Forums
I have a credit card from XYZ Company. My limit was reduced suddenly. In the next bill I saw an over the limit fee of $45. I have called a thousand times but without success. I am planning to cancel the card after paying off. Wanna know is it legal? I have not exceeded the limit, why must I pay for it. This is ridiculous. Please advice.
Credit limit changed without notice
Hi Bryan,
Recently because of the economic slowdown, credit card(CC) companies have changed the credit limits of many credit card users. The CC companies reduces the credit limit to avoid their own risk. You should know the company policies before you sign up for a credit card account. I believe the fine print of the application you fill out, gives a good idea about the guidelines the CC company follows.
Some companies can change your credit limit without notice, if it is included in their policy. But there are certain new credit card laws, which the President has already signed, and will come into effect next year. According to the new laws, the CC company should give you a 45 days notice before changing your credit limit. Also the CC company cannot charge you over the limit fees if they do not notify you in advance.
The new rules have indeed protected the rights of credit card holders. You will have to wait of for it till next year. But this is real good news.