Legal Question in Credit and Debt Law in Virginia

Re: Credit Limit Reduction

If the creditor were anyone other than a bank, then it would be illegal. But banks get a special license to lie, cheat, and steal, because they're specifically exempt from the provisions of the Virginia Consumer Protection Act, even as to aspects of transactions that are not the subject of other regulation. They get a special dispensation of grace merely because of their status as banks. Insurance companies, real estate brokers, and gas (i.e., heating and cooking type gas, not gasoline) suppliers are also exempt. So, yes, they can do that, even though it's "false, fraudulent, deceptive or misleading" and get away with it. I suggest you write your house of delegates member and state senator and tell them to get rid of that special status exemption. It's reasonable to exempt those aspects of a transaction that are subject to other federal or state regulation (e.g., computation of the annual percentage rate), but not to give specific persons a blanket license to lie, cheat, and steal, based solely on their status.