Credit Tips: Decreased Credit Card Credit Limit

Posted On: July 12, 2006

Author: cp9766
Posted: Wed Jul 12, 2006 2:12 pm
Post subject: Practices of CC Companies

I would like to know why our government condones some of the “predatory” practices of credit card lenders. Are they getting a “cut” of their profits?

I’ve had a Visa card with BankOne (now known as Chase) for several years. I had a specific credit availability amount and I know that they are able to check your credit at anytime and adjust that availability based on your credit. My problem is that on July 4, 2006 I had a specific amount of available credit. I guess that on July 6, 2006 they decided to “lower” the available amount I had on that account. So, I had put some charges on the card between July 6th and July 8th. I RECEIVED NOTHING in the mail to notify me of this change — So, I went on line on the 10th to find out that because they changed my available amount on the 6th that the items I charged put me over my limit and they charged me an over the limit fee. If I would’ve had notification of this change, I wouldn’t have charged anything on the account.

I called them on the 10th after I discovered this and the girl on the phone said that there is nothing she could do about any of it. She said a notice went out by mail on July 6th (I still have not received it). When I look at my statement on Chase’s website, the statement doesn’t have anything in writing notifying me of the change and there is a message center on my online account where I can send emails and they can email me. I DID NOT receive anything from them in the message center.

I have had problems with them before. It seems like the problem is getting worse and worse. I guess they changed the name from BankOne to Chase not only because Chase bought them out but because they want to “chase” customers away!

Is there ANY recourse for this? Please let me know! I am so tired of being messed around by these people.

cp9766

Author: hdporter
Posted: Wed Jul 12, 2006 6:07 pm
Post subject:

Interesting. Don’t know if I’ve seen a situation of reduced CL discussed around here. The typical discussion is that they hike someone’s credit limit instead.

Certainly, a CL cut seems like a very problematic procedure for the CC for just the reasons you experienced.

Anyone else around here have the experience that their issuer cut their limit, rather than hike the rate or simply close the account?

Author: Polonius
Posted: Wed Jul 12, 2006 7:05 pm
Post subject: Decreased Credit Card Credit Limit

Yes, I’ve had limits reduced suddenly with no notification and no letters coming by mail. I’ve complained bitterly about the procedure to various banks–why can’t they call or email? Why can’t they give some notice? Some of the accounts had been open 10 years without a problem when the reduction was made!

One point, though–if you go over your limit because of a reduction in that limit, that’s clearly not your fault. The bank should refund any fees or penalties. You didn’t go over your limit–you were operating under the terms you knew. Point is any bank can do this today and have all of us over our limits on our next charge–that’s both obviously unfair and probably illegal. If one CSR doesn’t make the adjustment, call and speak with another.