News & Events » Current Events » Six million receive unsolicited increase on credit card limit - isn't that irresponsible lending ?

Six million receive unsolicited increase on credit card limit - isn't that irresponsible lending ?

Absolutely it is.

This sort of irresponsible lending could lead to bankruptcies, banks selling each other toxic debts, taxpayers' money being used to bail out failing banks, with the unemployed, disabled and immigrants being blamed for our economic woes.

No, surely that's too far fetched!

My card company seems to make an unsolicited increase to my credit limit when I've made a large purchase, the last time a washing machine and refrigerator online. That seems to be intended to tempt card holders to make more large purchases.

Unless my card company has changed the procedure, there is no provision to decrease the limit online (only to increase it!) and I gave up trying to do it by phone because it was taking too long to speak to a real person. I therefore now have a credit limit three times greater than I require.

What a joke the banks are acting like they want people to get in debt. I bet the government does nothing to curb this type of irresponsible lending

yes it is

Indeed it is.

When it happened to me I cancelled the card.

I grew up in the era of the tallyman, so have an innate aversion to buying anything on tick.

no the country is struggling to run a economy with ever lower wages and investment its a race to the bottom the government castigates Labour for borrowing and spending other peoples money as it were and borrowed money is indeed needed we have a deficit SO THE POOR CAN HAVE THE DEBT INSTEAD the huge student debt who will pay it we live on debt companies are barely selling the help to buy putting scores in debt releasing pensions so that finance can rip them off the whole onus of the countries problems are heaped on the poor the pensioners or baby boomers are branded selfish for owning their properties and working hard and obtaining them when times were better a tory prat stated its their fault the youth have no houses or can't afford it and there are too many old and sick that sounds like Nazis talking this is becoming a powder keg there will be pain when something serious collapses or breaks down like a fire like Grenfell there will be blood on the streets we all know it

That is how the card companies make their money, I have had the stern letter saying you have exceeded your credit limit, and two months later the credit limit has been increased.

time the government reminded the public that banks are not charities, they are in business to make money - up to the people to control themselves and learn to budget.

You get thr increase because you have been responsible
1) You can call the CC company and have your limit lowered
2) You don't have to use it

yes, and this has been raised before, and lenders claimed that they were going to stop the practice - but only until it got forgotten about - that's the problem with voluntary codes etc.

Fun Fact : Money lenders are often outside of the law, and they rely on debtors not taking them on in court - when I woked for a credit company, there were legal rulings that people would think unbelievable. If you do end up in unresolvable debt, don't necesarilly use their remedies, where you have to pay it all back over decades