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View Diary: The big banks aren't done screwing you over (181 comments)

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  •  BoA is continuing to drop credit limits (29+ / 0-)

    What they don't understand is it no longer matters what they do.  After 3 years, we have paid down medical bills to an extent that, while still substantial, are now almost manageable.  As each card is paid off, it is cut into pieces and filed in a drawer.  Today, BoA once again sent out its annual announcement our credit balance was too high comparable to our credit limits, so they continue reducing our credit limits by 110% of our paydown, even when we pay in excess of the minimum or pay the card off completely.

    I hope they can proceed without our business as I have targeted our BoA cards to be focused on for reduction and retirement

    •  They also purposely damage people's credit (14+ / 0-)

      with these continual (and sometimes multiple) markdowns.

      I am thinking of buying a home and and the join account my ex and I had had like a 1500 dollar limit) shows as a closure. Its a negative showing on the credit report, even if there are no judgements or anything else of the sort.

      Be careful of the markdowns and the account closures. While some need to happen, you may want to stagger them as long as fees and such are not affecting those accounts and taking money out of your pocket regularly.

      -6.38, -6.21: Lamented and assured to the lights and towns below, Faster than the speed of sound, Faster than we thought we'd go, Beneath the sound of hope...

      by Vayle on Mon Nov 14, 2011 at 12:06:38 PM PST

      [ Parent ]

    •  That means they're afraid... (0+ / 0-)'re a risk for default and they don't want you to run the bill up again after paying it.

      Did they also change your rate to 29.99%?  If so, that's their way of saying "We want you to pay this off now".  And it's not just BofA.  Your credit union would do that, too, if you had credit cards with them.

      You really should strive to be in a place where your credit limit is completely irrelevant.

      Also, I'm a little confused.  How can BofA reduce your "credit limits by 110%" of your paydown...even when you "pay the card off completely"?  If you pay the card off completely, you should be at $0 owed.  Do you (like so many other people do) mean something else by "pay off completely"?

      •  110% refers to all credit card debt while there (1+ / 0-)
        Recommended by:

        are several cards in question, so some of them still have balances due on them while others are paid off.  However if I were to have a balance of $5000, as an example, even if I paid it off, they could still reduce the credit limit to, say $500, even if I had paid it down to 0  

        •  That's a 90% reduction... (0+ / 0-)

          ...not 110%.

          In order for a $5000 limit example to be reduced 110%, it'd have to be lowered to -$500, an impossibility.

          •  that was just an example (1+ / 0-)
            Recommended by:
            NM Ward Chair

            as stated there are several cards, some paid off and others with a balance since I cannot pay them all off at once, having had some $1M in medical bills.  The 110% is from reviewing my credit limits and credit balances since 2007 forward; each month the amount due decreases since i use no cards now except for a couple lower limit cards by smaller companies

            •  But you can't reduce something (0+ / 0-)

              by more than 100%, unless you are saying that your credit limit is a negative, something less than zero.

              •  They reduce the credit limit (0+ / 0-)

                by 110% of the paydown, i.e. by 110% of the principal paid each month.  Presumably the CC accounts are not over the limit.  It's a problem because it a card near the credit limit negatively affects the borrower's credit rating, making any new borrowing more expensive.  

                The bottom 1% are the most egregious victims of Wall Street's class war. We 99% must not abandon them.

                by NM Ward Chair on Mon Nov 14, 2011 at 06:04:33 PM PST

                [ Parent ]

    •  I hope they can't. (6+ / 0-)
      I  hope they can proceed without our business as I have targeted our BoA cards to be focused on for reduction and retirement.
      I hope that shortly after you pay off the last of your BoA debts, BoA falls down with a loud crash.  

      Renewable energy brings national global security.      -6.25, -6.05

      by Calamity Jean on Mon Nov 14, 2011 at 12:54:31 PM PST

      [ Parent ]

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