Moneyweb‘s Chris Blaine reports:

Banks are cutting clients credit card limits often with little notification potentially placing them in an embarrassing situation and leaving many frustrated.

FNB’s Stephen Higgins says that customer contracts state “credit limit is at the discretion of the bank” and that “[we] can confirm that we are reviewing clients”.

Both FNB and Standard Bank say that this process is not new. In fact, it has been ongoing for over 18 months. But because of how banks notify clients few are aware of this.

FNB believes that SMSing clients about these changes is sufficient as eventually they are also notified through their credit card statements, says Higgins. Standard Bank goes a step further, actually using real people to speak to its clients, and then follows up in writing.

Clearly Standard Bank portrays itself as truly caring for customers. One can’t help wonder what customers’ actual experience is.

Head of credit for FNB credit cards Darryl Lahner explains the process that is followed for reviewing clients’ credit card account. He says that the limits applied to credit card debt are aligned to those required by the National Credit Act.

The bank monitors “trigger events”, such as missed payments, partial payment of a minimum payment as well as any issues arising from other accounts a client may have, to identify those that may require attention.

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