Credit Limit Reduction... Closed my account

adeyb

Paul_Herring wrote: »

What that 'something' is, I wouldn't like to speculate, since we have only one side of the story here, and insufficient detail at that.

I asked this question. The answer? I made sizeable payment of the debt last year and they wanted to know how I made it. I explained where the money came from (I perfer not to discuss that here). Since then I have basically returned to the original balance (again, the reasons why are not relevant).

@Snowtiger
I'm not quering my financial capacity and don't think that's ever been mentioned. I'm questioning the way a credit card company can cut a persons credit in such a way it leaves them without any.

GraceCourt

adeyb wrote: »

I made sizeable payment of the debt last year and they wanted to know how I made it. I explained where the money came from (I perfer not to discuss that here).

You should have gone along with the same instincts that led you not to discuss these here. You should have politely told them that how you repaid that sum is absolutely NOTHING to do with them. Look at it this way... the worst that they could do is reduce your credit limit or close your card account... they did the former anyway, and had they done the latter, then there are rules that prevent them demanding repayment of the sum outstanding in an unreasonable timeframe.

adeyb wrote: »

I'm questioning the way a credit card company can cut a persons credit in such a way it leaves them without any.

In the moral sense, you are of course quite right: but in every other sense, it's a waste of time I'm afraid. I am now financially comfortable, having in the past had a number of credit cards (some of which were all with MBNA at the same time!), and a combined credit limit that stretched into the tens of thousands.

But that was then, and this is now. Now, despite a sizeable pension, and an absolutely rock-solid credit history, all at the same address and stretching back nearly two decades, I can't even get a credit card from most companies. All I have now is a Capital One credit card with a £1,000 credit limit that I only took out because (a) I get 1% cashback on it, and (b) everything I purchase with it is, by default, protected under S.75 Consumer Credit Act 1974. It's not even the credit card that Capital One aims at professionals, the one with the £8/year service charge, because I begrudge paying them in order that they can then pocket the 3%-8% merchant fees that they charge the retailers!

It creates some problems... for example, I'm about to buy £3,000-worth of tiles for our new house, but given the tiny credit limit, I will need to pay in that much in advance so that the sale goes through, but I will still get my cashback and S.75 protection. Like Paul_Herring says...

"Learn that loyalty counts for nothing in the financial world, apply for a card(s) elsewhere and ditch MBNA."

Welcome to consumer credit in the third Millenium!

Paul_Herring

adeyb wrote: »

How is it 'responsible' to cut off my sole mean of credit?

Huh? This statement is at odds with your earlier statement of:

I explained to them that my credit rating is perfect,

If your credit rating is 'perfect,' then you'd have no problem obtaining credit elsewhere. Or paying off the remaining balance such that you'd have £3k of credit on this card.

adeyb

Paul_Herring wrote: »

Huh? This statement is at odds with your earlier statement of:



If your credit rating is 'perfect,' then you'd have no problem obtaining credit elsewhere. Or paying off the remaining balance such that you'd have £3k of credit on this card.

Err... Wow... Starting to feel like I'm having my words picked to pieces!!!

By sole means I meant this was and is the only credit card I use, hence sole. And yes, I am looking at moving card (with my excellent credit score I already knew about via Experian).

But my comment isn't about my financial situation. It's about how a company can slash something to such an extent for no apparent reason. £15,000 to £3,000. And to a level which makes the card almost impossible to use (£200).

That's all. And I wondered if other here had had the same experience and what they did.

Maybe here wasn't the place to raise such a thought...

BoGoF

If Experian are giving you a perfect score then why not ask them if they'll give you a card.....oh, that's right they don't lend money.

Your random 3 number score was £6.95 (or whatever it is) down the drain....a meaningless number.

Paul_Herring

BoGoF wrote: »

Your random 3 number score [...]

To be honest, I wouldn't call '999' random...

YorkshireBoy

adeyb wrote: »

And I wondered if other here had had the same experience and what they did.

Happened to lots of people, including me when I've cleared a balance (Co-op once cut mine from £15K to £500 after I'd cleared a very large stoozing balance).

Most people (and certainly, I would have thought an accountant) would simply apply elsewhere.

Is the current debt on 0%? And if not, why on earth are you only "looking" to move the debt elsewhere?

Something has clearly spooked MBNA. It could be the large(?) payment last year. It could be the result of a monthly CRA feed...CII data, recent mortgage/loan applications, etc. It could be a requirement to lend your limit more profitably elsewhere.

YorkshireBoy

Paul_Herring wrote: »

To be honest, I wouldn't call '999' random...

And "perfect" would be 1000...and nobody's ever reported being dealt that number before.

BoGoF

There is no such thing as a perfect credit score, each lender has there own scoring techniques, they do not get a 'score' from the Credit Reference Agency merely the facts. MBNA have taken a decision and they are quite within their rights to cut your limit.

danothy

adeyb wrote: »

How is it 'responsible' to cut off my sole mean of credit?

Thing is, it's not their responsibility to provide you (or anyone) credit either, no-one has any right to credit as such.

I imagine the reason for the reduction will be either that they want to reduce their potential liability towards their customer base (and there was capacity to do so towards you) or that you fell below a profitability threshold for them and you're being encouraged towards the door. Either way it's probably not a personal thing but more a business thing.

I doubt there's much that can be done beyond asking for it to be put back up and it's doubtful they will tell you why beyond 'responsible lending', as it's a vague and subjective cover-all and they're unlikely to want to be drawn into a debate with any particular customer about what responsibility involves when it comes to lending money.