• Retailer agrees to reverse cuts it had made to the credit limits of loyal customers
  • Former Money Mail editor Tony Hazell’s limit was slashed from £9,000 to £5,000
  • Readers responded in their dozens saying that they had seen their limits cut too

John Lewis customers who have had their credit limit slashed in recent months have had their full limit reinstated after Money Mail raised the alarm last week.

In a major u-turn, John Lewis agreed to reverse the dramatic cuts it had made to the credit limits of loyal customers.

The retailer wrote to enlighten customers last Thursday, just one day after former Money Mail editor Tony Hazell wrote about his outrage when his John Lewis credit card limit was slashed from £9,000 to £5,000 just before Christmas.

Tony said it had been cut for no apparent reason as he had paid his credit card bill on time every month and had counted himself a loyal customer — holding a card since 2004.

Money Mail readers responded in their dozens telling us that they too had seen their credit limit cut and were equally outraged.

Spending limits: In a major u-turn, John Lewis agreed to reverse the dramatic cuts it had made to the credit limits of loyal customers

Spending limits: In a major u-turn, John Lewis agreed to reverse the dramatic cuts it had made to the credit limits of loyal customers

One reader, Lulu, saw her credit limit decimated — falling from £2,500 to £250. That is despite Lulu holding a John Lewis card for 30 years. She says: ‘The service is appalling. I will turn my back on John Lewis for big purchases.’

Another reader, Anna, says: ‘My credit limit of £15,000 with John Lewis, which accrued generous gift vouchers, was reduced to a paltry £250 after NewDay took over. 

‘I’ve since stopped shopping at John Lewis and Waitrose because I no longer benefit from the points.’

In response to Money Mail’s article, NewDay, the finance services company firm which now operates John Lewis credit cards, has had a change of heart and apologised, citing feedback from customers as ‘invaluable’.

The firm sent an email to affected customers on December 7, saying it recognises that Tony Hazell and other credit card customers ‘might still need’ their original credit limit and would be reinstating them as of December 8.

In October last year, John Lewis appointed NewDay to work its credit card. While John Lewis gives the rewards, NewDay is in charge of who gets the card, the interest rate and credit limits.

After taking over, NewDay was technically launching a new card although both firms marketed it as a relaunch of an existing brand. But many loyal John Lewis customers were left bemused when they were forced to reapply for a credit card they’d run without any issues for decades.

Some were rejected, others saw credit limits reduced. Even among those who were accepted many were frustrated by the process.

In its letter of apology to customers, NewDay says credit limits were reduced because the amount that customers spent in the past six months was lower than their credit limit. Their new limits were cut to contemplate spending patterns.

But Tony says: ‘It’s nonsense because a lot of big expenditures tend to be in winter — during the Christmas period and when people book their big holidays at the start of the year.’

After wrestling with the firm, which he says specialises in dealing with people who typically have worse track records, Tony believes it doesn’t have experience with people appreciate John Lewis shoppers who are capable of organising their own spending.

A NewDay spokesman said: ‘We recently told a small number of customers that we were reducing their credit limits. Having listened to customer feedback, we reinstated the previous limits and apologised.’

  • Have you had a credit limit slashed for no reason? Let us know at moneymail@dailymail.co.uk


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