MBNA cutting credit limit on cc

Hi all

A friend of mine got a phone call from MBNA today. They told him that his credit limit would be reduced by 50% by the next due statement, and that the balance that would be over this new limit needs to be reduced in 90 days. If he didnt reduce it to the new lower limit, he would incur surcharges. He has never missed a payment and pays a small bit over the minumum payment each month. He has never exceeded his limit. Can they do this as he dosent think he can make the extra payments.

Has anyone else encountered this?
Is this legal?
Could this be as a result of MBNA exiting the Irish market?

All thoughts please

Many thanks

I wouldnt say its that. He is probably still paying the minimum but still spending on the card. Is that correct?

Hi Peteb

Yes, he pays over the minimum but he does spend on the card also. He is nowhere near his limit at the moment.

Is this not how the credit card companies make their money? I just thought it was a little strange that suddenly they tell him that they're reducing his limit and giving him 3 months to sort out the amount that they're reducing the limit by, in light of the news that MBNA are leaving the market.......

Thanks for your response

All part of the MBNA end game.

which is?

Get money in fast and sell off the rest.