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Monday, January 4, 2010

Issues with credit limit


WHILE the debate on the RM50 service charge on credit cards rages on, few people pay attention to the changes to their credit limit.

Last year, when applying for a credit card, I clearly stated my choice of a Classic card. My first surprise came when I received a Gold card instead. I called up the card centre and was told that I qualified for a Gold card.

Though I am appreciative of the kind gesture, this is clearly a blatant disregard of my rights as an individual. A letter requesting a change in card choice or a phone call to seek consent from the applicant should have been the proper procedure.

This is a serious issue because it relates to the credit limit that different card types (Classic, Gold or Platinum) offer. Not needing so much credit was one of the reasons I chose a Classic card. The Gold card that was given to me had a credit limit of RM10,000 before I asked for it to be reduced to RM6,000.

My second surprise came recently when upon checking my credit limit in my statement of account I found that it had gone up to RM11,000. Again, upon checking with the card centre, I was told that most likely a notification was sent out but had not reached me.

A notification? I start to ponder if the card issuer has the right to change my credit limit automatically.

I was given various excuses such as it was a decision from the top management or that it was done through an automated system.

I asked if my card was lost or stolen and someone had used up my credit limit, would the card issuer pay for the RM5,000 difference that I did not authorise for?

The answer was no, the card holder would be held responsible. If the holder is answerable for the credit limit, wouldn’t he have every right to be in control of the credit limit?

I was further told that I can only reduce my credit limit to RM7,000 for a Gold card and if I wished to reduce it further I would have to change my card to Classic.

Although my problem has been amicably resolved, such regulations should not have been imposed.

While the eligibility of card types may correlate with the income of an applicant, once a credit card type has been approved for an individual, he should be given the flexibility to re-adjust the credit limit at any given time.

This will give the card holder a sense of security as he will be in full control.

For example, in times of hardship, a person may choose to reduce the limit significantly to curb overspending, or when one is travelling one may choose to increase the limit.

BENNY TEH,

Penang.

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Harap dapat tinggalkan nama anda apabila membuat komen yer..Tak kisah la nama betul ke samaran....TQ

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