Omg! This is scary!!

[inneedofhelp]

I just heard on the news, that some credit card companies are reducing the balances of credit cards....NOT just to the current balance, but to BELOW the current balance...which then causes over the limit fees and penalties, etc.

This is horrible!!!!!!

News says it is not illegal until the new credit card laws go into effect in 2010.

[Broken Arrow]

Crazy. That should be illegal NOW.

[GREENBACK]

I can't believe they can do this. This would make a loan shark blush.

[arthurb999]

I would really check your terms and conditions statements to see if this is even possible. If my cc company did this... i would stop paying them. Screw my credit... I don't need it anymore... i live on cash See them in court.

[Broken Arrow]

Originally Posted by arthurb999

I would really check your terms and conditions statements to see if this is even possible. If my cc company did this... i would stop paying them. Screw my credit... I don't need it anymore... i live on cash See them in court.

I agree. Any credit card company that shady doesn't deserve your business. Besides, who knows what other dirty tricks they might pull on you?

[GREENBACK]

I'm curious how this would be worded in the agreement(if it is). They could state it in such a way that most people would read right through it, provided they read the agreement at all. If one law could be passed I would love for all these agreements to require a laymen's explanation of what they really mean. The CC co.'s are out for every dime and it really wouldn't shock me to see them try this. It's a shame that you even have to feel like someone you're doing buisness with would act in this way.

I never carry a balance so this won't affect me but it's a discusting practice if true. I'll get rid of my cards based on principal if I see this is how they choose to do buisness.

[blankcheck]

This sounds highly unethical to me. Unfortunately, ethics does not equal law.

[kork13]

Originally Posted by inneedofhelp

News says it is not illegal until the new credit card laws go into effect in 2010.

I've been wondering... why did congress put such a far-out date (July 2010) for the law to take effect? I can understand some lag time in order for the companies to adjust their operating policies, but nearly 2 years? come on.... tell me congress wasn't in the CC companies' pockets for this one....

[swaymonae]

I've gotten quite a few letters stating revisions to the default rate.. but none of my limit's have taken a hit yet.. if they do, hit the floor.. cause I'm going to be a raging bitch!

And that's what all consumers need to do.. I'll tie up their lines all day yelling at reps until I get what I want.. BBB complaints for every day of the week..

We can't just accept it.. it's not ok.

[wincrasher]

They can change any terms and conditions at any time. If you don't like it, then close your account and do business with someone else.

[swaymonae]

^ Great, thanks for your input

[lennygaudy]

Wow that is scary. I had Brandsmart close my account two months ago. I had it at zero balance and hadn't used it in almost a year but they checked my credit and determined I was a risky customer due to my debt-to-income ratio even though I have never made a late payment.

I wouldn't care since I didn't plan on buying anything there anyway but it just irks me because it will show on my credit report that the creditor closed my account. Anyway now I see it could have been worse-good thing I didn't have a balance.

[KTP]

I had citibank reduce my limit on a card from 8000 to 3000 with just a letter to me saying they reduced it becaue I was not using it. We have a score of 787 and carry zero balance foward on all our cards. They claimed they were reducing the limit because we *didn't* use it.

[Joan.of.the.Arch]

If anyone comes across a a news story or column about this lowering of credit below what is currently owed as if in order to trigger fees, would you please link it? I googled yesterday and did not find anything.

[Thriftina]

I have a link, but I have to make at least 15 posts before I can post it so...

[Thriftina]

Aww shucks, I still can't post it. I'll just post the title of the article instead. It's on yahoo business.

How to Blow Your Credit Limit -- Without Spending

[Joan.of.the.Arch]

Thank you, Thriftina.

http://finance.yahoo.com/banking-bud...thout-Spending

[disneysteve]

Originally Posted by kork13

I've been wondering... why did congress put such a far-out date (July 2010) for the law to take effect? I can understand some lag time in order for the companies to adjust their operating policies, but nearly 2 years? come on.... tell me congress wasn't in the CC companies' pockets for this one....

Suze Orman was ranting about this Saturday night, and she (and you) are absolutely right. Why get all outraged about unethical practices and pass a law to change them and then say, "Oh, we're not going to change them now. We will change them 2 years from now. In the meantime, you can keep on screwing your customers."

[Pitman]

Suze has been warning us about the CC companies lowering limits for months. That really made me want to pay off those cards, it this case, thats the only thing we can do.

[ActYourWage]

CC companies = snakes

They will bite......