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  • Frank Tian

💳 What happened after I got a CLD …

Last year, one of my credit cards received a 60% credit line decrease (CLD). It is understandable as issuers reduce exposure on long-term inactive accounts all the time.

Then a few months later, I got multiple balance transfer offers on the same account.

Well, with the offered interest rate of only 2% vs 6% inflation, I decided to take it.

In a call with the customer service representative, I asked my line to be reinstated.

After 10 minutes talk with her supervisor, the agent advised me unfortunately the line increase request cannot be accommodated.

“You can request again 6 months later.”

OK, no big deal.

After 2 months, I got a credit line increase (CLI) offer on the same account.

🟦 How do you think of the series of events?

Are the messages consistent to the customer?

Could the customer experience be better?

This is a classic example that credit strategies do not work in sync.

This happens often, especially with a large lender - because credit strategies are typically developed by different persons or teams.

In this case, there could well be 4 persons developing CLD, balance transfer, reactive CLI, and proactive CLI strategies separately.

🟦 How to eliminate the inconsistency between strategies?

📌 Maintain a good inventory of strategy documents. Encourage strategy developers to get familiar with all strategies, even those not under current responsibilities.

📌 Have a peer review process - so people managing different strategies have a chance to spot anything inconsistent.

📌 Rotate staff through different decision areas so they become well-versed with the full life cycle of credit strategies.

The line increase offer?

I took it.

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