WHAT?!?! Can PenFEd do this???

[Anonymous]

So I get an email from PenFed Credit Union concerning two cards that I have with them.  Visa @ 15K CL and an AMEX @ 43K CL.  Both CLIs were set a month ago when I made the request for both cards.  Today I get the following email:

Dear Dude,

During a recent review of active credit cards, we determined an error was made that resulted in your total credit limit(s) exceed the maximum aggregate ($50,000) allowed per PenFed policy. In order to correct the error, PenFed will need to reduce the limit on one or more of your cards: 

American Express ending in xxxx current limit $43,000

PenFed Power Cash Rewards ending in xxxx, current limit $15,000

Please respond within 30 days with your preference in which card is reduced or closed to bring your account within guidelines. If we do not hear from you within 30 days, we will take action to bring your account within guidelines. 

We apologize for any inconvenience this may cause. If you have any questions, please reply to this email or contact a Member Service Representative at 1-800-247-5626. 

Sincerely, 

PenFed Credit Union 

Can someone share their thoughts on possible outcomes and/or actions I should take?  Many blessings to you all.

Projectmp

[SouthJamaica]

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@Anonymous wrote:

So I get an email from PenFed Credit Union concerning two cards that I have with them.  Visa @ 15K CL and an AMEX @ 43K CL.  Both CLIs were set a month ago when I made the request for both cards.  Today I get the following email:

Dear Dude,

During a recent review of active credit cards, we determined an error was made that resulted in your total credit limit(s) exceed the maximum aggregate ($50,000) allowed per PenFed policy. In order to correct the error, PenFed will need to reduce the limit on one or more of your cards: 

American Express ending in xxxx current limit $43,000

PenFed Power Cash Rewards ending in xxxx, current limit $15,000

Please respond within 30 days with your preference in which card is reduced or closed to bring your account within guidelines. If we do not hear from you within 30 days, we will take action to bring your account within guidelines. 

We apologize for any inconvenience this may cause. If you have any questions, please reply to this email or contact a Member Service Representative at 1-800-247-5626. 

Sincerely, 

PenFed Credit Union 

Can someone share their thoughts on possible outcomes and/or actions I should take?  Many blessings to you all.

Projectmp

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There is only one possible outcome, so you should respond and tell them what you would like the credit limits to be... totalling 50k or less.

The 50k aggregate limit has been their policy for at least a year or two.

[Anonymous]

Yes they can do this. I'm actually surprised they asked you to decide which one you want the decrease to apply to. 
Not much you can do except decide which one. 

[FinStar]

Yes, PenFed can do this. On the upside, they're giving you an opportunity to let them know which CC you want to voluntarily reduce as opposed to them taking the action.

[CreditCuriosity]

NFCU did this to me not PenFed when their computer gave above their max exposure of 80k on cc's.  Got email and phone call.  Was pleaeant conversation and they let me move around as I saw fit.  As others stated you have no choice, so pick your poison on how you want your limits split up.

[CreditInspired]

I just say please don't wait until day 26 to let them know even though they said 30 days. If it were me, I would call as soon as possible and let them know my choice. You don’t want them to think that you’re not going to follow-up and they make the decision for you.

It really was great if them to give you the option. L

[longtimelurker]

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@CreditInspired wrote:
I just say please don't wait until day 26 to let them know even though they said 30 days. If it were me, I would call as soon as possible and let them know my choice. You don’t want them to think that you’re not going to follow-up and they make the decision for you.

It really was great if them to give you the option. L

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While it was good they gave OP the  option, let's remember that it was all due to their mistake in the first place!   (And not catching when giving CLIs that total was going above policy maximum doesn't give me warm fuzzys about their IT!)

[Gollum]

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@Anonymous wrote:

So I get an email from PenFed Credit Union concerning two cards that I have with them.  Visa @ 15K CL and an AMEX @ 43K CL.  Both CLIs were set a month ago when I made the request for both cards.  Today I get the following email:

Dear Dude,

During a recent review of active credit cards, we determined an error was made that resulted in your total credit limit(s) exceed the maximum aggregate ($50,000) allowed per PenFed policy. In order to correct the error, PenFed will need to reduce the limit on one or more of your cards: 

American Express ending in xxxx current limit $43,000

PenFed Power Cash Rewards ending in xxxx, current limit $15,000

Please respond within 30 days with your preference in which card is reduced or closed to bring your account within guidelines. If we do not hear from you within 30 days, we will take action to bring your account within guidelines. 

We apologize for any inconvenience this may cause. If you have any questions, please reply to this email or contact a Member Service Representative at 1-800-247-5626. 

Sincerely, 

PenFed Credit Union 

Can someone share their thoughts on possible outcomes and/or actions I should take?  Many blessings to you all.

Projectmp

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Just a note in case it helps to understand the point of view of the lender:

Credit cards are (usually) unsecured, and for unsecured debt the lender can make big changes (or at least give notice) at almost any time in order to limit/reduce the potential loss. Secured debt has more locked-in terms. A HELOC (Home Equity Line Of Credit), for example, is secured by the home so there is less risk of loss by the lender. The contract/agreement takes into account the reduced risk, so the agreement can't be changed other than the interest rate (which is tied to the prime rate).

So in your case, Projectmp, PenFed still regards you as one of their most-favored but wants to keep their total, aggregate unsecured credit card limit for you to their apparent goal of $50,000.

[Shooting-For-800]

They can anything they want with your limits.

[Anonymous]

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@longtimelurker wrote:

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@CreditInspired wrote:
I just say please don't wait until day 26 to let them know even though they said 30 days. If it were me, I would call as soon as possible and let them know my choice. You don’t want them to think that you’re not going to follow-up and they make the decision for you.

It really was great if them to give you the option. L

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While it was good they gave OP the  option, let's remember that it was all due to their mistake in the first place!   (And not catching when giving CLIs that total was going above policy maximum doesn't give me warm fuzzys about their IT!)

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True, it is PenFed's mistake, but that doesn't change the fact that there's nothing one can do about it.  Nobody is perfect.  I've had the same thing happen to me with Navy FCU and also USAA before.