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It's a bit of a surprise that they didn't notify him of the change in his credit limit, but other than that...... I mean, you guys DO realize, don't you, that the credit card companies are doing what they do to make money, right? If your dad hasn't ever let a balance carry over for a month, hasn't ever missed a payment, hasn't ever paid a dime to this bank, why do they want him as a customer? So they can give him the convenience of being able to pay his bills at the end of the month instead of when he makes his purchases, provide hime a nice easy organized record of all his spending, add insurance protections and warranty extentions, maybe provide some airline miles for all that speding, and never get paid a dime? Why would they want to do that?
As I said, it's bad business if they didn't notify him of the reduiction in his spending limit. I'd be willing to bet that they did in fact notify him, but they didn't do anything that would make it very obvious, so he missed it. Other than that however, I don't think your dad can complain too much about the banks decision.
unbelievable statement!!! Get ready because you also will experience your credit score drop drastically over night! No, they do not notify you! They are doing this to people who have paid thousands in interest and fees also. They are doing it to people who have never made a late payment. Imagine making that statement about credit card companies,,,wow! Very uneducated statement. Amazing!
This has been going on for a while - credit is being reigned in.....and as people pay down their balances, the limits will continue to be decreased. It's no longer about credit score.....it's about how much credit is available to the consumer.
It happened to me, my limit was lowered, so I paid down my credit card by $2000 (for those pesky auto billing accounts) and guess what? My balance was lowered to $34 over my then current balance.
unbelievable statement!!! Get ready because you also will experience your credit score drop drastically over night! No, they do not notify you! They are doing this to people who have paid thousands in interest and fees also. They are doing it to people who have never made a late payment. Imagine making that statement about credit card companies,,,wow! Very uneducated statement. Amazing!
You'll have to explain what you think is incorrect or uneducated about my statement. Credit card companies are in BUSINESS. Their objective is to MAKE MONEY. Explain, please, what I said that you feel is wrong.
Bill, First I apologize. Uneducated is a little too premature for me to state. That was disrespectful of me.
As I stated they do not notify you of the decrease of limits as they say is a law thus forcing an over the limit fee.
Wherever a CC is taken, the CC Companies are making bacon, no matter if you pay it off in full that month. The vendor pays the CC company a % for the convenience resulting in BILLIONS of dollars a year.
Sorry for the previous blog, I just found your last statement out of this world. " I dont think your dad can complain too much about the banks decision"
With interest rates nearing 30%, this is not a business. This is thievery. To be allowed to destroy perfect credit for zero reason, is becoming typical American practice but to hear someone agree with it is absurd.
Without reading the link, I can state there is a tendency with the creditors to play "dirty" and the reason so many are crying "foul."
What we are seeing happening is the following in this order:
Creditors want to restrict available credit to minimize their potential losses. After all, when push comes to shove, the first thing people do when they cannot afford something is put it on their charge card. Creditors only want people that can afford the purchase, they are more likely to make the payment. But in this environment, it's too hard to distinguish who is who. So, everyone's limit gets cut.
When the limit is cut, your outstanding balance is now closer to the limit. In most cases, well over 50% of your available limit. Credit score drops for this reason.
Higher interest rate can now be charged because of lower score.
Higher payment makes keeping up on payment more difficult.
Payment misses due date and rate goes up again.
Now, not only does interest rate get to go up again for missed payment, but creditor may report late (even though not 30 days late) and score drops again. THIS IS WHERE the consumer needs to be vigilant and track their late payments. Any late payment that is not 30 days past due, should be challenged.
It's a shame the creditors didn't learn from other lending mistakes and have forced once again additional legislation.......it will only lead to additional reigning in of credit and we will soon be on our way to a 100% cash society.....not necessarily a bad thing, but terrible for expansion and growth.
Vicious, vicious circle. Our grandparents and parents were oh so right and our children's generation is going to pay for it.
Creditors want to restrict available credit to minimize their potential losses.
You are correct, they will minimize their losses by having the government (us) bail them out direct as we did their current share holders ( the banks ) AND additionally the losses with the bankruptcies are an additional write off ( what losses? ). You know as well as me that the creditors absolutely benefit from the so called losses and the folks that can not make these payments.
I agree with you, this country used credit for survival and this is not what it was intended for. I have a job, small mortgage payment and minimal credit card balances but what about the millions that werent LUCKY enough to come out like me? The credit cards are destroying these people and FORCING them into bankruptcy. Yes, I could also argue that everyone is naive and its their faults.
But we aren't talking about them, we are talking about the citizens that can and do pay their bills on time. Why punish them? Oh yeah, more money in their pockets.
I think we will being buying groceries with dirt, it will be worth more than the dollar eventually.
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Unreal
