It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Are you guys hearing about credit card 'turn offs?'

page: 1
0
<<   2 >>

log in

join
share:

posted on Dec, 16 2008 @ 08:16 AM
link   
I'm not sure exactly where this goes as I've not yet figured out how to submit a successful post but I'm wondering if anybody else is seeing the "AmEx stranded me by turning off my credit" stories that are popping up.

consumerist.com...


They didn't seem to care. So I did what any consumerist reader would do... got in touch with executive customer service. Christine, the executive assistant got me in touch with someone that "could help me." I got in touch with the executive customer service agent, and they said that they could help out, and understood my situation. They sent me the form that they said I needed to fill out. It was a form AUTHORIZING THEM TO LOOK AT MY TAX RETURNS. I asked if they could turn my card back on for small purchases. She said they wouldn't. So I am in Los Angeles, with no purchasing power, and after faxing back the form immediately, she called back and told me that she wouldn't have an answer for 3-5 business days.


Popping over to reddit I see similar stories of declines.

www.reddit.com...

I get called a tin foil hatter all the time so I don't really mind it but I really wonder if the banks are getting people ready for the idea of compliance or no transaction. We're in the middle of dealing with a real or imagined financial terror bomb, the banks are getting bailed out on our backs and people who claim otherwise good payment histories are being "turned off" without notification.

Curious about your thoughts...



posted on Dec, 16 2008 @ 08:18 AM
link   
Oh, on the financial problem I used the possibility of it being imagined because NOBODY has a clue about what's really out there in assets or liabilities. Nobody even really knows what's out there in currency- fiat or gold.



posted on Dec, 16 2008 @ 08:43 AM
link   
I know I'm still getting a credit card offer in the mail about every other day. We also get home mortgage mailings from DiTech and other companies regularly. Seems kind of silly doesn't it?



posted on Dec, 16 2008 @ 08:56 AM
link   
I can verify this!!!


The same thing happened to my best friend when he was attending a funeral in N. Carolina. Long story short, Visa (Not sure of the bank) declined his charge card when attempting to check into a hotel down there. He has about a $3,500 balance on the card but a credit limit of $7,500. When he called, they had indicated that they had reduced his credit limit... to, get this... his balance due!!!
They had failed to notify him of this "minor" change and simply apologized to hi m over the phone. When he requested that they increase the limit, they told him that they would mail him the forms. Needless to say he was screwed and had to rely on relatives to put him up for a few nights.

Closer to home... Washington Mutual did the same thing to me. About a decade ago I had some minor financial problems and got a card from the me to help build my credit. My history with them has been excellent. Recently i started receiving 3 to 4 calls a day, but my payments were on time and the account was not deliquent - that is, until I learned how they SCREWED me! The limit on the card used to be $9,000 and I carried a $2,300 balance. I discovered when I called that they had reduced my credit line right down to the balance AND THEN charged my card a $45.00 "Credit Protection Fee" 2 days later which put me over the limit. Neat scam since my interest rate went from 14.99% to 19.99% AND they hit me with a $39.00 over-limit fee!
I received a letter notifying me of the credit limit change almost 2 months after the fact!

The long and short of it is that these banks, who caused these problems to begin with, continue to screw over average Americans to cover up for THEIR sins!
I'm hoping the government steps in and does something about this (Yeah right!:@@
. Otherwise, you are going to have millions of people simply telling the banks to f@#k off!



posted on Dec, 16 2008 @ 08:58 AM
link   
Here are my thoughts. Emphasis on THOUGHTS.

I see this as a good thing in the long run. Yes, it sucks major for the immediate time for those living off credit cards. But the reason why I view this as a good thing.

Force people to get out of debt. Pay off your cards and shred them. Maybe keep 1 for special emergencies but keep it at $0 balance. This is one reason why our economy is in crisis. Businesses, banks, government, people are living off of money that does not truely exist (credit). Americans seem to have a stigma of living well beyond thier means of income. Do not spend more than you need. Get out of debt. After you are out of debt, you will feel much better as collections will stop calling you and harassing you 24/7.

For those who are good about paying off all credit cards every month. Just a change in habit. Instead of whipping out your CC whip out cash.

It will be a temporary struggle as people transition.



posted on Dec, 16 2008 @ 08:59 AM
link   
Credit cards are reducing your limit to what you owe, so that no more can be charged. This is not a rumor, it is real. We have perfect credit and it has happened to us too

Honestly, it is not a bad thing. The credit card companies are probably close to insolvent at this point and with so many defaulting, they are Covering their losses.



posted on Dec, 16 2008 @ 09:00 AM
link   
Wow, I hadn't heard of this, but it makes perfect sense. The Credit companies are probably the next to go under.

I'm glad we don't keep a balance and have never depended on them.



posted on Dec, 16 2008 @ 09:35 AM
link   
I don't do credit in any way shape or form.In my opinion if you can't pay cash then you can't afford it.For a family it might be dif tho.
I use my bank 2 times a month to get my paycheques and keep it simple.I don't write cheques EVER and don't have a cheque book.
I refuse to build credit and I hate debts.A credit card is all about what I don't like.
If you feed the monster then he will feed on you.
I feel bad for the people who are getting screwed around by the credit card companies.Those people are only a worthless number to them.Sad.



posted on Dec, 16 2008 @ 10:05 AM
link   
I have perfect credit and stopped using credit cards and paid off all my balances about a year ago when I realized we were heading for a crash. (I was listening to Peter Shiff for a long time.)

Anyway, about two weeks ago I got a letter from Chase about my unused credit card. It basically said: “you haven't used your card in two years (I hardly ever used that card which had a $25k limit) and we shut it off two weeks ago.” Cancelled. Bye Bye!

So I was thinking, yeah, I can see why they did that. Allow me to explain:

I'm 30k upside-down on my mortgage (an $85k drop in its 2004 price).... and I pay my mortgage and bills on time every single month….. but because I’m so upside down I had been considering running up all my high credit limit credit cards and defaulting on everything I own….on purpose. I could walk away with $200k, no house, no car, and no credit rating. I mean, I could buy a smaller house and car in cash (here in Michigan) for cheap and I really wouldn't need credit. Assuming 7 years later my credit would be ok again, it seems like I good idea. I just have too much ethics to do it. I talked myself out of such a silly thought, even though it makes good sound financial sense.

Anyway, sorry for the tangent, but what I think the credit card companies are doing by eliminating unused or extra credit lines, is protecting themselves against this obvious approach to the current financial situation. Someone as well off as me stands to lose more from sitting on a house which has lost half its value then they do by losing their credit rating. I could make $200k over night and dump all my upside-down loans. I would still have my job to pay monthly bills and with no mortgage I could really come out ahead. Let's face it, if I had just a touch less ethics and wasn't so proud of a perfect credit rating, total and complete failure to pay on the biggest debt possible is the smartest thing to financially do right now.

Just writing this post I keep thinking... damn... why don't I do that? I guess it’s because I just have faith that things will recover eventually. What I'm really afraid of is that all the people who DO fail during this period may be (or how about probably will be) given a pass for their foreclosures and repos down the road by the reasoning of, "it was a tough period in history and we understand that most people couldn't make their credit obligations." Now that would piss me off as I have been diligent about making my obligations and I better not get screwed someday by NOT doing the greedy things I could do right now.

Rambling thoughts...sorry.



posted on Dec, 16 2008 @ 10:15 AM
link   

Originally posted by jjkenobi
I know I'm still getting a credit card offer in the mail about every other day. We also get home mortgage mailings from DiTech and other companies regularly. Seems kind of silly doesn't it?


Dont think for a second that companies will stop doing business its just a shake up the big giants are for the most part being crushed under their own wait.

now smaller companies will move in to take up the slack and they will become bigger, it's simply the law of the jungle.



posted on Dec, 16 2008 @ 10:23 AM
link   
I just had a couple card accounts closed by the company due to inactivity. Wamu and Citi, I think. Not a big deal, because I was long done using them for their 0% introductory offer. I guess they were "cleaning house." I tried calling Wamu to get the card re-instated but they wouldn't.

I've since made sure to use the cards I've been holding, but not using for awhile, just to ensure the "inactivity" flag doesn't get run up the pole.

My FICO score actually went up 11 or so points this month.

No reduced credit line or other shenanigans like that on any of my "in use" cards to report though, so far.



posted on Dec, 16 2008 @ 10:26 AM
link   
reply to post by DrumsRfun
 


I'm with you on Credit Cards DrumsRfun ,,,I have never had one and I never will. I was taught at a very young age Credit Cards were a way to enslave the human race. If you cant afford to buy outright then you don't need to buy. Dump those evil cards now learn to live a free and clear life. Learn to live within your means get your head back into reality and out of the so called American Dream. Why did you think it was called a Dream ...Hello!!! Wake Up



posted on Dec, 16 2008 @ 10:38 AM
link   
They are also raising the rates to 36% for any reason they might want. Theres a bill in congress that will stop them from the practice of raising rates for being late on your electric bill or your other bills. Just one bill being late by a day and being reported and they are maxing out the interest. I just had this happen to me. I had a VISA card with an 8% rate. I was late two months ago on my electric bill by thre days, the only time i have been late for a bill in 25 years and got a letter in the next billing cycle from VISA telling me that I was now paying 36% interest. I called them and complained and got the BS answer as to why and payed them off and told them to shove the card into the deepest bodily oriface they could find!!

Zindo



posted on Dec, 16 2008 @ 10:53 AM
link   
I guess it was almost two months ago I first heard about it.... I was sitting in a high school parking lot waiting for my youngest son to finish up his ROTC deal when the local talk radio show got this caller...

If I remember right he was a contractor and used his cards to pay for materials and sometimes day labor.

what he told the host was his bank had closed out three of his four cards without telling him....

now as he stated this was not your, run them to the max and make only minimum payments kind of guy... he would put like $20,000 on his cards and pay them off at the end of the month, kind of guy... his bank told him his cards had been canceled because he didn't carry sufficient balance...

cant really say this was a true story as it was on a radio talk show but the guy did sound believable

[edit on 16-12-2008 by DaddyBare]



posted on Dec, 16 2008 @ 08:10 PM
link   
I don't own have a credit card. I quit using them a few years ago although my girlfriend has a few.

But in regard to the topic, a friend of mine showed me a letter from his credit card company. They raised his interest rate 10 percent.....but raised his credit limit by 2000 or 3000 (can't remember which). What kind of sense does that make? That rate goes to anything charged after the date he received the letter and does not go to anything currently on his balance.

I hope people cut up their cards but i have a feeling they won't. When it gets tough and people are struggling to pay the bills after being laid off...they are going to use their credit cards for food and other bills. They will max them out and will not be able to repay them.

I think the credit card companies are worried about this. Of course this is just all my opinion.



posted on Dec, 16 2008 @ 08:27 PM
link   
reply to post by kozmo
 


Walmart did the same thing to my card there.. I thought it was hilarious, but then again I only use it for groceries at sams club...

Cannot imagine it being on a card I needed...

They literally did lower it right to my credit balance though, it was insane.

I am glad our government saved them. This way we can carry on the great customer service!



posted on Dec, 16 2008 @ 08:27 PM
link   
I have a card with Bank of America, they sent me notice that they were changing the rate. I called in and didn't accept the rate. I still have the old rate, but if I charge anything or pay late it will jump to the default. No worries though, just gives me extra incentive to pay that sucker on off.



posted on Dec, 16 2008 @ 08:30 PM
link   
I had a nice line of credit with them. Always paid extra, always paid on time. They recently slashed in half for no reason.

I guess this is the thanks we receive for bailing all the banks out.

I am still of the opinion that the banks are the most vile institutions in human history.



posted on Dec, 16 2008 @ 08:34 PM
link   
I just got hit with this myself... my credit limit has been "mysteriously" lowered on an existing card.... now get this.... now I am over the "limit" and they charge me an extra $40 a month for being over the limit.



posted on Dec, 16 2008 @ 08:36 PM
link   
The banks are price gouging the hell out of people and it seems like nothing can be done about it except pay off your credit cards, don't use them, don't open any new accounts, and so forth.

I'm really P.O.'d at the banks. They have been royally ripping off the public with criminally high interest rates, fees, ATM fees, you name it. They got bailed out on the backs of the taxpayers who, by the way, did not want the bailout and now they are screwing people more than ever!

I think people should get out from under credit cards and other bank loans as quickly as possible and then do as little business as possible, even boycott the banks!



new topics

top topics



 
0
<<   2 >>

log in

join