In March, Capital One notified me by mail that they had decided to decrease my credit limit by approximately 57%.in the letter provided, they list 3 general/vague reasons. I contacted the Customer Call Center several times to gather information and dispute the decision, and wrote to Mr. Richard Fairbank, CEO, but no one with Capital One has fully explained or reversed it.
I pointed out to Capital One representatives during each phone call, and in letters to the company, that their general reasons are logically flawed. Representatives have stated to me that I am a member in good standing and agreed that Capital One's decision does not work in my favor financially. My Equifax report listed me at the time as an individual with strong credit rating. I consulted Equifax because an Account Manager with Capital One specifically mentioned that agency as having been consulted in the decision process. All available information tells me that there is no valid reason for Capital One to have decreased my credit limit.
A Capital One representative from their Executive Offices in McLean, VA, told me that Capital One will not release any information regarding the model they used to make this decision, despite me being a stakeholder in the situation; that Capital One reserves the right to raise or lower credit limits without notice; and that the cardholder agrees to do business with Capital One under those conditions when applying for the credit card.
She refused to share information with me regarding my specific situationwith Capital One, and continued to refer to that information as "proprietary." She recommended contacting a Credit Analyst in order to find out specific reasons why the credit limit was decreased, but statedthat Capital One does not offer Credit Analyst services to its cardholders. I would have to retain a Credit Analyst on my own to get more specific information on the decision that Capital One made.
She asserted that any consequences would be due to how I have managed my credit. I explained that I viewed the consequences to my credit rating to be a direct result of Capital One's decision and she stated she understood how I could see it that way, but also explained that Capital One does not consider itself to have ANY liability in a situation where a cardholder's credit rating is damaged by its decision to reduce credit limits. She asserted that the cardholder accepts the liability by accepting the credit card agreement.
In my mind, this appears as if Capital One is allowing itself to make decisions and not accept any responsibility for the decisions they have made.
QUESTIONS:
1. Is there anyone else out there who has encountered this problem with Capital One?
2. If so, what steps are you taking to resolve the matter, and what results are you seeing?
3. Can Capital One be held liable for damaging a persons credit rating/FICO score by performing credit limit decreases (CLDs)?
4. Is there an investigation into the feasibility of a lawsuit, or class-action lawsuit, on these grounds?
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