Bank of America lowered my available credit on a card with a balance, for calling them about another matter?

I spoke with a Bank of America Customer Service Representative earlier today (9/7/2010) regarding a simple question that I had about my accounts. My simple question was merely asking if it was possible to "consolidate" my credit limit and trasfer part of it from one card (my Bank of America Platinum Plus... show more I spoke with a Bank of America Customer Service Representative earlier today (9/7/2010) regarding a simple question that I had about my accounts. My simple question was merely asking if it was possible to "consolidate" my credit limit and trasfer part of it from one card (my Bank of America Platinum Plus Visa with an available credit limit of $10,000 on it - no current balance) to another existing Bank of America card (American Express Accelerated Rewards) with an existing balance transfer on it that is being paid down. This American Express Accelerated Rewards card had a credit limit of $10,000 when I called. The representative put me on hold for about 10 minutes (after quoting 2-3 minutes "just to check on some things") and he came back on the line and said it was illegal (due to some federal law) to consolidate credit limits and transfer available credit from one card to another. I am fine with that. I was merely asking. However, the actual American Express credit card company has done such a consolidation for me, in the past. I had an American Express Clear and a Blue card, and they basically moved some of the credit limit over to the other card.

Since this call, I've noticed that my available credit line on this Bank of America American Express card has dropped from $10,000 to $8,300.00 with the representative and whoever else he spoke with clearly seeing that I had a $8,000 balance transfer existing on this card. So basically they're now making it look like I'm within $300 of "maxing out" my credit card when I was in reality $1,700 from my max credit limit with the balance transfer that THEY sent me inviting me to use. I've had the BofA American Express for 2+ years now, and the Platinum Plus Visa for over 5 years...never any late payments, I always pay much much more than the minimum required payment (sometimes payments were as high as $500+ per month)...thus how I got those credit lines to begin with. They moved them up as I kept using the card and paying it down well.

Secondly, the rep didn't even tell me about this. He must have gone and talked to someone who lowered my credit limit. Now I'm pissed off at this company...I have $6,000 in cash in a checking account with them, these two credit cards in very good standing and my last credit score was 770 when I checked it.

Is this illegal what they've done?
Update: Note that the reason for wanting to consolidate and increase my credit limit on this BofA AmEx card was because they said I could do another balance transfer from another credit card company that I have a balance with, and then I would be able to basically make double the typical payment each month to the single... show more Note that the reason for wanting to consolidate and increase my credit limit on this BofA AmEx card was because they said I could do another balance transfer from another credit card company that I have a balance with, and then I would be able to basically make double the typical payment each month to the single BofA AmEx card. Apparently they get offensive at this?
Update 2: Isn't it illegal if they did not notify me of the change when he knew of it and came right back on the phone to speak with me?
Update 3: I wasn't trying to increase the limit of credit...I HAD $20,000 combined credit among the two cards. All they would be doing is making one have a lower amount of credit and one would have more...that's not "increasing" anything. It's utilizing what I already have had for years.
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