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tocoq
Posts: 1
Registered: ‎05-08-2008
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Credit Cards

Is it normal that  a Credit Card Issuer reduce the credit limit of a NO-FAULTCard member with NO DELIQUENCY at the level of the already used Credit , at the 2/3 of a montly period,  EFFECTIVE IMMEDIATELY without immediate notice to the member because his Credit score has become Low after taking a Mortgage? and report him to the 3 bureaus **OVER THE LIMIT CARD CREDIT LIMIT**  I was more than $ 4,000 below my Normal Credit Limit, Notice received after the end of the Period.  Please, let me have your points of view
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fender
Posts: 709
Registered: ‎04-20-2008
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Re: Credit Cards

This practice is called the "universal default" clause and increasingly is becoming a standard clause in credit card agreements.
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cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: Credit Cards



fender wrote:
This practice is called the "universal default" clause and increasingly is becoming a standard clause in credit card agreements.



It seems to me that the practice of UD seems to be on the decline.  Some CCCs are cleaning up their act regarding practices like these after federal regulators put some pressure on them a couple of years ago, basically telling them, "Regulate yourselves, or we'll do it for you."
 
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fender
Posts: 709
Registered: ‎04-20-2008
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Re: Credit Cards

Cheddar, Im glad to hear that, I heard some of the CCC were being proactive about straightening up.. UD is about the most messed up thing ive ever heard of!
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MidnightVoice
Posts: 8,157
Registered: ‎03-25-2007
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Re: Credit Cards



fender wrote:
Cheddar, Im glad to hear that, I heard some of the CCC were being proactive about straightening up.. UD is about the most messed up thing ive ever heard of!



But they still might do it due to a decrease in credit score, whcih is similar in that a default on one CC will probably drop your score.....
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Credit Cards



tocoq wrote:
Is it normal that a Credit Card Issuer reduce the credit limit of a NO-FAULTCard member with NO DELIQUENCY at the level of the already used Credit , at the 2/3 of a montly period, EFFECTIVE IMMEDIATELY without immediate notice to the member because his Credit score has become Low after taking a Mortgage? and report him to the 3 bureaus **OVER THE LIMIT CARD CREDIT LIMIT** I was more than $ 4,000 below my Normal Credit Limit, Notice received after the end of the Period. Please, let me have your points of view



As the others said, you got hit with UD.

I'm astonished that getting a mortgage would do this to your score! Which wonderful CCC is this?

So they reduced your CL to below your current balance, thus making you over the limit? That's just shocking. Again, please post which company did this. We try to give heads-ups here on the forums about CCC's like this.
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