Credit card providers 'giving unrequested limit extensions'

Credit card providers are extending the limits of consumers' accounts without being requested to do so.

This is according to figures produced by price comparison site uSwitch.com, which revealed that credit card providers increased the limits of 28 per cent of consumers over the last 12 months.

Nine per cent had applied for the rise, while 19 per cent were given it without asking for an increase.

According to uSwitch.com, the average rise in credit availability was £1,538, meaning typical limits were boosted from £5,129 to £6,667.

Meanwhile, it was also found that more than four in ten people applied for credit card limit increases, with 31 per cent being turned down.

Louise Bond, personal finance expert at the organisation, commented: "In the current climate you could be fooled into thinking that increasing credit limits without permission is a good thing as it stops people going over their limits and incurring extra charges."

However, there is a "question mark" around how consumers are selected for increases or decreases in their credit limits, she added.

Recently, Unbiased.co.uk chief executive David Elms claimed that as the recession shows signs of abating, consumers are becoming less cautious and are amassing increasing levels of debt.
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03/07/2009 15:43

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