Rebates for 1,000s of Barclaycard clients whose credit score limits might have been set too excessive
What went wrong at Barclaycard?
When lenders issue credit cards, they’ll set a credit limit, which is the maximum amount they’re prepared to lend you on that card.
The financial regulator – the Financial Conduct Authority – says that a credit limit on a card should be affordable, depending on your individual circumstances. So lenders must assess how much you can afford to repay and ensure the credit limit isn’t set so high that you’ll struggle to make repayments.
But an internal review at Barclaycard earlier this year found that the firm “did not always meet the expected standards for assessing a customer’s situation”, and not all of a customer’s circumstances or finances may have been considered as part of their application. As a result, in some cases customers may have been given a credit limit that was higher than it should have been.
Barclaycard hasn’t said how many customers have been affected in total, but it’s understood that thousands will get a rebate.