I recently received a letter from Bank of America stating that my previous credit limit on my business Visa credit card had been reduced from $17,000 to $13,500. I had been paying the card regularly, on time, and more than the minimum payment. I was down to around $12,500. They also increased my finance charge rate to 27% from 15%. This had the effect of lowering my credit score and crippling my ability to buy inventory for my business. Credit scores, in part, are based on the debt to credit available ratio.
There is currently no regulation that prevents the banks from charging whatever amount they want in finance charges and reducing the credit limit to whatever they want, and they don't have to give you a reason. The only option you have is to write a letter to the 3 credit bureaus stating that the bank took this action an their own, with no reasons. This letter will then be in your file, and anyone requesting your credit report will see it.
I propose the following action to wake up the Congress into drafting legislation that would cap the finance charges and preventing the bank from destroying not only credit scores, but the ability to ever pay off the debt:
Let's choose a date in the next 2 or 3 months and in every community where there is a Bank of America, let's hold a demonstration with signs declaring we are not going to stand for this kind of behavior any longer. If everyone who has ever been ripped off by Bank of America participates, think of the changes we could initiate!
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