Next reduced my credit limit twice last week!

I've received a letter from next that they reduced my limit to £870 and that they cancel my order because of that.
Yeah alright... but that's nothing... two days later I received second letter that they reduced it agait to £250 :O
I've got balance of £700..
I never missed a payment and was making lot of orders from them for about 2 years.

Are they allowed to do that? I know that they've got that in their T&C but they bring my account overlimit for £450!

14 Comments

oh thats terrible, next have just increased my limit to 2K!!!

have they credit checked you I wonder? only thing I could think of?

Original Poster

4lyons09;6122335

have they credit checked you I wonder? only thing I could think of?


Yeah.. they did, but is it not unfair to reduce my limit below my balance and bring it overlimit?
And why they did it twice?

Dreraf;6122363

Yeah.. they did, but is it not unfair to reduce my limit below my balance … Yeah.. they did, but is it not unfair to reduce my limit below my balance and bring it overlimit?



I would bring the issue up with Next, they obviously feel its the best thing for them to do, I would certainly speak to them, they will be the ones with the real answers.

Dreraf;6122363

Yeah.. they did, but is it not unfair to reduce my limit below my balance … Yeah.. they did, but is it not unfair to reduce my limit below my balance and bring it overlimit?



So are they expecting you to pay the overlimit amount back immediately, or are you just not allowed to place any new orders until that is paid off? It does seem a little unfair.

Original Poster

4lyons09;6122433

I would bring the issue up with Next, they obviously feel its the best … I would bring the issue up with Next, they obviously feel its the best thing for them to do, I would certainly speak to them, they will be the ones with the real answers.



Yeah I will, I just wanted to know your opinion..

Original Poster

leopardspots;6122438

So are they expecting you to pay the overlimit amount back immediately, … So are they expecting you to pay the overlimit amount back immediately, or are you just not allowed to place any new orders until that is paid off? It does seem a little unfair.



I just add them the same question, see what will happen..

Hope that this doesn't mean that next are in trouble, lowering the credit limits of people incase they go bust.

4lyons09;6122335

have they credit checked you I wonder? only thing I could think of?



can a company credit check you under these circumstances, I always thought you had to be applying for credit for a credit check to take place and you had to agree, must admit this is not based on any great knowledge i have more of an urban myth type knowledge I have aquired. would be interested to know if it is true though.

fairyworks;6122514

can a company credit check you under these circumstances, I always … can a company credit check you under these circumstances, I always thought you had to be applying for credit for a credit check to take place and you had to agree, must admit this is not based on any great knowledge i have more of an urban myth type knowledge I have aquired. would be interested to know if it is true though.



Surely the credit checks woulda been done when the account was first opened?

Original Poster

AshleyRFC;6122541

Surely the credit checks woulda been done when the account was first … Surely the credit checks woulda been done when the account was first opened?



According to my case it seems like they doing credit check everyday, as two days later after reducing my limit they did it again:w00t:

AshleyRFC;6122541

Surely the credit checks woulda been done when the account was first … Surely the credit checks woulda been done when the account was first opened?



I would have thought so, would not have thought they could do periodic credit checks, maybe someone who is in the know could enlighten us.

tinkerbell28;6122593

Companies can credit check you through out the life of the agreement to … Companies can credit check you through out the life of the agreement to check the account is still suitable and the credit limit is suitable to your circumstances, ie, if you have a high credit limit and then start getting defaults of have have very high amounts of credits with others, they will reduce it, it's all in the small print.



thanks for info tinkerbell, interesting didnt know companys could do this.

They can revise your limit and lower it where they feel necessary regardless of whether you have maintained the account in good stead.

The way in which they revise it and communicate it to yourself is something that I would question with them.

They should give you a reasonable amount of time by notifying you and I believe the rule of thumb is a letter of notificaton 30 days prior to the change.

What they cant do is revise your limit to a lower amount than the current balance and knowingly penalise you for that. If this were the case then you would have ground not to pay any charges or associated interest relating to those charges, however you would still have to pay off the balance whether that be the minimum monthly payment or the difference between the account balance and the new lower limit.

If they do penalise you then you would have ground to complain to the regulatory bodies and if it also comes under the FSA then you can complain to them also on the grounds of Treating Customers Fairly.

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