I have had this account open with Household for over 3 years and never been late or over the credit limit. Over time, they've increased my credit limit, as long as I didn't use the card.

In October (two months ago), they charged me $59 annual fee (on a $500 credit limit, which is exorbitant, but I kept the card anyway. Over the last two months, I took two cash advances ($200 in one month, $300 in the next). These were for business travel cash while in other cities. I paid back the first cash advance the following month in full. I paid $200 of the second $300 within 10 days of taking the advance.

Apparently the bank doesn't like the combination of cash advances (where they don't charge the merchant a percent of the charged amount) and paying them back immediately (where they can't make much in interest) so they slammed my credit limit for cash advances from $500 to $125.

They did this one month after the deadline for closing my account and receiving a refund of my annual fee. I think this is precisely what the Congress is targeting in their new credit card legislation just passed -- these kinds of retroactive predatory practices. I'll be closing ALL my accounts with Household and escalating this case to the appropriate BBB, state attorney general offices and federal authorities.

DON'T open a credit card account with Household. Once they have your ridiculously high processing and annual fees, they will make the account worthless by changing the various terms, unilaterally and with no notice to you. Then they'll refuse to refund the unearned portion of their annual fee.