Credit Card company sending credit increases without permission

Lgreatlamp on 06/08/2015 - 15:02

New laws commencing on 1 July 2012 prohibit card issuers from sending unsolicited credit limit increase invitations to their customers unless the customer has consented.

I have one of the ozbargain recommended credit cards, and I recently received a credit limit increase letter in the mail.

I have never given permission to receive them, and I remember saying on the phone I was not interested (they asked when I was calling about another issue)

I am not sure what I should do about this

I feel like the phone operator lied and put it in the computer system that I want to get these credit limit increase invitations so he could get his bonus for the year

What does ozbargain think?
Am I overreacting?

Poll Options

  • 1
    Report the company to ASIC / Ombudsman as they are breaking the law
  • 6
    Complain directly to the company
  • 36
    Do nothing - it's not a big deal
Financial

Comments

  • rambutann on 06/08/2015 - 15:04
    +1

    Why does it matter just out of curiosity?

    If you have a million dollar limit it doesn't mean you need to spend a million bucks.

    • stargalaxy on 06/08/2015 - 15:07

      Think it affect borrowing limit when banks assess you loan application, I don't think the credit limit increase is effected unless you reply and says go ahead.

      • nocure on 06/08/2015 - 15:10

        Credit limits are very flexible,if you want to borrow money just lower it for the application process than raise it again

        • BigTed on 06/08/2015 - 16:26
          +1

          Maybe - some banks impose a stupid an pointless punitive rule about this.
          For example, a little while ago I actually did want to do this for exactly this purpose.
          I called Westpac and told them I wanted to lower my limit. They said fine but I would have to wait 6 months to raise it again.
          I said that was fine and if they didn't want me to use their credit card I wouldn't.
          It seemed stupid to me at the time that they would be willing to cut off their nose to spite their face but there you go.

    • greatlamp on 06/08/2015 - 16:44
      -3

      The issue of credit limits isn't really my problem, I am more concerned that the banks are being deceitful and forging my acceptance. If they do it with this issue they act the same way in other issues

  • nocure on 06/08/2015 - 15:08
    +1

    Does it matter….accept or don't, it's up to you. You can ring up and complain if that makes you feel better.

    • stargalaxy on 06/08/2015 - 15:47
      +1

      This make me think of Sheldon of The Big Bang Theory.

      • nocure on 06/08/2015 - 16:26

        Windows that don't open, multi-user linens, keys shaped like credit cards, as if one walks around with unassigned slots in one's wallet.

  • evol on 06/08/2015 - 15:10
    +7

    It's definitely a scam and you should report them to the ACCC, Ombudsman, Fair Trading, Consumer Affairs and your work Union. Then contact A Current Affair so they can run a story on how your rights have been violated and you deserve compensation.

    • Amaris on 06/08/2015 - 15:19
      +1

      Yes, and find a cousin who's had the same happen to him. ACA like it when a lot of people agree to come on TV to bitch about something, usually first world problems…

    • tomleonhart on 06/08/2015 - 16:06
      +1

      lol

    • Nutrino on 06/08/2015 - 17:04

      Dont forget the public apology Published in the Newspapers.

  • Davo1111 on 06/08/2015 - 17:14
    +1

    Just call them up and asked to be removed from all credit increase letters.

    Another ozbargain problem solved

  • Hessian Sack on 06/08/2015 - 17:35

    I had one of these recently too, and had the same thought.

    Mine was worded as an invitation to apply for a specified higher limit, rather than an invitation to accept a higher limit. I was wondering whether this subtle distinction was how they got around the rule… is yours worded similarly?

    • lisss on 06/08/2015 - 17:40

      That's interesting… it's not the first time a bank has tried to do something like this and gotten into trouble for it, so they're not necessarily 'getting around the rule'. When the laws were first introduced, CBA put a message up on peoples online banking which was sneakily worded to imply that if a person didn't click to consent to receiving credit limit increases at that moment, they would never be able to access them. ASIC was not impressed. CBA was not allowed to use any of those acceptances and had to publicly apologise.

      http://asic.gov.au/about-asic/media-centre/find-a-media-rele…

      Which bank sent you that invitation Hessian Sack?

    • greatlamp on 06/08/2015 - 22:49
      -4

      I would understand if they sent an invitation like you have mentioned as I received one from another bank. The fact that they sent an invitation proves that they are not allowed to send you an increase without permission.

      I have definitely received a credit limit increase however, complete with $ offered mentioned.

      I don't seem to be getting much support from the community, obviously principles aren't that important here.

    • sagrules on 07/08/2015 - 13:34

      I got the same invitation - wondered why I was sent this as well as I hadnt used my card for the last 4 months.

  • lisss on 06/08/2015 - 17:44

    OP, if you are concerned and can be bothered, submit a report to ASIC. ASIC does actually take interest in these things, they have a specific consumer credit team which deals with consumer credit regulation enforcement.

  • c64 on 06/08/2015 - 17:53

    tell them to stop sending you promotional material in mail/email

  • spychiatrist on 06/08/2015 - 18:19

    Got a phone call from Citibank and was told I've been approved for a very significant increase in credit limit. Good thing I read here somewhere that high credit limits affect your borrowing (or credit rating?). I declined the offer.

    So what Citibank did was illegal eh?

    • chumlee on 06/08/2015 - 18:29

      It's only illegal if you dud not give consent to receiving credit limit increase offers. The consent option normally appears at the time of applying for the card

  • try2bhelpful on 06/08/2015 - 18:19

    We have a card we use for internet purchases that we purposely have a low limit on to minimise risk. (If we have issues we can cancel without affecting our other cards). The Bank periodically asks if we want the limit increased and we just ignore.

  • WT on 07/08/2015 - 10:22

    You should be able to check a box online with your CC company that stops them from sending this via mail or email

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