I have some urgent questions and will appreciate your answers as soon as possible.
Question 1: I've been paying the minimum payment of one of my credit cards for some time. Last month I paid several times more than the minimum ($2,000), I immediately used $800 after the payment, but immediately following this, it reduced my credit line by $800, making me unable to use it for animportant planned shopping online. Is it legal for a credit card issuer to make credit line reduction this way? As I learned from the "Training Manuals of Credit Cards", card companies must send "change of terms" notices to cardholders. Legally, these notices must be sent at least 15 days ahead of the date the change will take effect. Is this right?
Question 2: If it's right, can I file a lawsuit against this card issuer? otherwise, what can I do to resume this credit line?
Question 3: What are chances of my winning this lawsuit?
Question 4: If I close this credit card account on my own initiative, will it affect my credit score unfavorably? or on the contrary, will it improve my credit score?
Question 5: If I close this credit card account on my own initiative, can I still pay the minimum till I pay it off, or shall I be forced to pay it off all once immediately?
Question 6: How and what shall tell my credit card issuer so that they would restore my credit line if there's such a possibility? (I'm thinking of telling them that if they cut their customers' credit lines, it would make their customers' financial situations more difficult and complicated, and that could probably accelerate their customers' progress of going bankruptcy. Do you think this will be some convincing remarks?)
Question 7: Some of my credit card issuers are applying quite high APRs, how and what should tell them for requesting them to lower their rates? Do you think I can use the same remarks as above in the parentheses to persuade them?
Your help and answers to the above questions will be highly appreciated
Hi Jassica,
First, I believe you need to find out why the creditor has lowered your limit. Is it due to late payments or some other reasons? They are supposed to provide a 15 days prior notice to let you know about any changes made to the credit line. I would ask you to get a copy and go through it properly. Normally, it is written on the agreement that the creditor can make changes pertaining to the credit anytime. However, I believe that calling the credit card issuer and talking to him is always a better option that suing him. Taking a legal step against the credit card issuer will not help you to resume your credit line. So then, if your case is not so strong I believe winning chances are meager.
Hey Jassica,
In answer to the question 4, I would say that I require to know more about your financial condition to be able to give you proper advice. However, if you are refusing to accept the changes in your credit line, I think you should stop using the credit card but you have to clear the debts before closing the account. You can do this, following the original terms of the credit. Continuing to use the card would automatically mean that you have agreed to the new credit limit. This might help you in improving the credit score.
I don't think that the creditor will let you pay the minimum after you have closed the account. Logically this is not possible. The creditor will demand the payment of the full debt in s short period of time instead of letting you pay the minimum amount.
Keep Posting!!
deborah richards
Jassica,
I do not think that threatening the creditors will help you in anyway. Especially with the kind of reason you have stated in your post, it is not going to help you. As I have said in my first reply that talking to them and negotiating will be a better idea. Try to convince them that you are capable of paying your debts. If possible show them your past credit history where you have paid al the debts. Mentioning about the financial difficulties may not help you to gain any advantage. As far as lowering APR rates are concerned you have to talk to the creditor to be able to negotiate that.
Good Luck.. :-)
Andrew