Consumer complaint received 2024-01-26
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: JPMORGAN CHASE & CO. (IN)

This complaint is regarding JPMorgan Chase Bank , N.A . 

On XX/XX/XXXX I received a letter from JPMorgan Chase Bank , N.A . ( JPM ) informing me that my credit card limit had been reduced from {$23000.00} to {$13000.00}. This was a 41 % drop and with a balance over {$13000.00}, this effectively removed all my remaining credit. There was no prior warning provided. Below are the reasons provided for the reduction along with my comments regarding each point. 

1. Past or present delinquent credit obligations with Chase : The delinquent credit obligations they speak of are a single late payment. A payment due on XX/XX/XXXX was paid on XX/XX/XXXX. My credit limit was reduced by 41 % on XX/XX/XXXX and I was informed of this on XX/XX/XXXX. The reduction in credit line was therefore a de facto late payment charge for missing a payment by 6 days. No prior warning was provided. 

2. History of low payments relative to balance : While their statement is subjective, it is categorically untrue in the context of reasonableness. I made payments of {$10000.00}, {$10000.00}, and {$15000.00} in XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX respectively on a credit card with a limit of {$23000.00}. 

3. Credit Usage is high : if they think my credit usage is high, does it seem ethical to reduce my credit line by {$10000.00}? While my credit usage was reasonably high, it became extremely high after the line reduction. Removing {$10000.00} of credit line from someone they themselves say has high credit usage is, at a minimum, irresponsible and unethical, and can be argued to be unlawful. Their actions also caused significant damage to my credit score thus impairing my ability to seek financing from other institutions. 

4. Credit account balances have increased : While that statement is true, it does not warrant removing my entire remaining credit line and is not consistent with the actions of a bank acting in their customers best interests. 

My financial situation has worsened somewhat in the past 18 months. However, I have no delinquent debt and have never missed a payment to any creditor. JPMs 6 day late payment is the only infraction that has occurred and it occurred entirely as an oversight on my part, not due to the inability to pay. JPM saw the picture of someone whose financial picture had worsened and then made it immeasurable worse by taking away all remaining credit. Its a very scary situation for consumers to face the prospect that their credit line could be instantly erased by their bank with no prior warning. That is what JPM did to me. I made other critical spending decisions with the mindset that I had {$10000.00} of credit from JPM and they removed it in an instant. Not only did they reduce my credit line, they damaged my credit, caused additional financing to be difficult to obtain, and essentially cut off a lifeline. 

JPM has offered to reconsider their decision if I will allow a hard pull on my credit. This is not an acceptable resolution. The hard pull itself will damage my credit even further. And what if they reconsider and still say No? Then, I have no credit line and even further damaged credit. 

What JPM did was exceptionally dangerous and irresponsibleand I believe also illegal.