Comments on: Reduced Credit Limits? Share Your Experience

By: Deborah White

Deborah White — Wed, 04 Nov 2009 22:55:24 +0000

Citibank lowered my credit limit to 2580.00 and my balance was 2522.00. I always pay on time and I always pay over the minimum. The interest rate is pretty good but since this will lower my FICO score, I expect that they will soon send me a notice about raising my interest rates. I am definately going to file complaints.

By: Charles Mc Caig

Charles Mc Caig — Mon, 19 Oct 2009 16:39:27 +0000

Credit card bankers have reduced my limit on several of my cards and in some cases closed my account because
the credit bureaus says i have too many revolving accounts and the banks considered me a bad risk even though i paid on time and some extra money to boot.
Bank of America is one of them and this same bank got a huge stimulus bale out from the government yet it is cutting or stopping my credit card agreement whic is totally unfair.I just purchased a $31,000 car and am playing my part to help this deficit package yet i am being punished by these same bankers who’s CEO’S and corporate workers gave themselves huge bonusus. IS THIS FAIR to the CONSUMER,my answer is NO and people like myself are being ripped of and denied credit for helping support the ECONOMY.Totally Disgusted.
Charles Mc Caig.Hope someone from GM reads this letter as they were another company that was baled out.Shame on all of you Corporate Head Bangers.

By: Steve in W MA

Steve in W MA — Wed, 30 Sep 2009 00:01:24 +0000

@ mike
“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????”

You may have figured out by now, but it seems to me that actually Chase offered you two options of their design but didn’t mention your existing legal right to outright reject the whole thing. You still had the opportunity to reject their two offers, reject their terms, close the account, and pay by the original terms including the 2% minimum payment.

If it makes you feel better, I fell for the same thing: believing that what chase was calling my option to not accept the new regime exhausted all the legal options in place for me to reject those terms.

One lesson learned by me: It pays to move a little slowly when responding to a complex thing that is presented by a “shark”.

By: cg

cg — Wed, 09 Sep 2009 20:00:13 +0000

My Bloomingdales Visa was lowered by $1800 three months ago even though I have never defaulted. They said it was because I made 3 consecutive minimum payments. I found out today, when a charge was declined, that it has now been furthered lowered by $300. When I telephoned I was greeted with the statement that I am a very valuable customer (how cynical and hypocritical can Bloomingdale be!), then I was told the reason was due to internal and external reasons; whatever that means (twice as cynical and hypocritical on Bloomingdale’s part). I cannot wait until 2010 when the second part of the Credit Card Act will make them stop these practices.

By: Jeff

Jeff — Fri, 04 Sep 2009 02:59:22 +0000

Even if you don’t use your cards, make sure you use them twice a year so they won’t get canceled for inactivity and hurt your credit score.

By: threadbndr

threadbndr — Thu, 03 Sep 2009 20:38:28 +0000

Well, it’s not just Amex – Sears/Citi got me. Cardholder since 1974 (college), didn’t use it enough, I guess, so they totally cancelled it on me. When I called, they said “reapply”. I asked if my ‘member since xxxx” would be back dated. Nope.

Since this was my benchmark card, this is going to kill the part of my credit score that speaks to length of credit history (sigh). Good thing I really don’t need credit much.

By: Chris Russell

Chris Russell — Tue, 01 Sep 2009 02:00:17 +0000

I agree with every one who has posted on this site. I have been a loyal card member since 1979, 30 years of never missing a payment, never being late, having balances over 100K and paying them off, paying outrageous membership fees for my gold card and membership rewards program but still standing tall with Amex. I have had all my accounts with available balances reduced that directly and negatively impacted my credit scores and other opportunities to do business. I had my interest rates modified from fixed to variable with increases on the Gold, Optima and Blue Cash card. Interest rate increases alone will add over 340 dollars to my monthly payments. My wife and I had a balance on our rewards account over 600,000 points – today it is zero and I have spent them for fear they will come after that also. I am so ready to default on all the cards but I know that will send my credit scores to the bottom and impact the remaining good credit I have. I worked at this company for 10 years during the late 80’s and early 90’s and was brainwashed about how important the member and customer service is. These are different times and Amex has fallen into the crapper and they now care less about the card members that kept them going over the years. They are dirty players in the credit world; they have become a bank, used my tax dollars for a bailout and manipulated the legislation to their advantage. Just wait, prime is about to jump and Amex will ride a few more interest points out of us all.
I will stay tuned to this web site awaiting that one post that gets us all over the line and hits Amex where it hurts. Until then I will write to Kenny C, my corporate office and encourage them to drop the Amex corporate card program. Let a few news stations, and the Fed about Amex dishonesty especially in the testimony they gave before congress, hoping to get the answer, class action, intervention from some one some place.
I have not used my cards in three months, I have cut them up, and I will pay minimums until such time this matter is resolved. In the meantime American Express has lost a card member forever.
Ugghhhhhh …….

By: jbrare

jbrare — Mon, 31 Aug 2009 23:19:13 +0000

If all this crap from AMEX and B of A makes you angry, here is another site that all of you might want to visit
review: http://www.creditaddict.com/ar.....increases/

There are a lot of disgruntled customers in this country who need to be heard.
FOLKS, DO NOT TAKE THESE ABUSES AND DO NOTHING!
THIS IS STILL AMERICA FOR GOD’S SAKE!

As you read these sites, take advantage of the links and contact addresses and let your voices be heard!!

By: Doug in Utah

Doug in Utah — Mon, 31 Aug 2009 22:55:38 +0000

When I first contributed to this post several months ago (regarding my personal experience with my Costco AMEX card), I was hoping to see these credit card companies succumb to justice, perhaps in the form of class action, pressure from retailers to extend credit (not reduce it), boycotts, etc. But as I have continued to follow this thread in the context of of our economic situation, I believe this problem will actually resolve itself. The credit card companies, by their actions, are actually doing us a favor by forcing us to reduce our debt and to live within our means. But what they are also doing (to their own demise) is reducing our dependence on creidt and, therefore, dependence on them as financial partners! I, like many of you, am in the process of radically reducing my consumer debt (as painful as that is) and consolidating debt where it makes sense, meaning that a good number of these debt-intolerant companies will no longer be business associates. And I don’t intend to resume business with any of them despite a (hopeful) turnaround in the economy and an almost-certain turnaround in my own financial picture. As far as I’m concerned, it’s not “later” to AMEX, B of A, and some of the other companies cited here, but an emphatic “good-bye!” Associates that are not willing to stand by me in the hard times are not welcome in the good times. So, again, “Good-bye!”

By: JerryP

JerryP — Sun, 30 Aug 2009 14:16:02 +0000

I just got a letter from Chase saying;

“In a recent review of your account, we noticed that you have used only a limited amount of your credit line with us. We believe this may indicate that your current credit line is higher than required to meet your usage and/or spending needs. To better align your account with these needs, we have adjusted your credit line to $3,800.”

Until now, if I had needed the card it would have been for about $30,000.

Are they protecting themselves from real or imagined dangers?

By: PJ

PJ — Sat, 29 Aug 2009 12:17:23 +0000

I have had an account for over 15 years and had a large available balance. I hadn’t used the card in about 6 months and when I tried to write a balance transfer check that was sent to me ( to consolidate) my check was denied and my balance available was immediately reduced to $500! I have a credit score over 725 and perfect payment history! I’m baffled!

By: Annie

Annie — Thu, 27 Aug 2009 19:42:39 +0000

When does it stop??? I can not believe there are no attorneys to help with a class action.
today I got a letter from Best Buy( HSBC BANK NEVADA)
One of my favorite cards as you get so much time interest free to pay off your purchase and then they start adding interest if you do not pay it off by the date of the plan.
Well happy days, they join the rest of the banks. I had $81.65 out of 1100 owed . Now my limit is a big $105!!!!
Down goes my credit score again. Its dropped 100 points since all this began last year and Fair Issac could not care less about re-evaluating how they determine the score.
This is one of my oldest cards as well.
I had one purchase I believe where I had any interest at all over the past 9 yrs.
Its really a point of no return except if your a national bank. Go Local people, cut your cards up and become independent of the system. That is the great divide that is occurring.
Fair Credit Act?????? I do not think so. Arbitration is the law and so what is fair credit???

How to start a class action? is there a class action for dummies book? lol lol we need to get together on this .

maybe we can do a link to this blog I would try to go to the law library and check the Nolos site.
anyone else up for trying to figure this out?

By: Ktty

Ktty — Sun, 23 Aug 2009 21:16:45 +0000

I hate that there are recent reports of the companies reducing limits. Very scary to me…

Until June 08, I had no CC debt; graduated b-school without a job, so I took advantage of a couple 0% interest cash advance offers from Citibank (~$20k) so I would have cash in the bank (5% APR at that time) in case it took a while to find a job. To conserve cash (for rent), I started using my CCs for most things.

In October, I had AmEx drop my limit from $7100 to $3400 (about $100 over the balance at the time). Annoying, but not devestating.

Started a GREAT job (thank goodness) in January and,
In February, I paid off my Discover card (had ~$4600 balance on a $5k card). They reduced my limit to $500. At the same time, I paid off significant chunks on my two CitiCards (limits were $25k and $20k). A short time later, Citi lowered both limits to just above the balances (so, now they’re $19k and $11k, respectively).

At the same time they did this, they also raised my interest rates and minimum payments. Why? Because they were concerned that I wasn’t able to handle my current debt payments, so they were ‘helping me’ by making me pay off more principle each month. (B-b-but… I thought you didn’t think I could handle the lower paymens? Why do you think I could handle higher ones?!)

I cut those cards up the next day, not wanting to be beholden to a company that acts so irrationally. And I increased my payments to both cards significantly. I can’t wait to pay off the Dividends card and start using it again – paying it off every month – and costing them the 1% – 5% cashback again.

BofA, when I called to report a lost DEBIT card, told me they felt I had enough credit already, and closed my $2500 account with them.

All these, even though I have paid every credit card bill on time for the past 12 years – even while unemployed. Apparently, that is high risk behavior these days.

Chase has been the ‘winner’ in all of this, leaving my limit alone and, as a result, earning all of my business. Of course, I pay this balance off each month and earn 2% – 5% cash back, so they’re not making any money off of me, but I do say nice things about them.

So…. now I want to buy my first home. I have $35k in the bank. $15k of that is down payment/closing costs… I want to use the other $20k to pay off CCs to reduce my utilization and increase my credit score.

And I’m scared to do it because I’m terrified that, as soon as I throw a significant chunk of money at the cards (the Citi ones), they will just lower my limits again… which will probably lower my credit score more. I wish I had time to dole this money out in small extra payments, but closing is in November, so I have to have the balances down by the time the cards cycle in October. Time, I guess, to call my mortgage lender and see how to play the timing game, I suppose…

What an idiotic situation. Sorry for the loooooong note. Had to vent.

By: Ellen

Ellen — Wed, 19 Aug 2009 00:49:17 +0000

Discover card just reduced my credit limit from $11,000 to $500. I’ve never missed a payment, always paid on time, and except for two times, have always paid the balance in full. I’m not going to check my credit score. I already know it’s taken a really big hit.

By: Jeff

Jeff — Sun, 16 Aug 2009 23:38:29 +0000

My credit has never been great. ASPIRE shut my credit card down, so I’m just paying them off. They deal with a lot of high risk loans. My $500.00 Capital One cards have not changed (I have MC and Visa). My $300.00 Orchard Bank and $2000.00 card have increased their rates to over 25%, and Juniper has increased rates to 29%. My Old Navy card lowered my limit from $500 to $200.

By: Bruce

Bruce — Sat, 15 Aug 2009 22:27:48 +0000

Well, shut my mouth! With regards to my previous post stating that Pay Pall had lowered my account line of credit to $124.00. I actually got an apology an a reinstatement of my line of credit. Go figure. Doesn’t help, but I can use the card as a beater card.

By: Bruce

Bruce — Sat, 15 Aug 2009 18:16:04 +0000

The problem here is the general reduction in availability of credit. Without the ability to make purchases over time and at fair interest rates, individuals simply don’t make the purchase. I still make purchases with credit cards but would negotiate like a grizzly bear over the price of a big-ticket item.

The credit card companies are not on your side. Be careful, read the fine print.

As I am writing this I just received a letter reducing my pay pall account to a $124.00 limit. I will make the obligatory call and report later.

Without the ability that credit allows consumers to consume there is no growth in the economy. The economy and for the most part the recovery will be consumer driven.

I use my credit quite wisely and don’t particularly need these huge lines of credit. But the banks have made a huge mistake here and have over-estimated the risk involved with the grating of revolving lines of credit. The credit card has become an American institution without which the consumer driven economy will grind to a halt

By: jbrare

jbrare — Sat, 15 Aug 2009 15:16:01 +0000

Same thing happened to us last December! BofA closed five accounts plus one thru our credit union just because we called in for a $200 increase on one account! NO LATE PAYMENTS OR OVER THE LIMIT FEES!
AMEX is on the same crusade against customers also!
Just got a notice that they intend to raise rates on outstanding balances starting in October! AGAIN, NO LATE PAYMENTS OR OVER THE LIMIT FEES! They made no mention of an “opt out” provision, but I think that if you notify them and reject the new terms, they have to leave your term as they are now unless you pay late or go over the limits. DOES ANYONE KNOW IF BY NOTIFYING THEM THAT YOU CAN AVOID THESE INCREASES! WILL APPRECIATE ANY HELP ANYONE CAN GIVE!!

By: Darren

Darren — Sat, 15 Aug 2009 06:25:28 +0000

Wait till you hear this one! I applied for a Charles Schwab credit card (we have over $200K on deposit with them) and ended up having three of our BANK OF AMERICA credit cards reduced/cancelled instead! That’s because the company who makes the credit decisions for Schwab also handles BofA accounts (FIA Card Services, 1100 N. King St., Wilmington, DE 19884). The woman who evaluated our Schwab credit card request had no access to see our Schwab balances and said that not only are they declining our credit card request, but since they also handle Bank of America’s cards, they decided to reduce our credit limits on two BofA cards to the current balances and close an unused card that had a $39K credit limit. That is sure to make our credit score plummet! We have never had a late payment, ever. The moral is (besides a big ditto to all of the above comments about BofA), is watch out who you apply with as they may be able to close your other credit cards!

By: Bruce

Bruce — Wed, 05 Aug 2009 18:21:26 +0000

Bank of America lowered my $42,000.00 credit limit on my WorldPoints card to $500.00, stating the reason being my “recent payment history with Bank of America Visa Signature.”

I have never missed a payment, and always pay the entire balance. They further stated that my yearly salary was not enough to warrant the total revolving credit granted; household income is in excess of 250K. Admittedly over the years I have developed a stellar credit history with some very high limits on my cards. What fools! I immediately went down and canceled all BofA checking, Money Markets, and Savings. Just a statement. Glad I did — better deals elsewhere.

By all means boycott the institution — and tell them exactly why. Sorry, you’re so fired.

By: John

John — Wed, 05 Aug 2009 13:35:31 +0000

I have been totally abused by Bank of America and Chase this year. They have slashed my credit limits, increased my minimum payments, raised my interest rates, and doing this all while saying they “value my relationship” with me! I was no where near my credit limits with any of these companies, but they have now cut my limits to just about the balance owed, it is crazy. I have very good (not excellent) credit, about 750.

I agree with people like Andrew who say the only way to fight back is by boycotting these institutions. The problem is many people keep dealing with these banks. I’ve already closed my checking, saving, and IRA I had with Bank of America and moved them all to a non-national bank. I’m paying off my credit cards with both and not charging anything more on them. I will do my part to end my relationship with these oversized institutions and hope you do the same. The only way we can impact them is if thousands of customers tell them “no thanks”.

By: taz

taz — Sat, 01 Aug 2009 03:31:07 +0000

I went to credit karma and checked my credit score. It has gone down from 760 to 698 in one day. I too have decided to open a new credit card account from some other company other than B of A. I will still keep it open, since it’s my oldest card (7 years) but will not use it at all (maybe once a year so that it doesn’t automatically close.) I prefer to use cash or debit cards anyway; I only use credit cards to obtain points and keep a good credit history but its not really working in my favor.

By: Annie

Annie — Fri, 31 Jul 2009 22:14:10 +0000

I am standing and applauding you Andrew. Right On! People we, do have the power! I am not a business owner but I live near Fair Issac and may just figure out some way to get a protest going or get help by calling the local newpaper to do an article.
PRO- ACTIVE is the way to get this done. I can not believe there is not a lawyer reading our posts.
This is class action if ever there was a good case.

Also its interesting as our scores go down people who have had bad credit before the past year are now going up. Especially the 20 something’s who have tried to make it on their own but had no idea how too.
I have been watching this as my son is 26 yrs old. Credit score is 764 and he has been trying to help his friends learn how to handle just their paychecks and over drafts. He too has had limits reduced w/o reason and some maxed out. I have one of the kids staying with me who has made mistakes and did not want to see her score. I told her to go to http://www.CreditKarma.com and it is free. She was blown away. Her score has been going up steady for the past 6 months w/o any bank account or credit cards,(no loans either)
Fair Issac is just as much a part of all this.
Keep the spirit up Andrew!

By: Andrew

Andrew — Fri, 31 Jul 2009 21:35:18 +0000

Hi folks,

Same here. Good credit, years of history, no lates. Over 60k of available credit slashed by BofA, Citi, and Chase. I did as least get an apology for the way it was handled from BofA. I own the premier auto repair shop in a college town. I told the local branch that since BofA didn’t want to do business with me, I would reciprocate. I would stop accepting any credit cards, checks, or debit cards from them. I had a phone call from a VP in Charlotte making nice the next day. Still, I will starve before ever doing any more business with them.

Perhaps all us business owners really should boycott their products and partner with local banks for touting their products. It appeals to this old hippie! Credit score went from 780 to 700. Glad I don’t need to borrow any. sheese

By: Mike

Mike — Fri, 31 Jul 2009 19:03:27 +0000

Taz,

I called back and spoke with a manager who didn’t increase my line back to what it was but at least decreased my APR which is why I had called originally. Meanwhile I did apply quickly to Discover and was able to transfer over $6,000 at 0%APR for 9 months. Will that change in 9 months to a regular APR? Yes. But it sure beats the 27%+ APR I had with BOA. Will my (and your) credit scored get damaged due to BOA decreasing the limit? Yes, not sure by how much but it does.

BTW I don’t have perfect credit but do have a 720, don’t have any type of late payment for the last 5 years (pay mortgage, cars, etc on time always). Also 3 months ago I payed off a third BOA card I had with about $4,000 and at same time I payed down my balance of yet another BOA card by $4,000… You’d think I’d be their ideal client but no…they don’t really care.

Also I used to have a credit limit of $58K with AMEX and a few months ago it got lowered to $13K. I’ve had AMEX for 10+ years and would spend about $150,000 per year on it (mostly because of work), and always paid it even way before it was due…yet another bank who is on my sh*t list.

I cancelled all my BOA checking, savings accounts and now just bank at a local credit union and now all I use is a debit card. I am not charging anything anymore using my BOA or AMEX.

It seems that these companies know that they have us grabbed by the b. and what other option do we have but to pay, even if just our minimums? Hopefully government will come in at some point and do something like they did with sub-prime loans where people’s finances were getting terrorized by lenders.

By: taz

taz — Thu, 30 Jul 2009 18:26:53 +0000

Mike, the exact same thing happened to me. I called B of A for some other reason, regarding reversal of finance charges. (I usually pay off my balance in full every month and got behind the past two months but for the past 6 years my account has always been paid off.)

The “credit analyst” on the phone started asking me a stream of questions, then in the end reduced my credit to $2500 from $12000! I never go over $500 anyway but I think my credit score will get damaged with the reduction. Is this true?

By: Annie

Annie — Tue, 28 Jul 2009 19:25:16 +0000

Hi everyone. We really need to include Fair Issac in all this as they set the program that determines our credit scores.
WE are not maxing out but they are still calculating as if we are.
Ideas?
Petition on line? ( I have been told they do not mean much since there is no signature and people can have several diff. email addresses.)
I called Chase/ Wamu and they told me they had no plan available to help me at all.
never missed a payment but will in Aug. they are not being flexible one bit.
credit score really is not anything but a scare tactic now as I see it. seems to mean nothing as far as interest rates, loans etc.

By: Mike

Mike — Tue, 28 Jul 2009 18:17:34 +0000

I recently called BOA as I carry two cards with them and one of them had a much lower interest rate as I wanted to see if they could match it. They told me to call back on a specific date as that is when the interest would go from fixed to variable and that there shouldn’t be any problem in reducing the high rate to match the other card. Finally I called today and told them the situation. The guy gets back on the phone and tells me that they cannot help me at all, not only that but that they were going to reduce my credit limit on BOTH cards by about 40%, which put the new balance a few hundred dollars shy from the limit. I told him I couldn’t believe I called for help as I am trying to lower my payments and improve my finances and instead he is damaging my credit score by lowering my credit limit…of course he didn’t care.

Just FYI, you may want to think twice before calling your credit card for anything (such as an interest rate decrease) because apparently someone may “reassess” your account and damage your credit. I have had one card for over 12 years and the other for 8, no late payments ever, and even recently paid them down considerably, and have not made any purchases on either of them in about 18 months. I guess I should have kept my mouth shut and taken their 27%+ interest rate with a smile? Now I wish I would have.

By: Annie

Annie — Mon, 27 Jul 2009 23:39:18 +0000

Hey please excuse the spelling / grammar errors I think you can still understand what I am saying.
PS
Fair Issac has not to date changed its method of calulating even though the companys are maxing us out.
There is a place we need to protest as well They are the ones with credit score program.
suggestions on how to boycott/ protest them?

By: Annie

Annie — Mon, 27 Jul 2009 23:29:13 +0000

I suggest all of you think of going to a local bank
Here is a link on how and why
http://solari.com/archive/banks/

you may want to check out the rest of the site as well. it is an amazing vault of info.

Circle Bank is my local bank. I was surprised to find an new water cooler that gets the water out of the air and filters and uv lights the water and out it comes. Its nice to see that in a bank. They people by name and my local credit union which was open to me only because there is a branch in my town wrote letters to my creditors and got a problem solved for me. When I brought Jann a small plant to say thanks she was so surprised. They are helpful and if they do not have what you need they refer you. ie rental insurance they also give me free financial advice with a certified advisor.
so go local the bank that benefits your community.

still waiting for the class action lawyer to come on line and help us. maybe we should pick a day to meditate on it all of us at the same time.

By: howard

howard — Sun, 26 Jul 2009 20:17:23 +0000

Feel the same way. Have dealt with a very small credit union where I work for the past 9 years. Unfortunately my credit union has no credit card, mortgage, etc programs so I deal with BofA as little as possible for my mortgage for example. My credit union is not going to ‘rip me off,’ BofA would if I gave them the chance.

By: MK

MK — Sun, 26 Jul 2009 13:24:01 +0000

Follow up to my previous post on 7/15/2009.

So after verifying there is nothing abnormal on all 3 credit reports I find nothing amiss I called and complained about the 90% limit reduction on my card from US Bank. All the official letter said was “after reviewing you account we have decided not to close your account, but have reduced your limit to $3000.”

We are done, have had it with regular banks. Called Navvy Federal Credit Union, who was happy to immediately give us a nice fixed rate and adequate line of credit.

US Bank wants to play these games. Fine. We have just mailed in a check to pay off their card and closed our CC, Checking and Savings with them (had accounts since ‘87).

Will deal exclusively with member owned Credit Unions from now on.

By: Mike

Mike — Sun, 26 Jul 2009 01:25:32 +0000

Mary and Annie

Our government has been over thrown by the corporations. Our government has allowed, and encourage, corporations to move jobs overseas to China. At the same time allowed 50 million plus, illegals to invaded our country driving up costs, ie. hospital/medical, schools, police, prisons. gasoline, utilities…. And now the government and corporations have given homes loans and credit to the illegals as well as all other subprimers. These are the reasons for the collapse in our economy. The damage that has occurred warrants mass march’s by citizens, and more, for the damage they have caused. T. Roosevelt confronted business head on for the dirty deeds the “Robber Barons” were pulling, and he did so be cause he was concerned there would be a revolution in America. In the 1930’s FDR attacked the problems of the 1930’s because he too was concerned about a revolution. Like Thomas Jefferson said,”It’s good to have a revolution every once and a while.” We need a new Roosevelt or something.

By: Annie

Annie — Sat, 25 Jul 2009 20:22:32 +0000

Hi Mary, Exactly what I have been saying and I even called Fair Issac and asked it they were going to change the way they calculate as we were not maxing out the company was doing it to us. They said no they had no info this was several months ago I would have to go back and check the posts here I am on my way to work
So WE NEED TO DO A CLASS ACTION

HOW DO WE START ONE??? THERE must be someone who knows an attorney who is part of this blog.

IT’s insane and the gov knows but does not care how can they not.

I moved my money to a local bank and am out of the big ones. People should do the same

will post some links in a day or so on why.

By: mary

mary — Fri, 24 Jul 2009 18:48:54 +0000

82.CHECK THIS OUT EVERYONE! I have FICO Score Watch thru Equifax. Under the section, “Understanding Your Score”, it shows you what is helping and hurting your credit score. “YOU’VE MADE HEAVY USE OF YOUR AVAILABLE REVOLVING CREDIT. Your FICO score evaluates your total revolving credit [?] balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.”…

So, this IS FOR SURE killing everyone’s credit score!!!!

I have (3) credit cards with a total balance of $19k and HAD an available credit limit of $60k! (I have never had my total balance on my credit cards over $24k, ever, so this always reflected good) So, it all looks great right? Looking at this scenario, I’m using only 32% of my available credit.

WELL, Bank of America goes and cuts my credit card from $20,500 to $7,500 with NO warning. I have a $7,300 balance on that card, so this now gives that particular card a 97% debt to available credit ratio..NOT GOOD NOW!!

I just got an email yesterday that HSBC-The GM Card, reduced my credit limit from $13k to $9,750!! This just reduced my overall available credit ONCE AGAIN!!

** WHEN IS ALL THIS MADNESS GOING TO END?!!! WE NEED SOME1 TO STEP IN AND STOP THIS! WHERE ARE THE REGULATIONS AND LAW??? WHO IS REALLY HERE TO HELP THE AMERICAN PUBLIC? We have no freedom of speech and defense to protect our own credit scores, or our credit cards. Our rates are being jacked high, limits being cut with no notices and their own made-up reasonings, such as “due to lack of usage”.

I say we ALL get involved in a home based business, (I already am in one), to make the extra $$ and save it. Then tell these credit card companies to take their credit cards back, all file bankruptcy and they get nothing!!! They have really done it now. We all need to stick together and fight back!

By: Joni R

Joni R — Mon, 20 Jul 2009 19:34:41 +0000

I just received a letter from Chase stating they were decreasing my limit from $2000.00 to $1300.00, reasons given when I called were that credit limit to amount owed ($300) showed I was not spending as much as before. So because I quit using the card and paid down my balance they cut my limit! This is CRAZY!! I even argued that I have never been late and ALWAYS pay more than min due. They agreed that I am a loyal card holder but that there was nothing they could do.

By: Bernard H

Bernard H — Fri, 17 Jul 2009 01:19:40 +0000

Just a follow up. I got a reply from Chase regarding my sudden credit limit decrease. They stated that since I only use a small portion of my credit line, they saw fit to reduce my limit to suit my spending habits. In bank talk, that means that since you don’t max out your cards and pay only the minimum, we can’t make any money off of you. So because you won’t contribute to the CEO’s “golden parachute”, we’ll punish you by decreasing your limit. Since when was financial responsibility a bad thing?

By: bwry28

bwry28 — Thu, 16 Jul 2009 00:14:05 +0000

To MK – It sounds like you have done all the prudent stuff…doesn’t seem to matter any more. My husband and I have been tossing around the idea of starting a Class Action since everyone is talking about it but no one is doing it. I think a jury of our peers would find that the companies have broken faith with their customers in a way no “reasonable” person could expect.

By: MK

MK — Wed, 15 Jul 2009 23:58:19 +0000

Just went to make a payment on my US Bank credit card (we only have two CCs). Noticed my revolving credit was $3000. Thought it had to be a mistake, looked at last months statement and the revolving credit was $30,000.

Never been late on ANY payments for anything over the last 15 years. No HELOCs, are 5 years into a 15 yrs locked rate mortgage. Only have two credit cards, one with about $7K on it and this US Bank card with $2900 on it (both $30K limits). Immediately pulled all three of my credit scores: average score was 871.

So US Bank just lopped off 90% of my credit on their card. For no reason I can possibly see.

By: Bernard H

Bernard H — Sat, 11 Jul 2009 22:11:47 +0000

Nancy,

I have a Chase account as well, and the same thing happened to me. My credit limit was slashed 40% without any warning. My FICO is 702. I pay my balances in full each month, and I only use about 15% of my combined credit limits(I have 3 other credit cards.) I sent Chase an e-mail asking for an explanation. If or when I get a reply, I’ll share it.

By: Nancy

Nancy — Sat, 11 Jul 2009 01:43:21 +0000

Chase just cut my credit limit in half with no warning. I have no credit card debt. My credit score is near 800 (has been rising every month for about two years since I established and got rid of all previous debt). I only have three credit cards and I charge and pay the whole amount the next month whenever I use them. I purchased a new vehicle 3 months ago and got an auto loan through Toyota directly which I am paying off pretty quickly (the minimum is 200 a month and I pay 400 instead). I woke up this morning to my chase card limit slashed and I called up and they deemed me a “high risk”. It was the only explanation I received. I never got a prior warning at all. I’d like to do something about this but I don’t know what.

By: Mary Ann

Mary Ann — Sat, 11 Jul 2009 00:46:50 +0000

Same thing here!! I heard a story fr two business partners of mine, that AMEX closed their accounts that had $0 balance on them. I was thinking they maybe missed a payment or 2 or had other bad credit.

I was at the veterinarian office to have xrays on my dog, I have a $7,200 balance with a $20,500 credit limit. I went to use my Wachovia Credit Card (Which is now Bank of America…go figure) and the lady said “It was Declined”! I was so shocked and knew there had to have been a mistake with her credit card terminal, so I had her run it again.

I have NEVER missed 1 payment, or made a late payment in my 15 year payment history, EVER!!! I never maxed out my cards EVER!! I had a FICO score of close to 800!

I called the 800 number on the back of my card to see what the issue was. I was transferred (3) times after verifying my security info with them. Once I got to the last rep, she started asking me questions about my job, what type of job, how long I’ve been there, how much I make annually. When she got to the 2nd question, I realized I TOO BECAME another victim of what the banks are doing to people!!

Not only that, I have Equifax “Score Watch/Monitoring”. My credit took a HUGE ding cuz one of the major factors that impacts your fico score is your “Debt to Credit Ratio”. I had over $62,500 avail credit limit on various cards, now it shows I have TOO MUCH OF A BALANCE with little available. That’s because those banks are now penalizing the good credit people to protect themselves!!

YES, there should be a class action lawsuit filed and a law put into place RIGHT NOW, that the FICO score and credit bureaus cannot use this to their benefit and hurt our scores!!!!

This is beyond our control and just happened without our knowing. Unreal!!

By: bwry28

bwry28 — Tue, 07 Jul 2009 00:04:46 +0000

To those who have questioned mine and other’s credit worthiness with these drops in limit; I will tell you that I have never had a late payment on anything or maxed out a card. I’ve come close the last few months to pay for my wedding but other than that I’ve been a reasonable credit consumer. I had commented on this blog earlier about the closure of my LOC. I still haven’t had any limits lowered on my revolving debt but Chase just upped my minimum payment on my lowest interest rate card (locked rate promo of 3.99%) to 5% of the balance. This happened right after I made a larger than usual payment on that card. Now, I had planned to have that card payed off in about 3 years and now I have to pay it off in less that 2. I was confident in my banks and the lending rules at the time the debt was accrued but now the noose is drawing tighter and tighter.

By: Michael

Michael — Mon, 06 Jul 2009 04:05:39 +0000

One thing that is so frustrating with American Express business is that I spend something like 2 hours on the phone with them to find out WHY they lowered my limit. I still am not sure why. I never even bothered calling the other ones. AmEx was my main business card. It has been taken out of my wallet forever.

By: howard

howard — Mon, 06 Jul 2009 02:57:52 +0000

michael i’ve found that the cards that are straight up with me, for example dropping the limit because i don’t use the card and do not blame me is borderline reasonable. They have to keep these limit liabilities on the books (person could run up the full limit tomorrow). Any card that lowers the limit below the amount still owed is unforgivable. Again because sears blamed me for the drop in my limit, i will boycott them forever along with all my family. It doesn’t hurt me at all. I have other credit cards that continue to be reasonable and also keep the interest around 12%. Do you remember providian bank about 8 years ago. It wanted to sell it’s credit card business to another company so it cancelled cards blaming the holders. I believe (or hope) it’s bankrupt. You can only kick people so long before they bite back. Boycott is the way to bite back.

By: Michael

Michael — Mon, 06 Jul 2009 02:30:57 +0000

Howard,

I agree. However, I will not deal with any of these banks that have reduced my credit limit again. I have never paid late and should be considered a valued customer, but, apparently, I’m not. So, I won’t be for them. I’ll take my business elsewhere.

By: howard

howard — Mon, 06 Jul 2009 02:09:55 +0000

It’s really getting nasty out there with the current economy. In the short term by cutting down our credit lines, they are increasing the utilization ratio used to give us our fico scores thereby bringing those scores down. I’ve had to use savings to pay down cards by the amount cut on my credit lines. I have 53,000$ in credit card debt but it never bothered me becauce i always paid them on time. Before the economic crisis, i just got another card with a 10,000$ limit to keep the utilization ratio down. Not any more. My plan is to keep paying the cards off completely as fast as possible and let them cut the credit lines. When the economy gets stronger, they’ll be throwing these big lines of credit back at us. Greed will win and the credit card companies will want us back again bigtime.

By: Michael

Michael — Sun, 05 Jul 2009 16:21:44 +0000

I have a small business. My personal credit cards are paid every month. Most of my business credit cards (with one exception) are paid every month.

AmEx Business cut my small business limit from $15,000 to $10,000 in November 2008. At that point, I owned $9,980.00 on that card. I paid it down to a about $6,450.00 over the next 3-months and they cut my limit again to $6,500.00 in April 2009.

AmEx cut my personal credit card limit from $6,000.00 to $1,000.00 on a card I never use in November 2008.

Wells Fargo cut my $6,000 personal credit card limit that I never use to $1,000.00 in about February 2009.

In the last couple of days, Capital One cut my small business credit card limit that I never use from $10,000.00 to $2,000.00

And Advanta canceled all their credit cards, one of which I had which a $25,000.00 limit.

By: howard

howard — Sat, 04 Jul 2009 22:49:31 +0000

Chase dropped my credit limit from 14,000 to 5000. I had never used the card. At least the letter informing me stated the reasons were the economy and not me. Sears however stated that it was my credit history that caused it to lower my balance from 4,000 to 3,500. There is nothing wrong with my credit history. I will never shop at a sears store again and i will never use the card. I keep the account open only to keep it on my credit history. Cancelling the card would only hurt my credit history. The credit card companies will get greedy again and bring up the limits. Remember who did you wrong and never use them again. Give your credit business to the companies that stayed by you.

By: mad

mad — Sat, 04 Jul 2009 21:26:12 +0000

I hate cibc bank they decreaes my credit limit from 16000 to 8000, I’m very upset it took me many years to build to this credit