Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Explain!

Just saw this on "Smart Money" this morning, thought it was real interesting. People are struggling to pay balances that are way above the reduced credit line. Although such action is illegal, the real protection for consumers will not go into effect until July 2010. Of course HSBC and Amex is among the group of creditors doing this, yet they decline to comment on it. Please take a look at it, and comment as much as you want.
http://finance.yahoo.com/banking-bud...thout-Spending

What a mess. I just applied to get the JW DIscover card and transfer a balance, and got counter offered the Direct Rewards Discover through HSBC, keep in mind during the application online, I requested a balance transfer from my Macys Visa ($1100), yet when I checked the approval online for HSBC's discover card, it was a $500 credit limit. I wonder if they will send the card and honor the balance transfer "over" the limit or not even do the transfer at all. What a mess!!! Learn something new every day. Rockin35!

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Originally Posted by Rockin35

What a mess. I just applied to get the JW DIscover card and transfer a balance, and got counter offered the Direct Rewards Discover through HSBC, keep in mind during the application online, I requested a balance transfer from my Macys Visa ($1100), yet when I checked the approval online for HSBC's discover card, it was a $500 credit limit. I wonder if they will send the card and honor the balance transfer "over" the limit or not even do the transfer at all. What a mess!!! Learn something new every day. Rockin35!

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JW Discover? You mean the one with your initials? I always wondered who J L Webb was anyway LOL.

I didn't think the HSBC Direct Rewards had balance transfers? Do you think they will do a partial balance transfer and if there is a fee will they be sure to keep the bal xfer under $500 so you don't go over the CL? I would hope so. Let us know please, HSBC strikes again.

I have the HSBC Discover it has an option to order convenience checks for balance transfers. I hate this card they will not budge on a CLI had a $300 limit for almost a year, and payments and charges alike take forever to post.

I just got a letter today from Jcpenny that they are decreasing my credit limit to $100. They said that i I didn't score well with equifax and that my credit cards were too close to their limits. I paid all my cards down to about 25-30% on every card in the beginning of february and it's still not showing on any of my reports! This is bs as I've paid on time every month and been very loyal to them! I will be closing this account asap!:upset:

Don't close it, you won't benefit anything from closing it. You scores will stay afloat if you keep it open though. Credit history is far more important than credit limit in the long run.

Your reports can be as much as 30 days behind. I would let all of those changes hit my report and then call JCP back and see if they can do a soft pull and restore your limit.

I agree interjack! I think that if she close it, she will loose a chance at restoration when her creditors post the current balance, so it is best to just wait until the cr update again and then ask for them to restore her initial, credit line (if not more). My sister card was reduced for a similar reason, they based their decision from the way she used her other credit cards...high utilization!

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Originally Posted by Gamergal74

I just got a letter today from Jcpenny that they are decreasing my credit limit to $100. They said that i I didn't score well with equifax and that my credit cards were too close to their limits. I paid all my cards down to about 25-30% on every card in the beginning of february and it's still not showing on any of my reports! This is bs as I've paid on time every month and been very loyal to them! I will be closing this account asap!:upset:

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In the letter, did they tell you which bureau they used for the decision? If it was TU or Equifax those two are notoriously behind in reporting.

It was probably EQ since GEMB loves using EQ.

Yes, it was equifax.

Wow, I am really sorry to hear that about JCP. I know it must be completely agravating to go thru that. The messed up part is that GEMB took some bail-out money and they're still playing these games with their consumers. But, I agree with everyone on the board, don't close the account, you will get your CL back in time.

I'm not going to close it, I'm just going to sock drawer it. There is no use in me charging on it, as it only has a $100 limit now. I used to use it for mainly back to school shopping. I have 3 kids so $100 won't buy much. It's useless to me now. I'm really not that mad about it anymore. I noticed more and more I am using cash for everything. It's better than dealing with these CC companies and their bull.

Make sure you use it at least once every 3 months though or else GEMB will close the account for inactivity in a heartbeat.

The sad part is that GEMB is dragging good names, like JC Penney, through the mud. Most people would just assume that it is Penney's but it is GEMB that is cutting limits, increasing APR's etc. I miss the days when these stores issued their own cards.