Legal Question in Credit and Debt Law in Georgia

I ha a Visa credit card from first equity with a 1000 dollar limit for the last three years. I have never been over the limit and never paid late. on march 2, 2010 i paid the off the balance. Around March 23 until april 19 2010 i used it numerous times and for total charges of 712.00 dollars. On april 20 First equity lowered my limit to 475.00 leaving me 237.00 over the limit. They are demanding the entire 237 plus 10.00 to be paid by May 11, 2010. When i called they told me i would have 2 months to get the total under the 475.00 limit before they would charge me over the limit fees. I Still have not received a letter telling me why or who to call to fix the situation. Is this fair practice?. what are my rights? Or am i at the mercy of First Equity?
Charles Beal

Asked on 4/22/10, 10:31 am

2 Answers from Attorneys

Scott Riddle Law Office of Scott B. Riddle, LLC

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Your "rights" are in your card agreements, but you did not tell us what you agreed or what they say. It is safe to assume they allow the bank to lower your credit limit since there is no general right to keep getting credit from a lender. From your post, they are giving you a couple months to meet the lower limit without additional fees, so there is probably nothing to "fix." To answer your last question, when you run up credit card debt that you cannot pay (or any other debt), you are at the mercy of the creditor. That is the consequence of making the charges.

Answered on 4/27/10, 10:42 am

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