What is wrong with Barclaycard?
When lenders issue credit cards, they set a credit limit, which is the maximum amount they are willing to lend you on that card.
The regulator, the Financial Conduct Authority, says that a credit limit on a card should be affordable, depending on your personal circumstances. Lenders should therefore assess how much you can afford to repay and ensure that the credit limit is not so high that you will have a hard time making repayments.
But an internal review at Barclaycard earlier this year found that the company “does not always meet the expected standards for assessing a customer’s situation,” and a customer’s situation or finances may not have not all be considered part of his candidacy. Therefore, in some cases, customers may have received a higher credit limit than it should have been.
Barclaycard did not say how many customers were affected in total, but it is understood that thousands of customers will receive a discount.