Charles wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
Bank of America has lowered my credit line from 23000 to 16 and when I called to complain the dropped it down to the current level of 13500. I use my card in business and know they have the right to do this but what about the negative effect on my credit score. I always paid them on time and as requested but their one sided action will impact my credit score.
Is there a class action lawsuit that I can join to force FairIsaac and BOA to properly account for my good credit? I know they have the right to do this just as I have the right to close my account and negotiate a payment plan but why should that action hurt my credit score. I cant take them on myself but is their someone else I can join with?
Charles”
The Answer:
Dear Charles,
I hear what you are saying. You feel you are being treated unfairly, and I agree. But this isn’t just a Bank of America problem, this is an issue that every consumer faces with every credit card issuing company.
What makes this problem tough is that it is a situation that all cardholders agree to in their agreement with the credit card company. The right for the credit card banks to adjust limits and interest rates is usually very clearly spelled out in the terms and conditions.
It basically falls into the problem of it’s their ball and they don’t want you to play with it anymore, so they are taking it away from you and home with them.
You have no right to the credit card, you use it only at the pleasure of the credit card company. And as far as the credit score goes, you can’t forget that the score is calculated to identify potential profitable customers, not people that might be personal finance wizards. The credit score and the access to the credit card are not available to serve you, but the creditor.
If you want to close your card, that it your option. You would then need to make the minimum payment as specified by Bank of America to minimize credit report damage.
