Is there a legal action to take or anything for credit card companies, like Discover that cut you balance... I went from 8,400 to 1,600 despite you paying on time and having excellent credit. Now I am 95% debt to the new balance and it looks like I about to go over my limit where I was no where near it. It has affected my credit dramatically dropping me from a 740 to a 615. This is outrageous! I contacted the company and it was there policy to review all acounts and I had used ATM more than they would like to see. I was on vacation and did take out $500. I had $2,100 of cash available to me so I am not anywhere near the limit. I also paid more than my minimal of $200 and this is how they thank me! They said there is nothing they can do and I can be review again in 3-months. Other than paying off my card and canceling which I am considering, is there is legal action I can take against. No warning... bang, it was decline and reduced. Thanks.

There is no legal action you can take. They are well within their rights to review your credit score and balances and adjust your limit as they feel fit.

You can cancel your account, which I would recommend.

Thanks Steve for your response. My problem is not really the amount but the affect they cut me so it looks like I am maxing out my credit card. That affects my credit and angers me. If they are worried about people abusing the credit card as a source of income they issue lower balance and then increase balance for good payment. The fact they lumped me with every deadbeat, irks me. I was never warned or told that use of cash would affect decision making. I also was not told of any review. All would have changed how I used the card. I have other credit but they action are criminal and it affects my overall credit. I am looking for a house but now that is put on hold because of the big drop. The fact I do not get an appeal or can ask for another review kills me. I have to wait 3 months. I will pay it off well before that and cancel the card. This is just bad practice my credit card companies. They are going to lose a lot of buiness. Basically what ehy are saying is... Here is a card, but do not spend it or use it because we my cancel what we want to give you. What is the point of the card? I had good credit my whole life and this is the first negative thing I have ever had and it just angers me that nothing can be done.
I believe Obama is putting a fair practice bill but unfortunately for me it will go in affect until September. The new bill supposely says you can change balance without 45 days notice. That makes sense and gives people a chance to get their bills down. Warning for me, do not apply for any credit until this bill goes in affect. Learn from my headache.

You can help yourself by paying off that card, but canceling it isn't your best option for two reasons. First, having that available, unused credit will lower your debt to credit ratio. And second, your credit score is partially based on your credit history. Meaning, established accounts that you've kept in good standing for a long period push your score higher. If you cancel that card, you're basically starting over.

Pay off your card, then tell them where they can stick there card.

You mean cutting your credit LIMIT not the balance. I would be ecstatic if my card issuer cut my balance from $8400 to $1600.

I would also question this having such an affect on your credit score. Where are you getting the idea that this one thing did?

As to without warning, when was the last time you read the fine print of the updates to your account? The likelihood is that you were warned, but the warning was buried in the fine print.

A lot of issuers are making such changes as a result of the new and upcoming credit card restrictions recently passed by Congress. I've had a couple of cards do this to me. Never been late pay more than the minimum and they drop my limit.

Thanks for all your advise guys. Sorry for my bad typing too. Looks like I do not know how to speak. Just really angry when I wrote this text. Still am. I did read the fine print. Does not say anything of a review or use of cash will affecting my limit. As for the discover card affecting my credit. It has to be them. All the rest of my credit is the same. Nothing else has changed except the Discover Card so it has to be it. I had good credit rating for a long time. I check it the beginning of the month and it was at the same level. I check it about every couple of months to keep a eye on it. Just one check. That is not enough to lower my score so that leaves the Discover Card as the culprit. It is bad business. It is unfair. And I will pay of my card with my next payment but will not cancel. I know that canceling it will ruin the history I have with it. I want to cancel it but I do not want hurt my credit any further. This whole experience is just sicking. This no way to treat customers who pay on time and for more than the minimal. You should at least have an appeal or ask for a second review. Regardless, it is a hard lesson to learn but that is life I suppose. Thanks for all the feedback. Be careful out there if any of you takes any credit out.