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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
5 REPLIES
Established Contributor

Re: Credit Cards

This practice is called the "universal default" clause and increasingly is becoming a standard clause in credit card agreements.
"WTB Access Number"
Moderator Emeritus

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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App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
Established Contributor

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!
"WTB Access Number"
Super Contributor

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.....
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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Moderator Emerita

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.
* 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