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Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308557  
Subject: Re: CC Reform and Chase Date: 4/8/2010 6:19 PM
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akck,

You wrote, I thought CC companies were required to warn you before making changes to your account. I was checking on my wife's Chase card and they dropped the credit limit by 97.3% from last month. So far, no notice of that occurring other than online. We automatically charge the cell phone bill against it and pay it off each month just to keep it active, so it's a money loser to them. Oh well, looks like we'll be letting that card go idle since there's no point to keep it active. We might make some small nuisance charges on it and pay it off quickly just to annoy them.

Sorry, but banks have never been required to tell you when they're cutting your credit lines or closing an account. The CARD Act didn't change that.

That ability to stop doing business with you is a defensive feature of your contract that allows the bank to limit it's exposure to an account or card holder it deems risky. You have essentially a reciprocal capacity to close the account without notice.

From what you posted, your wife may not seem profitable to them. Rather than try to encourage new business they've likely given up on her. They've cut her credit line to just the absolute minimum she needs historically - likely in the hopes she'll close the account by herself. Either that or they've seen other worrying activity on her credit report and have cut her credit line as a defensive move to prevent her from moving any outstanding balances to this account.

BTW, what did they change the credit line to? $500?

- Joel
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