WaMu decreases credit limits?
Date: Thu, 10/09/2008 - 08:54
Some customers were complaining that they had their credit limits decreased after charges were made...they made it sound like they were offered $1000 limit for example...and when they made purchases...WaMu came in and decreased their limit...so they were automatically charged overlimit fees.
Does that make sense to anyone? I've never heard of that before and it sounds like that kind of practice would be highly illegal. I should make mention that these posters never made mention of their past payment histories, if they were in default, etc.
I don't beleive it is illegal for them to do that. SInce WaMu i
I don't beleive it is illegal for them to do that. SInce WaMu is now owned by JPM, I'm sure that AR's are being done on all WaMu credit account holders. If they deem that you have too much available credit or your balances are too high, they can decrease your limit as well as jack up your interest rate.
I know that they can do account reviews and decrease your limit
I know that they can do account reviews and decrease your limit if they have good reason. (Albeit under Reg B they should send you an adverse action letter if they do decrease your limit).
However I'm not sure what the ramifications are on decreasing your limit after you've already charged beyond it.
If you make purchases in good faith and contemplation of a limit you had previously been approved for, and all-of-a-sudden they lower your limit below your current balance, they should not be charging overlimit fees.
That's almost paramount to parking in a valid spot outside the store, and while you're inside a cop comes and puts a handicapped sign right in front of your car, and then writes you a ticket for it.
USAA Doing the Same Thing
I've had a similar experience with USAA. I've been a member for 5 or more years and have good credit standing. I always pay more than the minimum every billing cycle. The other day I happened to notice my limit of 7500 was decreased without any prior notice to 5700. In my mind, this really hurts me, as now my limit is lower than my actual balance (by a stupid $20). Previously, I had been spending in "good faith and contemplation" of my limit and gave myself a $2000 buffer. With one swift act by USAA, they took that away and I am not sure if this lower limit will hurt my credit.
Thank you for the information on Regulation B. I'll let this forum know how my conversation with USAA goes.
