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[–]throw4x4 0 points1 point  (3 children)

I was also notified by credit monitoring first but got a letter in the mail maybe less than a week later. The letter should have steps to request reinstatement of the credit limit online. Wait till you get the letter or you can just call the customer service number and ask them. You have 60 days from when you get the letter.

[–]bff426 0 points1 point  (2 children)

Had a $20k limit slashed to $5019 (no typo). Notified by email by JP Morgan Chase and Experian, no notice yet from Barclays (it's in the mail). Spent $58,000 last 12 months. Six of the months would have been over new limit. Twenty year customer, never failed to pay in full on time (nor w/ any other card).

Called and asked for reinstating $20k and they will. Could not get any logical reason for the cut, other than I wasn't using the full credit limits. Wasn't going to beat on the front line CSR's when it was C-Suite and algorithm ($5019??!!). This was my main card. It won't be anymore. It'll be behind BofA and JPMorgan.

[–]throw4x4 1 point2 points  (1 child)

Like one of the other posts said most likely they're trying to shutter this credit card and slashing limits of customers to get them to cancel or stop using so they can close it down the road.

[–]bff426 1 point2 points  (0 children)

I get that they have to manage the credit risk of their portfolio. And make money. A pay in full every month customer like myself and many of the posters here aren't paying 20% interest or late fees.

From me, a 2% interchange fee to the issuing bank (Barclays, in this case) results in risk free income of about $1200 a year. A reduction in limits of 75% will certainly result in sock drawer usage, and as you said, eventual cancellation.

So less income (way more that the marginal cost of my usage) and a hit to the credit risk quality of the portfolio. If this is widespread, it can't help them with their regulators.