A Lloyds Bank customer was left seething after discovering their credit limit had been drastically cut to a mere £75. Venting their anger on social media, the customer revealed they had been a loyal Platinum Credit Card holder since March 2024 with a previous limit of £2,500.
They expressed their outrage: “Used it, always paid on time. Today, you cut my limit to £75. My Experian score is excellent, yet you won’t even give me a reason.” In response, Lloyds Bank stated that it conducts monthly reviews of customer accounts.
The bank said: “As part of that review we look at a number of factors on your card account, including spend, payments, account history, other products you hold with Lloyds Banking Group and your external Credit File that the Credit Reference Agency shares.”
The bank advised the disgruntled customer to use the app for further communication regarding the issue. The customer also noted that the last update they received via the app from Lloyds was back in October 2023. They fumed that the bank “doesn’t send me message about my credit limit decreasing”.
Lloyds assured the customer that they would be informed in writing about the change, saying: “If the limit was decreased today, a letter will usually follow this. If you are registered for paperless communication, you should see this in your digital inbox within the next few days.”
Customers can check their credit limits for their various cards through Internet Banking or the Mobile Banking app. The bank’s website sheds light on potential reasons for a credit limit reduction: “Your credit limit may be reduced for a range of reasons – such as a change in the products or services your provider offers, or a change in law or regulation.
“Some banks will decrease your credit limit, or even limit your ability to use your card, if they reasonably believe that there’s a significantly increased risk that you will not be able to repay what you owe.” While customers can apply for a credit limit increase, you have to provide details of at least six months of payment history for the account and undergo an eligibility check, so approval isn’t certain.
However, under normal conditions, customers are free to request a decrease in their credit limit at any time.