Credit Card limit

Gaz

I just noticed that BOI have raised my credit card limit by 1500euro without me asking or approving.

Is this legal ??

Kingmaker

Yes

dudara

They usually notify you, but they can raise it without asking. I imagine though that you can ask for a particular limit, if you so desire.

Incidentally, I just noticed that mine was raised by 2k. It must be that time of year.

dbnavan

Darth Homer wrote:

I just noticed that BOI have raised my credit card limit by 1500euro without me asking or approving.

Is this legal ??

They are doing you a favour means u have good credit rating, all credit companys do it, does mean they force u to use it.

Culchie

I think there was legislation passed in recent weeks that will see the end of this, maybe they are bumping up accounts now, before it kicks in?

I remember contacting my credit card company several years ago when they increased my limit for the 3rd or 4th time in the space of a few months, I contacted then and said to bring it right back to where it was when I got my card initially.

I was told (paraphrase) "No problem Mr Culchie, but I must warn you if you do this and reduce your credit facility, it will probably count against you if you ask for a credit increase at a further date, or if you ask for a loan"

I said (paraphrase) "Thank You very much for that information/blackmail, you can close my account altogether now so !"

Sleipnir

Darth Homer wrote:

I just noticed that BOI have raised my credit card limit by 1500euro without me asking or approving.

Is this legal ??

You'll get a letter saying that "your current limit may not be suiting your needs....."
You can just call them up and ask them to put the limit back. That's what I did.

gerrycollins

mine increased too well over €1k didnt even ask for it well at least i dont think i did,never got to tick those little boxes you know the ones where you have to tick if you "DO NOT" want further information etc they have their ways but on the up side shows you have a good credit rating

dahamsta

Culchie wrote:

I was told (paraphrase) "No problem Mr Culchie, but I must warn you if you do this and reduce your credit facility, it will probably count against you if you ask for a credit increase at a further date, or if you ask for a loan"

Whatever about the former, if the latter isn't against the rules, it should be. You were right to leave.

adam

Nightwish

Miy credit limit was doubled, without telling me. All I got was a letter a few weeks later saying that my credit limit was increased to provide more "freedom" and if I was unhappy about it, to ring them.

Dub13

This is from Monday, 16 May 2005 not sure if it has been acted on yet but its on the way.

This is only part of the report....but it makes interesting reading.

Financial Regulator paper entitled ‘Do the Poor Pay More’

Unsolicited loans and credit

The issue of unsolicited loans and credit is also of concern to the Financial Regulator.

We undertook our own research into consumer attitudes to unsolicited pre-approved credit in 2004. That research revealed that pre-approved loan offers had been received by over half of the adults surveyed, that 1 in 5 of those took up the offer and that only 3 in l0 of those who took up the offer shopped around before taking it up. 86 per cent of those surveyed believed that unsolicited pre-approved loans encouraged them to borrow more than they needed.

Today’s research highlights that low income households regularly enter into such credit arrangements without adequate information or consideration. This may be because they need the money at a vulnerable time, such as coming up to Christmas or to a First Communion. Indeed, many low income families enter into such credit arrangements merely to meet basic needs. Having said that, however, credit companies must take some responsibility in ensuring that a client is in a financial position to repay a loan, and that the loan product offered is suitable for the needs of the client. In this regard, our draft Code of Conduct contains a proposal that a regulated entity must ensure that any advice it gives to a customer is suitable to the customer. In addition, the regulated entity must prepare a written statement of the reasons why the recommended product is considered to be in the best interest of the customer.

Our draft Code contains a number of other provisions in relation to personal lending, include a proposal to prohibit unsolicited pre-approved credit, and a proposal whereby a regulated entity can only increase a customer’s credit card limit following a request from the customer.

If implemented, we hope that the proposed changes in lending practices outlined in our draft Code of Conduct will address the serious consequences for all consumers, but in particular for low income families, of accepting offers of unsolicited and pre-approved loans when they are not in a financial position to make the repayments.

gerrycollins

when i applied for a top up of an existing loan (only 5% of original loan amount) i was asked the usual questions then told i was pre approved for the amount i was asking for, subsequently a mate told me that the new law was in law as outlined by "dub 13" what do people think of this,

the result of this rule is that the bank or instute cannot advertise to us that we are preapproved but when we apply for a loan or anything inside the approved amount it is instantly approved anymore outside that amount goes through the usual procedure

Savman

Increasing your card limit has nothing to do with your credit rating. In fact, I'm quite sure your monthly repayments arent even marked on your credit history. The only time a credit card issuer touches your credit history is when you apply for the product initially, any increase in credit after that is between you and them and signifies in no way that your credit history is good/bad/indifferent.

You are under no obligation to accept the increase, the card issuer will think they're doing you a favour but should you decide otherwise they will revert to your lower limit at your request and this will only look good on you if anything. Remember as generous as the increase may seem, its a product and your spending still generates a profit for them so its in their interest you spend spend spend.