Barclaycard customers have been left furious after the lender confirmed it is slashing spending limits - even for those with impeccable credit histories.
Scott Waterman, 46, from Northamptonshire, has been told his borrowing amount is being cut from £13,600 to £250.
This marks a staggering drop of £13,350, or 98%, compared to the limit he had before.
Spending limits - the amount you can borrow on credit - are usually based on your individual financial history, including if you have kept up with previous repayments.
But Mr Waterman says he has never missed a payment in the 17 years he has been with Barclaycard - his income also has not dropped.
Mirror Money first revealed customers would have their spending caps reduced last year, with tweets from the lender since confirming that more than 100,000 people are affected.
The lender started writing to customers this week to inform them of the change,
Most borrowers have been told the new spending limits will come into force from May 20.
Mr Waterman told the Mirror: “I've never missed a payment or gone overdrawn, and my credit rating on all the main reference agencies are excellent.
“I was angry and disappointed as I maintain that card for emergencies such as travel, and healthcare costs when traveling.”
Mirror Money has seen scores of tweets and emails from customers in a similar situation.
Louise Durno, 45, a pharmacy dispenser assistant in Dundee, Scotland, has been told her borrowing amount will be dropped from £5,000 to £700.
She opened her Barclaycard account in 2012 and also has not missed a payment.
Her financial situation even improved in recent months after she paid off her mortgage.
Mrs Durno said: “I don’t understand it. They seem to be targeting long-term customers.
“I used to have a £12,000 limit but two years ago I told them I didn’t need it and dropped it to £5,000.
“Now it’s going down to £700 completely out of the blue. It gets paid on time every month.”
Iain Gibson, 59, a retired translator from Lanarkshire, said his limit is being slashed to £250 without explanation.
He said: “I’m very angry. It panicked me as I didn’t know why this was happening.
“Who wants a credit card with £250 on it? It’s an insult.
“I use it while on holiday for extra protection rather than paying in cash and exchanging money.”
Some customers have also told the Mirror that they are worried their credit scores could drop once their limits are slashed.
Sara Williams, who runs the Debt Camel blog, explains this could happen because your “credit utilisation” – the percentage of your credit limit you are using – could go up if your limit is cut.
For example, if your limit is lowered and you are now using over 90% of your limit, your credit score could be affected.
Ms Williams wrote: "Many people don’t know that just cutting your credit limit by itself can harm your credit score, even if your balance is under the new limit."
Barclaycard has not said why some limits are being cut but said it is based on a "variety of factors".
It also is not clear how the lender is deciding which customers are being affected and by how much.
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The reductions come at a time where household spending limits continue to be stretched due to the coronavirus crisis.
Separately, other Barclaycard customers first reported their spending limits being cut in August 2020.
A Barclaycard spokesperson said some customers would be able to appeal the decision and added that no limit has been reduced to below the current balance for any customer.
The spokesperson added: “As with many other lenders, our credit risk models take into account changes in the UK economy, as these may impact our customers’ ability to manage their borrowing effectively.
“Over the past year, we have had to take into account the ongoing economic impact of coronavirus, and this has resulted in an increase in the number of customers receiving credit limit decreases.
“Having up-to-date credit risk models is part of our commitment to being a responsible lender, to help ensure that customers are not borrowing more than they can comfortably afford.”