Reduced Credit Limits? Share Your Experience
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FacebookAbout a month ago, I published an article over at Credit Addict about protecting yourself against reduced credit limits. Since that time, readers have left a smattering of comments lamenting that their credit limit has been reduced. We’ve been totally unaffected by this, so I’m curious as to how widespread this problem is. Interestingly, all of the commenters reporting a reduced credit limit have been dealing with American Express.
Have your credit limits been reduced?
Published on October 31st, 2008 - 229 Comments
Filed under: Credit Cards, Debt Reduction
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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229 Responses to “Reduced Credit Limits? Share Your Experience”
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October 31st, 2008 at 10:10 am
I have no clue if any of my limits have dropped. I never get any where near the limit to begin with so it wouldn’t matter anyway.
Though with a FICO score exceeding 800 I doubt I’ll see my credit denied or lowered.
October 31st, 2008 at 10:12 am
My credit limit on my one credit card has not changed which probably means that because I don’t use consumer credit, they don’t bother with me. “Reducing credit limits” is another way of saying “Adding reason and logic to the credit marketplace.”
October 31st, 2008 at 10:20 am
None of my limits have dropped, but I’m still early enough in this process that I’m still sitting fairly close to the limits on my cards. One thing I will note however, is that Discover is usually pretty quick to RAISE my limit when I sit as close to the limit as I am now, but they’re not budging it right now. That’s fine because I don’t want more credit, but I did find it interesting to note the difference.
October 31st, 2008 at 10:25 am
My wife’s American Express CL was reduced from 10K to 500. Prior to the CL reduction she hadn’t used the card for about 6 months. She got an offer from them to use the card at some specific stores and she would recieve a $30 credit. After the first use she got a letter reducing the CL.
October 31st, 2008 at 10:43 am
Oddly, Chase raised my limit from $4,500 to $5,300. BofA hasn’t changed my limit with them at all.
October 31st, 2008 at 10:50 am
Oddly enough, AMEX doubled my credit limit from $5,500 to $11,000 in September. I do not have anything on the card but I do have some debt on other ones. I have not had of the other ones get decreased either. I wonder if the individuals that had their limits decreased have bad credit.
October 31st, 2008 at 10:53 am
Still have my $30k Blue and $20k Costco AMEX limits.
Haven’t touched the blue in a year. Most i ever used on a card was about $10k when i had 0%.
October 31st, 2008 at 11:36 am
My Wife’s Sears MC (Citibank) was reduced from $11,000 to $7,000, with the explanation that they had reviewed her spending pattern, and reduced her limit accordingly. There was actually mention of Sears / Citibank doing this on the national news this morning. All we have on the Sears card at the moment is an HDTV we bought last November that has 18 months 0% interest … so, of course, we’re not making other charges with the card until that’s paid off.
October 31st, 2008 at 11:38 am
Actually, oddly enough, some of mine have increased.
October 31st, 2008 at 11:51 am
None of mine have decreased, but I just got a notice from Citibank that my visa card with them actually increased! I was like “What the heck???” I definitely wasn’t expecting that.
October 31st, 2008 at 2:20 pm
In the Philippines, credit card credit limits do not decrease. Card companies usually increase credit limits on a yearly basis.
October 31st, 2008 at 2:29 pm
Nope, no Credit Limit decrease here either. But, I got a Terms of Agreement change from Chase (in which I don’t have a balance) increasing the APR to 20% something. Yikes! I will be cutting that card up for sure.
October 31st, 2008 at 4:18 pm
Decrease? What Credit Crisis? Discover has INCREASED my limit TWICE this year!
I don’t really get it, but I think they are trying to get me to use that card again. They were even nice enough to lower my now Variable APR from 28.9% to 25.9% since I’ve been such an awesome customer!!!
I hate them… And have already told them what they can do with their limit increase. I would starve before I would ever use that card again.
October 31st, 2008 at 4:57 pm
Nope, no decreases. They have stopped increasing my limits, though. Last year, Citibank increased my limit twice. At the beginning of the year, my credit limit was $9000. By the end of the year it was $17,900.
October 31st, 2008 at 7:45 pm
I haven’t had any changes of credit limits but Citibank sent me a letter saying they were canceling my credit card with them because I hadn’t used it in a year or two. I charged something on it (small item) so I don’t lose my credit history with them.
October 31st, 2008 at 8:02 pm
My Sears MC (Citibank) was reduced from $10,000 to $6,000, with the explanation that they reviewed my spending pattern (I only used this card once ot twice a year), and lowered my limit accordingly.
I closed out this account – one less card to manage.
October 31st, 2008 at 8:47 pm
Had an AMEX line dropped from 25K to $500 a couple months ago. Hadn’t used the card for any purchases, ever. But did use it to balance transfer 21K at 0%. Paid it off before paying any interest. Just applied for an auto loan through Capital One auto and was approved literally in 30 seconds for 30k at their lowest rate. Interesting times…
November 1st, 2008 at 12:03 am
I’m with capital one, and so far, so good!
November 1st, 2008 at 12:22 am
I have an Amex SimplyCash card and so far no reduced limit….yet
Actually, quite ironically, Citi just recently gave me a credit limit increase!
November 1st, 2008 at 2:32 pm
My wife and I have various credit cards, all with limits ranging from 5K to 35K on each card. Most of our cards have RAISED our credit limit by carying amounts- 3K to 5K. American Express LOWERED our credit limits twice in the last 18 months. It went from 20K to 3K to $1,500. They claimed it was because of delinquent credit on our other cards. My wife and I have credit scores near 800 and have NO blemishes, late payments, etc. Delinquent my a*$. I hope they go bankrupt. They will NEVER see another dime of our money.
November 1st, 2008 at 6:59 pm
No reductions yet .. not even on my Amex, which I just got a couple of months ago. I am still getting at least one credit-card offer in the mail every day. I thought credit was hard to come by?
November 1st, 2008 at 9:47 pm
I’m like Tony, I’ve had multiple AMEX cards over the past couple of decades, never been late, never missed a payment. I have several other credit cards with high available credit and no missed payments… and yet, inexplicably, AMEX has lowered the rate on my Blue card from over $10K to just about $2,300 in the past year — all without notice. I absolutely HATE AMEX and hope they go under. They are a disreputable, dishonest, sleazy company.
November 1st, 2008 at 11:18 pm
Quite the opposite, some of my limits have been raised recently. I don’t have AmEx though. I think people with top tier credit will become more valuable to creditors, hence they’ll do more to keep them happy like higher limits.
November 1st, 2008 at 11:39 pm
AmEx increased our credit limit unsolicited.
I actually don’t like when they do that.
November 2nd, 2008 at 12:58 am
Amex lowered our limit by about $3k, that is the only card we use regularly, not sure why it was lowered. Never late, no other problems on other cards or any loans for that matter.
November 2nd, 2008 at 9:17 am
Although it hasn’t happened on American Express, two of my other cards have actually raised my limits.
American Express has stayed the same for about a year now…
November 2nd, 2008 at 10:17 am
No reductions yet, but just signed up for the AmEx Blue Cash card and only got a $5000 limit. Anyone have any thoughts on the best strategy to get them to increase it? Maybe a couple of months of full, on-time payments?
November 2nd, 2008 at 8:14 pm
I haven’t seen a reduction yet, but I did get this “IMPORTANT NOTICE OF CHANGE IN TERMS” from Chase’s Visa card:
“Your default APR will be changed to a variable rate of 29.99%.”
Nearly as exorbitant are rates for “overdraft advance APR” and “cash advance APR,” both variable rates now pegged at 20.99%.
Since I don’t carry a balance and, because I’m less than fond of Chase, rarely charge much on this card, I don’t suppose it matters. But it is…well…jaw-dropping.
IMHO, rates of this magnitude ought to be illegal.
November 2nd, 2008 at 8:58 pm
we have two that have no limit, so i guess those don’t count. others, they have increased limits and we continue to get 0% BT offers on all of the cards.
November 2nd, 2008 at 9:48 pm
I have had limits reduced on three of my cards recently. Amex, US Bank and Bank of America. All lowered my limit to within $100 of my balance. Stated reasons was my credit usage/high balances.
I have been making large payments to try to pay these cards off and each time I pay them down by $500, they lower the limit by that amount.
November 2nd, 2008 at 10:15 pm
No reductions yet on any of the cards yet including AmEx blue (13K credit limit). Higher limit (from 10K to 18K) on one of the cards.
Got a couple of pre-approved 0% offers for 15K; I don’t need it so I just tore it up and threw it away.
@Funny about money — I also have Chase (Amazon) and I got the same type of a letter; since I also pay my balances in full, I couldn’t care less. I’ll continue using it for amazon purchases since I like their rewards. This one is set up for automatic payment of the full balance, so there is no way it can ever be late.
@Shadox – if you feel strongly against their raising your limit, you can call them and tell them you don’t want the increase. They will lower it back. You can also tell them you don’t want further increases, and they’ll mark it on your account.
November 3rd, 2008 at 8:44 pm
Mine have actually been increased. I would say that’s because the companies are issuing less to new customers, and are maybe trying to make up for that by allowing their current customers with good credit to spend more.
November 3rd, 2008 at 10:26 pm
Ironicallly, I got a notice today that my credit limit on Citi has been raised about 10%. However, they have consistently raised my limit any time I get serious about paying down the balance. So, despite the current credit crisis, Citi is trying their best to entice me to spend more.I’m paying (literally) for past mistakes, but I have no intention of repeating them.
I don’t have any other cards, so as far as my experience goes, I don’t see reduced limits.
November 5th, 2008 at 7:09 am
My cash doesn’t have credit limits, so I’m not concerned.
November 6th, 2008 at 3:18 pm
Out of all my credit cards, the one card I haven’t used was reduced. It was my IKEA card and it went from $500 to $221 (which is an odd number, to say the least).
They reviewed my spending patterns too and adjusted the card accordingly.
November 9th, 2008 at 8:28 pm
citi keeps increasing my limit and lowering apr but target just raised all apr on there cards by 3% they suck
November 12th, 2008 at 1:51 am
My Costco AMEX credit card had its credit limit lowered from $30k to $2600 in one fell swoop last week There has been no change in my credit score (720s) since I applied for the card two years ago. AMEX is turning into a bank and trying to limit its risk so it can qualify for some gov’t bailout money. I hope Costco picks up a different creditor.
November 17th, 2008 at 3:36 am
Amex cut my credit limit from 8000 to 5500 without any notice, I was confused if there was a fraud purchase on my card. Amex stinks, I never made a late payment and gave them a lot of business. no more but.
November 20th, 2008 at 6:04 pm
AMEX SUCKS!!! My husband and I have credit scores close to 800 (we just checked w/credit union) and today I get an email stating that our credit limits have been lowered on both our Blue and Costco cards. We have been card members since 1999. Our Costco card went from $29500 to $10600 and our Blue went from $22500 to $10600 but our Discover card was just increased. We do not carry large balances on these cards, but have been using them (for rebates & points) to decorate our new house. AMEX is totally screwing with people credits and I am very disappointed in their business practices. I too hope they go under or somehow is able to be reported on their unfair business practices. We are planning to pay the balances off and not use them again. I wish I could sue!!
November 20th, 2008 at 6:07 pm
Still at 30k Blue and 20k costco with amex. 800+ score.
Haven’t touched the blue in a year.
Max on costco is about 2k in a month.
November 28th, 2008 at 7:07 pm
Just found out that AMEX lowered our limit by another $4000 on Wednesday, November 26! Found out when my wife went to purchase gas. They had just lowered it by $4000 10 weeks ago. As soon as I sent them $3000 for this month’s bill, they lowered it another $4000 putting me over my limit immediately.
As a result, I will not send them any extra and will pull $ out of a mutual fund and send it to another creditor freeing up more credit with them and cease to use the AMEX.
My wife and I have spent over $680000 on our AMEX cards in the last 19 years, but now we are “high risk!”
We will also boycott businesses that accept AMEX and buy from those who do not accept AMEX. We will let the merchants know why. We are in our sixties and have 82 credit accounts “paid as agreed” without a single late payment!
I suggest that anyone else who has just gone thru this send a letter to the CEO, Kenneth I. Chenault @ Amex, World Financial Center, 200 Vessey Street, New York, NY 10285, and express your complete dissatisfaction.
AMEX cannot survive if people do not use their card.
December 2nd, 2008 at 4:38 am
I always pay on time and I pay over the minimum. My score is 774.
Last week American Express cut my credit in half, down to what I owe. This act on, the part of American Express, will damage my credit by showing that my credit is extended. Won’t this create a domino effect, that will have a serious effect on my credit? I say yes it will.
I have contacted my representatives on this. This is a serious problem. I urge everyone to write and call them.
December 3rd, 2008 at 10:02 pm
just had a nice arguement with 3 of boa’s card services managers. they cut my limit from 14400 to 4400. my balance is 4200. they left me 200. i did not even get any notification. i happened to see it through my on line banking. i have Never been late with a payment on any of my accounts.When i told them they were going to lose a good paying customer they really didn’t seem to care. screw bank of america i will just transfer my small balance to another card with a 0% transfer for 1 year
December 4th, 2008 at 8:40 am
Yep, same thing happened to me. Six weeks ago Amex cut my limit by half. Just yesterday I checked my credit scores, and they all three dropped by about 75 points (average). I am LIVID. I have always made my payments on time, but the credit score analysis said that I have too high of a debt ratio. I didn’t prior to them lowering my balance. Sure when it goes from $30K down to $15K, my debt ratio is going to be higher.
I am paying the thing off and never paying them another dime. The whole “banking/credit card/credit score” practice is the most idiotic, unethical thing I have ever witnessed. Amazing that I’ve turned into high-risk when I have not changed one thing in the way I spend, work, or pay bills.
December 4th, 2008 at 8:53 am
Melissa: Are you sure about cause and effect here? 75 points is a really big drop in response to a credit limit reduction. Is it possible that your score dropped (at least somewhat) which prompted Amex to reduce your credit limits, perhaps further reducing you credit score.
December 4th, 2008 at 9:12 am
Just an update to my previous post. Amex attempted to raise our interest rate on us after chopping our credit limits to nothing. That was the last straw. I cancelled them. I hope they go bankrupt- just like their business sense and ethics.
December 4th, 2008 at 11:12 am
I contacted my congressman, Trent Franks in Arizona, and they looked into the problem they said. They called me and told me they can’t help. I told them that this was happening all over the country. It’s a nation wide, “NATIONAL”, problem. They said, only, that the congressman is aware of the problem. If they won’t act on this what the hell is going to happen. This credit crisis will just keep getting worse.
I have also written my Senator, Kyle. I didn’t bother writing that worthless fool McCain.
Just this morning the news said that home interest rates could drop from 5.5% now to 4.5%. What the heck good will this do us when our credit rating is dropping. Home prices are dropping also. How can a person get re-financed under these circumstances. What the heck is going on. What a joke.
December 6th, 2008 at 4:00 am
Talk about “Discrimination” by American Express. I feel i’m being slapped in the face and their is nothing i can do about it. I just read a paper on American Express and it states that one of the ways they come to the decision to lower ones credit limit is based on several accounts. They base it upon where you live, where you shop and who holds your mortgage on your home. Even tho i pay my bill every month on time, and have never been late, These fools seem to think its good business practace to slapp me in the face with a letter that they are lowering my credit limit by more than half. I will never use this card again, and i will be sending several letters. I urge you to shop around and find another company to do business with. AMEX Sucks!
December 6th, 2008 at 11:14 am
I have noticed a few people on here making comments like, “I have a credit score in the 800’s so they keep people like me with good credit happy…” Well, a little newsflash: My credit score is in the 800’s, have NEVER been late on any of my payments, but AMEX just cut my credit limit in half with no prior notice. What ticks me off is the fact that we never used it until 3 weeks ago, when my husband bought me a new ring for our anniversary, and we decided to put it on that card. Today, I checked the account and they lowered the limit to 300 dollars above our balance, so now the card is almost maxed out which is something I never do. I am extremely upset, and will be cancelling the card once it is paid off in a month or so. AMEX is a bunch of crooks.
December 7th, 2008 at 3:52 pm
Is there someone here that would/could supply me with the wording of the letter you received from your credit card company in regards to lowering your credit card limit?
This is a strange request .. but my alcoholic husband, refuses to stop using MY card. I would like to “tell” him that my limit has been reduced. If that does not work, I will attempt to “conjer” up a letter documenting this.
This is very manipulative, I know .. but husband will not listen to me and continues using my card. I KNOW that if he thinks that the limit has been lowered, he will finally get it through his head that he cannot continue to use for his “entertainment” pleasure.
For those of you who believe that this is being dishonest and manipulative on my part .. my husband, I believe, is in a cycling stage of his bipolar depression and it does not matter what I do or say, I have not been able to reason with him. If I have to be somewhat underhanded and extreme, I have resigned myself to this .. at this point and time.
Thanks in advance for anyone that may have some compassion and might supply a “generic” form of the letter that they received.
December 10th, 2008 at 10:16 am
my credit score is 710 due to the fact i just started building my credit about 2 years ago, my amex and capital one limit has not changed but my paypal buyer credit and my citiflex credit line lower my limits to about 30% of what they used to be, i’m never late on my payments, allways send a lot more than the minimun payment due and allways finish paying everything quick. i really don’t like to use my credit to buy small stuff but it’s needed to build my credit, i guess i’ll be using my cash more and cancelling a couple of credit cards.
December 16th, 2008 at 6:22 pm
I just noticed my credit limit for my Citibank Professional MC was reduced from 15,000 to 2,300. When I called they said it’s because I only use less than 5% of my credit limit. I have a credit score of over 800, I wonder if this will affect my score. Citibank told me it won’t but I’m not sure.
December 17th, 2008 at 12:24 pm
Last night on CBS world news with Katie Coric, they had a good report on this probelm. A nurse’s credit was 780 and a credit card company cut her credit in half. As I recall that dropped her score 60 points. This gave reason for a drastic raise in her interest rate’s, they moved up to 21%. She just stopped using her cards. Thats ok for her she very seldom used her cards. For most people this will be crippling or worse.
The point of the story was how the cut in credit card level effected a person that doesn’t use there card that much. I hope to see a program on how it will effect the rest of use who use our cards regularly.
I urge everyone to call there congressman and senator’s, please call. I have.
December 17th, 2008 at 6:16 pm
I urge everyone to contact House Committee on Financial Services and complain to them about this credit card problem. Go to the following website:
http://financialservices.house.gov/contact.html
December 19th, 2008 at 10:33 pm
I have heard about this issue but it hit me first hand today. Barclay’s Bank reduced my credit line from $10k down to $2 and what’s worse is that put me over limit. To top it of, I haven’t received notification of the decrease, I had to have a purchase declined to find this out. When I called the credit card company they didn’t care and wouldn’t raise my limit back up except to cover my current purchases so that I’m not over limit. However I was warned that the limit could be reduced again in the future.
I warned them that they are losing a long-time loyal customer, no “might” about it!
December 20th, 2008 at 10:42 am
I went to Pay my fiance’s Best Buy card this morning since its right before the holidays & i know we have used it a small amount. We always keep it at under a 30% credit usage, especially because he just payed off his car so that is the only thing on his credit report right now. Without so much as an email they cut his limit down so there is only $38 available credit!!!! He has had the card for about 4 years & uses it rarely, probably about 3 times in the last two years & has only paid late once & that was over 2 years ago. So now right before the holidays we are going to have to come up with the money to pay it off or risk him losing a good 30 points or so on his credit. We’ve been saving for a house so we can’t let that happen. Good job Best buy & the rest of you credit “know it alls” at these banks, now someone who was making good credit decisions so they could buy a house next year will have to dip into our savings or risk having their credit wrecked!!! Once again the middle class is taking it on the chin for something a bunch of rich arrogant fools did. Welcome to America.
December 21st, 2008 at 10:50 pm
I just received the letter regarding my interest rate increase along with a notice from Blue stating that my credit limit is going from 10K to $4400. This is totally reidiculous and unacceptable. In the statement they claim, among other things, that the decision was based the fact that my debt is too high with AMEX. That’s total BS because I just made a $4000 payment in May bringing my balance to $0.00, which is where it has been until the last month or so because of Christmas shopping. They also refer to my credit score from Experian, which again is bogus because my most recent Experian score is 721. I am soo sick and tired of these coporate sleezebags sticking it to us that are just trying to get by. I will be contacting AMEX tomorrow and if i do not get any satisfactory answers, I will be contacting an attorney. If someone has already initiated a class action lawsuit, PLEASE contact me.
December 28th, 2008 at 11:03 pm
I agree with all the people who HAVE HAD A LIMIT DECREASE. What gives. I payed off the cards and did not want to over spend so now I have no credit – like $300 is going to help if I need to go the MD or get the car fixed. I have no late payments and pay more then the limit. Discover, Amer Expr, HSBC, GM CARD all the saME. IF YOU DO NOT GET IN OVER YOUR HEAD THEY DO NOT WANT YOU.
Maybe we should lose the cards and just let someone have a good time. They certainly are having a good time messing us up and keeping their money.
why would you lower a limit on someone who pays off their cards. I am very disappointed in the congress.
they do not even answer email. Pelosi emailed me back and said it was against the rules for her to communicate with me as I am not in her district.
well she may not have a district if she keeps up that attitude.
sorrry but I do not like being made to look like I have gone over my lmits and most of all they never even gave notice. They just did it and then sent the letters.
not good . at all!!
December 28th, 2008 at 11:07 pm
How do we start a class action lawsuit. Count me in,
This is really disgusting. I am glad I finally found a site that even mentions this . Nothing on the AM radio about it at all.
contact me too just like #57 asked.
thanks
December 30th, 2008 at 7:24 pm
I just received a letter today from Juniper MasterCard stating they are lowering my limit from $6000 to $650 because quote: “you are only using a small portion of your available credit”. I have had this card for 3 years with spotless record. I have a 782 FICO. (Well, I did last month!!!!). This really makes me mad.
January 3rd, 2009 at 11:31 am
I just called BoA to see if they would lower my interest rate a little bit; not only did they not lower the rate, they cut my credit limit on both BoA cards to right at the balance level. Thanks a lot, jerks. Can’t wait to see what that does to my credit rating.
January 3rd, 2009 at 6:16 pm
American Express management is making bad decisions about how they treat their customers. This will affect American Express profits for years to come. My Optima limit was reduced from $24,000 to $17,000 which was a few hundred over my balance at the time. My response was that I made an additional $1,000 payment to my regular payment in order to stay under 90% usage on the card. Once again American Express has reduced my limit. This time to $15,000 which is just a few hundred dollars over my balance. The balance is charged a low promotional rate so I am not inclined to pay it off by any more than the minimum payment. But, after the first limit reduction I called Am Ex to ask how I could be a better customer and how much I should pay in addition to the minimum. The customer service representative suggested I pay $50 to $100 more than the minimum each month so that is what I have done. I have been a member since 1985…never been late with a payment and have never gone over my limit. If I treated my customers that way I would be out of business in a few short months. I wonder how long it will take before Am Express is asking for a government BAIL-OUT ? ? ?
January 3rd, 2009 at 6:40 pm
Actually Amex has already asked for bailout money. They got themselves reclassified as a bank holding company specifically so that they could do that.
But they have been doing this balance reducing thing for more than a year now. Its just that they started with their less than stellar customers, you know, the ones who carried high balances and only paid the minimum or near to it. Or were a day or two late with a payment here or there. That was me. Funny how when I started talking about this in forums 6 months ago, I was ridiculed and told I deserved being treated like a criminal by Amex and BOA, but now that they are targeting all their customers equally everyone is ready to file class action suits.
The only advice I can offer is the same advice that was given to me. Pay them off and cancel the cards and don’t use credit if you can’t handle the terms you agreed to. Thats what I am doing. I have learned in the past year that I really don’t need them as much as they advertised me into believing. The best revenge is living well and as Amex and BOA struggle to stay alive, I will be here still earning paychecks, conspicuously consuming, and I won’t need them.
January 4th, 2009 at 1:21 am
John D and everyone else. American Express applied for Bank status with the past month and now has already gotten the bank bailout money.
So had GM financial services who did the GM loans. They are now a bank as well and got a double bailout
one as car manuf and the other as a bank
Discover is doing the same.
this is not about helping people at all.
I never had any lates, but now several of my cards are withing 100 of the limit and credit score has dropped
I was just aoout to get pre qual for a mortgage.
Fair Issac must know whats going on but does not give a hoot.
January 7th, 2009 at 10:07 am
Part of your credit rating is how much of your available credit you use. Each time AmEx or some other entity cuts your credit limit down to near what you owe, that lowers your credit rating. The resulting lower credit rating can and will be used against you by those same companies later.
What people need to do is to write their Senators and their representatives in Congress and let them know what is happening. If they hear from enough of their constituents, they may not be so quick to provide bailout money to the worst offenders, and, with any luck, might even demand repayment of some of the bailout loans so AmEx and others will know how it feels to get cut off at the knees.
January 9th, 2009 at 1:14 am
What a change for these companies. I used to throw away no less than 5 credit card offers a week but have seen very few in the last few months. Like most of you, I have a high credit rating because I have never even made a late payment in all these years. BOA sent me some checks with a 0% interest promotion through October 2009. I set them on my desk for a few weeks and was considering if I wanted to use them for something. Three weeks later they sent me a letter dropping my line of credit from $18,600 to $1,000. The cheap punks gave me the same lame excuse as most of you on this blog have received. Also, Amex dropped my credit line from $26,000 to $10,600. I wish now that I had maxed out BOAs 0% percent offer and put that money in the bank. That would have prevented them from sacking my credit line for no good reason.
I am going to send BOA back their card and tell them to shove it where the sun doesn’t shine.
January 13th, 2009 at 1:37 pm
PLEASE, everyone take a look at the bailouts. They will not stimulate the country. I was just getting a pre approval on a 1st home. Due to AMEX , CARE CREDIT and DISCOVER i now do not have a high enough credit score. The credit score itself is a joke.
I contacted my congresswoman and her Receptionist DID call me back. YOU are supposed to get a 15 day notice before any action is taken on your account in either direction. I got no notice in advance.
HOW do we start a class action? This has to stop.
The Senate intends to establish new rules but I heard they will cap the APR at 36% That is also a joke and I am very disappoined in all both sides of this system
Give them money and they charge us 36% on the tax we paid to big with!!! Shame…
So again. how does one start a class action Case???
Be well and keep sharing the knowledge
January 13th, 2009 at 3:38 pm
BofA just closed six perfectly paid accounts without any notice. They did that when my wife called to request a $200 transfer into our checking account. The “customer service agent” Damon was so arrogant and seem pleased that he we “shutting down ALL of our accounts”! Not one late payment or fees have ever been applied to any of our accounts. Found out two days later that our MC with our credit union was also frozen since BofA apparently administers that account . We received written notices several days after the accounts were closed, nothing before.
We sent a letter to the CEO of BofA, Mr. Kenneth Lewis detailing how unfair and short-thinking such actions against good customers are. We pointed out that we had only applied for two of the accounts in the first place and that all the others lines of credit were initiated as a result of offers made by BofA to us because of our credit history. Does anyone know if this is legal or who we should contact protesting such actions? Our first reaction was just to tell them to “stick it” and we may still do that. Now, we are guessing that BofA will raise our rates at the first opportunity.
Anyone that can give further advice, please do so!
January 13th, 2009 at 5:24 pm
To JBRARE I was told by my congresswoman’s office that we are supposed to get notified in advance. They stated 15 days as per the small print. I have yet to verify that but I am sure they need to notify in advance.
Please post if you find anything that states otherwise. I am going to read the Fair Credit Act again.
they get bailed out and we get stiffed.
Some stimulus eh?
January 13th, 2009 at 5:49 pm
I am pretty sure that all these ba****ds are going to do everything that they can between now and next year to create situations that allow them to up interest rates based on credit ratings and “excessive” use of credit lines. If I understand the new restrictions that will not go into effect until next year, lenders will have to have specific reasons to change your rates and not be able to change your terms as long as you are paying on time and not exceeding your limits. Congress left credit cards companies a huge loop hole and plenty of time to
cover all their bases in the meantime. Congress always underestimates the resourcefulness of predatory lenders. While our tax dollars are keeping banks and financial institutions afloat, they will be plotting ways to circumvent the new restrictions and setting themselves up to “milk” the good paying customers even more. Let’s just stop paying everyone of them who try to change conditions that they set up and “agreeeeed” to in the first place.
I am mad as hell and am not going to take it much longer!
January 13th, 2009 at 11:45 pm
Jbrare- ditto here too. makes me ill.
I got a form from the local DA on Consumer Complaints but all they will do is mediate or pass the complaint on. I read up in the Fair Credit act and they can change the limits based on what they say they found in your credit report. Like to high balance to income ratio. They are supposed to notify you within 30 days . I was only notified in one case and I have no idea when they did the change.
no lates in over 15years This has sent my score down below 700 Which will prevent me from pre qualifying for a 1st time home loan.
The banks do not care at all.
This is all the same old, same old going ons.
Keep posting – any ideas on how to fix this situation?
January 19th, 2009 at 12:09 am
I logged into my online account with BOA a few days ago to make a payment on my credit card. A small payment for a small online purchase. Since I keep about $15k in total limit available between various cards but no balance on any, the last thing I expected was my credit limit to be cut by 75%. AS I HAVE SEEN IN MANY OF THE BLOGS HERE, NO ADVANCE NOTICE. Never a late payment. I called and cancelled the card as I don’t need a card with a small limit but asked “why the decrease?”. The rep would not tell me why, claiming they had sent a letter several days earlier. Still no “alleged” letter.
BOA has no idea what they are doing. I have a checking account and savings with BOA and will soon be taking my money elsewhere.
January 27th, 2009 at 12:47 am
So today, Kenny Chenault complained that American Express’ earnings declined by 72 percent in the fourth quarter of 2008, due in part because consumers were not using their cards…What a shock!
My credit limit for AmEx was cut by over 90% (30k to 2600) (see comment 37) back in early November, so I cut my use of the card by the same amount.
How do you ####-ing like it, Kenny??!!!
January 29th, 2009 at 9:35 am
I agree with everyone hear. One of my credit cards are from Barclay’s bank. Well I never missed a payment and kept the card at a zero balance. Most of my credit cards have a negative balance where I over paid.
Anyway about a month ago I get a letter from Barclay’s saying that my credit limit was cut to $500. The good thing is my balance is 0. But it makes me wonder? Why would you cut the limit of people who use their credit wisely? “To reflect my spending habits?” There is no way that I will use any of my cards now. You do everything right and they hit you in the rear. I hope that they all go down.
January 29th, 2009 at 3:05 pm
Yea they cut my limit from 27K to 500$. I called and they wouldn’t increase it–so I told them to keep the card
F*** AMEX. They don’t want our business, we will go somewhere else.
January 30th, 2009 at 10:48 am
Chase pulled a dirty trick.
2 yrs ago I did a balance transfer of $20k to Chase. The offer from Chase was 4% for the life of the loan. The payment is $250.00, and thats OK.
The last bill said may payment is a WHOOPING $680.00 a month.
They have taken my payment from a min. 2% to the 5% the LAW has allowed them to take payments to. This 5% was put in place by the corporate run government.
Chase gave me the option to continue with the $250.00 a mo. if I would except 7.99 % intrest rate. I agreed under duress. What could I do except to just stop paying????
May god wtf is going on in Washington. All the money paid out should have went to us, the citizens. A trillion dollars would pay off every mortgage in the country. And we would have plenty of money to pay our cards and to buy again. OUR GOV. AND CORPORATIONS HAVE BECAOME A CRIMINAL ORGANIZATION.
January 30th, 2009 at 10:37 pm
Capital One is doing it also! Today I was shopping, I tried to charge $100. My card was declined with a huge line behind me. My husband had my debit card. I was so embarrassed. All I could do is walk away from a full cart of bagged items. I called Capital One because I knew I had a $12,600 credit limit and I only had $3000 charged. After talking to 3 foriegn reps. and getting no answers to when or why they lowered my limit $9000. They finally admitted to lowering on the 23rd. (one week ago) No call, no e-mail, no phone call to notify me, (still nothing). They did say they usually try to call. (not that they did) And the reason was that I don’t use my card enough. That is such BS. I have been a loyal customer, never make late payments, pay down frequently and have excellent credit. Is it legal to not notify people. I tried to charge only $20 over my new limit and was declined….wow! You are correct Mike “OUR GOV. AND CORPORATIONS HAVE BECOME A CRIMINAL ORGANIZATION.”
January 31st, 2009 at 10:32 pm
What’s worst beside them lowering the credit limit is it effects the credit score. about a month after Citibank lowered my credit line from 15K to 2300 I checked my FICO score and it was lowered by 30 points. There is no other changes in my credit history except this one. This is not fair as I always pay my bills on time. Instead of our corrupt government penalizing these criminals they just bail them out by giving them our tax dollars.
February 1st, 2009 at 12:04 am
I believe a conspiracy, against citizens, between gov. and corporations, has been in place for sometime. Just think about the timeliness of the new bankruptcy laws. They were put in place just before this credit crisis started hitting. They knew it was coming because they manufactured it.
The gov. should have given us the 700 billion and we could have paid off our cards with the money. Instead they gave the money to the corporations to pay their CEO’s millions. These people should be tried and executed for crimes against the people. It is the only way they will get the message they are killing us, and our families. And if this doesn’t work then their whole families need to be executed in order to send them the message.
February 1st, 2009 at 6:13 pm
I have already notified my congresswoman. I gave her receptionist the link to this site and another one that I came across. Today I had three new postings come through. I think it is time to go to my local newspaper and see if I can get a reporter to pick up this story. If that works then iit may get in the San FRancisco Chronicle. This is really getting to me. My credidt score has gone down as well for what ever they say that is worth. Enough is enough. Any other ideas???
February 4th, 2009 at 12:02 am
BofA cut my Business Visa Card credit line from 29000 to 17500 without notification. At the time I had 17100 on the card, leaving me 400 to work with for my small CPA firm going into tax season! I immediately sent in 2100 to leave me 2500 to work with. Hopefully they don’t reduce the limit to 15500 on me!
My credit score is 800 and I usually pay off each month but have been carrying a balance for a few months due to carrying to homes … our old home closes this month.
No call from BofA. I’m sure this will effect my credit score thanks to them reducing the credit line which was just raised in December 2008.
Who knows, maybe next will be an interest rate increase from the present 7.99 to who knows what? 24%?
I think we’ll be paying BofA back and change accounts to a local bank who would maybe appreciate some more business.
I hope BofA has a plan for the backlash brewing due to their recent actions.
February 5th, 2009 at 11:22 pm
UGH!!!
I have had three things occur within the last 2 months:
1. Credit Limit Decrease By Juniper, with a lame explanation (now cut-up with $0 balance, only used to get 6 mth free financing on my MAC).
2. Credit Limit Increase by Citi
3. Citi, Plan A or B
A. Accept an interest rate increase of at LEAST 19.99% OR
B. Keep my current interest rate until my card expires, at which time they will cancel my card and I can re-apply
When I phoned Citi regarding A & B, the telephone rep said this is based upon the default rate of it’s customers; NOT MY OWN PERSONAL CREDIT. When did credit become a group thing?
I agree with Mike…WTF?
February 6th, 2009 at 11:41 am
Annie, I have called my congressman’s office a couple of times. Once on each issue Amex and the Chase cohesion. I have emailed the Senate Banking committee. If I have done this thousands of others must have. I hear nothing in the news about what banks are doing to people who pay there bill’s. IT IS NO WONDER THAT THE ECONOMY IS COLLAPSING. No one can trust the system, banks, and or the government, who has given them hundreds of billions. Billions that have gone to bonus’s.
If the government would have given us the money we all could have paid off our credit cards and none of us would have a problem.
When no one listens what happens?
February 16th, 2009 at 7:51 pm
My husband and I just had a similar frustrating letter come in the mail. We made a payment of $2250 on one card and $3750 on another. I lost my job in September and it took me 3 months to get my unemployment benefits and applied this amount as soon as I received my check, never late minimum payments, but still they sent a letter of reducing our limits to $100 above or balance on both cards … we have a credit score of 740+ never late on ANY payments and this is how they treat us ggggrrr… I haven’t checked our credit scores to see if it had any negative effects, but I have worked hard to make sure our credit is flawless and this is BS to say the least
February 17th, 2009 at 1:02 am
I’ve had my credit on amex reduced by them every time i make a payment reduced by the payment amount. I normaly wouldn’t have a problem with that except that it destroys my credit making me look like I’m constantly maxed out! and what is their reason? To protect themselves because they realized after 10 years they never should have extended that much- but then again- they were counting on me getting in debt. I’m seriously considering not paying them back at all. It isnt the first time i was upset with thier selfishness. The first was when i asked if i could send them a seperate check targeting the cash advance i took out years before that they were charging me up to 30 percent a month for and they said “no” you have to pay the lower interest pricipal first. Screw them.
February 17th, 2009 at 2:16 pm
Capital One just informed me today that my $10500 credit limit has been reduced to $3300. This will effect my credit score derogatively as I will no longer be below the 50% use of credit that mortgage companies like to see. There was also some comfort that the credit line was there should an emergency arise.
February 17th, 2009 at 8:54 pm
AMEX substantially reduced my credit limit today (on the Delta SkyMiles card I have had for well over a decade). I made a payment of $750 on a balance of $1250 on February 3. Their gratitude was displayed in the swiftness with which they decided to lower the credit limit just 2 weeks later. They cited a negative credit report. I’ll have to look into that, but I suspect it is due to the only credit card company with whom I have something of a balance, and with whom I was in a dispute over rapidly escalating interest rates. (That dispute was just resolved and they shifted my balances to a much lower rate.)
I cancelled my AMEX Gold account and the SkyMiles account and wrote AMEX an email saying that my being a “member since 1988″ seemed to mean little to them.
So the bottom line is that we consumers have to fight back. I was lucky to be able to pay AMEX in full today so that I could show them how I felt by closing my accounts, and to be able to front 3-times the minimum payment to the other card company to sweeten the rate-lowering conversation. The lesson I just gave myself: pay as much as you can as soon as you can, cancel accounts with those who abuse customers, and write to these crooks to let them know you are not going to be treated badly.
February 17th, 2009 at 9:03 pm
I’d like to add that the comments above with regard to how the bailout money should have been spent are spot on. People who can demonstrate they are working as many hours as they can, and keeping up with bills as best they can should have been given the money that the banks got in the bailout. American Express became a bank holding company so that it could get access to low-cost financing from the Fed. They and other financial institutions are getting every break. The TARP money should have been given US citizens. And now the new gov’t is about to repeat the colossal errors of the Bush administration.
February 20th, 2009 at 2:15 am
Yes, American Express lowered my limit from 20,000 in which I hardly ever used to 1,800 in which my balance was which can really mess up my excellent credit score they informed me it was due to their financial backings?? I was outraged and reported them the same thing is happening with Bank of America. they either cancel you for no apparent reason on the consumer side or lower your limits to what you owe which has a derogitory affect on your credit report lowering your fico scores I reported them too. I am watching them closely everyone should report them immediately so they can be regulated closely because they are asking for our bailout monies and in return hurting the few consumers who acted responsible with their monies and credits and due to their mishandlings and poor money managment they are still passing the blame on others. Report them to Attorney General Office, BBB and Consumer plus I am willing and hopefully we can file a class action suit against them for hurting our excellent credit reports for unjust cause and malicious derogitory business practices
February 20th, 2009 at 2:17 am
email me with updated infor.
February 20th, 2009 at 3:41 am
Everyone here needs to write there rep’s, congressman, and both senator’s. Also write the banking committee I mention above. Barney Franks is on the committee.
February 20th, 2009 at 2:14 pm
I had both the AMEX and the BofA experiences exactly as described by others. Had SIX perfectly paid BofA accounts frozen and had my AMEX limits lowered three times in four months. So far since December, AMEX has left me along and BofA has also since they swacked me last year.
CitiBank took a different approach and actually offered a 10% rebate on interest if their bill is paid on time for ten consecutive months. That seemed like a positive approach in light or the crap AMEX and BofA pulled.
Anyone else had any kind of positive experience with a banking institution recently?
If for some reason I cannot pay all my bills, guess who I will pay first?
February 20th, 2009 at 7:31 pm
Hi all., first off Ame Express did it again after I paid my monthy payment. I went to see if I had enough to pay a medical bill and found out I had 100 left out almost 1500 they were so kind to leave after cutting me 3000.
I called them and they said it was because I did not pay my Triumph Card. I said what. Oh you Ame Express Triumph card . You stopped paying in Oct. 2008 I said you have the wrong person. I told her my credit reports ( 3 ) were in front of me and none mention such a card. They got the supervisor who told me I got the card in 89. NOT!!! I was ill in 89-96 on GA etc. while getting interferon for 2 yrs etc.
She said she would investigate it as fraud. Right like someone is going to get a card belonging to someone else and pay it up to date for 20 ys. Experian said they never heard of such a card.
so now I am maxed completly, My score is down 50 points and the loan I was trying to get as a first time home buyer is not coming through due to Am Exp and discover.
What is the commitee w/ Barney Franks????
Please post again I do not see the link or name.
( my eyes are not the best and the lenses the doc gave me blurr my vision after and hour or two. )
Thanks Annie
How do we do a class action??? Someone must know a lawyer out there from the list.
We need to speak up
How do we start some kind of online protest??
I am in if we can do it. willing to put out time to cirulate. already contacted the congresswoman no help there.
February 20th, 2009 at 7:52 pm
Following the recent criminal activity of AMEX (comment #87), Capital One just sent a notice that my interest rates were going up. Like the AMEX abuse, theirs following my paying the balance. This is just part of a large and growing movement by credit card companies to exact every dollar they can before upcoming regulations force them to become something remotely akin to human and fair. So, it’s goodbye to Capital One. These people need us. If every one of us can find a way to ditch them now when they need us most, write letters to them about why, boycott all of their subsidiaries/holdings, keep posting our stories all over the Web, and write our legislators we will shut them down. We must also write to the credit reporting bureaus because that is the weapon credit card companies can use against us. In short, fight back.
February 21st, 2009 at 11:41 am
I am beginning to believe that we are not going to have to worry about some of these vultures much longer. From looking at the prices of bank stocks, I believe that Darwin’s theories are going to prove themselves to be correct, at least in the banking and financial sectors! As for the arrogant CEO’s and their future, I say “LET THEM EAT CAKE!”
One other thought I had as a result Lynn’s comment is that these predators are going to commit as many atrocities as possible before the new regulations take effect. I am alerting all my Senators and representatives to this fact and asking “WHY WERE THE BANKS GIVEN A YEAR AND A HALF TO CORRECT THEIR “USURIAL” TACTICS?” Could it be that the financial sectors own Congress? HMMM? These people can be very “creative” if given that much time gouge their customers.
February 23rd, 2009 at 7:43 pm
Just discovered by checking online that one of my credit cards just cut my limit to $360 (!!), an amount just above my last balance. The crazy part is that I was online to pay off the balance, like I do every month. I pay all my cards in full every month, never carry a balance, never pay late. There is no reason for them to have done this. My credit score was 800 last time I checked. But now I expect I will have a comment on my credit report that this credit line was reduced by the creditor, a negative, or if I go ahead and close the account, I get another negative. Even if I keep it open, I’m unlikely to use the card again (partly out of irritation, partly because of the paltry limit, and partly out of fear that the limit will have been decreased again without my knowledge, and it will be embarrassingly declined). If I don’t use the card, it will most likely be cancelled, with the ominous “closed by credit grantor” note in my credit report, another negative. I don’t really have any option here that’s not negative, although I haven’t done anything wrong!
However, my BIGGEST fear is that this will domino, and my other credit card companies will do the same thing, giving me a LOT of negatives on my credit report, including a REALLY small available credit number. After all, they’re all watching what the others do. I don’t “need” the credit cards, except that our society measures every financial move you make by your FICO score, and having a substantial available credit line is a huge factor in a FICO score. This is absurd!
February 24th, 2009 at 9:53 am
Yesterday, it was reported that American Express started offering $300 “gift cards” to some people who agree to pay off their balances and close their accounts. Has anyone on this site been offered this “deal?” I am wondering what is to keep AmEx from closing accounts if people reject their offer.
February 24th, 2009 at 12:19 pm
There’s nothing stopping them from closing the accounts. The report I heard is that AmEx is doing this simply to “keep up” their “good” image with consumers.
February 24th, 2009 at 1:32 pm
Bank of America lowering credit limits, and recalling PRIOR transactions. I processed an online transfer for $1150 to pay another card off (which they constantly entice you to do), on Jan 21, 2009. At that time my limit was $5000 with $2600 available for transfers. The transfer posted to the receiving account Feb 05. On Feb 17, I received a letter, dated Feb 07, from them announcing that they LOWERED my credit limit on that account to just above the past balance. When I checked on line I saw that the $1150 had posted to the receiver of the transfer and that B of A (Bunch of A..h…s) had pulled it back causing an insufficient funds charge from the recipient and of course not to be left out, B of A also drew a NSF fee. By doing this they have lowered my credit score to a point that I will be unable to refi my house as I planed and PAY this card off. What they have accomplished in their greed to get a measly $39 is to put me in a situation where I will no doubt be filing bankruptcy. SO in the long run they have blown their own foot off.
I called and pleaded with them to undo this. My contention is that they DID authorize the transaction (proved by the fact that they sent it to the receiver) and 2 days later they pulled the check back. I find this to be an unethical practice and urge everyone that has any accounts with this bank to reconsider and close all accounts and find another bank that won’t stab you in the back and urge everyone to boycott this bank.
February 24th, 2009 at 2:12 pm
We’ve had a Sears card for almost two years. Our initial credit limit was $6500. and increased about 6 months ago to $6900. We had a balance of about $500. because we buy appliances using the deferred interest promotion and always pay in full before having to pay the accrued interest. Two months ago they offered a balance transfer promotion of 5% for 12 months. We transferred over about $2700. Our balance was around $3150. when they (for no reason at all) decided to lower our credit limit to $3300. thereby giving us a credit utilization ratio of 95%! We immediately paid $2650. leaving only the balance of the appliance which still has a zero interest rate right now. That left us with a balance of $480. and a credit utilization ratio of 15%. We just found out today that they lowered our credit limit to $600.! Now our utilization rate is back up to 80%! We have never been late on ANY of our payments to ANY creditors. Sears/Citi is maliciously attacking and alienating loyal, good paying customers! Why? They got themselves into a financial mess and continue to demonstrate that they are unable to make good business decisions. CONGRESS: LET CITI FAIL!!!