On The Money Show, consumer ninja Wendy Knowler discovers why your credit card limit can be increased without your consent.
Consumer journalist Wendy Knowler has received complaints about customers increasing their credit card limits without their consent.
Banks like to describe it as “we’re doing you a favour, rewarding you for your good behavior… We’re going to give you another 25% line of credit”… This tends to happen now in the build up of Christmas. ..
Wendy Knowler, mainstream journalist
I remember when credit cards were handed out like Smarties…and it caused a credit crunch because people were going absolutely nuts! I thought everything had been settled.
Bruce Whitfield, host of The Money Show
Banks that take it upon themselves to increase customers’ credit card limits encourage and enable people to spend more, Knowler says.
Some customers do not appreciate this “favor” because they have chosen to set their credit limit where it is reasonable and appropriate for them.
Knowler follows up on the case of Discovery Bank client Graham Thompson, who was downright angry when he received a letter informing him of a “huge” increase in his credit limit.
They IMPOSED a credit limit increase of 24% which was not requested and not wanted… The most irritating thing is that I have to call them to cancel the limit increase credit (which I did).
Discovery Bank told Knowler in its response that unilateral consent to the limit increase was provided by the customer on January 25, 2021, when he apparently checked the appropriate response on his banking application.
Mr. Thompson’s consent is still active. To prevent this from happening again, next October he will have to call our call center and request the revocation of consent.”
Thompson says it’s highly unlikely he would have agreed to that clause, but he can’t prove he didn’t check the box.
As of the close of business on Thursday, Knowler had not received a response from Discovery Bank regarding proof of client consent. She promises an update next week.
For all the details, listen to the conversation below: