Narky letter from MBNA!

uptomyeyes1984

hi all,

This matter wouldnt have bothered me AT ALL! apart from the letter i recieved from them last week.

The letter said on the lines of yearly review and due to the change in my circumstances they have put my credit limit from £6000 to £200! ! ! !

YES! the change being it was nearly maxed out and we paid it off IN FULL!

they dont know of any other change in my circumstances as there havent been any. i'm not bothered by the fact they put the limit down but i would have apprichated it more it they had said due to the financil ression etc etc... i would have understood that more!
(also they upped their interest so not worth having anyway lol)

Anyone else had one of these letters?

Kelly

TFD_2

How recently was the balance paid off?

I had the limit on my Barclaycard reduced from £1000 to £750 shortly after I made a payment to reduce the balance to £700... Barclaycard argued that the decision to drop the limit was made prior to the payment being made, but obviously not enforceable when the balance was over £900. MBNA could have done something similar.

Were there ever any issues on the account that could have caused them to want to drop the limit so significantly?

[Deleted User]

Hi Kelly,

I wouldnt take it too personally, im sure it is happening a lot, bear in mind MBNA will have access to your credit file so if you had borrowed the funds to clear the balance then they may see you as more of a risk.

On the plus side, at least you were notified of the limit change, it could have been embaressing if you had of tried to make a £250 purchase on it with no other means of paying.

Kez100

How did you pay it off? If it was from another card or loan then, as others say, this is a sensible protective measure.

Is your credit file likely to be dodgy or maxed out?

YorkshireBoy

uptomyeyes1984 wrote: »

Anyone else had one of these letters?

Not from MBNA, but another provider cut mine from well into 5 figures down to £500 within 24 hours of me clearing the balance at the end of a 0% BT introductory period.

I did manage to persuade an underwriter to lift it again on my closure call though...just so it looked better on my CRA file.

uptomyeyes1984

we were lucky enough to get some money and paid it off in cash.

i got the letter last week and we paid it off about 4months ago.

Yes i am glad they told me before in case i did go to use it. but i do plan of canceling it/cutting it up.

carlislelass

I paid a lump sum off barclaycard, couple of weeks later got a letter reducing my limit by the same amount! It`s now been cut up and paid off.

Paulgonnabedebtfree

uptomyeyes1984 wrote: »

hi all,

This matter wouldnt have bothered me AT ALL! apart from the letter i recieved from them last week.

The letter said on the lines of yearly review and due to the change in my circumstances they have put my credit limit from £6000 to £200! ! ! !

YES! the change being it was nearly maxed out and we paid it off IN FULL!

they dont know of any other change in my circumstances as there havent been any. i'm not bothered by the fact they put the limit down but i would have apprichated it more it they had said due to the financil ression etc etc... i would have understood that more!
(also they upped their interest so not worth having anyway lol)

Anyone else had one of these letters?

Kelly

I haven't had one from MBNA though I won't be surprised to get a few (I have four accounts with them). I have had various balances on MBNA cards in recent years but currently owe them nothing. I notice that their low rate credit card cheques have stopped dropping onto my mat recently. It's pretty silly really. If they were prepared to offer LOB deals at reasonable rates, they would still be making some money from me. Instead, what they used to offer me was 0% or 1.9% (time limited) reverting to 30%+ after the promotion ended. Naturally they have become a lender of last resort for me. I have about 20k of unused credit with them so I imagine my limits will be slashed shortly.

soappie

Interestingly, MBNA have just written to me saying they have INCREASED my limit from £17,200 to £21,200. I have no idea why and I have no intention of spending up to that limit.

TighterThanTwoCoatsOfPain

my limit has been bumped up too...

OP, clearly you're upset that they have chosen to reduce your limit, but they dont just pull names out of a hat.. there is something about the profile they have built on you which doesnt fit the type of people they're looking to lend to.

I have no idea what "type" that is, but it certainly wont be random selection!

udydudy

Its surely nothing personal. I would say just cancel the card if it really bothers you. I had a similar experience nearly 2 years back when Barclays did the same to me from £8750 to £750 in a day after I had paid off the balance.

No changes to my credit file except cancelling some old cards which I did not intend to use so actually reducing my credit availability. Like you, I was livid with them as they did not inform me in advance.

Since then I closed all Barclays accounts current and savings as they were not the best anyway. Now only hold a monthly saver 7.75% with them why not earn some money off them!!!... Other banks have increased my limits regularily in this period without any request for increase!! so I doubt even god knows what the banks use as a yard stick to set limits!!.

They keep sending preauthorised card applications but "No thank you" i do not intend to have a credit card with them unless they send me a £10,000 limit preauthorisation with a 14 month 0% BT without any BT Fee!! I do not think they would in this credit crunch age!!.