topic Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA in Credit Cards

BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CARD

creditlogic — Sat, 18 Sep 2021 15:42:59 GMT

I have seen so many people always complaining about how inquiry sensitive barclays is ?

So finally it happened to me as well.The account is one and a half years old with $1,000 CL (after credit limit decrease by Barclays from $10,000).The $10k was the starting limit since the account openeing.I never abused the account.Always paid in full and timely manner responsibly.Suddenly this month in sep 2021 their auto- payment did not work and did not initiated the monthly remaining balance from my bank account.My bad luck i always check my credit cards every few days and stay on top of things but somehow got super busy and i also missed to check back barclays mobile app.Anyway i received the notification from my fico,credit karma, chase journey and all those tools telling me that my total credit limit decreased $9,000 by Barclays.I checked my barclays mobile app and sure enough they did.I was shocked ,after reviewing my account i realised that auto-payment did not go through.I called Barclays to see if they can restore the previous limit.Customer care (in phillippines i guess) is horrible ,they have no knowledge about credit, not helpful at all.It's so difficult to make them understand what your issue is.The customer service rep admitted that it's their fault,some technical glitch or whatever,then i ask her to initiate the payment of the full remaining balance of $180 from my bank account on file.which she did.Upon asking the restoration of previous credit limit she said ,she has no authority for that, only Credit Specialist of Portfolio Credit Unit (Which she keeps saying Credit Bureaus instead) can help me with that and she couldn't transfer my call to them instead gave me the number (1800-685-1111) to call them.When i call the number ,i figured it out that auto-tune welcoming me for calling Equifax consumer line.I was like...I couldn't believe that they have no clue what they are doing.

I called Barclays customer care again and told the second rep that i was given the wrong number by previous person, could you please give me the correct number. She gave me number 866-663-6532 and told me the biz hours for number is 9 am to 5 pm eastern time and it's open 7 days.I was like are you sure its open on sat and sun ? ,she confirmed yes. so I called today Saturday morning 9 am ,Greeted by automated message that i am calling out of biz hours ,i should call back tomorrrow 8 am.I am thinking tomorrow is SUNDAY,8 am sunday does not make any sense.

Come on Barclays .....

My scores were in between 775-800 in the past few years.My scores were in 700's after i took advantage of three credit cards 0% apr for last few months (Lol they all keep sending me 0% apr checks)

My credit data right now after the barclays have reported $9000 credit limit decrease is given below:-

Fico bankcard score 8

EQ 671 (2 Inquiries)

TU 707 (3 Inquiries)

EX 672 (11 Inquiries)

I have total 15 accounts (14 revolving credit cards and 1 car installment loan)

Total Credit limits -102,550 (was 111,550) with 23% utilization ($24000)

Average Age Of Accounts = 1 year 11 months

Newest Opened account - 5 months ago

Payment History - 100 % Exceptional on all accounts

NO Derogatory Remarks, No public record

Barclays Aadvantage account is 1.5 years old,

They have reported new decreased credit limit to the bureaus but not the non-payment or late payment (their fault , auto payment did not go through,its now paid in full pending transaction ,not posted yet)

will barclays close my account after the payment is posted ?

How do i know that, If that's the case ,i want to initiate to close the account not closed by them.

What are the do's and don't in this situation?

what actions should i take ?

I most probably will not have any choice but to wait until monday to talk to credit specialist.

Any pointers how to talk to them that will help to restore previous limit back or should i not talk about restoring the credit limit at all.

What should be my best strategy here to deal with this situation.

Any help is really appreciated,

Thank you so much.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

JNA1 — Sat, 18 Sep 2021 16:19:05 GMT

Sorry you're going through that - Barclays sounds like a nightmare! 😳

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Sat, 18 Sep 2021 16:38:32 GMT

Thank you JNA1 ,

They really did turnout a nightmare.

There customer service really sucks.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

SoCalGardener — Sat, 18 Sep 2021 16:54:18 GMT

@creditlogic wrote:

What should be my best strategy here to deal with this situation.

Although it's painful/uncomfortable, you MUST talk to Barclays again to get this straightened out. THEY were at fault, plain and simple, for failing to make the auto-payment they were supposed to make. YOU had no control over that, they did. Therefore, everything else that happened as a result is THEIR FAULT.

You have to get past the non-US 'customer support' and find a supervisor in the US to speak to. I have zero experience with Barclays so I can't help you beyond that. I just know that if this happened to *me*, I'd be absolutely RELENTLESS until it was resolved to my satisfaction. They cannot deny that THEY caused the problem; it would be different if, like me, you pay your bills via another bank's bill pay--then they'd have nothing to do with it. But they did!

When you get to an English-as-their-first-language supervisor, spell out exactly what you expect:

- restore your original CL

- remove any late payment fees they may have added

- remove any late payment dings they reported to CBs

- update their internal records to show that the account is back at its original state

Even if it takes sending a certified letter to their corporate headquarters, *I* would not give up until this was resolved.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

Taurus22 — Sat, 18 Sep 2021 17:02:21 GMT

Wow, so sorry to read about such a mess you're going through. And I'm certainly not intending this to be salt in the wound or anything, so please don't be offended. It just reinforces my stance on always manually managing accounts and monthly payments. So many people argue, "Well, what's going to happen if you become incapacitated and can't make your payments manually?" and to that I say......Well, if I'm incapacitated such that I can't manage my accounts, then my accounts are the least of my worries at that point. If people rely too much on auto-pay, they become lethargic and less attuned with their finances.

Just see what happens on Monday when you finally get through to the specialist. I would certainly push this up the chain of command if nobody was willing to take action with it. I would become a living, breathing PITA for them daily until something was done, since they have admitted fault. Whether they reinstate your limit is entirely a YMMV situation.....as they do have the right to refuse to do that. (Hey, it's their ball) But any reporting of a missed payment to the bureaus should be immediately retracted. You shouldn't take a derog for their mistake. If they don't remove the derog, then I would contact the bureaus and file a complaint with the CFPB and go from there.

Again, sorry to hear stories like this.....stresses me out just thinking about it.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

SoCalGardener — Sat, 18 Sep 2021 17:20:25 GMT

@Taurus22 wrote:
Wow, so sorry to read about such a mess you're going through. And I'm certainly not intending this to be salt in the wound or anything, so please don't be offended. It just reinforces my stance on always manually managing accounts and monthly payments. So many people argue, "Well, what's going to happen if you become incapacitated and can't make your payments manually?" and to that I say......Well, if I'm incapacitated such that I can't manage my accounts, then my accounts are the least of my worries at that point. If people rely too much on auto-pay, they become lethargic and less attuned with their finances.

I agree. I pay my bills myself, via BofA's bill pay, and have forever--and I *DID* become incapacitated to the point that I couldn't manage my accounts. (Hard to do when you're in the ICU being kept alive!) Luckily for me, by the time any CC bills were due, I was capable of paying them. I had my 17.3" laptop brought to the hospital (I couldn't focus my eyes well enough to use my smartphone), and although I was too ill to sit up and use it, like for fun, I could access it for a few minutes, check my bills (although I do NOT have paperless billing, I DO receive bills via e-mail, too), and pay them. Total time 2-3 minutes. That's all I had in me.

I had previously set up Discover's auto-pay-but-not-exactly. Discover has the BEST feature of all my cards. It's a payment option where if they haven't received [at least] the minimum due by its due date, they auto-pay it from your provided bank account. That took Discover off my mind the whole six months in the hospital! I wish all my cards had that. Although I never make just minimum payments, a minimum is better than ZERO when you're laid up, you know?

AFTER that was all over, I went through every one of my CC accounts and provided banking information (if I hadn't already). My thinking is that, heaven forbid, if I get that sick again and stuck in the hospital for months again, a simple call or website visit will be all it takes to switch each to auto-pay....

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

xenon3030 — Sat, 18 Sep 2021 18:53:18 GMT

Set all credit cards in auto-payment (minimum) and to be more careful, check all account balances and credit reports also in a weekly or biweekly basis. By this way, there is no risk for any missed payment. Some banks look weird and there might be issues with payments or payment settings occasionally. Sometimes they may not consider their error at the end and instead, do CLD or in some cases, close the accont of customer. I experienced one similar issue and my account got closed instead of fixing issues from their side. Anyway, it is always better to put your eggs in a safer basket

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

Anonymous — Sat, 18 Sep 2021 18:56:27 GMT

With these unsecured credit cards you just never know what will actually cause a CLD. It is my opinion to have more cards with more lenders on board so if one does a CLD it will not cause havic on your scores. Barclays holds 30% of my total credit lines. I too am worried , what if they decide to pull it? so I have other accounts at other banks to compensate so if for any reason I am shut down it will not change my utilization which in turn will not have any changes to my scores.

You state you have at least 24% utilization before the closure. Banks such as Barclays which is a conservitive bank may see this as way too high. You read all over that under 30% utilization is ok. It is NOT OK. Some banks such as this one problably started to get nervous once you hit arount 15% so they probably jumped the gun and pulled your credit line. I have found that banks like to see total utilization of under 9% or so and the same on each card. So many make the mistake of doing a balance transer for a 0% card which makes utilization on a card 50% or more, that alone will drastically hit your FICO score, it will drop a lot for that alone.

Again, I think it was put into motion due to your utilization. It is just too high for banks like Barclays

Thanks

Mark

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

lgtwriter — Sat, 18 Sep 2021 20:12:52 GMT

I am so sorry this happened to you. If you had auto-pay set up with Barclays then that should be documented and you will be able to prove that the autopay did not trigger as planned.

If you used a bill-pay service from your checking account or other bank account etc, it will be harder to prove that the autopay miss was Barclay's fault. They will say that it is your responsibility to manage your bill pay services.

I would definitely spend as many hours on this on Monday as you can. A credit line decrease of that size may trigger adverse reaction on your other cards. Also you may end up with a 30 day late mark on your credit reports if you don't take care of this right away.

If it is Barclay's technical glitch, then you should demand a restoration of your credit line, and a letter admitting it was their glitch that you can use with the credit bureaus in case it reports for a month or two before you dispute it.

Good luck and keep us updated.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

jmw1 — Sat, 18 Sep 2021 20:27:35 GMT

@creditlogic wrote:

Total Credit limits -102,550 (was 111,550) with 23% utilization ($24000)

Yes, the missed auto payment triggered the CLD. No disagreement there.

But the underlying problem which put the CLD in the picture is the utilization. For sure the current amount is not good for you. That 30% good utilization number you may have heard is hogwash. You want it a lot lower. In the long run, you should be a lot more worried about having this balance hang around, even if it is at 0%. Get rid of it as quick as you can with the biggest shovel you have. Conservative banks (maybe including Barclays) think this is too much. What is a bank supposed to think if you missed a minimum payment and have high utilization? Of course they are going to CLD you. Unfortunately this might spook the other lenders seeing the high utilization and the Barclay's CLD. The other spooked lenders won't believe your story that Barclay's messed up the autopay if you try to appeal their CLDs. You really, really, really need to pay your balances down and forget everything else for now.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

gdale6 — Sat, 18 Sep 2021 21:15:16 GMT

The CFPB exists to take care of these kinds of problems should the bank not be willing to do anything.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

CreditInspired — Sun, 19 Sep 2021 03:51:16 GMT

@lgtwriter wrote:
I am so sorry this happened to you. If you had auto-pay set up with Barclays then that should be documented and you will be able to prove that the autopay did not trigger as planned.

If you used a bill-pay service from your checking account or other bank account etc, it will be harder to prove that the autopay miss was Barclay's fault. They will say that it is your responsibility to manage your bill pay services.

I would definitely spend as many hours on this on Monday as you can. A credit line decrease of that size may trigger adverse reaction on your other cards. Also you may end up with a 30 day late mark on your credit reports if you don't take care of this right away.

If it is Barclay's technical glitch, then you should demand a restoration of your credit line, and a letter admitting it was their glitch that you can use with the credit bureaus in case it reports for a month or two before you dispute it.

Good luck and keep us updated.

First, OP, I want to also say sorry this has happened and that in the future be more active with checking all your CC and bank accounts. I will admit I'm obsessive--I check all mine every single day--seriously, no joke. I am so paranoid that a minor oversight can create a chaotic domino effect. So even if not everyday, at least a couple times a week. Just my 2cents.

Second, please do not "demand" a restoration of your CL. IMHO, having a CL or CC from a CCC is a privilege, not a right. And remember, that it was probably an algorythm that initiated the CLD. So, yes, on Monday, ask to speak to a supervisor and speak politely to the person on the other end. I have found in my dealings with CCCs, that being friendly and positive are true to the cliche. You catch more flies with honey than with vinegar.

And lastly, GL2U.

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

MeN5 — Sun, 19 Sep 2021 12:12:09 GMT

I would've closed that account immediately after they said they wouldn't restore my limit!

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

4sallypat — Sun, 19 Sep 2021 13:02:08 GMT

Ouch, that's painful.

I am guessing Barclays uses an automatic CLD for a missed payment regardless of fault ?

I would monitor your other lines of credit and make sure you don't have other lenders following suit...

Speak to a human rep and see if you can get the CL restored.

I know that when I recently called Barclays for a payment issue I could not accomplish online or with mobile banking app, the rep was Asian and I had a hard time understanding her. She eventually fixed the issue to my satisfaction, but language barrier was taking the process way too long.

I have had Barclays cards for many years and currently have 3 (Wyndham, View, Frontier Airlines) with all zero balances...

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Mon, 20 Sep 2021 14:30:36 GMT

Thank you for your reply SoCalGardener.

It means a lot.

I was able to confirm with credit specialist that there will be no late fee,no negative remarks to credit bureaus,

But they wouldn't restore the original credit limit of $10k back.

$1000 credit limit stays, They said it is because of my high utilization.

I am afraid that other creditors will follow suit with decreasing my credit limit/closing the accounts after noticing barclays credit limit decrease from $10,000 to $1,000.

So what is the best way to deal with it.

Should I close the account with $1000 limit or is it still better to keep the card?

Your thought ?

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Mon, 20 Sep 2021 14:38:00 GMT

CreditInspired Thank you for your reply.Really apppreciate it.

I was able to confirm with credit specialist that there will be no late fee,no negative remarks to credit bureaus,

But they wouldn't restore the original credit limit of $10k back (I requested nicely, did not demand as you mentioned)

$1000 credit limit stays, They said it is because of my high utilization.

I am afraid that other creditors will follow suit with decreasing my credit limit/closing the accounts after noticing barclays credit limit decrease from $10,000 to $1,000.

So what is the best way to deal with it.

Should I close the account with $1000 limit or is it still better to keep the card?

(I do not have any credit card with this little limit)

Your thought ?

Message 15 of 15

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Mon, 20 Sep 2021 14:40:53 GMT

@Taurus22 Thank you for your input.I appreciate it

I was able to confirm with credit specialist that there will be no late fee,no negative remarks to credit bureaus,

But they wouldn't restore the original credit limit of $10k back.

$1000 credit limit stays, They said it is because of my high utilization.

I am afraid that other creditors will follow suit with decreasing my credit limit/closing the accounts after noticing barclays credit limit decrease from $10,000 to $1,000.

So what is the best way to deal with it.

Should I close the account with $1000 limit or is it still better to keep the card?

Your thought ?

Message 15 of 15

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Mon, 20 Sep 2021 14:46:48 GMT

@4sallypat Thank you for taking time to reply.

I was able to confirm with credit specialist that there will be no late fee,no negative remarks to credit bureaus,

But they wouldn't restore the original credit limit of $10k back.

$1000 credit limit stays, They said it is because of my high utilization.

I am afraid that other creditors will follow suit with decreasing my credit limit/closing the accounts after noticing barclays credit limit decrease from $10,000 to $1,000.

So what is the best way to deal with it.

Should I close the account with $1000 limit or is it still better to keep the card?

Your thought ?

Message 15 of 15

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Mon, 20 Sep 2021 14:57:41 GMT

@xenon3030

Thank you for your reply.

I was able to confirm with credit specialist that there will be no late fee,no negative remarks to credit bureaus,

But they wouldn't restore the original credit limit of $10k back.

$1000 credit limit stays, They said it is because of my high utilization.

I am afraid that other creditors will follow suit with decreasing my credit limit/closing the accounts after noticing barclays credit limit decrease from $10,000 to $1,000.

So what is the best way to deal with it.

Should I close the account with $1000 limit or is it still better to keep the card?

This will be my lowest limit out of all the credit cards i have.

Your thought ?

Message 15 of 15

Re: BARCLAYS SLASHED MY CREDIT LIMIT FROM $10,000 TO $1000 ON AMERICAN AIRLINES AADVANTAGE CREDIT CA

creditlogic — Mon, 20 Sep 2021 15:01:24 GMT

@MeN5

I am thinking to do the same.

would you please help me understand why should i prefer to close instead to keep the card open?

Just curious about your reasoning ?

once again thank you for taking time to reply.