I saw this from another forum. I was really shocked and wondered whether anybody else here had similar experience from MBNA. I am really sorry for this guy. Is he just unlucky?
from davidhero:
Someone called me from 832-605-9000 a moment ago. The man claimed he was from Charles Schwab bank and was calling regarding my Charles Schwab credit card. He also mentioned that I had another MBNA credit card and gave the last 4 digits of that card correctly. He started by asking me why I applied for so many credit card accounts in 2005 and requested 2 credit line increases on these 2 MBNA accounts each during 2006. I told him it was nothing special, just to keep my average CL as high and the spending/ available credit ratio as low as possible. He didn't seem to care and kept questioning my intention of "desperately" seeking credit recently. He ended up telling me that because they did not feel comfortable with my credit line compared with my spending pattern, they are going to close both accounts of mine. I can pay off my current balances anytime but the same APR applies until I pay them off. I asked politely that they could lower my CL to whatever they were comfortable with but was turned out rudely. I was sort of annoyed and said ok fine go ahead and close them.
After hanging up I checked my accounts online and everything seems normal. I called MBNA by the phone number on the back of my card, and the CSR there said she did not see anything special on my account either - they were both in good standing. I asked her to make a note on my accounts and call me if she finds anything special or they're actually going to be closed.
Some background profiles: The 2 accounts are 1 Charles Schwab and 1 MBNA CashBack Platinum. Both these 2 MBNA cards have 15k CL. )I recently requested a CL increase on the Charles Schwab one and they increased its CL from 8k to 15k; the other one has been 15k for about a year.) I barely use the MBNACashBack card; I use Ch Sch from time to time for small purchases ( ~$100/month) and billpay (~$1k/month), but always pay off the balance every month. I have about 8 other cards with an average CL of 15k, but basically I use them for purchase only. I don't carry any big BT balance at all.
Now questions: (1) I don't think the previous call was spam (what good would that do for them anyway?), but is there any trick with the previous call? I tried to dial that number back but it's busy all the time. Can't fine anything from google either. (2) If this were true, what might have triggered the call? My recent CL increase request?? (3) Why don't the MBNA CSR see anything on my account profiles? Is it normal that there might be a delay so that the decision to close my accounts will only be reflected in my account profiles after a while? (4) If you guys think this is for real, should I close these accounts myself first to avoid "closed by creditor" comment on my credit report?
All right guys. The accounts have already been closed and they will be reported to credit bureaus as "closed by creditor". This really pissed me off - I called to bargain for a temprary reopen so that I can close the accounts myself, but was turned down. I can take my time to pay off my current balance and the current APR still applies. I asked why they picked me up and they said it was just random credit review.
I will not touch MBNA/BoA credit cards any more. Lesson to be learned: don't request CL increase if you don't use the card much (or if the current CL is enough) - at least for MBNA (and AMEX also, as far as I know).
Thanks for your input, guys. I just wish I closed them myself when I called MBNA after hanging up with the first call. Too late now. Guess I'll move on anyway.
Finally, --------------------------------------------------------------------- Just found that my BoA credit card was closed, too - exactly the same story. I'm really pissed off now............
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Actually the story didn't end as above. davidhero later found that his wife's boa and mbna credit cards were closed by creditor too!!! although they are not in the same state. One possible reason is that his wife had a secondary card from him before.
Hey, at least the guy didn't wind up in jail...BOA probably had a SWAT team on call ready to kick down his door in case he got too flippant on the phone.
In all seriousness, this is one reason why I don't do business with MBNA. I'll take BOA's cheap money, but MBNA hasn't shown me any love, so I'll pass on them. Further, what's the point of having the Weapons quality uranium card with 25% Cash Back, 2% rate, and 1M limit, if they close it because you had just one too many inquiries or you go over 10% utilization. "Sure, here's a 50k card, just don't use it all..." If there is an issue with me using all of my 50k limit, then why give me the card? Just give me 20k or whatever you are comfortable with.
I like to live my life without having to worry about making my bank happy or upsetting them because I took advantage of a credit card deal or they don't like my spending/inq habits.
The same goes for Chase, Citi, Discover, and most of the top card offers. Don't waste my time. I'll stick with the smaller banks and CU's.
USAA has shown me mucho love (just got a 5.75% for life B/T deal!!!), so I really don't need anyone else.
he told me pretty much your young, you owe another bank money, i dont care if u can pay it back or are paying it back, we are just not comfortable with giving you credit and cant aproove your card for the free ipod..
SIS, to me, it is worth paying an extra 1.75 to not have my credit line chopped, as well as good customer service. Also, the spreads I work with can absorb that minute difference.
I had something very similair happen back in March -- I posted within the MBNA closing accounts thread. A "senior credit analyst" called and closed my 4 accounts due to excessive credit limits with other issuers.
The worst part was losing 35k of worldpoints and they ended my 1.9% promo. I did eventually get someone to reinstate the worldpoints and allow the 1.9% to continue since there were no derogs on my credit report.
codename47 said:Hey, at least the guy didn't wind up in jail...BOA probably had a SWAT team on call ready to kick down his door in case he got too flippant on the phone.
In all seriousness, this is one reason why I don't do business with MBNA. I'll take BOA's cheap money, but MBNA hasn't shown me any love, so I'll pass on them. Further, what's the point of having the Weapons quality uranium card with 25% Cash Back, 2% rate, and 1M limit, if they close it because you had just one too many inquiries or you go over 10% utilization. "Sure, here's a 50k card, just don't use it all..." If there is an issue with me using all of my 50k limit, then why give me the card? Just give me 20k or whatever you are comfortable with.
I like to live my life without having to worry about making my bank happy or upsetting them because I took advantage of a credit card deal or they don't like my spending/inq habits.
The same goes for Chase, Citi, Discover, and most of the top card offers. Don't waste my time. I'll stick with the smaller banks and CU's.
USAA has shown me mucho love (just got a 5.75% for life B/T deal!!!), so I really don't need anyone else.
Funny you mention all those particular creditors because I had cards from all of them, was playing the BT game with all of them except USAA, and, yet, USAA was the only one to take adverse action. Anyway, I agree with you wholeheartedly, just reverse the particulars.
I've heard many, many more bad things about Chase, CITI, and MBNA chopping someone's lines than I have USAA. I realize not everyone has the same experience. At any rate, I'm not going to argue, beg, and plead with some senior analyst to give them my money. If they don't want it, there are plenty of other companies that do. I've got too many cards and financing options to be worried about one issuer that all of a sudden wants to get froggy with me.
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