Chase - JP Morgan Chase Bank, N.A
Unilateral Credit Line Decrease and Misleading Reason Given

Chase unilaterally lowered the line of credit by over 50% on an overdraft account I used rarely, but which is reported to credit bureaus. The reason given in the letter was that based on my usage, it would "fit my needs better." But they also were explicit that if I exceeded this lower limit, I had 45 days to pay it or they would jerk the rate up.

When I politely pointed out I maintained the account for a reason, was never late, accepted a higher-than-industry average rate, and had a credit score in the high 700's, I was told in no uncertain terms that they did it because they thought it was too high, but if I wanted it restored, I could give them all my financial information, they would run a credit check, and let me know the results.

Of course, if I fell for this, they would run a credit report (one strike against my Credit rating) see that my debt to credit ratio had increased (thanks to them, two strikes) and see that there was a new inquiry for credit (again, their inquiry and the third strike), which would let them charge a higher rate (although, at 19.9% already, hard to imagine).

I'm lucky I have a bank that just switched my rate to 9.9% fixed, so I've never needed the account but it was good for a rainy day.

I've just filed a complaint with the BBB, sent a report to the Red Tape Chronicles at MSNBC.com, and am drafting letters to my Congressment and the Delaware Attorney General.

Don't put up with it, and hit them hard and early. And complain to your elected representatives. The Banks claim this wouldn't happen if not for the credit reform act, so let's let Congress know that some banks, if they are "too big to fail, " should be broken up by the Government.

Company: Chase - JP Morgan Chase Bank, N.A
Country: USA
State: Delaware
City: Wilmington
Site: chase.com

  <     >