Co-op latest in line to cut credit limit

There has been a lot of news recently regarding the cuts in consumers credit limits made by their lenders. The reason why this is gaining so much attention is because the lenders are cutting the limits without consumers actually knowing about it.

Obviously because the consumer does not know that their credit limit has been lowered, they still go out and spend on the card thinking they have enough money. Then one of two things can happen; either the card gets declined which causes a lot of embarrassment or the card gets accepted and the consumer gets into trouble with their credit card provider. Neither of these options is particularly great and the consumer is the one left paying for the cut, even though they knew nothing about it.

Now the Co-Operative bank has been accused of being the latest lender to cut credit limits. The main problem is that the cuts are not just being given to unreliable consumers; they are also being put onto those who have a really good record.

So what can you do if you have had your limit slashed without your prior knowledge? Well it is always worth a try writing to your lender and explaining to them that the move was not ethically right. In some cases consumers have done this and their lender has increased their limit back to normal. However it may not work but it is still worth a try.

It could be that you want to switch your business altogether once this has happened to you. After all, nobody wants to be involved with a lender who is not overly trustworthy. You could even throw that into your letter if you do choose to write to your lender about the matter.

Overall the cuts in consumers credit limits is not a fair move and you could certainly argue your point if you do choose to get in touch with your lender. It is only a matter of time before these new cuts are investigated by consumer watchdogs, but for now it would pay to be extremely vigilant with your credit card account.