Thousands of credit card borrowers across the UK are having there spending limits restricted, or in the more severe cases their accounts closed completely. However very few providers have been forthcoming with their customers as to why these changes are taking place.

According to recent research, almost 3 million card borrowers have seen their accounts affected in some way over the past few months. Approximately 1/3rd of people have reported that their borrowing limit has been downsized, with the remaining 2/3rds having their account terminated with little to no explanation as to why.

The trend is believed to be having a huge bearing on certain borrowers, especially those people who rely on their credit card facility to manage the payment of bills and gaining from the grace period in which the funds have to be repaid. The sudden withdrawal of card services may have a serious effect on this particular group of consumer’s ability to balance their finances, thus increasing their exposure to debt.
 
It is most probable that restrictions on the overall volume of funds available to credit providers (as a result of the credit crunch) is the primary reason for the sudden change in borrowing facilities, however, providers owe it to their customers to be more open with regards to the specifics of a service retraction, before it is put into place.