Legal Question in Credit and Debt Law in California

A little history...My husband was laid off almost 3 years ago. He works as an independent contractor and I work 2 jobs. We don't make as much as before. We are very upside down on our house. We have worked very hard to pay all our bills on time and keep our excellent credit. Unfortunately, we are living paycheck to paycheck and racking up credit card debit. He were hanging on and patiently waiting for march 2012 in order to refi our house under HARP2. We had checked our credit scores in february and we were both in the 740s. We applied with a couple of lenders in march only to find out that our scores had unexpectedly dropped over 100 points each. We discovered that since we last checked our report, chase credit card company had randomly decided to lower the limits on all 3 of our cards, virtually maxing us out even though we have been in good standing with them for years, no lates and always paying more than the minimum due. Because of this we are struggling to refi our house. If we do succeed, the rate we receive will be higher than what it should have been, which will effectively costs us thousands of dollars on top of the additional months of paying the higher mortgage payments and money borrowed from family to try to raise our scores.
My question is...Do you think we have a case for suing Chase?

Asked on 4/28/12, 8:40 am

Carl Starrett Law Offices of Carl H. Starrett II

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No,. Chase was well withing its right to reduce your credit limit if it felt that you were a credit risk or had to much other debt.

Answered on 5/06/12, 9:00 pm

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