Card Firms Slash Spending Limits

Customers of various credit cards are claiming that their spending has been curbed by the banks cutting their credit limit to £100 more than their current balance, without warning. These people are only discovering the change when they try to use their cards for purchases.

There was no warning of the impending reduction and the affected people have unblemished credit reports. Some people are reporting their credit limits dropping from thousands to hundreds, a drop of almost £10,000 in one reported case.

Most of those affected have been given no warning and believe themselves to have impecible credit histories, always paying off their cards on time. Banks are beleived to be reducing credit limits to protect themselves from customers who over spend and then are unable to meet the debts.