Consumer complaint received 2020-04-16
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: OH
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:
In a letter dated XX/XX/2020, my bank, USAA Federal Savings Bank, informed my wife and I that they had lowered the credit limit on our XXXX XXXX card, to {$500.00} dollars. 

Prior to this unsolicited action on the their part, our XXXX had a {$30000.00} dollar limit. They removed from my household {$29000.00} in available credit, or 98.3 %, of our credit availability. This is not a trivial amount of credit. This is not a " reduction '' or an " adjustment ''. This amount, is punitive in its nature, and absolutely malicious in its timing, given the crisis currently facing our Nation and the employment uncertainties many in the Country are facing. Their stated reason for this, was " account inactivity '', nothing more. A properly maintained, properly managed credit card, that had always had its balances paid off timely, was taken from us, in 98.3 % of its entirety. 

This credit card was our emergency card. It was in place for a reason, and a good one. At no point ever, did USAA ever notify us that " inactivity '' was being tracked for purposes of closure ... ..which is effectively what they have done. At no point ever, were we explicitly notified by USAA, that our " inactivity '' was approaching a closure threshold, or that an " extended period of inactivity '' could potentially result in a closure. It was taken from us, with zero opportunity afforded to us to mitigate this result. A result, which if warned, we would have happily avoided. But no, USAA notified us *AFTER* the fact, and afforded us no tangible recourse in repeated and frantic phone calls begging them to reverse their decision. We have been advised by USAA to wait 6 months, and apply for additional credit, thus damaging even further our credit score. It is absolutely appalling, that after arbitrarily removing almost 30K of credit from us, having our FICO damaged by the destruction of our credit usage ratios, USAA has the temerity to advise us to further damage our credit by applying for something that never should have been taken from us in the first place. 

This is a particularly offensive action for USAA to take, given the fact that a significant majority of their membership, are Federally employed service members not facing the employment questions much of the civilian population contends with at the moment. Additionally, I am not an out-of-work bartender who posses a risk to USAAs solvency. I am a gainfully employed XXXX, married to a XXXX XXXX, who is serving our community in the front lines of this COVID-19 crisis in the Emergency Room of her hospital every night. We have to self isolate, even from eachother, paying particular attention to our XXXX XXXX XXXX daughter whose health is put at risk by wife 's profession. Now we have to content with the loss of credit on top of all that. For what reason? " Inactivity ''?!!! 

USAA 's action, has materially harmed the financial well being of my household in the following ways : 1 ) My credit score has been reduced over 70 points as a direct result of USAA 's action. My wife, has seen a similar reduction in her score, from XXXX to XXXX of 2020, according to the report we ran. I am happy to make this available to you upon request. 

2 ) Our credit usage ratios are materially, and negatively effected by the elimination of almost **30K** in available credit on a properly maintained and paid up account. This effects multiple factors that any financial institution would assess while considering an application for financing, or re-financing. That is not a trivial issue. I take that very seriously and its impact is totally unprovoked, and completely malicious in its result. 

3 ) We no longer have an emergency line of credit available to us, at exactly the time it is needed most. 

While I do not debate USAAs " authority '' to " adjust '' credit limits based on certain parameters, I absolutely do question the legality, and the fiduciary intent behind such a drastic reduction for no other cause than inactivity. I suspect it is legally questionable to reduce by so much, i.e. 29.5K, 98.3 %, for " inactivity ''. I suspect there are guidelines governing the reduction of credit, its causes, and its amount. It should matter, to the Government, what this has done to our credit scores and ratios, and what USAAs stated reasons were, and what " inactivity '' actually means in the context of this issue. " Inactivity '' is **NOT** a justification to harm, and that is what they have done. This was an account in good standing, and had always been so. I want this reviewed, I want my complaint made public, and I want my good credit restored. 

The effects on my household, particularly at this time with Covid-19, are punitive. It is tantamount to malice. It is absolutely disgusting, and it directly flies in the face of the " Member Service '' USAA so aggressively advertises.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief