Credit card companies are closing customers' seldom-used accounts, raising interest rates, and now they're cutting credit limits - even if the new limit is below the customer's current balance.

Article says it can happen without notice, or without notice coming timely after the fact. Nice way for a bank to earn money - lower your rate to below your balance and then hit you with an over-limit fee. :shake:

mjfrombuffalo Wrote:Credit card companies are closing customers' seldom-used accounts, raising interest rates, and now they're cutting credit limits - even if the new limit is below the customer's current balance.

Article says it can happen without notice, or without notice coming timely after the fact. Nice way for a bank to earn money - lower your rate to below your balance and then hit you with an over-limit fee. :shake:

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One example cited there shows an $9,000 credit limit cut to $300..?!? Or did I misread that..?? A cut to 1/30 of what it was..?!?

Then when it is now over the new credit limit they want to charge you an 'over-limit' fee..??


Change is good.


...tom...

:shake:

And it's not even illegal until July 2010!!!! :shake:

I had that happen to me. I was making full payments every two weeks to try to pay my balance down faster. But then I had one two-week period where I couldn't make a payment. It should have been fine because the previous one was for the full amount, but I got off on my timing and was three days late with the next payment. So, even though I had an eight-month history of paying every two weeks and had been with this credit card company for 21 years, they lowered my credit limit to below my balance (which cut the limit down by 2/3rds), charged me an over-the-credit limit fee, and raised my interest rate to 39%.

After several phone calls and three more months of twice-monthly payments, they lowered my interest rate to 12% and refunded me the extra interest and fees that I had paid. But this was only after I made several angry phone calls pointing out that I had never gone credit card hopping on them and if they didn't do something about it, I'd take out a loan, close my account and never do business with them again.

A friend set up automatic withdrawals from her checking account for a set amount each month to one of her cards. She wasn't charging anything so she didn't bother reading the statements when they arrived. Turns out that they moved up her payment date by a few days and so for months she had been paying them two days late, the interest rate had gone up, she'd been charged the late payment date for each of the months, etc. :shake:

I had a Citibank business card that I didn't use often and normally when I did it was small enough to pay the balance. When they lowered its credit limit I called and canceled it. When they asked why I told them I apparently didn't use it enough to suit them, so I guess I didn't need it. They guy wanted to work something out but I said to just cancel it. Hopefully, they have. As an aside, it's better you cancel one than to ingnore one until the company does it. It looks better on your credit.

This just happened to me! I don't keep a big balance on my card usually, so last month when there was a balance, my limit got lowered by a LOT, and I now have a big charge for going over. As soon as it's paid off in full, it gets cut up and tossed, and I'll be shopping for a new card company. I already told them this in a letter, along with the fact that I've never paid late or run over my limit. I am not happy.

Try calling. Most companies have discretion to eliminate charges on an occasional basis, and they may eliminate it for you, at least for this month.

Oddly enough, I've got two cards that keep upping my limit. What's up with that, I wonder?

Recently, Melanie? I've had a lot of upping last year and the year before, but not this year.

I've been happy with my Amex Blue card. They haven't done anything sheisty to me, but my Old Navy card did. Amex also gives me points, and when I moved into my condo I bought my vacuum and my (mostly) my washer and dryer with points I accrued. If I was going to spend the money anyway, I'm glad I got something "extra" for it.

Recently, yes. One of them upped my limit after I paid them off - I presume they're trying to drum up business with someone who was being responsible with their money. The other one was just a couple of weeks ago - they offered me a slight increase if I did a balance transfer online, which I was planning on doing anyway, and instead they offered me a much larger increase. Again, this is a card I'm being responsible with, making the largest payments I can, way over the minimum, and no new charges other than a couple of balance transfers.

The other card that is active I do occasionally use, and only pay a little above the minimum plus whatever I charged (I'm "snowballing") so they haven't offered any increases, but at least they haven't reduced it. And hopefully if they do, I've got it down far enough now that it won't hurt me unless they *really* slash it.

emeleel Wrote:Try calling. Most companies have discretion to eliminate charges on an occasional basis, and they may eliminate it for you, at least for this month.

Yep yep.

Take if from me, the credit market is saturated. And the banks know this. They are trying to find ways to keep your accounts, and to keep you from going over to another company. Nine times out of ten, they're going to work with you to help you out and not lose your business.

I'm not going to defend what they're doing as far as changing your due date, minimum payment or interest rate, but know that there are pretty strict federal regulations that govern those things.

They'll try to get away with whatever people will let them get away with.

My daughter had a Discover card and she got a "late" charge. She called and she didn't even have to speak to someone. She just hit a phone button for "cancelling a late charge" and it automatically cancelled it.

Now that's customer service!

Strangest thing in the world.

eris esoteric Wrote:--img snip--

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Uhmmm . . .I really do not spend much time reading 'comics' ...online or in the real world . . ..

Why is that comic 'written' backward..??

Would it not make more sense (and be 'funnier' ) to read the comic 'oldest panel to newest'..?? Or is the subtle unraveling of the 'story line' intended to be part of the humor..?? Yes, I am thinking about it too hard.


Or is this just another 'web skilz/knowledge' I have not mastered..??


...tom...

Because it's a spiraling effect, and no matter which way it goes, the little people get screwed?

What's funny is after three panels of notices penalizing the customer for "bad behavior", you see an offer being made that encourages irresponsible use of credit, which is where the laugh is - it reminds you that's how the companies hooked the "bad" customers in the first place. Telling it in reverse order would have no punchline.

mjfrombuffalo Wrote:--snip--

Telling it in reverse order would have no punchline.

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I guess that explains why I am neither a professional comedian nor a paid cartoonist.

Another career door slammed in my face..!!


...tom...
' who found the cartoon equally ironic (not necessarily humorous...) reading in either direction . . .. '