Legal Question in Credit and Debt Law in California

If you read your credit agreement with them, and all of the subsequent amendments to their agreements, they almost always maintain a right to do this. As this is a business account, I don't believe it is covered by the new law that went into effect in February governing consumer credit accounts and what banks can and cannot do. I think this practice was regulated in that new law, and now requires more notice before they can do so - but only in the context of a consumer account. As a business account, I believe that you agreed to this when you accepted the card, and they probably have the right to do exactly this. They will most likely continue to reduce the account limit until it is paid off, at which time it will be closed. Your payment history is not exactly on point - they can do this based upon a review of your credit, your company's D&B profile, your financial statements and/or condition - any number of reasons including their desire to limit their risk; all of which is a pretty vague way of saying they don't want to continue in this line of business any longer. Go review your credit agreement and amendments, and I bet you will find the provisions which allow them to do exactly this.

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