In April 2021, Barclaycard is cutting a lot of customers’ credit limits. Some of the reductions are dramatic.
Here is what one Debt Camel reader said:
Today I received a letter from Barclaycard informing me my credit limit is being reduced from £5,000 to £250 in 1 months time.
My balance is zero and has been for several months. Not very happy about this as it’s there for emergencies etc and it’s quite odd and out of the blue.
This newspaper article gives more examples:
- one man who has had a Barclaycard for 24 years had his limit cut from £9,000 to £2,050;
- a woman has had her limit cut from £11,900 to £1,650.
This is the second time Barclaycard has cut credit limits since the pandemic started. In summer 2020, Barclaycard annoyed many customers by cutting their credit limits when they had immediate financial problems.
Cutting your credit limit can affect your credit score!
If you were planning to buy something big this year, then this is obviously a problem.
But many people don’t know that just cutting your credit limit by itself can harm your credit score, even if your balance is under the new limit.
This happens because your “credit utilisation” – the percentage of your credit limit you are using – will go up if your limit is cut.
Here are some numbers about how much your Experian credit score might change:
- with a balance under 30% of your limit, you gain 90 points;
- use over 90% of your limit and your score may drop 50 points.
The size of your credit limit also affects your score. A limit of over £5,000 adds 20 points to your score, a very low limit of under £250 takes 40 points off your score.
An example:
If you have a balance of £1500, with your old Barclaycard limit of £6,000, your balance looked low. But if your limit has now been slashed to £2000, then you are no longer “under 30% of your credit limit”. Your credit score is going to fall 90 points and you will also lose the 20 point bonus for having a high limit.
That isn’t fair! Even though your history of making the card repayments on time is exactly the same as it was before, you are being penalised as Barclaycard wants to cut its risk.
What can you do about this?
You don’t have to do anything, you can just live with the lower limit. Or, if you have other cards you can use, you can close the account.
But if you are fed up, what you can do depends on whether your Barclaycard bills over the last few years have been really affordable.
If the bills have caused you difficulty
Think about an affordability complaint. Obviously if you have missed payments or gone over the limit a lot this was a problem.
But you may have been in difficulty even if you paid every month. For example, if you were juggling a lot of payments and borrowings and your debts were getting worse.
Barclaycard may have raised your limit a lot, even though you were only making the minimum payments and though your credit record would have shown you had a lot of debt. That suggests Barclaycard didn’t make the proper affordability checks they should have done.
Read Ask for a refund from catalogues, credit cards & overdrafts – that looks at these affordability complaints and has a template letter you can use to ask for a refund of the interest and charges you have paid.
If the bills haven’t caused you any problems
Here it’s worth asking Barclaycard to look again at this. The Barclaycard letters says:
if you send us your latest income, we can review this change.
The second page of the letter explains what you need to send them. They want copies of bank statements, payslips etc posted to them and details of your childcare costs. I guess they don’t think many people will bother!
If you do this they may still decide to reduce your limit, but perhaps not to such a low amount.
How much will my credit score change if…
UK credit records – not fit for purpose
Is your credit limit too high? Not affordable?
Steven says
Barclay card are the worst credit card I ever had. Prior to covid they did complete opposite, deliberately given you limits you shouldn’t get simple to get you into debt. This company are beyond vile
June says
I agree, they were giving millions of people limits way above their pay. Now they have suddenly decided to drastically cut them to unrealistic levels. With little more than one months notice, disgusting
Z Lahmidi says
It is crazy as simple as that If every customer closed their account I am sure Barclaycard will think again. They are a mean bank greedy and irresponsible please close your account as a lesson to this vile bank
Andi says
If anything 2021 has shown that we need a complete overhaul of the credit reporting system.
The past year people have suffered due to Lockdowns by losing jobs and businesses at no fault of their own.
Government restrictions, though required, have caused people to have their credit reports virtually destroyed due to having no source of income.
This is quite a serious as it doesn’t just impact obtaining finance BUT also employment.
Many jobs that require a person to handle finance or financial data all have credit checks.
Sara (Debt Camel) says
I completely agree – the UK credit scoring system isn’t fit for purpose – see https://debtcamel.co.uk/credit-records-scores-fit-for-purpose/
Andi says
I have created a petition in relation to cra default reporting.
The 6yrs is a larger penalty than maximum sentences for certain firearm’s, sexual and violent offences.
Would you mind emailing me in relation to the petition? I need to get the initial 5 people to sign it.
Sara (Debt Camel) says
I’m not a fan of this sort of petition. They almost never achieve anything. Writing to your MP and to the FCA would be more effective.
The FCA started an investigation into the credit record market in 2019, but it went on hold last year as Covid-19 work took priority. I hope that will restart soon and then there should be an opportunity for people to send in their views.
June Madison says
Mine had been reduced from £1350 to
£850! Several years I owed then Nil and tried to cancel my card they basically did everything to keep me. I have consisted paid minimum amount & whatever I have spent. I do currently have a balance of around £800 after paying some bills. As far as I am when I have paid balance I will
Cancel my card unbelievable the have given customers so little notice! So if you have a large limit say £10k & it’s reduced to £2k & have a balance of say £7k are you expected to clear
At least £5k before 20 May?
.
Emma says
I was only talking about them last night, how I applied and got approved for a limit of £9600 instantly and then the ex husband applied and got a limit of £6500. In 10mins between us, over £16000 of credit. We applied as they had a 0% offer for some time and it made it seem affordable – to begin with…
Justin says
I previously had a credit card with Barclaycard with a maximum limit of around £2,500. I paid this off and closed it in May 2014 and then went for a balance transfer card with them as well back in May 2014, I was given a limit of £5,500 no problem and did various balance transfers plus used the card for a few purchases, also on 0%. My income had not changed, and yes this was affordable until the 0% balance transfer period ended…..It seems they are more interested in gaining customers than looking at long term affordability. This credit limit decrease thing is due to past mistakes by them…I would never accept the standard £75 amount they offered for having credit limits too high. They know there is a problem with affordability but they have set arbitrary limits and time period terms of reference for the review periods for credit cards when there were issues long before.
Stuck says
In 2019 my partner had a Platinum Card with a limit of £15,500 and a Mastercard turned into another Platinum Card with £11,500 limit, over the years my partner rocked up debts with them but never once paid late, When he fell ill I paid them off in full in/around 2014 and he hadn’t used them since, in 2019 Barclays reduced the first Platinum to £250 and closed the 2nd one down, this actually worked against him with his credit score,. In 2019 I had wrote to Barclays on an overdraft issue which then ended up with the Ombudsman, it was shortly after I wrote to them that they took the action they did on the Barclaycards. ….. The Ombudsman re the overdraft issue is still ongoing, they initially assigned the case to an investigator in late 2019, in late 2020 the Ombudsman after my pressing them stated it had been unassigned pending discussions with the financial institutions. It’s now 19 months since i sent the complaint to the ombudsman, it still has not been assigned. In the meantime the overdraft issue continues and the amount overdrawn remains the same as it has for almost 15yrs, just the interest is paid each month ( currently nearly £180 each month. My partner is unable to work, his finances seriously compromised and Barclays will not help as they say ‘it’s awaiting resolution from the Ombudsman. Just ridiculous and then some. In the meantime my partners disability payments are paying a ridiculous sum to Barclays each month.
Sara (Debt Camel) says
What are the rest of his finances like, does he have other debts? And you buying or renting?
J says
He has one other CC but that is used for daily stuff and doesn’t have much of a balance and I’m the mortgagee not him, no other debts.
Sara (Debt Camel) says
ok, so Barclaycard closing one account and slashing the limit on the other will have hurt his credit score as the article above explains.
Complaining about the overdraft fees was a good move, but I don’t think he can rely on that working so he should take action now by opening a new account with another bank (if he gets rejected because of his credit score he can always apply for a basic bank account which are now very good, see https://debtcamel.co.uk/bank-accounts-after-bankruptcy/) and moving his benefits and all his banking over there. Then he can ask Barclaycard to freeze charges on his now abandoned account as his only income is disability benefits. With that done he can just pay something to the account and the balance will dop slowly.
Ask for charges to be stopped will harm his credit score. But does this really matter? Is it worth paying £180 a month to protect his score? As he His credit score will only affect yours if you have joint accounts, which is why I asked about the mortgage.
Turtle says
Re affordability complaints to Barclaycard (or any credit card) does the 6 year rule like pay day loans apply? I opened my acc back in 2007
Sara (Debt Camel) says
was your credit limit increased after you had the account?
Turtle says
Yes it was increased to £5k at some point. I asked them on the phone when the increase was (around 2012-2013 I estimate) but they said they couldn’t find the info 🙄
At this point I had lots of pay day loans, overdrafts and credit cards going on.
I’ve probably paid a fortune in late payment and over limit charges over the duration.
Sara (Debt Camel) says
The “complaint within 6 years” is a rule that applies to everythibng the Ombudsman does. But there is a second part to the rule “or within 3 years of finding out you had a reason to complaint”.
You would be complaining not about the original credit limit when the account was opened but about the increase in the credit limit to 5,000.
Do you have any old copies of your credit reports?
turtle says
The oldest one I have is from 2019. I may need to dig deeper with barc to find out when the limit was increased to 5k.
Rodney Holland says
Similar to the other complaints regarding Barclaycard, I have had my card for several years, used it for large purchases (new leather suite) and always paid far more than the minimum amount. In August 2020 I had a £6500 limit and a balance of around £500.
In September, without warning my limit was reduced to £1550. I called the complaints department, but each and every time I called, there was a long waiting time to answer.
I then e-mailed my complaint and was informed and received a reply stating Barclaycard were reviewing all customer limits due to the pandemic causing people some difficulty paying.
I wrote back and said I did not have or had any previous difficulty and asked if I was not a valued customer as Barclaycard did not make much money of me as I paid any debt to them quickly.
Letter received back ignoring my comments, stating they may review limits in the future but no actual timescale given.
My last letter to Barclaycard informed them I thought their customer relations was shockingly poor. This was well before I became aware of all the other customer complaints regarding limit drops.
Very poor service. poor customer relations and a bit of ” too bad, we have dropped limits, live with it”.
derek moulding says
the barclaycard spokesman has made a incorrect statement saying no ones limit has been reduced below there balance as my daughter has a borrowing limit of £4000 has used £800 then gets her letter telling her its going to drop to £250
Sara (Debt Camel) says
Has she asked them to change their mind about this?
AD_77 says
My card limit has been reduced by more than 95% – from £5200 to just £250. The card has had a nil balance for a while but I have used it in the past and paid it off. I like to have it “just in case” and for large purchases such as holidays, which I would then pay off with my savings.
I rang to complain and they have asked me to send my payslips, etc. I have sent them along with a copy of my Experian credit score of 999 and have asked them to set my limit at limit to £4000 (I don’t really need £5200). If they refuse, I am worried about the effect that this will have on my credit score.
Sara (Debt Camel) says
is this your only credit card?
£250 isn’t going to be much help with a holiday!
AD_77 says
That’s exactly what I said to them!
I have two others: one at £250 (unused) and one at £2300, which is used occasionally and paid off in full. I also have a Next Directory which is used regularly and I always pay on time.
Sara (Debt Camel) says
Well if Barclaycard won’t increase the limit to something use, I suggest you close the account.
With a larger credit card, there isn’t much point in having one with a tiny balance.
Next – to help your credit score it’s best if you can pay this in full every month. Unless you spreading a 0% offer over a few months.
AD_77 says
Will closing the account adversely affect my credit score, Sara?
Many thanks for your help and advice!
Sara (Debt Camel) says
It has already been affected, see the article above, by the big drop in the credit limit. It’s up to you, but a second card of just £250 seems pointless. Closing any credit has a short term negative effect.
jeffery says
i would like to take out a funeral plan to save my relatives funeral expences.the problem is i am paying an i.v.a.if anything happened to me before the i.v.a is finished would my creditors have any claim on any money that was paid out.
Sara (Debt Camel) says
A funeral plan is like insurance that can only be used to pay for a funeral. I don’t think your IVA could claim it.
Can I ask how far through your IVA you are?
G says
It’s all about how much the card gets used from what I can see, I too have a cc with them and the last time I asked for an increase I was told my current limit is sufficient 1200 and tbh I never go above 500. Those with 0 balances and don’t use the card as much seem to be the ones who are getting reduced overall,as to the business the limit you have you don’t really need because it’s under used from the business side so to them you don’t need that much. I know the comment goes against the grain here but if you aren’t using the full strength of your limit then you don’t really need that limit anyway just an opinion, it’s nice to have the buffer ofc but if it is not being used then you don’t need it.
Sara (Debt Camel) says
perhaps you don’t need to use that much credit – but it seems wrong that your credit score can be impacted by something like this, when your credit history hasn’t changed.
David says
Credit limit of £12,000 reduced to £250. What a joke.
Called them to log a complaint and closed the account.
Will open a new account with a bank which supports Android Pay.
S S says
Hi all,
I have a large limit and they have reduced it to 10% of what it was before!! However apparently this is based on the information they have on me. The crazy thing is that I have had the credit card for over 20 years and certainly in the last 15 years have never missed a payment.
I have therefore asked for a subject access request based on the data protection regulations. Therefore they have to disclose the information they have on me. This will be a massive administrative headache. I urge all of you who have had this reduction to question the information they have on you and the basis for the decision. I think in many cases they probably do not hold any information on you. I actually do not remember them ever asking me for any information on my income etc as I have never actually requested an increase in my limit. In fact I think my limit has been the same for the last 10 years.
G w. says
I have had a barclaycard for 31 years and it started of with a £750 limit, it now sits with a £13000 limit and I have just had the letter saying it’s reducing to a 2k limit, no payment missed in all that time and never had a big balance on it for too long, at the moment I owe £1600 due to recent purchase on it and wonder if they would have reduced it even more if i had no balance at all.
I’m going to pay it off and cancel it I think.
Ali Deniz Ozturk says
I got my Barclaycard in 2010. It took me a long time to bring it up to £17950 then all of a sudden it was cut down to £2000.
So I decided to write to the CEO.
I never missed a payment in my life.
After two emails they appologised and said there is nothing they can do.
So I told them it took me ages to bring it up to £17950. And I am not getting any younger so just close my account and I’ll use another Credit Card.
I think Barclaycard have shot themselves in the foot. As many customers with principles will just leave. If we all leave they might realise that you can’t treat your loyal customers like this.
Carrie says
I paid off my Barclaycard in full last year and didn’t use it for a few months. I received a letter this year from them stating that they were closing my account and said I was due a refund of interest fees and asked for bank account details to where they could transfer the refund.
Other than keeping a balance for a while, I hadn’t had any issues in relation to my account with them in over 20 years – I wasn’t involved in any pay down plan and my account was never in arrears. I have two other credit cards which are in good standing and my credit score is in the excellent range.
When I called to ask about the closure of the account Barclays couldn’t give a satisfactory answer. They also mentioned that they would record the interest rebate on my credit report.
Why would they record the refund on my credit report if I had paid off my balance in full without any issue?
I noticed that they had marked my account on my credit report as ‘settled’. If I accept the refund would this status on my credit report then be changed?
I plan to apply for a mortgage and I want to avoid any negative information being placed on the report. Very grateful for your advice.
Sara (Debt Camel) says
Why would they record the refund on my credit report if I had paid off my balance in full without any issue?
My guess is that they have looked at your account and decided they should have taken some action earlier or not increased your credit limit to far. They have offered you a refund now hoping that you wont send them an affordability complaint.
I noticed that they had marked my account on my credit report as ‘settled’. If I accept the refund would this status on my credit report then be changed?
No it should not. Complain if it does! But I do not expect this will be a problem.
Closing an account will temporarily affect your credit score but as it sounds as though everything else is on your credit record, this should go back to excellent in a few months.
Karen martin says
Will Barclay credit card let you do a payment plan say over 6 months
Sara (Debt Camel) says
By a payment plan do you mean letting you pay less for 6 months with interest frozen?
Or clear the debt in 6 months ata lower rate of interest?
Karen martin says
Yes have interest frozen and pay less for day 6 months
Sara (Debt Camel) says
Yes – you can ask for a payment arrangement. See https://debtcamel.co.uk/arrangement-to-pay/ which explains how these work and how to ask for one.
Karen martin says
Are they good about doing them
Sara (Debt Camel) says
Yes – they may want to talk through your situation. If you read the How much should you offer? section in that other article it has a link to a good budget sheet you can use to work this out and which you can then show to Barclays.
Dave W says
Letter today advising my limit has gone from £9,500 to £250, letter was vague and implied I have potentially either missed payments or had a change in credit rating, this is not the case, I called them and they cant do anything about it. Luckily I only have a small amount on the card.
I will be closing my account with them.
Karen martin says
Great thank you
Karen martin says
Rang Barclay card yesterday to set up a payment plan went through expenses with them they said they couldn’t offer me one so it’s gone to default I have to pay them £20 a month till it’s paid off but will show up on my credit file for 6 years they will take all interest off but I’m gonna. Pay them more than £20. Month
Sara (Debt Camel) says
they will take all interest off
So they have frozen interest?
It’s good to get the debt paid off, but if you are still paying interest on any other cards,loans or an overdraft, it is better to just pay Barclaycard £20 a month and repay the other debts faster.
Karen martin says
Okay thanks my credit rating wasn’t very good anyway yes they have frozen interest just annoyed me they couldn’t do a payment plan for 6 months while I got straight another question not for me asking for. A friend she has a default on a card she is married her and her husband don’t have any joint accounts no joint credit cards even the mortgage is in her name will he still be able to get fianance say on a car they having nothing that links them together
Sara (Debt Camel) says
if there are no financial links, her poor credit will not affect any applications for finance that he makes.
If he isn’t sure, he should look at his credit records with all three credit reference agencies. See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this. If none of them show any link to her or any joint accounts, then that should reassure him.
Karen martin says
Okay thanks will tell her no they have no links to each other his name isn’t even on the mortgage they don’t even have a joint bank account
Karen martin says
Will I get a a letter from Barclays about my credit card going to default and the new payment of £20 a month had nothing yet and got a payment due next week obviously only going to pay £20 many thanks
Has anyone ever had a Barclay card that’s gone to default and you just pay them so much each month
Sara (Debt Camel) says
Sorry, I don’t know.
it’s a payment arrangemnt. Thousands of people have them.
Karen Martin says
They wouldn’t set a payment plan up so said it will go to default and all I have to pay is £20 a month even though I said I could pay £50 a month I only wanted it for 6 months while I get straight
Sara (Debt Camel) says
It still sounds like a payment arrangement to me.
Have you got other problem debts as well? Or are you behind with bills?
Karen martin says
Agree she said I won’t be able to check my account online and this will be forever till it’s paid off and no interest wil be added bet loads of people have them it will also go on my credit file for 6 years my credit rating is rubbish anyway
No not behind on bills and no why
Sara (Debt Camel) says
Because if you have other money problems it might be good to talk to a debt adviser. but see how you get on paying Barclaycard £20 a month – what is your balance?
Karen martin says
So they wouldn’t set a payment plan up for me don’t know why so it’s gone to default and will show up on my credit file all interest has been stopped and they say I only have to pay £20 a month now even though I’m going to pay more could they sell it on or will they only do that if I don’t pay anything is
Sara (Debt Camel) says
It doesn’t really matter if they sell it on. I wouldn’t worry about that.
You seem very stressed about this. It might help if you talked to a debt adviser, eg National Debtline on 0808 808 4000. Or perhaps make a couple of months payments and then see how you feel?
Karen martin says
I’m not stressed just can’t understand why they wouldn’t set a payment plan up for me what do you mean make a couple of payments then see how I feel do you mean for the £20
And what happens when it gets sold on do I just pay the debt company so much each month
Sara (Debt Camel) says
They may have thought that you needed a long term payment arrangement, not just for 6 months.
I was just saying if you are very worried you can talk to a debt adviser now. Or wait a couple of months and if you are still anxious, talk then. But if everything is fine, you don’t have to.
Yes, if it is sold, you just make monthly payments to the debt collector. But it may not be sold.
Ray says
Complaint launched in October 2020…. We’re now in May…
Ombudsman Ruled in my favour. I had a credit card with 3000 on it. Then they gave me a second card with 10,000 after not checking affordability etc… Ombudsman said that the use of the £3000 card should have been an indicator that the person was struggling financially. On the back of this, they still gave me a second card.
We’re now in May and each time, they keep saying – Give us another week. When do I say enough is enough and ask the ombudsman to send it to the senior ombudsman?
The ombudsman initially said to me I should have all charges refunded and interest which would be over half of the balance gone. It’s just annoying.
Sara (Debt Camel) says
when did you get the adjudicator decision from FOS?
Karen martin says
So Barclays wouldn’t let me set a payment plan up for £50 a month only wanted it for a couple of months they said I could only afford £20 when they had done my expenditures even though I could pay £50 had a letter today and says I’ve got till the 22nd June to contact them June minimum payment is £102 plus arreas of £100 had a letter and on the second page it says it could be sold on and they will want the full amount I can afford the £102 in June will they let me pay the arrears off so much extra a month
Sara (Debt Camel) says
They won’t set up a payment plan for more than they think you can afford.
It sounds as though you have received a standard arrears notice, these are automatically sent out even when you are making the agreed payments. This doesn’t mean Barclays are ending the payment arranagement.
I suggest you talk to National Debtline on 0808 808 4000 about your options, as if Barclays think you can’t afford £50 it seems unlikely that you can pay the full amount plus extra to the arrears.
Karen martin says
I know I can affirm £50 paid that this month and it was only for 3 months till I get back on my feet they say in thewre website they help people what a joke would they sell it on for that short time
Sara (Debt Camel) says
You have left many comments about this, I really think it would help you to talk to a debt adviser.
Andrea says
Hi Sara.
I have large credit limit with Halifax £8000
paying back each month over £400 and spend same amount for food.
£1500 it’s still available each month,but not seeing way out of this.Halifax have online simple increase application online over pandemic that allows me to borrow more within seconds,Been off work first 4 months lockdown as self employed,trying meet day ends with my 3 kids.Have car for finance and keeping paying been hard enough. It is worth to point that I have phone company who provides finance for my car for payment holiday ,but been told they can’t help.
Halifax allow me to increase credit limit from 2500 to £5000 and on another go £8000.
Can I complain about irresponsible lending?
My credit score went down as I tried to apply for loan to pay this off unsuccessfully.
Best Regards
Andrea
Sara (Debt Camel) says
So have you used most of this credit limit?
Apart from this credit card and your car finance do you have any other debts – an overdraft? Are you behind with any bills?
Is your income now back to what it was before?
Andrea says
Credit limit is £8000
I have used £6500
I have another 6 loans to pay ,but paying them on time at this point.I do not have overdraft and paying bills accordingly.My income is back when it was before pandemic.However ,it’s seems impossible task to pay this credit card as credit limit it’s very high.
For months now I am using this credit card paying for food.
Sara (Debt Camel) says
can I ask if you are renting or buying?
Your debt total is unmanageable – putting food on a credit card shows you don’t have enough money to make all your minimum payments.
Andrea says
I am renting from social housing .
Sara (Debt Camel) says
ok then car finance is your only priority debt – if the car is essential for you?
Can you say how much the other loans add up to?
(I really do get round to answering your question but it’s useful to see the full picture.)
Andrea says
Sure.
Car it’s essential as I using it every day for my work .Doing long miles to care for vulnerable clients.
Loans are for my mobile phone ( I have no another devices part from my phone doing all tax returns and another essentials )
Another loans are for furniture &white goods.
About £4000 another loans plus 14000 car finance loan in total.
Sara (Debt Camel) says
ok so:
– I don’t know why you couldn’t get payments breaks on your car finance and other loans because of Covid-19. But if you had breaks, then interest would still have continued to be added, so you may not have been much better off than using your credit card
– yes you can make an affordability to Halifax. See https://debtcamel.co.uk/refunds-catalogue-credit-card/ for how to do this. But that will onlt get you a refund of interest, you still have to repay everything you borrowed.
– making affordability complaints can take a long time. If Halifax rejects it, it could take 6-12 months at the Ombudsman. I don’t think you can carry on that long like you are at the moment… I think you need to talk to StepChange on 0800 138 1111 about a debt management plan for all your non priority debts including the Halifax credit card. Then if you win the affordability complaint that debt will reduce and your DMP will end much sooner.
Andrea says
Thanks for that.
Can you please tell me when ,if I make affordability complaint and win if this shows any negative impact on my credit score or even if I do not win ?
Also how this works exactly mean ,in case on win case you say that they only pay back interest.For now it’s about £100 each month.If they pay that ,then I will be paying only what I own and still interest on top of this like in past.
Sara (Debt Camel) says
if you make an affordability complaint and win, any negative marks on your credit record are removed.
But for you worries about your credit record are probably less important because it doesn’t sound as though you can carry on as you are? In which case you need arrangements with your creditors which will harm your credit score. If you can get the interest frozen and make an affordable payments each month, then the debts will start dropping. priority debts such as car fiance though can’t go into debt management, they have to be paid in full. StepChange will explain your options if you phone them up and then you can think what to do.
If you win, interest you have already paid will be removed from the balance and no further interest will be added.
Andrea says
I also have to point that another option is not fair and can make life for some more difficult.
I strongly believe that many banks have gained so much from this pandemic and this should be stopped.
If they never allowed high credit limit I will be on same position as before pandemic .However behaviour of another company’s was just as bad ,not allowed have any payment holidays on first lockdown.
Only after media reports this change,leave me and I believe many others in difficult positions.Totally unacceptable,when working hard providing for family.
Thanks for all your answers and your time.
Sara (Debt Camel) says
I agree it isn’t good. But you have to do the best for your family now given where you are.
Sarah says
Hi Sara
My case regarding Barclaycard setting my credit limit too high is currently being looked at by the ombudsman service(investigator)
They have requested historic credit reports which I can’t find as the issue relates to 2016 and 2017. I have sent the ombudsman my debt at the two points the increase was made along with my income details.
The investigator has said;
“I see the screenshots show the total outstanding at those points in time, but unless there was any negative markers on your credit card, then a lender may reason that you were comfortably able to service that debt.
I understand that your account with Barclaycard was run very well at the times they increased your credit limit. Indeed they have used TransUnion to obtain credit report data at the time to support the credit limit increases.
If you are not able to obtain a detailed credit report due to the length of time I will have to rely on the evidence supplied.”
Is there anything you can suggest here?
Sara (Debt Camel) says
Your current credit report will still show information from 2016 and 2017.
What was your financial situation at that time?
Had you only been making minimum payments for a long time when they creased your credit?
Did you bank with Barclays?
Sarah says
Hi
May I ask where I can get a historical credit report? I used mycreditfile and I couldn’t see this.
I have made min payments and nothing more. I didn’t bank with Barclays
Many thanks Sara
Sara (Debt Camel) says
You can’t. (Well unless you have old reports which you have kept. Hardly anyone has.)
But your current credit record will show a lot about your debts and problems in 2016 and 2017 if not the complete picture.
How long had you had the card when they increased your limit? From what to what?
Sarah says
From 9k in June 2016 to 11k and then a further increase in jan 2017 £15700. I’ve always been on the limit since
Ive always paid the min as I have had a debt problem. I had around 18k to £21k of debt at the time of increases. No one asked me how much I earnt at the time of the increases
My worry is Barclays have provided the transunion report for the time of the increases I don’t have anything.
Sara (Debt Camel) says
Have you sent your current report? This is all you can do and FOS is used to this.
Do you have your bank statements for the time of the increases? If not get them now, you can do this even from closed accounts.
And tell the FIS investigator that you had only paid the minimum and doing this for a long while is not a sign of a well run account, it is the sign that someone has financial problems.
If the investigator doesn’t uphold your complaint ask for this to go to an Ombudsman. But do get those bank statements now, don’t wait to be asked for them.
CJay says
I am extremely cross with Barclaycard. They have literally cut my credit limit by over £9k overnight. I’m a long term customer with no late payments, yesterday my limit was £11.5k and today it’s £1.8k. I rang them today and spent an hour and a half on the phone trying to rectify and find out what has happened and the poor operator ended up reading me a generic statement from one of their experts citing all the usual. As someone else has said, it’s nice to have the buffer there, I don’t always use it but it’s a safety net that I factor in, especially with cash flow issues at tax bill times when clients are paying late. The worst of it is that having had a zero balance for a few weeks I booked a trip to go away on Saturday after an horrendous year, a bit of blue sky for Xmas. I only found out about the change today when I tried to book my rental car and it declined. So I have a non refundable Xmas break that has all but maxed out my new credit limit, booked for two days time and no credit to use while there now and no vehicle. If they had written to me or emailed me I wouldn’t have booked the trip but instead this. To clarify, I have had no changes (fortunately) to my income or status – my credit rating even went up by 18 points this month
Julie says
I cannot understand what happened to an older credit card debt I had with Barclaycard. I can see that a rule was brought in April 2011 saying that credit card debts had to be interest + fees + 1% of the balance but Barclaycard are saying that they didn’t need to do this. What happened was they set up a minimum payment that made the balance increase after 6 years of paying by £500. Is there anything that we can do to challenges this? In addition the account was closed in 2011 and the statements show ‘default’ charges, but Barclaycard then went on to default the account again in April 2016. I stopped paying in October 2015 when I found out the balance had increased after 6 years of payments by £500 and disputed it. I do not know what I can do about this and any advice would be gratefully received. Why did Barclaycard not have to follow the rules about minimum payments brought in April 2011? How can they add 2 defaults to the same account. This debt is still showing on my credit file.
Sara (Debt Camel) says
Who closed the account in 2011, Barclaycard or you?
Neil says
Furious at barclays as well. Have a limit of 11200 which i paid off in full last friday and then receive a letter today to say they are cutting my limit to £100!!! I have never missed a payment or gone over my limit in over ten years. Is there anything i can do or going by previous posts its orobably a bit like pi××ing in the wind. :(