Is this legal?

A long while back I had a credit limit raised from $5000 to $7000. Well, I promptly (I was younger and foolish) charged that to the limit and after a few months of bad payment history the credit card company lowered my credit limit back to $4000. Then they began charging overlimit fee's but they are the ones that created the overlimit situation in the first place when they lowered my credit limit. This seems a little..umm..suspect. Do I have any claim against them or is this normal behavior?
Thanks.

 

Seems to be unethical. Scream usuary and demand that they only close it, not lower the limit until you have paid it down. To give someone a limit and then reduce it which is the only reason you are now over it is obscene. They can simply block it or close it without lowering the limit. Those over limit fees should be reversed.

GurnB wrote:
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A long while back I had a credit limit raised from $5000 to $7000. Well, I promptly (I was younger and foolish) charged that to the limit and after a few months of bad payment history the credit card company lowered my credit limit back to $4000. Then they began charging overlimit fee's but they are the ones that created the overlimit situation in the first place when they lowered my credit limit. This seems a little..umm..suspect. Do I have any claim against them or is this normal behavior?
Thanks.

 

I'm sorry to hear about your situation, Back in my "Bad Credit" days I had a couple of accounts closed or frozen by the Credit card company but I've NEVER heard of a company doing this, I would really have to question if this practice is legal, call them, write them, complain, this is not ethical!

Good luck to you.

Alex.
http://www.Creditinsiders.com

 

RE: Is this legal?What CO?

Big Big Questinon......What credit card company did this? It would not happen to be Cross Country Bank would it?

 

RE: Is this legal?What CO?

Nah, sounds like something Fleet would do, their notorious in the industry for illegaly jacking up customers (especially those from banks they purchased) rates.

 

i sent my credit card back to company and told them to close my account due to an illness and told them i would still be making my payments but they keep adding late fees and over the limit fees (which the late fee made it go over my limit)to my account each month($60.00). is there any thing i can do to get them to just stop the fees when i am still paying my bill please let me know, im desperate please respond, i dont know what to do.

 

i sent my credit card back to company and told them to close my account due to an illness and told them i would still be making my payments but they keep adding late fees and over the limit fees (which the late fee made it go over my limit)to my account each month($60.00). is there any thing i can do to get them to just stop the fees when i am still paying my bill please let me know, im desperate please respond, i dont know what to do.

 

This practice actually is very common in some respects but not in others. Citibank does lower peoples limits sometimes if they feel the person may be getting in over there heads with owing too much money to too many people. But they try very hard to make sure that they won't go over the limit after it is lowered. they always make the limit at least $100 above the balance. What you should do if ask the company to remove the fees because they obviously didnt do what I just said if they don't go to the better business bureau they should be able to help.

 

Please call them and ask for a payment arrangement. That will most like stop all late fees and over the credit limit fees. plus your minimum due won't be as high. If they are a reputable companie they will gladly help you especially because you are ill.