Canadian banks lowering credit card limits?

[Canadian]

I've heard lots of stories about US banks and credit card companies lowering credit limits on many customers. Is this happening in Canada? Have Canadian banks started lowering credit card limits?

[Steven]

Here is my story. I have a PC Financial credit card and I had around $15K debt on the card for the past 6 months, while my credit limit was a little over $22K. In the last 2 months I paid off the entire outstanding amount, but a few days ago I got the following from PC Financial: "Due to your recent credit account history, your credit limit has been lowered to $8000.". I'll be contacting them to see why did they lower my credit limit.

[Canadian]

Thanks Steven,

Please let us now what reason did they give you for lowering the credit limit, after you call them.

[Steven]

I'll call them by the end of the week and I'll let you know what happened.

[Canadian]

Actually I got my interest increased on a credit line from CIBC. This fits in the same pattern of higher interest and lower credit limits.

[Steven]

I have a personal line of credit from CIBC, but they haven't changed my interest, at least not yet.

[trent]

Originally Posted by Canadian

Actually I got my interest increased on a credit line from CIBC.

That's interesting, and the same happened to a friend of mine a week ago. Credit shouldn't be that cheap in first place, because encourages reckless speculation.