Arlo was of the view that his credit limit should remain at its original level even when those proceeds were used to pay off a portion of the lending, and complained to us that this was not the case.

Our investigation

We considered the bank had clearly communicated why it was necessary to use some of the sale proceeds to reduce the amount Arlo owed to the bank given the bank would no longer hold the property he sold as security for the lending. It was clear from the bank’s communication that Arlo’s credit limit would also be reduced. The settlement quote provided to Arlo's solicitor at the time was very clear that the credit limit would be reduced on the relevant account.

Outcome

We explained our views to Arlo, who withdrew from our process.