Have your say: Credit limits

Have your say on credit card limits

Consumer groups and financial firms are watching with interest as Ireland brings in strict controls over firms who lend money.

This includes credit card companies being banned from automatically increasing their customers' spending limits.

How well do credit card companies interact with their customers in the UK?

We asked for your comments. This debate is now closed.

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I think banks in the UK should be prevented from raising a cardholder's limit without asking their permission first.

If you needed a raise and went and asked for one, they more than likely would turn you down Paul, Belfast

If a cardholder needs a raise, they'll ask for it. It's a sneaky way of getting people into debt, there's no other way of looking at it.

The ironic thing is that if you needed a raise and went and asked for one, they more than likely would turn you down.
Paul, Belfast

Raising credit limits are not a problem. Regarding potential fraud: if it happens, it will be the banks that lose out, not the honest individual.

If fraud rises, this may encourage the banks to stop doing this, although banks may actually pass the costs of fraud onto individuals.

However, increased credit limits are good as a back-up, but at the end of the day, it is up to the individual to use the cards wisely. Just because you have a big limit, does not mean that you have to go to it.

Just like driving a car, it can go over 100 mph, but it is not recommended that you do more than 30 mph in a built up area, and if you do just for quick entertainment, you potentially could be paying for it for the rest of your life.
Javier Freire-Banos, Bristol

The checks by credit card and other loan companies are not good enough. They are determined to lend at any cost. The whole area is entirely uncontrolled.

The rules should require a written statement of income and expenditure prior to granting any loans or credit cards.

Unscrupulous borrowers are able to easily borrow far too much and then go bankrupt too easily Ian T, Cambridge

The rules should require that the minimum repayment every month is set at least 20% of the outstanding balance, not 2-3% at present.

It is a shame that people must be protected from themselves, but unscrupulous borrowers are able to easily borrow far too much and then go bankrupt too easily without any stigma. The decent honest borrowers, as elsewhere, have to pay the cost. It is not fair!
Ian T, Cambridge

I am retired but my card company gradually increased my credit limit as a matter of routine.

Even though my maximum monthly spend last year was approximately £105, the limit was increased it to £10,500.

In the end I had to phone them to reduce it to £2,500 because that is more than sufficient on my monthly income and I pay it off in full each month I use it, which is not every month.

They should only increase one's limit on request and even then after ascertaining your ability to repay your debt to them.
Malcolm, Altrincham

If you are disciplined enough to stay in control, you can ask for a higher limit or accept one if it is offered.

If you are not, then a higher limit should not be made available unless the customer knows and accepts a higher limit with its potential to get into yet more debt.

Companies may be worried about cost, but surely it is better than being unable to enforce repayment of the sum the customer didn't actually agree to? Some small cost might then be preferable to them.
Gabrielle, London

I do not think there is any real correlation between high level of debt and higher spending limits. Most people have more than one credit card or other credit facility. I do not believe the new Irish rules will make any difference.
Habib, Birmingham

When, in the past, I have received a letter telling me that my limit has been increased, I simply telephone customer services and ask for the limit to be put back where it was.

Needless to say, they try to persuade me that it would be to my advantage to have a higher limit, but I insist it's reduced.
Carole Harrison, Berkshire

Controls are needed on the amounts that companies are prepared to lend, and the increases in credit operated by the banks.

Also, hidden charges through insurance, and the use of 0% interest deals to tempt consumers - followed by massive interest rates -is exploitative and cynical.

The government has done nothing to curb these "offers" which consolidate the debts of the most vulnerable, not least young people who are all saddled with debt already from undergraduate loans, or post-graduate and career development loans.

This is not only dangerous for individuals and their families, it is dangerous for the economy Veronica West, Derby

The ease of access to loans on a range of credit cards is dangerous and insidious, and the dependence on credit widespread. It is only later when it all starts to add up that the reality kicks in.

This is not only dangerous for individuals and their families, it is dangerous for the economy.

Furthermore when the young person who is seriously trying to address their debt problem seeks a way of dealing with it, through consolidating their debt into one clear and manageable payment, they are unable to unless they have a mortgage.
Veronica West, Derby

About eight years ago I got myself into considerable debt with my credit card limits being automatically increased to accommodate my bad spending habits.

Had the credit card company imposed more restrictions on my spending and paid more attention to my income I would not be paying £330 per month on a consolidation loan. This amount is more than my mortgage repayments!

Anything that causes a credit card user to think about the line of credit they are extending can only be a good thing.
Simon, Rochdale

I have a card, and its limit once crept up through several years of unsolicited increases to £19,000. This was despite my averaging only about £400 a month on it, and never having had a balance over £1,500.

Then the card company sent me some credit card cheques which went missing in the post, and a fraudster successfully used two of them for £7,000 each. The third one bounced, quite a shock when I got the letter informing me the £7,000 cheque I had written had been rejected because I was already £14,000 in the red!

I got the money back, of course. The company were really quite surprised when I called them later to reduce my limit, as I told them, to protect both you and me. I would hope they are getting more used to such calls these days.
Paul G Roberts, London

It was suggested that it would be too costly for banks to contact customers in order to offer them an increase in their credit limit. Credit limits should not be raised unless at the request of the customer. Problems of cost to the bank solved!
Colin Bridger, Camberley

Both my bank and credit card companies persistently increased my card limits. At one point several years ago I was at the limit on both my credit cards (which I had been encouraged to take out by "0% interest" deals) and was paying out a lot of money in interest charges just to stay afloat.

Now I only have one card which is paid off each month and I refuse the constant stream of inducements to take out another card or increase my spending limit.
Andy, Taunton

Some years ago, I worked for one of the high street banks. I was made redundant in one of the reorganisations. I had a credit card from the bank under staff terms. On being made redundant, I had to change that card for one under normal terms.

To increase the credit limit of someone who might be assumed not to be working did seem rather odd Keith Walton, Walsall

Shortly after receiving the new (non-staff) card, I received a letter saying that my credit limit had been increased.

Being a responsible user of credit, this did not create any problem for me. However, to increase the credit limit of someone who might be assumed not to be working did seem rather odd.
Keith Walton, Walsall

A more important consideration should be a consumer's overall total unsecured credit with all lenders. This could be set in law as a multiple of a consumer's income.

A further measure could be that income must be proved for all credit advances. However this is unlikely to ever happen, due to the mentality of credit providers.
Rick Wild, Granada

What a good idea! It's amazing that Malcolm Hurston of the CCCS should not back such a move in the UK.

Banks do this all the time without consulting the customer, especially in such a competitive market. I know people I work with have got into massive debt because they think a high limit is a licence to spend as much money as their limit will allow, the result - massive debt.

Malcolm Hurlston should back such a move to the hilt. It would make his and other debt charities jobs much easier.
John, Shrewsbury

Why is it always the institutions fault? It is the consumer who spends on the account. It is about time the UK/Ireland population took to "responsible purchasing" whilst the banks strive to become "responsible lenders".

This way, the consumer has the power to manage their credit effectively. I have never seen someone in a store with a gun to their head, being threatened to make a purchase on their credit card!
Christopher, Torquay

I don't believe banks increase credit limits of an overdraft on current accounts automatically, so I don't believe credit card companies should too.
Dean, Manchester

It's about time as several years ago my son was allowed by a well-known high street bank to re-finance three times over a six month period without any questions being raised as to what he was spending.

It turned out he was gambling heavily. Had a system been in place to flag this spending up perhaps he would not have ended up in the mess he did.
Derrick, Newcastle upon Tyne

Credit card spend limits should initially be set fairly low and only changed at the customer's request.

People in debt would be much better off finding out more about credit unions Katie Nicholls, London

Credit cards should not be issued to those already in debt. It sounds harsh but people in debt would be much better off finding out more about credit unions before committing themselves to high interest credit card borrowing. www.creditunion.co.uk
Katie Nicholls, London

I think the whole system needs to be looked at. You cannot borrow more than a certain amount for a mortgage. So why should you be able to borrow more than a percentage of your income on credit cards?

Banks take advantage of customers and just keep giving. This puts people into debt. If you do not have the money and ways to pay back then you should not be allowed to borrow.
Paul Bailey, Windlesham

It's not quite true that customers can simply ask banks to lower their credit limits. My bank upped my limit so much I told them to halve it again, for security reasons. They said that if I lowered my limit, they wouldn't let me raise it again for six months. It sounded a bit like blackmail to me.
Trevor Barker, Surrey

Regarding the discussion, what about the fraud aspect? My limit is £5,000! This could be abused by a fraudster as I only ever spend about £500 per month.

This did not appear to be mentioned. I am about to lower my limit, prompted by having listened to the programme this morning.
Caroline, Frith Common, Nr Tenbury Wells

What utter rubbish for your contributor to state that automatic raising of credit limits does not increase spending! Why else would they do it?

What utter rubbish for your contributor to state that automatic raising of credit limits does not increase spending! Sheila Glass, Ramsbury, Wilts

Credit card companies are in the business to make money. As soon as there is a suggestion that they approach the matter more ethically they whinge about added costs.

These costs are more than adequately covered by excessive late payment charges and full interest charges which kick in if the payment - even in full - is one day late.
Sheila Glass, Ramsbury, Wilts

I travel a lot abroad on business and do not want an array of high value cards either with me or sitting at home.

I have - on a regular basis - asked by phone and in writing for my card levels to be reduced but I never get far and the cards continue to "award" me higher amounts that I do not want.

On the security front this leaves me feeling vulnerable.
C Mitchell, Hitchin

It is further encouragement for people to enter into unmanageable levels of debt Fiona, London

I do not think any companies should be allowed to raise credit limits at will. I feel it is irresponsible especially with the current high levels of debt.

It is further encouragement for people to enter into unmanageable levels of debt.
Fiona, London

Limits should not be raised unless requested. Why should I have the hassle of having to get through to a company, at my expense, to get them to reduce it back to what it was?
Peter Dunn, Falkirk, Scotland

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The comments we publish are not necessarily the views of the BBC but will reflect the balance of views we have received. It is helpful if contributors state if they work for any organisation relevant to an issue discussed. Readers should form their own views on whether messages published represent undeclared interests, or views prompted by a common source.