I just discovered that the card issuer has reduced my credit limit and I no longer can charge anything. Can they do that?
Card issuers generally can increase or decrease credit limits without giving you notice, including reducing your credit limit so that you no longer have any available credit. If the card issuer does so, you cannot make any charges until you pay off some of your existing balance. However, without advance notice, the issuer will not be able to impose overlimit fees if you exceed the newly reduced credit limit, even if you previously opted in to the payment of overlimit transactions. In no event may the issuer charge overlimit fees if you have not opted in.
Ask CFPB provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically.
Ask CFPB includes links or references to third-party resources or content. The CFPB does not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.