Automatic credit limit hikes still opt-out | AdminBox

Automatic credit limit hikes still opt-out

Automatic credit limit hikes still opt-out

This week the FCA failed to impose changes on credit card providers to stop automatic credit limit increases. Many people have their credit limits automatically increased, without permission. Customers still have to opt-out of automatic increases. So we have a system where on the one hand we are told not to get into debt, at the same time as being told that we need credit to have a good credit rating AND having our credit limit increased automatically. 

People should have more control of their finances, and asking people to take more time out of their lives to contact their credit card to opt-out of credit limit increases is yet another thing busy people have to do. It is wrong for the system to rely on the credit card holder, as customer ignorance or apathy can easily lead to increased indebtedness. The system should be opt-in, not opt-out.

According to recent research, 19m credit card holders have had their credit limit increased automatically. Two thirds of card holders are unaware that it is up to them to cancel the credit limit hike within a 30-day limit and to stop future increases happening automatically.

Recent changes introduced by the FCA did not include changes to automatic credit limit increases, nor to change the system to opt-in. 

  • 21 Jun 2018
  • By: Paul Chapman