We don't like where you shop so we're lowering your credit line, mmmkay?

[AlCzervik]

Card companies adjusting credit limits

For some, lowering based on where they shop

By CARRIE TEEGARDIN

The Atlanta Journal-Constitution

Sunday, December 21, 2008

Kevin D. Johnson returned from a dreamy Jamaican honeymoon in October eager to check out wedding photos and help his new wife open stacks of beautifully wrapped wedding gifts.

Before getting distracted by the fun stuff, the 29-year-old entrepreneur opened the mail. Johnson’s mood soured when he got to a letter from American Express, saying it had slashed the credit limit on his account.

Johnson was surprised, since he has a perfect payment history and a high credit score. And he was floored by one of the reasons American Express cited: It didn’t like where he shopped.

“Other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express,” the letter said. Johnson complained to American Express by phone and letter.

“That doesn’t have anything to do with whether I’m a paying customer or not,” he said in an interview.

Johnson checked his charges to try to figure out what might have raised a red flag in the American Express data-mining model. He didn’t see anything but typical transactions, including purchases at Amazon, Ruby Tuesday, Wal-Mart, Starbucks and Federal Express.

Suck it peasants

[SeattleGirl]

1. Wow. More guilt by association.

The credit card company's choo choo has completely jumped the track.

[Captain Hilts]

2. Really amazing. Actually, no it isn't. nt

[supernova]

3. My Guess would be Mal-Wart

It's sufficiently White Trash for Am Ex, the original WASP card.

[AlCzervik]

4. most likely.

[depakid]

19. Yep- that's my guess, too

Especially if they've gone from being relatively high roller types to shopping more often at crapmart.

[CoffeeCat]

5. The credit card companies are going ballistic, it appears...

I'm sorry I don't have a source, but I heard this information several
times, throughout the day, last Friday.

Apparently, major credit card companies aren't making as much money because
customers are paying off balances and not using credit cards as much.

In order to recoup potential losses, the credit-card companies have decided
to charge horrendous late fees, raise interest rates to unbelievable numbers
and give customers fewer days to make on-time payments (which results in those
high fees).

Apparently, Congress has taken note of the credit-card companies engaging in
this scurrilous behavior and they decided to act.

They're banning the credit-card companies from raising interest rates on customer
and they're also demanding that customers are given a minimum of 21 days to pay
their bill before a late fee is charged.

Here's the kicker...These laws take effect...in 2010. That's right folks.
Congress cares so much, that they're putting the hammer down on the credit-card companies.

However, they're allowing them one more year to screw us to the wall.

Can you believe that?

Right now, people need relief. They need a break. They don't need their credit-card
rate jumping from 13 percent to 29 percent. They don't need a $70 late fee, when the
mail their bill the day it is rec'd.

Instead, Congress gives the credit-card companies one more year of stealing America's money.

By 2010 there will be nothing left to steal. Congress and the credit-card companies damn
well know this.

[SoCalDem]

11. I have been expecting ours to be cut..but so far it has not

Every month I open Discover, expecting to see it halved..but as of yesterday when the most recent one arrived , it's still $13,200.00..:shrug:..

We pay it off every month, and sometimes don't even use it for months at a time..so I thought WE would be at the top of the list for cutting it..

We paid off & closed all the other cards we had (except for Sears..which my husband would DIE without, for some dumb reason), other than the gasoline credit cards..

[exboyfil]

21. I agree with the change in the laws

but I understand why Congress waited so long.

If they enacted these laws immediately it would further dry up credit lines as unprofitable lines are closed by the credit card companies. That would further reduce spending and send the economy further in the hole.

I like to use credit cards to get the 2%-3% cash back (or rewards back). We pay them off every month, but we understand we are dealing with a poisonous snake.

If I cared more for my fellow man, I would be one of the people sending all my credit cards back in pieces and using cash for everything. I often think about the moral dimension of my behavior.

Another thing which I do which probably hurts my credit score is sign up for cards to get the goodies and then cancel the cards. You can get nearly a plane ticket of points for signing up for the right cards.

[CoffeeCat]

23. I think you have the right attitude...

...toward credit cards.

We don't have any, and I am extremely against credit cards--because I feel that they ultimately
enslave people.

However, there are people like you, who pay off the balances monthly. Also, you get the freebies
and the free miles, etc. These types of marketing devices are designed to entice people into
the game, so they will ultimately carry large balances and pay the credit-card companies thousands
in interest--ultimately nullifying any miles or 12-pks of Diet Coke that are given away.

You are one of the very few who pay off your card, and you understand that you are dealing with
"a poisonous snake" as you said. That's exactly what you're dealing with. It sounds like you've
got your eyes wide open.

I don't judge people as "bad" for having credit cards. It's the credit-card companies that are the snakes in the grass (to extend your analogy, a bit!). As Dave Ramsey (financial guru) says, "Credit cards are not a game. Sooner or later, they will get you. They are in this to make lots of money off of you, and sooner or later they will."

Kudos to you for beating them at their own game, so far. :)

[Phoebe Loosinhouse]

6. Being rejected for using retailers AmEx has approved as retailers

or otherwise you couldn't use the card to shop there.

Maybe AmEx should issue the AmEx (Just Kidding!) Card

[notesdev]

7. All the more reason

to consider the credit card to be a financial instrument which has outlived its time.

Punish the card companies by sending them their precious cards back in envelopes full of pointy plastic shards.

[Tangerine LaBamba]

9. That's what I did

No more credit cards. Cash only, and life is a whole lot simpler.

[sundog]

8. credit card companies are the scourge of the earth

the best is when you send a payment 2 weeks in advance & the company claims it was "late" & charges you a $38 fee

and they really don't care when you sent the payment, regardless of how many times you use the word "fuck"

grrr

may they all burn in hell

[bicentennial_baby]

12. YOU! I see you!

:bounce:

:hi:

:loveya:

[sundog]

14. .

:hi:

[SoCalDem]

13. Aaah.. if you send it TOO early, they will just credit a double-payment for

the same month, and then ding you for the next month..

[AlCzervik]

16. Hah! 2 nights in a row! You're gonna spoil me and then you'll disappear!

i hope you stick around, please.


:loveya:

[strategery blunder]

18. This is why I pay my CC in person

every month, I walk into the bank with cash in hand to pay the CC bill

I know it will post that evening, no excuse of "your payment never arrived" or "it must have been lost in the mail"

And if the bank gives me crap, I have the transaction receipt to prove that I paid on time :)

[Berry Cool]

10. Randi Rhodes was saying on the radio the other day that she's had accounts closed on her

without asking, because the card company decided she wasn't using the card enough.

And when this was done to her, it automatically lowered her credit score.

Listeners were calling in saying the same thing happened to them. They're being punished by the credit card companies for not being in debt ENOUGH.

It's ridiculous.

[aquart]

15. That just happened to my mom.

[liberalpress]

17. I recently refininced ny home

and with the proceeds paid off my credit card debt, Every one of the cards I paid off either either cancelled ny accountor lowered my crdit line to only a coupke of hundred bucks.

I was angry at first, but the I realized I was angry at people who where charging 25%-29% (APR.)I use my debit card now, and suddenly, even though I'm unemployed, I have a lot more cash

[Waiting For Everyman]

20. Credit criteria need restraining laws bigtime.

They do whatever they want, whether it makes any sense or not - impacting peoples' lives tremendously. They need to be stopped, cold.

[HamdenRice]

22. The real reason is that credit card companies have no money to lend

They're flat busted broke. They can't sell credit card receivable asset backed securities to raise money to lend consumers.

So they make up excuses because they don't want to write to you and say "we have no money."

[Texasgal]

24. Screw AMEX!

Small businesses cannot afford to take their card! Their fee is higher than anyones!