Credit card question

[wwcitizen]

Have you ever heard of a credit card reducing your limit when you were late for a payment so that the credit card company could charge you not only late fees, but also over limit charges to the tune of $40 a month??? I had never heard of such a thing (and how could that be legal?!) Until a buddy of mine and I were talking of going shopping. He and his partner won't step foot in Macy's because of the credit card issue. Although this conversation was primarily about the Macy's credit card, he mentioned that Bank of America (which originally was Bank of Italy, supposedly) has done similar things.

I find that kind of business model flawed and anti-customer, especially in the new world of no personal bankruptcy. Your thoughts?