Watch out for your credit limit!

**Contrary Housewife** · 01-26-2009, 02:38 PM

I was chatting with a friend over the weekend, talking about bills and making end meet and the economy and all that when she dropped a shocker on me.

One of their credit cards LOWERED their credit limit this month, to below their balance, putting them $400 over limit! She said they have been good customers, always paid on time, were never over limit, etc and got no notice, it just changed on their statement.

So they have to pay the $400 over-limit, PLUS their minimum balance by the end of the month or they will start getting charged overage fees. Fortunately they can squeeze the money out this month, but she wonders how many other people had the same thing happen and won't even notice....

**Greebo** · 01-26-2009, 02:49 PM

Another reason why credit card companies are scum and using their cards is dangerous. Remember, they can change the rules at any time.

**KenLynn** · 01-26-2009, 02:55 PM

Hi, This happened to me 2 years ago with my Walmart card. They lowered me by $50 which made me over the limit etc... So I contacted them, told them I wasn't pleased and ou never gave me notice. I was quick to pay them off last year when I found this website.

**brenda67** · 01-26-2009, 02:56 PM

Is that legal? How can they lower credit below an existing balance? If that's the case then alot more people will be filing bankrupcy or just not paying it if they don't have the fund's to payoff the over limit amount..We are looking at a very bad future for everyone including the ones that pay their bill's...We as a whole is going to have to pay for their mistakes...Very Sad I say...

**vigilant20** · 01-26-2009, 03:04 PM

Originally Posted by brenda67

Is that legal?

Good question. It sure doesn't seem ethical to do that to good customers. I'd hope there'd at least be some backlash from the media so people know what's going on. It's not something many can afford to deal with these days. One more reason to be thankful my credit cards have been paid off for so long.

**Greebo** · 01-26-2009, 03:05 PM

Read the fine print. Or allow me to translate:
"We reserve the right to do anything we like to screw you over as much as possible."

**brenda67** · 01-26-2009, 03:15 PM

Originally Posted by Greebo

Read the fine print. Or allow me to translate:
"We reserve the right to do anything we like to screw you over as much as possible."

You mean screw *ALL* of you over....Like I said it will affect all of us at some point..

**Greebo** · 01-26-2009, 03:33 PM

Originally Posted by brenda67

You mean screw *ALL* of you over....Like I said it will affect all of us at some point..

How will this screw over someone who refuses to use credit cards?

**Dixie** · 01-26-2009, 03:54 PM

That's a pretty good translation, Greebo. I wonder if writing our congressman would help?

**vigilant20** · 01-26-2009, 04:00 PM

Originally Posted by Greebo

How will this screw over someone who refuses to use credit cards?

Not even everyone here, who are people already focused on frugal debt-free living is to that point, or were able to avoid murphy when he came knocking. Since getting finances in order and recovering from a disaster can be a long road, it'll affect a lotta people.

**Persimmon Lace** · 01-26-2009, 04:04 PM

I think a class action lawsuit against the cc companies is in order.

**brenda67** · 01-26-2009, 04:13 PM

Originally Posted by Greebo

How will this screw over someone who refuses to use credit cards?

You have a point there Greebo..I was thinking of all the above as the default in foreclosures,credit card companies not getting their money will affect somehow? I guess I'm alway's thinking that the one's who are able to pay their bills will have to pay for the ones who don't...

**fixer** · 01-26-2009, 04:40 PM

I think this could very easily affect people who don't use credit cards. If this pushes more people into insolvency, then consumer spending will suffer even more. People will spend less at businesses, which will cost jobs. What this has shown me is that just because you do everything right, you still can take a hit. If your neighbors go into foreclosure, your home's value may sink to the point that all of your equity is gone. Everything that negatively impacts consumer's financial health will filter through the financial system to almost everyone eventually.

**homesteadmamma** · 01-26-2009, 05:08 PM

Originally Posted by Greebo

Another reason why credit card companies are scum and using their cards is dangerous. Remember, they can change the rules at any time.

Amen and amen!!

**scottp999** · 01-26-2009, 06:34 PM

Originally Posted by fixer

I think this could very easily affect people who don't use credit cards. If this pushes more people into insolvency, then consumer spending will suffer even more. People will spend less at businesses, which will cost jobs. What this has shown me is that just because you do everything right, you still can take a hit. If your neighbors go into foreclosure, your home's value may sink to the point that all of your equity is gone. Everything that negatively impacts consumer's financial health will filter through the financial system to almost everyone eventually.

Very good point. We are in a downward spiral that is gaining momentum from things like this. I don't think we are anywhere near the bottom of this mess (job losses, house prices, etc.). Think a decade to get a better economy, and maybe even some strange emergency measures to save the currency. It is horrible out there.

Greebo is right, they can do what they want. Remember Congress is in the pockets of the bankers. So is the executive branch. Goldman Sachs and other banks donated to both McCain and Obama. The banks win no matter who is in office.