Comments on: Your Credit Card Company Could Unexpectedly Lower Your Limit

By: Niki

Niki — Thu, 01 Dec 2011 16:45:20 +0000

Ugh!!! I have a total of 4 credit cards & 5 store cards which I have acquired over the past 8 years (the last one being 2 years old). I have maintained @ least a 713 credit score in this time. Over the past year 3 of my credit limits have been lowered by more than 50%, causing 1 card to be over it’s limit and I just discovered today that Lowe’s closed my account for future purchases!!! I found this out after checking my account on their website since my payment had not pulled from my checking account. The payment shows reflected on my account, due again next month. I had only 10% of my credit used on this card & it’s now closed!!! I spoke with a supervisor that apologized for the inconvenience and advised a letter was mailed yesterday!!! WTH, is this really happening? Is there nothing we can do? I have worked hard to budget & maintain good credit. I was advised years ago to get & use credit cards in order to keep a good score since I have never owned a home. I’m at a loss. Part of me wants to just stop paying on every credit card I have and destroy my own credit before these lenders do!!!

By: bob

bob — Wed, 22 Jun 2011 05:08:28 +0000

If they lower you credit limit and then charge you interest because you are now over the limit without sending you a letter telling you this and giving you 10 days to pay it you can sue them. They have no legal right to do this.

By: don

don — Mon, 21 Mar 2011 21:40:49 +0000

LOWER YOUR LIMIT WITH OUT NOTICE….CAN THEY DO IT YES AND NO AND MAYBE …LEGAL YES PER FTC BUT READ YOUR CREDIT CARD AGREEMENT ! IN SOME CASES THEY ARE REQUIRED TO GIVE YOU ADVANCED WRITTEN NOTICE. IN SOME CASES YOU WILL BE NOTIFIED IN WRITTING. THE DIFFERENCE IS WEATHER YOU HAVE A GOOD LAWSUIT OR NOT……..!!!

By: Mr Credit Card

Mr Credit Card — Sun, 13 Feb 2011 00:02:31 +0000

This post was written pre-CARD Act

By: David

David — Sat, 12 Feb 2011 19:15:02 +0000

By lowering your limit without giving you advance written notice appears to be a violation of the 2009 CARD act, the same law that requires written notice of a rate increase. Section (2) requires notification off “other significant changes” I would call a limit drop a significant change. Feedback?

By: Nona

Nona — Tue, 21 Dec 2010 02:54:49 +0000

All of this started in Marh 2009 with credit card companies. What I has happen to me is this. I check my bill statements and found that my interest rate changed, my credit limit lowered to the point to whatever I owed them my available credit was $10.00 I used to have a score of 800 now my score is 640 (middle). In march of 2009 credit card companies wher checking your credit report which in the the small print they can do without any penalty to your score. So in order to justify their cutting you credit and hiking your rates they were doing a mortgage check on you that goes back ten to twenty years on your report. If they find you were late with any companies it justified them cutting you limit and raising your rates. Now you and I know that they are not allowed to do this but they all were running scared due to the act that would come about by the government come July 2010. by the way I still have not seen the changes the government made to insure our safety writen anywhere and laws the put out what they card companies/banks can and can not do. Apprently they can do what they want any we have no control. Well when the companies decided to check your report which they can in that fine tiny tiny misleading print that NO one can understand for all the legal jumbo…. It now cost you two to three points per a check for it was a mortgage check that went back 10/20 years not a annual check which they are entitled to do with no baring on your score in order to justify them cutting you limit and hiking your percentages. Why should I pay the penalty for this on my score. I’ve gotten him for my credit being cut and my report being checked. So per each card it costs you andywhere from 4 to 5 points per card. Now, their are saying hey we’ll check you score again for you and there you go it cost another 2 points for them checking for it is now considered a credit increase or new line of credit when they may havejst cut you for not reason or what I have mentioned. I am even being cut for being in great standings and just because I don’t use my card every day. I’ve been told this more than once “well you dont use the card”.Who uses their cards every day, we work, eat and sleep to keep thing going I said I don’t have time to shop 24/7 and use what I can afford at the time I not greedy and like to stay reasonable, and I am trying to lower my balance for you raised my rates. But I have not ever been late and kept everything in good standings and in a timely manner.
I don’t get how they can change their rules on checking your score so far back and it now costing you points when you were not notify of this specific change,lower your credit limit which you earned becuase you don’t use your ard as much as they’d like you to. Maybe something happen you lost your job, a illness etc.. but you still pay your bills on time. And each time they do any of this it is costing you points for their mishapppenings. It is unfair practice to the customers. Another person said on hee how they were tanked by 169 points. Well I’ve went from 800 which took me yearsssss to accomplish and I am 45 now I feel like a child again having to start all over again now they dropped me to 640 (middle score) 600 (lowest) 650 (highest). And none of this is any fault of mine. I feel there should be a class action suit and restorre what the ruin NOT me or you. Why punish my report for you bad business practices. I will not see 800 again until I am dead and six feet under. It takes a long time to restore your credit and I am not spring chicken. Why did I have to pay the price for ehat they did?

By: jon jaeger

jon jaeger — Wed, 15 Dec 2010 07:43:42 +0000

Amx just lored my credit limit 510.00 on an account I closed 8 months ago oue them 9600.00 credit limit was 18800.00 went to 10510.00 then 10000.00, why on an account that can’t be used, that’s something that should not be allowed, where is big brother!

By: Satty

Satty — Tue, 10 Aug 2010 03:31:13 +0000

Screw this Bank of America(BOA)Credit card. I had a credit limit of $23,000 and used 20,000 of it. I always pay the monthly balance on time. Never defaulted, excellent credit score… Recently I paid back $15,000. After two days I got a call saying my credit limit is reduced to $6,200 from $23,000.

By: Cathy

Cathy — Wed, 04 Aug 2010 21:43:56 +0000

This has happened too many times for me. B of A and Chase are on my list of awful banks. I have NEVER been late, pay most of my stuff off. A few months ago we paid off a 30,000 balance because they raised our rates (which were supposed to be fixed…which is why we had transferred money there) and within 2 days received a letter saying the account was closed. Then 2 weeks later we received a letter saying they were reversing the interest rate increase. I called and said that’s interesting since you closed my account….no response from them. Then Chase has repeatedly lowered my limit without notification. One time I had paid multiple medical bills on it and received a call from the Dr saying charges didn’t go through. When I called Chase they said”yes…your limit was lowered yesterday”….WTF???? Then we had written a check for child care and they withdrew the wrong amount…THEY entered the wrong numbers on their end…the copy of the check was online and even then they said it would be over a week before they could credit the money back…and this was THEIR error!!!! Today was the last straw…I was checking my account and noticed they had decreased the limit yet again (I make over 10 times the minimum monthly payment every month). The woman said it was because I carry too high a balance. I said that’s ridiculous because I just paid off 2 credit cards ( we are eliminating them and have 3 left) so how my balances be too high. She was extremely rude and I told her I was going to make a complaint. Didn’t seem to bother her in the least. I called and paid off the Chase card after that conversation and am sure I will receive (or probably wont receive a notice…as that has been the pattern) notice in a couple days that my limit is $100 or something. This infuriates me because we are trying to buy a house and this just ruins the heck out of our credit rating which used to be over 750. I have not even wanted to check it lately because I will be so upset if it is ruined because of bank inadequacies, error, etc. I am also upset because there is apparently nothing I can do about it. We used to have a huge unused balance that we kept available for emergencies, etc and now have absolutely nothing!!!!!!

By: Henry

Henry — Sat, 12 Jun 2010 18:23:44 +0000

I too have had my limits lowered on Amex, BofA, Chase, etc. from average of $25,000 limits to now $500.00 to $2,000 limits. Never late on payments have been with the companies since the early 90′s, always pay off balance or pay much more than the minimun. My credit score was 831, I’ve ordered a new credit report and am afraid of what my score may now be. The damn credit card companies/banks were bailed out with our taxpayer money and now they are all screwing us over. I would encourage all people to move their bank accounts to a credit union and once you pay off your balances, don’t ever use their credit cards again. Apply for a credit card with your credit union they often have much better APR’s.