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Member
Nikish05
Posts: 5
Registered: ‎07-02-2008
0

BoA slashed credit limit AND closed other CC. What the heck??

[ Edited ]
Hi all,

Wow. I don't even know what to say. I've never really had a positive view of BoA but any inkling of likability has disappeared. I don't understand what it takes to be treated like a valued customer. I have two credit cards with BoA...they reduced the credit limit on one from 13,000 to 7,500 and THEN they decided to CLOSE my other BoA credit card FOR NO REASON. I always pay on time, I've never had a late. And what is really messed up is I got these cards when I was in graduate school and making like $1k a year and swimming in loan debt and now that I'm employed and making $40k+ they decide to take the rug out from under me. What, I'm not a liability anymore so they reward me with less credit AND a closed account? Don't they know how transparent that is?? And what is worse...I feel totally helpless. I don't think there is anything I can do. I do my banking through BoA and I want to yank all my money out and put it elsewhere. It's so sad that they're one of the only banks left. Boo.
Message Edited by Nikish05 on 03-03-2009 01:50 PM
Frequent Contributor
barbaralee
Posts: 409
Registered: ‎03-13-2008
0

Re: BoA slashed credit limit AND closed other CC. What the heck??

[ Edited ]

 Sorry to hear that, that sucks. Recently I've been reading some bad things about them where as this time last year people couldn't stop singing their praises. I never cared for them myself. A few years ago I was thinking of switching to Bank of America and went in to talk to one of their officers. In the course of explaining the way their checking accounts work it came out that BofA runs all debits through before a deposit. I just find that very underhanded, and refuse to do any business with them whatsoever, including credit cards.

 

 

Message Edited by barbaralee on 03-03-2009 02:00 PM


In the garden until December 4, 2015
Regular Contributor
armywifey85
Posts: 246
Registered: ‎01-25-2008
0

Re: BoA slashed credit limit AND closed other CC. What the heck??

Find a better bank to do business with.

Established Contributor
Posts: 513
Registered: ‎04-03-2007
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Re: BoA slashed credit limit AND closed other CC. What the heck??


Nikish05 wrote:
Hi all,

I'm employed and making $40k+ they decide to take the rug out from under me. What, I'm not a liability anymore so they reward me with less credit AND a closed account?

 

. I don't think there is anything I can do. I do my banking through BoA and I want to yank all my money out and put it elsewhere. It's so sad that they're one of the only banks left. Boo.


Don't take it personally. When you were in grad school, the banks had unlimited money to lend. They didn't rally care if you paid it back or not. The interest and fees generated by the others who did not default made up for write offs.

 

Things are different now. Changing banks will probably not do much good. Actually I believe that you will probably get the best treatment from banks that see how much you really have in assets. Furthermore banks that process your paychecks know for sure how much you are earning and if you really still have a job. Other lenders must rely on your stated income from the credit application. Those banks also have to guess whether you still have a job or not.

 

Have you tried contacting BoA and ask to have the card reinstated and your credit limits restored? Does Bank of America have your current income on file or an outdated lower income earned while in grad school?

 

l don't understand what the problem BoA has with your exposure limits. You mention yanking all of your money out of BoA. Just how much money is that? Is it more than $7,000 ?  If it is I don't understand the CLDs. If you only have less than $1000 that would be a different story.

 

I suggest that you try a back door phone number for BoA and ask to speak to a credit specialist. Simply explain things as you have to us and see if you can get your former status reinstated. 


 

 

 

Member
Nikish05
Posts: 5
Registered: ‎07-02-2008
0

Re: BoA slashed credit limit AND closed other CC. What the heck??

Actually, I discovered the lower credit limit the day they did it and called. I asked if there was any way it could be reversed and the answer was "because of the financial environment and your income level we believe this is a more appropriate amount of credit available." This was on my WorldPoints CC. They informed me they sent me a letter as well. So, when I received the letter there was an additional letter regarding my MBNA card (also through BoA) and said they were closing it because a "reduction in available credit is appropriate based on current income level." This was a total surprise since the letters were sent on the same day...and since it's the same account, I would assume that the woman on the phone would have gone ahead and informed me of this as well when I called. It doesn't encourage me to continue doing my banking business with them, that's all. And the amount of money I would take out of BoA is only regarding my checking account, so it's not like I keep a ton of money in there at once...and definitely not above the amount of available credit.
Regular Contributor
emartin82
Posts: 140
Registered: ‎12-29-2008
0

Re: BoA slashed credit limit AND closed other CC. What the heck??

I was reading the paper today and there is this so-called global financial crisis due to a global "credit crunch." Not sure if you've heard of it. Maybe that has something to do with your credit line being reduced?
Member
Nikish05
Posts: 5
Registered: ‎07-02-2008
0

Re: BoA slashed credit limit AND closed other CC. What the heck??

Come on now. I don't think anyone posting on this forum is dumb enough to not realize that it might have something to do with it. That's not the point.
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: BoA slashed credit limit AND closed other CC. What the heck??

To repeat, banks have to reduce the amount of credit that they have extended, due to their diminishing reserves. The worse the shape the bank is in, the more likely they are to do this.

Off the top of my head, the most hurting banks I can think of are American Express/ Centurion, HSBC, BofA, and Citi. (The last two are now being called "zombie banks" by many analysts.) And they seem to be the majors who are doing the most CLD'ing, at least according to the posts here. All sorts of customers are experiencing this.

It's not you; it's them.

And for those of us who haven't been hit yet, it's just a matter of time.

Complaining about this is like complaining about the weather. It is what it is; do your best to prepare for it and then ride it through.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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mchristopher5
Posts: 1
Registered: ‎03-03-2009
0

Re: BoA slashed credit limit AND closed other CC. What the heck??

Washington Mutual closed out a CC that had no balance, never later, never close to limit. Now my HSBC CC reduced my credit limit from $5000 to $1600 just barely above my current balance. I'v never been later paying this bill and have always paid more than the min. Are they going to just keep reducing my credit limit every time I reduce my balance. Banks are punishing the good people because they were stupid enought to give CC to people who could keep up with their payments and bad mortgages.

Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
0

Re: BoA slashed credit limit AND closed other CC. What the heck??


barbaralee wrote:

  A few years ago I was thinking of switching to Bank of America and went in to talk to one of their officers. In the course of explaining the way their checking accounts work it came out that BofA runs all debits through before a deposit. I just find that very underhanded, and refuse to do any business with them whatsoever, including credit cards.

 

 

Message Edited by barbaralee on 03-03-2009 02:00 PM

YES!!!!!!.....I've tried to convince others that they do this. Years ago when I was young and struggling to raise a family they pulled this with me and made a total mess of my account. It cost me more money than I could afford to fix.  I closed my account and swore NEVER to do business with such underhanded cheats again.


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