Legal Question in Credit and Debt Law in California
Credit card company
I have had a credit card for years with a credit limit of !2,000. I have paid on time and paid off balance on this particular card. Recently I noticed the the limit was 1700 dollars. I called and asked what happened and they said they checked my score and because it was not good they lowered my limit. Can a credit card company randomly check you credit score after years and do this?
2 Answers from Attorneys
Re: Credit card company
Most credit card agreements (the really small print) or amendments to those agreements that they may send you in the mail after receiving your card- allow credit card companies to monitor your credit report and adjust the terms of your credit card at their discretion. I wouldn't be surprised if they also raised your interest rate as well as this is a popular tactic often done without your knowledge. There are many advocates currently attempting to address this and many other credit card company abuses, but as you can imagine they are being met with much resistance.
Yours truly,
Bryan
Bryan C. Becker, Esq.
Principal
Law Office of Bryan C. Becker
The Koll Center
501 W. Broadway, Suite 800
San Diego, CA 92101
Toll Free: 877*201*8728
Direct: 619*400*4929
Fax: 619*400*4810
Member, National Association of Consumer Advocates
www.naca.net
Re: Credit card company
The short answer is: yes, they can. And they did. You may want to talk to a manager and see if they will raise it back, but they have the right to review your credit periodically and adjust your credit limit accordingly.
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