Credit Card Limit Lowered Below Credit Limit!
Guest: iceman
Post subject: Credit Card Limit Lowered Below Credit Limit!
Posted: Sat Mar 11, 2006 9:15 am
My friend has a credit card from MBNA, and what they did was lowering her credit limit below her credit balance. So they are charging her over the credit limit fees. What is her option as far as resolving this matter?
I understand that they can lower or increase your credit limit, but how can they lowering below you balance, then start charging you over the credit limit fees. When she was not over the credit limit, but because she was not using the card anymore, they chose to lower her limit.
I need some advice so I can give it to her, so she can resolve this issue as soon as possible. Thanks
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 10:45 am
I think she should call them and calmly ask them to increase the limit to at least the balance and also cancel out the fees. That does not sound right at all. If that was a legitimate way of making money, then what's stopping all the credit card companies from lowering our limits to below our balances? Hopefully it was just an oversight.
I do know that MBNA reviews accounts every five years or so. They reviewed mine and chose to lower the limit as well, only they gave me about $100 or $200 breathing room so I would not go over the limit.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 10:57 am
JaneiR36 wrote:
I think she should call them and calmly ask them to increase the limit to at least the balance and also cancel out the fees. That does not sound right at all. If that was a legitimate way of making money, then what's stopping all the credit card companies from lowering our limits to below our balances? Hopefully it was just an oversight.
I do know that MBNA reviews accounts every five years or so. They reviewed mine and chose to lower the limit as well, only they gave me about $100 or $200 breathing room so I would not go over the limit.
I will tell her to give them a call. I was looking at someone post, who had the same problem with her amex blue card. They lower her credit limit below her balance, and was charging her over the credit limit fees. This is crazy!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sat Mar 11, 2006 11:09 am
When the banks decide to lower a limit, they usually peg it a little above the then-current balance to avoid this situation. I still suspect that was the intention in the cases we read about--but by statement closing date either new charges hit the account or the finance charges put it over the new limit and nobody had figured those.
I agree about calling and asking that the fee be waived since the overlimit business was inadvertent BECAUSE of the bank's decision and happened before there was any way to avoid it. It was not the cardholder disobeying the rules. It was a direct result of an unexpected bank action and should--MUST--be reversed.
I disagree about asking for a credit limit increase to cover the problem. Pay down the account below the new limit plus finance charges right away. There's no excuse NOW THAT YOU KNOW of the new limit and you have to pay it down to avoid the NEXT overlimit fee. No harm in asking for a credit limit increase, but I don't think it's likely because the bank has already made that decision, unfair though it is.
And as far as "not using" the card is concerned--if you're carrying a balance, you ARE using the card. Lack of new purchases is irrelevant.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 11:21 am
Polonius wrote:
When the banks decide to lower a limit, they usually peg it a little above the then-current balance to avoid this situation. I still suspect that was the intention in the cases we read about--but by statement closing date either new charges hit the account or the finance charges put it over the new limit and nobody had figured those.
I agree about calling and asking that the fee be waived since the overlimit business was inadvertent BECAUSE of the bank's decision and happened before there was any way to avoid it. It was not the cardholder disobeying the rules. It was a direct result of an unexpected bank action and should--MUST--be reversed.
I disagree about asking for a credit limit increase to cover the problem. Pay down the account below the new limit plus finance charges right away. There's no excuse NOW THAT YOU KNOW of the new limit and you have to pay it down to avoid the NEXT overlimit fee. No harm in asking for a credit limit increase, but I don't think it's likely because the bank has already made that decision, unfair though it is.
And as far as "not using" the card is concerned--if you're carrying a balance, you ARE using the card. Lack of new purchases is irrelevant.
Thanks again for the advice, I will tell her to call MBNA as soon as possible so she can get this matter resolve.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Credit Card Limit Lowered Below Credit Limit!
Posted: Sat Mar 11, 2006 9:15 am
My friend has a credit card from MBNA, and what they did was lowering her credit limit below her credit balance. So they are charging her over the credit limit fees. What is her option as far as resolving this matter?
I understand that they can lower or increase your credit limit, but how can they lowering below you balance, then start charging you over the credit limit fees. When she was not over the credit limit, but because she was not using the card anymore, they chose to lower her limit.
I need some advice so I can give it to her, so she can resolve this issue as soon as possible. Thanks
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 10:45 am
I think she should call them and calmly ask them to increase the limit to at least the balance and also cancel out the fees. That does not sound right at all. If that was a legitimate way of making money, then what's stopping all the credit card companies from lowering our limits to below our balances? Hopefully it was just an oversight.
I do know that MBNA reviews accounts every five years or so. They reviewed mine and chose to lower the limit as well, only they gave me about $100 or $200 breathing room so I would not go over the limit.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 10:57 am
JaneiR36 wrote:
I think she should call them and calmly ask them to increase the limit to at least the balance and also cancel out the fees. That does not sound right at all. If that was a legitimate way of making money, then what's stopping all the credit card companies from lowering our limits to below our balances? Hopefully it was just an oversight.
I do know that MBNA reviews accounts every five years or so. They reviewed mine and chose to lower the limit as well, only they gave me about $100 or $200 breathing room so I would not go over the limit.
I will tell her to give them a call. I was looking at someone post, who had the same problem with her amex blue card. They lower her credit limit below her balance, and was charging her over the credit limit fees. This is crazy!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sat Mar 11, 2006 11:09 am
When the banks decide to lower a limit, they usually peg it a little above the then-current balance to avoid this situation. I still suspect that was the intention in the cases we read about--but by statement closing date either new charges hit the account or the finance charges put it over the new limit and nobody had figured those.
I agree about calling and asking that the fee be waived since the overlimit business was inadvertent BECAUSE of the bank's decision and happened before there was any way to avoid it. It was not the cardholder disobeying the rules. It was a direct result of an unexpected bank action and should--MUST--be reversed.
I disagree about asking for a credit limit increase to cover the problem. Pay down the account below the new limit plus finance charges right away. There's no excuse NOW THAT YOU KNOW of the new limit and you have to pay it down to avoid the NEXT overlimit fee. No harm in asking for a credit limit increase, but I don't think it's likely because the bank has already made that decision, unfair though it is.
And as far as "not using" the card is concerned--if you're carrying a balance, you ARE using the card. Lack of new purchases is irrelevant.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 11:21 am
Polonius wrote:
When the banks decide to lower a limit, they usually peg it a little above the then-current balance to avoid this situation. I still suspect that was the intention in the cases we read about--but by statement closing date either new charges hit the account or the finance charges put it over the new limit and nobody had figured those.
I agree about calling and asking that the fee be waived since the overlimit business was inadvertent BECAUSE of the bank's decision and happened before there was any way to avoid it. It was not the cardholder disobeying the rules. It was a direct result of an unexpected bank action and should--MUST--be reversed.
I disagree about asking for a credit limit increase to cover the problem. Pay down the account below the new limit plus finance charges right away. There's no excuse NOW THAT YOU KNOW of the new limit and you have to pay it down to avoid the NEXT overlimit fee. No harm in asking for a credit limit increase, but I don't think it's likely because the bank has already made that decision, unfair though it is.
And as far as "not using" the card is concerned--if you're carrying a balance, you ARE using the card. Lack of new purchases is irrelevant.
Thanks again for the advice, I will tell her to call MBNA as soon as possible so she can get this matter resolve.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 3:18 PM
0 Comments:
Post a Comment
<< Home