising it. Its chief executive Gillian Guy said: "It's clear that irresponsible behaviour by some lenders is making people's debt situation worse – such as offering more credit when they already have thousands of pounds of unpaid debt. "The regulator must ensure that lenders are taking into account people's whole financial and personal situation before agreeing further credit. Banning firms from raising existing customers' credit limits without seeking their express permission first would also help people take more control over their finances." A spokesperson for UK Finance, which represents credit card firms, said: "Helping customers struggling with persistent credit card debt is a priority for our members...

 

The industry has already developed a number of proposals to address the regulator's concerns and ensure that no customer in persistent debt will be offered a credit limit increase. "We continue to work closely with the FCA, Citizens Advice and other charities to introduce the next phase of measures that will improve support for customers experiencing financial difficulties." If you have had your credit limit increased without your consent and as a result you are further in debt contact us immediately as your debt could be written off due to the fact the credit card provider has breached the Consumer Credit Act by acting irresponsibly.

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