Consumer complaint received 2023-05-11
Company: JPMORGAN CHASE & CO.
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Credit card company won't increase or decrease your credit limit

Complaint:
I have a complaint regarding regarding lack of notification. There are other problems that may not or may be able to be resolved with the institution themselves, but there is a problem that is impacting millions of other consumers and it needs to be addressed! 

My problem is that creditors are getting frightened by the economy and all of a sudden they are substantially reducing credit limits. I understand that they have a right to reduce credit limits without cause ( stated in their terms and conditions that they may do this at anytime ), but reducing credit limits on accounts that are in good standing and have been managed appropriately causes a hardship because it impacts the consumers CREDIT UTILIZATION. When credit limits are reduced, it causes high credit utilization, causing their credit score to drop significantly which in turn results in major negative impact because it lowers their scores and that lowered score harms the consumer because it : 1. Makes it difficult to get approved for credit 2. It causes the consumer to only be approved for credit products with less suitable credit terms ( higher interest rates, large origination charges, etc. ).

3. Causes the consumer to have an increase in credit inquiries as they begin to seek credit elsewhere, furthering lowering their credit score and causes them to appear as a high risk borrower because of the multiple credit inquiries. 
4. Credit becomes inaccessible. 

I have recently experienced this with the following lenders who did not care about the harm they caused. They agreed I had managed my account well, but did nothing to assist. Yesterday, XX/XX/2023 JPM Chase told me that although I had managed my account well, they saw negative activity that caused them to have concerns so they reduced both credit card limits on two cards I had for 17 years with their company : 1. JPM CHASE : 2 accounts # XXXX : bal. {$1000.00}, original credit limit {$4100.00}, reduced to {$1400.00}. 
# XXXX : bal {$310.00}, original credit limit {$3100.00}, reduced to {$700.00} Interest is high : 29.99 %. I believe they were fine at allowing me to carry balances, but since my balances were relatively low on these cards, they were no longer making a lot of money, so they harmed me by pushing me into high utilization, which will ultimately lower my score. In addition, I received NO written advance notice, that would have given me time to pay down the cards to perhaps minimize the damage to my credit score. They reduce my limits without warning on Monday XX/XX/2023. They violated The CARD ACT. The person I spoke to at CHASE told me it just happened the other day, you will get something in the mail soon from us. They are so uncaring. I had one late on one card a few years back because I was in the XXXX Other than that, I have not been late in these cards. 

So because they were unwilling to assist, I am forced to rush to get credit from someone else to pay them off in full along with other creditors so that my score doesnt further plummet.

Company response to consumer: Closed with explanation