patrick.net

I received a letter in the mail today telling me that Chase had already reduced my credit limit from $7000 to $500. This was not a notice that it would change in 45 days; they had already made the change. I checked my account online and sure enough the limit was $500. They said I had 45 days to reduce any outstanding balances to under the new limit.

So, I called to ask what they might be able to raise my limit up to and was told that they could work with me and get me an instant limit approval, if I would approve a credit check, give them my salary info., etc. They re-stated the reason for the lowing of my rate which believe it or not I already understood and really had no issue with. I did not really need a $7000 limit and never asked for one.

As calmly as I could, I told them that they already had my salary info., and credit report info. before they lowered my rate, so I saw no reason in giving approval for an unnecessary credit check. At this point I asked to cancel my card as I did not need a $500 limit any more than I needed a $7000 limit. When asked for a formal reason for cancelling the card I made it clear it was not really about the lowering of the limit, it was about the loss of faith in Chase’s ability to support its customers and that I expect Chase to be out of business by the end of the year.

My balance was $0 and I would use the card every few months by running a couple hundred dollars on it. I did all the things you would normally think do to stay in the grace of Chase. I would not have minded if they lowered my rate to say $2000, but the $500 limit was just plan insulting.

That limit basically confirms to me that Chase is in trouble. I will not buy a new home until some of these too big too fail banks actually fail…if our failed economy was not too big to fail then there is no bank that will ever be too big. These ivory towers have to fall before we can rebuild on solid ground.

Thanks…