The subprime crisis has worked like a wakeup call for most banks and lending companies, not only in the US but also worldwide. Financial lending institutions worldwide are now redrawing their plans and trying to assess the credit risks that they might have created for themselves. Not wanting to face something as disastrous as the subprime crisis, most of them have now introduced stricter rules and regulations that are making it difficult for applicants to avail of credit. The basic aim is to cut down lending risks by limiting credit facilities only to those applicants who might be having a respectable credit history.
So, if you were thinking that you won’t be affected by the subprime crisis just because you live miles and miles away in UK, then I would recommend that you change your mindset as soon as possible. I say so because many lending companies in UK have gone completely hyper, so much so that they have now started reviewing all of their existing credit accounts and particularly those that are in the high-risk category.
This is being done with even more passion and energy by credit card companies . It seems credit card companies are aiming to achieve a zero-risk environment, something that they think would protect them from the residual effects of the subprime crisis.
Nobody can tell what will happen moving forward, the subprime crisis may ease off and lending rules and regulations might get redefined in the coming months, but you need to consider the existing circumstances.
If you have a credit card that has recently been blocked or withdrawn then the best thing to do is to contact your credit card company and ask for an explanation. Even better would be to file a written complaint, seeking an explanation as to why you should not go to the courts for unauthorised blocking of your credit card. This strategy has worked well for some card users and there is a chance that you might also get your back your credit facilities.