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HSBC / lowered credit limit

1 Carol Stream, IL, United States Review updated:

I have had a Direct Merchants Card for over 10 years which for which I have never made a late payment and which carries a very low balance if any at all. Last week, without notification, my available credit was decreased from $8700 to $300. When I called they said it was a 'business decision' and I would find out 'why' when I received the letter. I received the letter which states that "we recently completed a loss mitigation review on our Direct Merchants bAnk (R) Mastercard (R) accounts. As a result of the class of accounts into which your Account fell, the credit limit on your Direct Merchants Bank (R) Mastercard(R) Account has been reduced to $300." I am baffled. No late payments; same income (if not more), credit is good; no foreclosures or late payments anywhere. Reading on-line complaints I see that this is happening to alot of people who carry low balances or no balance. This will have a negative impact on our credit (debt ratio) and will perhaps affect how other credit card companies and credit companies in general will view my report. It appears that if you are not carrying a balance and paying their %24 interest (which is outrageous) then they are reducing your credit to almost nothing. Motivation for them? -- GREED. Who is going to monitor these procedures which are affecting people like me with great credit who have been long standing customers with no late payments?

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  • Cr
      4th of Mar, 2009
    0 Votes

    I have 3 credit cards throug GE Money and they did the exact same thing. They lowered my credit limit to the nearest $100 increment above what my balance was. I had 3 cards and none of them had a credit limit of over $200, so I cancelled all of them and payed off the small balances I had with them. All credit card companies are trying to strenthen the look of the company and to decrease the possibility of exposure. If they lower your credit limit and everyone elses their exposure is limited as well. In the event they want to sell a portion of their company they will know exactly what their exposure is and can entice buyers more easily.

  • Hs
      5th of Mar, 2009
    0 Votes

    HSBC is total scam now adays.

    /URL removed/

  • Pj
      23rd of Jun, 2011
    0 Votes

    HSBC lowered my credit limit from $4000.00 to 305.00, on my credit card that I have had for years; due to the fact they did not change my mailing address when I called in. I was late less than 30 days on my $15.00 payment (but the letter said I was seriously delinquent, yet they reimbursed me on the late fee... this account was always paid in full monthly. "They had no record" of me calling in and changing the address. They offered to request an upgrade, and it was declined... DUH hello, I am not stupid, what a scam. I cancelled the credit card and will never do business with this company again.

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