Thread: Universal Default.... hhhmmmmmm.....

I just received a call today from BOA - lowering my credit limit based on 'Universal Default' - I do everything right (pay on time, more than minimum, credit score increasing...) yet they are lowering my credit limit based on what happened 5 years ago... Is this still legal under the new 'Credit card Act'?
Thanks for your informed input.
Alex in Hawaii

I guess no one in this forum talks about issues concerning "Universal default" practices and how these are hurting the credit scores of good CC customers and consequently the credit worthiness of millions... i.e. the ability for millions to get new mortgages, cheaper loans etc...?

Originally Posted by skywave11

I just received a call today from BOA - lowering my credit limit based on 'Universal Default' - I do everything right (pay on time, more than minimum, credit score increasing...) yet they are lowering my credit limit based on what happened 5 years ago... Is this still legal under the new 'Credit card Act'?
Thanks for your informed input.
Alex in Hawaii

Are you sure the call was from bank one it could be a scammer? It could be a mistake. Check you account online and by BOA automated phone to see what your credit limit is.

No, it is not legal to use in the U.S. to use Universal Default as an excuses to change terms. If you get a letter with-in the next 7 to 14 days that say that. I would write back telling them the can no longer Universal Default to change terms on your account, tell them it is in the new credit card law.

The reason no one on credit card forum is talking about Universal Default lately is because the reform changed it.