diff -Nru a/net/bluetooth/rfcomm/core.c b/net/bluetooth/rfcomm/core.c
--- a/net/bluetooth/rfcomm/core.c	Thu Jul 31 02:41:29 2003
+++ b/net/bluetooth/rfcomm/core.c	Thu Jul 31 02:41:29 2003
@@ -202,7 +202,7 @@
 	d->mtu        = RFCOMM_DEFAULT_MTU;
 	d->v24_sig    = RFCOMM_V24_RTC | RFCOMM_V24_RTR | RFCOMM_V24_DV;
 
-	d->credits    = RFCOMM_MAX_CREDITS;
+	d->credits    = 0;
 	d->rx_credits = RFCOMM_DEFAULT_CREDITS;
 }
 
@@ -475,7 +475,7 @@
 	s->sock  = sock;
 
 	s->mtu     = RFCOMM_DEFAULT_MTU;
-	s->credits = RFCOMM_MAX_CREDITS;
+	s->credits = 0;
 	
 	list_add(&s->list, &session_list);
 
@@ -746,7 +746,7 @@
 	pn->ack_timer   = 0;
 	pn->max_retrans = 0;
 
-	if (d->credits) {
+	if (cr || d->credits) {
 		pn->flow_ctrl = cr ? 0xf0 : 0xe0;
 		pn->credits = RFCOMM_DEFAULT_CREDITS;
 	} else {
@@ -1135,11 +1135,15 @@
 
 static int rfcomm_apply_pn(struct rfcomm_dlc *d, int cr, struct rfcomm_pn *pn)
 {
+	struct rfcomm_session *s = d->session;
+
 	BT_DBG("dlc %p state %ld dlci %d mtu %d fc 0x%x credits %d", 
 			d, d->state, d->dlci, pn->mtu, pn->flow_ctrl, pn->credits);
 
 	if (cr) {
 		if (pn->flow_ctrl == 0xf0) {
+			s->credits = RFCOMM_MAX_CREDITS;
+			d->credits = s->credits;
 			d->tx_credits = pn->credits;
 		} else {
 			set_bit(RFCOMM_TX_THROTTLED, &d->flags);
@@ -1147,6 +1151,8 @@
 		}
 	} else {
 		if (pn->flow_ctrl == 0xe0) {
+			s->credits = RFCOMM_MAX_CREDITS;
+			d->credits = s->credits;
 			d->tx_credits = pn->credits;
 		} else {
 			set_bit(RFCOMM_TX_THROTTLED, &d->flags);