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[hayley]

Hi Everyone and a Happy New Year to you all

 

I am hoping someone can help me with the following,

 

I have had a next catalogue for 2 years and always made my payments on time. My credit limit was £600 and in November they put my credit limit up to £2000. We needed a new fridge so waited for the sales and ordered one last week which was £600 i only had £300 owing on my account so this took it upto £900.

 

Then i had a letter off next saying:

 

They were unable to offer credit facilities and as a mail order company offering goods on approval we reserve the right to refuse any order, as stated in all our promotional literature.

 

As part of our processing operation we do consult a Credit Reference Burea and, under the Consumer Credit Act, you are entitled to know the name of this bureau, which is Experian.

 

So i rang then up and was put through to their Credit Management team and i spoke to a lady who said that basically when you order a large item they carry out more security checks and this is done by doing a credit check and they have decided that based on the information from the credit check they have closed my account. The lady then had the cheek to ask me to pay off my balance in full, i told her that i would pay the balance off as i would have normally by monthly installments.

 

Surely a credit check was carried out before agreeing to up my limit to £2000 and basically what they are saying is that i can order £2000 worth of clothes but cant order a £600 fridge. Is there anything i can do about it?

 

Thanks in Advance

Hayley

[hayley]

Hi Everyone and a Happy New Year to you all

 

I am hoping someone can help me with the following,

 

I have had a next catalogue for 2 years and always made my payments on time. My credit limit was £600 and in November they put my credit limit up to £2000. We needed a new fridge so waited for the sales and ordered one last week which was £600 i only had £300 owing on my account so this took it upto £900.

 

Then i had a letter off next saying:

 

They were unable to offer credit facilities and as a mail order company offering goods on approval we reserve the right to refuse any order, as stated in all our promotional literature.

 

As part of our processing operation we do consult a Credit Reference Burea and, under the Consumer Credit Act, you are entitled to know the name of this bureau, which is Experian.

 

So i rang then up and was put through to their Credit Management team and i spoke to a lady who said that basically when you order a large item they carry out more security checks and this is done by doing a credit check and they have decided that based on the information from the credit check they have closed my account. The lady then had the cheek to ask me to pay off my balance in full, i told her that i would pay the balance off as i would have normally by monthly installments.

 

Surely a credit check was carried out before agreeing to up my limit to £2000 and basically what they are saying is that i can order £2000 worth of clothes but cant order a £600 fridge. Is there anything i can do about it?

 

Thanks in Advance

Hayley

[buzby]

True - but as your credit record is dynamic (changing daily) it doesn't cost firms that much more to initiate a credit check each and every time you you place an order that would put you in debt for £500 or more, irrespective of any previously agreed credit 'limit'.

 

You really need to seek oput the root cause, what has happned to your credit record between the time they increased your limit, and then said they weren't prepared to extend credit to you. There may be a wopping error that needs resolving, so a CRA file check is the first step.

 

As to can you force them to lend to you, the short answer is no. With the government banging on about 'responsible lending' what seems to be a change of heart for no reason, could be looked at as reasonable caution, and they'll not be held accountible for that, even though it stinks!

[chesham]

This is very true, as many people keep lines of credit open which are invariably used when times get hard, or when they need to. This, unfortunately, places the company in a bad light and are told they have lent irresponsibly - however, when the credit agreement was signed, the customer was in good credit, well paid job and had no kids. Two years, 1 mortgage and a child later, they go back to using the credit they obtained using "credentials" which were deemed sufficient to be offered credit.

However, it might be a good thing - as now you would be owing £600. Why not save up the money as if you were paying a catalogue and then buy the item? That way you have done yourself an interest free deal, except when it's delivered, it's paid for already!