The Latest Credit Card Scam - From Your Own Credit Company!

By
Real Estate Agent

You may be getting scammed Right Now by your very own Credit Card Company!

It's the latest kind of attack on your money, and so far it is perfectly legal. Credit Card Companies are lowering limits on people's credit cards BELOW what they already owe, and then charging them "Over the Limit" Fees, sometimes to the tune of several hundred dollars a month, I have heard. I don't know about you, but this really infuriates me. As if the credit and economic situations were not bad enough, now this.

The Credit Card Companies are doing this without any warning, and then sending you a letter via Snail Mail, but by then you could be thousands of dollars over your limit. Some people are finding out the hard way, by going to the store and trying to make a purchase and then finding out they are declined because they are over their limit. How rude and embarrassing is that!

Imagine the families struggling to make it in our tough economy right now, and are carrying their Grocery/Gas debt on a credit card, until they can get caught back up, or start that new job etc... Now I'm not talking about the slackers who don't make payments etc... I'm talking about the person that makes payments every month, on time, but just can't pay the "Full Balance" right now. Now imagine that the CC company decides to cut that families limit to less than what we owe, they immediately owe that outstanding balance, or they will continue to receive"Over the Limit Fees" until they do. Now also consider that the CC Company reports this to the Credit Bureaus, and destroys your good credit. This could destroy families budgets to the point they would fall behind on other debts causing them to lose their homes/cars etc...

This could make our economy so much worse than it is already. I can see that CC Companies have the right to lower the amount of credit they extend to people, However, the fact that they are doing without notice (Before the letters even arrive) and doing it to an amount that is below the amount the person owes, sure makes it seem like a scam to bilk people for as many Fees as they can. I just hope anyone who has this happen to them remembers who did it to them, and tells everyone they know to boycott that company until they are out of business.

The article I found this information on was from SmartMoney.com and has more important information you should know about. For Instance, To make things worse the article states: "Federal Reserve rules requiring lenders to give cardholders 45 days notice before reducing a credit line to the point that it would trigger penalties won't go into effect until July 2010... [Until] then, there are no federal protections..." If they are passing Federal Rules to stop this, in my opinion than anyone doing it (the under the limit stuff, with Fees) seems like a total fraud just after the Fees, and should be run out of business, as punishment for thier acts of Greed!

Here is the link to the article on SmartMoney.com http://www.smartmoney.com/Spending/Deals/Card-Issuers-will-not-Hesitate-to-Slash-Your-Credit-Line/

WOW, enough of my ranting, as you can see this really ticks me off, tell me what you think.

_________________________________________________________________________________________________

All data and information provided on this Blog are for informational or entertainment purposes only. It does not reflect the opinions of any affiliated Brokerage(s). Web TCS, LLC makes no representations as to accuracy, completeness, correctness, currentness, suitability, or validity of any information on this Blog and will not be liable for any errors or omissions in this information or any losses, injuries, or damages arising from its display or use; including, but not limited to, blown gaskets, body odor, Computer and Keyboard Rage. All Blog posts are the constantly changing opinion of the author(s) and may occasionally contain bad opinions. They are not approved to diagnose, treat, cure or prevent any disease.

Copyright® 2009, Web TCS Transaction Coordinator Services "The Latest Credit Card Scam - From Your Own Credit Company!"

____________________________________________________________________________________

Comments (3)

Annie Pinsker-Brown
Stage to Sell - LA Home Staging - Los Angeles, CA
Stage to Sell, Los Angeles Home Stager

Jason, this is a horrible thing for the credit card companies to do. Like you, I can understand the need to lower balances, but they should be notified, and given a chance to transfer any amount over the limit to another card, prior to being hit with over-the-limit fees. Ugh!

Apr 14, 2009 08:31 AM
Jason Daley
Bremerton, WA
Kitsap County Real Estate, Bremerton, WA Real Estate

Annie - I know, isn't that just rotten? I guess it is the Realtor in me that believes that FULL disclosure should come first, and then a response period from the other party, THEN make the change/decision... If you are trying to do it before someone notices, then that is trying to scam someone. I must be right in my opinion, since they are putting laws in place to keep companies from doing this... Too bad it takes so long for those laws to take effect, many more people will be taken for a bad ride, before next years law enactment.

Thanks for stopping by!

Apr 28, 2009 08:11 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Jason,

seems you did not blog for awhile here...

How have you been?

Mar 28, 2015 06:22 PM