“I had to call my bank to cancel a huge increase in the credit limit
On The Money Show, consumer ninja Wendy Knowler finds out why your credit card limit can be increased without your consent.
Consumer reporter Wendy Knowler has received complaints about increasing credit card limits from customers without their consent.
Banks like to describe it as “we do you a favor, we reward you for your good behavior … we are going to offer you another 25% line of credit” … This tends to happen now as part of the Christmas accumulation …
Wendy Knowler, consumer journalist
I remember the days when credit cards were handed out like Smarties … and it led to a credit crunch because people went crazy! I thought it was all settled.
Bruce Whitfield, host of the Money Show
Banks that take it upon themselves to increase customer limits on their credit cards encourage and allow people to spend more, Knowler says.
Some customers do not appreciate this “favor” because they have chosen to set their credit limit where it is reasonable and appropriate for them.
Knowler is following up on the case of Discovery Bank client Graham Thompson, who was downright angry when he received a letter informing him of a “huge” increase in his credit limit.
They IMPOSED a 24% credit limit increase which was not requested and was not wanted … The most annoying thing is I have to call them to reverse the increase in the credit limit. credit limit (which I did).
Discovery Bank told Knowler in its response that the unilateral consent to increase the limit was provided by the customer on January 25, 2021, when he apparently checked the appropriate response on his banking app.
Mr. Thompson’s consent is still active. To prevent this from happening again, next October he will have to call our call center and ask for the consent to be revoked. “
Thompson says it’s highly unlikely he would have accepted this clause, but he can’t prove he didn’t tick the box.
As of close of business Thursday, Knowler had not received a response from Discovery Bank regarding proof of customer consent. She promises an update next week.
For full details, listen to the conversation below:
This article first appeared on CapeTalk: ‘Had to call my bank to reverse a huge credit limit increase – I don’t want it!’