• DYE CULIK PC | Consumer Protection Division

Credit CARD Act still allows no-notice reductions in your credit limit

The New York Times reports that the new Credit CARD Act, although making many consumer-friendly changes, still allows your credit-card issuer to reduce your credit limit without giving you any notice. In contrast, the law does require that you be given 45 days notice before other “significant terms” of your credit-card agreement are changed. (For some reason, your credit limit isn’t a “significant term.”)

And why is this? According to Ed Mierzwinski, director of the consumer program for advocacy group US PIRG:

”The lowering of credit limits has largely been post-meltdown,” said Mierzwinski. ”It had not grabbed the attention of Congress until the bill was almost done.”

via No Limits: Credit Card Law Skips Notice on Cuts

#consumerlaw #creditcard #CreditCARDAct #massachusetts