Don't Leave Home; Your Credit Card is on Hold

[myrna minx]

Source: MSNBC

-snip-

That's exactly what happened to Cathy Jones, a businesswoman with three Amex charge cards. She got a call from Amex last week saying her cards were now on hold, while the company did a financial investigation to make sure she could pay her bills.

Jones was baffled. She's been an Amex cardholder since 1989 and can't remember being late on a payment. So, to get some answers, Jones and I got on the phone, and called the customer service number on the back of her card.

An Amex representative in New Delhi, India, said because of the bad economic times, American Express is now doing financial investigations of thousands of cardholders. The rep said Amex is insisting these customers fill out an IRS form 4506-T, authorizing the company to get their tax returns for the last three years. The rep told us if Jones didn't fill out the IRS form, they'd cancel her charge cards for good, within five days. And here's the part that concerned Cathy Jones: The rep said these "investigations" were being done, not in the US, but in India.

Jones didn't want someone overseas having access to her IRS tax returns, which contains a lot of confidential information, including her social security number. She told American Express she'd be happy to have her accountant provide notarized proof of her income and employment. But the Amex rep said they wouldn't accept that as proof of her ability to pay her bill.

more at link--

Read more: http://www.msnbc.msn.com/id/29568109/

[OhioChick]

1. "investigations" were being done, not in the US, but in India."

Nice....

[Seldona]

7. At least they aren't using prison labor.

They used to. Not that I am okay with this at all. If I had one, I would transfer the balance or pay it off and cancel immediately.

Filling out tax forms that allow them to go after your tax returns when you haven't missed a payment, and having foreigners doing financial investigations on Americans, is NOT the behavior of a company I would support in any way.

[lapfog_1]

32. For most Amex cards, paying off every month to a zero balance

is what is expected. I had an Amex card that I only used for business travel (because of the theoretical
no limit aspect). I took one long trip and wasn't reimbursed in a timely fashion (it took over a month).

Amex was very snotty when I didn't pay the balance immediately and canceled my card, even after I
explained the situation. I didn't have the excess money to pay for the trips myself, so it went
unpaid until I got a check from my company. Never had an Amex card since then and never plan to
do business with them ever again.

[BobTheSubgenius]

39. I have a friend with what I consider a far worse experience with Amex.

Not to discount your negative Amex experience, nor to condone their behaviour toward you, but my friend has had interaction with them that has left me fuming.

To start with, she went off work under doctor's orders to get her diabetes under control. As a field worker in mental health social work, her days were often stressful and haphazard, and a regular routine is important in regulating blood sugar. Then, it was discovered that she had sarcoidosis in her lungs, making it hard for her to get around sometimes, due to the inefficient 02 transfer.

If that wasn't enough, cervical cancer was diagnosed last October, and the last several months have revolved around that almost totally. (as of today, nothing but good news, thankfully)

Anyway.....

EVERY OTHER creditor has been at least cooperative, and some downright magnanimous, even generously so. She was put on "compassionate" status, meaning that - almost unbelievably - interest stopped accruing and the small monthly payment would go directly against principal.

Amex? To quote Goodfellas....."F*** you. Pay me."

Years ago, I canceled my MBNA credit card when I learned that MBNA had been involved in a cooperative venture with Richard Mellon Scaife. I have NO problem whatsoever with consigning Amex to Coventry.

[ejpoeta]

58. what a great way to get your money paid back.

I would me more inclined to ensure I paid back a company who was decent with me if I had a problem. Not so much with one that was a jerk. Especially if I had always paid on time and had a problem once or something. I'm not saying i wouldn't pay someone that was a jerk, mind you. I am just saying that you are more likely to get your money back by treating someone with a modicum of respect.

[Pacifist Patriot]

67. OT: I don't often run into people who use that expression.

"sending someone/something to Coventry"

I have to explain it when it slips out, but then again, I am in Florida.

[SoCalDem]

69. AmEx used to be ONLY "charge" card..pay in full every month

but now they offer several "varieties" because so many customers left them in the dust & went with "credit" cards like Visa/Mastercard (formerly BankAmericard/MasterCharge)..

The pay in full every month thing, is what separated the men from the boys, back in the day.. an AmEx card showed a merchant that you had passed the rigorous application process, and that you really did not "need" to charge things..you just did it for convenience.. The "newer" credit cards indicated just the opposite.. you needed to pay over time, because you could not afford what you were buying...

[napoleon_in_rags]

23. Fricking unbelievable!

Huh, for some reason Americans are losing their jobs and can't pay their bills. Here's $100,000, figure it out Achmud.

[Deja Q]

74. Might not be racist, but it damn well is nationalist.

If that makes any sense; in a global economy surely things would be a little more equal. Naah; some are just more equal than others.

Not that I don't care; as other countries are engaging in protectionism and yet the moment the US decides to do the same thing do the people start to whine and bicker, the hypocrisy is grating.

[OhioChick]

81. I hear you. n/t

[MissB]

2. Good ending for Cathy

But probably only because she got someone else involved.

It may be Amex this week, but it'll be another one next week.

[glowing]

3. I guess its time to let Amex go the way of the wind... fuck them getting any stim money.

I think they actually are and they are supposed to be a bank. I think its time for all of us to give these c.c. companies a royal f.u.. Capitalism is dead... and the old stooges are done. I think its time for some real changes.

[mwooldri]

53. Amex converted to a bank holding company, and did receive funds from TARP.

My understanding is that it's because it was "cheap money", not that it was actually needed to survive.

[ChromeFoundry]

4. So....someone in India is deciding whether she can pay her bills?

:wtf:

[Liberty Belle]

5. Everyone treated this way should cancel their cards, and inform the nosy credit card co

that you will be opening an account with their competitor instead.

[glinda]

26. Against your will it will affect your credit score (by closing them) for 1-3 yrs.

I am going to pay off two at the end of this month and that leaves one more bigger one left. F them.. But I am going to keep them and not use them although I understand they are in the process of canceling people's cards if the don't use them and then still give you a bad mark on your credit score. This is not right. It appears we are all being punished for being "responsible".

[NikolaC]

54. Agreed

A couple of years ago I cancelled both my BofA (also closed my bank account with them) and Sam's Club credit cards after paying them off. They were both my oldest accounts but I could not stand the thought of owing either crappy company a dime. It has affected my credit score and I am awaiting the day when I can try to have both records removed from my report.

It stinks that you try to do something that should be seen as the right thing and you get penalized for it. Paying off and closing your credit card? Mess up your score. Paying off your card monthly and keeping it? Mess up your score. Keeping your credit card without using it and with a zero balance? Mess up your score. Use 30% or more of your credit on your card, even though you pay monthly? Mess up your score. No credit card? Bad score.

It's a very punative system and a difficult position that consumers are being put in. We are told to be responsible, but being responsible could cost you dearly on your credit report. A real scam as far as I am concerned which favors the credit card companies. There really needs to be some regulation and changes as far as credit card companies and reporting agencies are concerned, especially in this current economic climate.

[MadMaddie]

77. The Credit Bureau's impact every single Americans life

yet they are private companies. Their formulas are protected this is bullshit. They must be made to reveal those formulas. You should be rewarded for paying off your bills and if you decide you want to cancel a card you should not be penalized for it. It seems Americans are penalized and docked points for many trivial things and it happens immedietly but to improve your credit rating it takes years.

The Credit Bureau's are a racket.

[DJ13]

6. Wheres the government in protecting consumers from abusive practices?

If these credit card companies are in such dire straights that every customer's record needs a review to determine their risk of payment the Feds should begin questioning the solvency of these financial institutions.

[depakid]

9. Until there are some major perp walks- this sort of deal is only going to get worse

"Fining" companies that behave like this or allowing them to go bankrupt while the excutives and managers walk away unaccountable isn't going to do the trick.

[regnaD kciN]

8. If she hadn't called customer service herself...

...I would have guessed that this was a scam operation trying to get hold of people's financial records for identity-theft purposes.

If I had been in her shoes, and gotten such a call, I wouldn't have waited the five days -- I would have cut up my cards and sent them along in a cancellation letter to AMEX within the hour.

[katanalori]

13. I agree

That call "from American Express" smell very fishy to me. I would call AMX myself and report this if I were her. Big scam I believe.

[myrna minx]

14. At the link, this was verified by her and the author of the article. n/t

[annabanana]

42. regardless

If an American consumer (or two, or three) was "spooked" by the call, refused to be convinced that this wasn't a scam and immediately cancelled the card anyway..

Amex might stop.

[robinlynne]

87. easy to say, but my amex is automaically paying every bill I ahve excpet for rent. It would take

a lo fo work to cancle every single autmatic billing and probably end up in trouble with toher comapnies as well. the gas company, phone bill, internet bill, all tied to one card, amex.
(for the miles) Every month I pay my rent and my amex. That's it.

[ohtransplant]

10. Tax prep firms already farm out (read outsource) tax returns

to countries like India. Accountants there prepare the returns cheaper and when the client picks up their completed forms they never know it was prepared overseas.

"There is a big risk in having your private information viewed by anyone abroad, according to Jay Foley, of the non-profit Identity Theft Resource Center. He says most foreign countries don't have strong privacy laws, like in the US, that prevent someone from selling your private information, like your social security number."

The horse amy have already left the barn on our personal information.

[OhioChick]

12. Good point.

I've been bringing that up for years.

[shanti]

25. are you talking h.r. block?

if so, that's another reason to stick with a local tax preparer.

[kywildcat]

45. The Big Four outsource the work to india as well

it isn't simply the small store front tax prep shops. Things like ex pat tax work, corp tax work, all goes to india

[ohtransplant]

52. It could really happen at almost any firm

but it's not the kind of tax return you sit and watch them prepare.

[NikolaC]

48. Credit Reporting Agencies

and credit card companies outsource to India. When I tried calling one of the big three reporting agencies to request that I have incorrect information removed from my report, I was connected to a call center in India. I understand that it does not matter who you give that information to, you are always taking a risk regardless of where the center is.

[havocmom]

63. Google IRS + Outsourcing + tax returns sometime

Not just tax prep companies with your info now. More and more tax returns are turned over to private corporations from the IRS for processing.

Gee, wonder if private corporations might see money to be made in all that information you are required to give the government that the government now turns over to corporations?

[Deja Q]

75. Is that why H&R Block got busted a couple of years ago for fudging up their own taxes & income?

http://en.wikipedia.org/wiki/H&R_Block#H.26R_Block.27s_own_taxes


Forgive me, but having read your response, protectionism is no longer an evil thing. Especially if security is anything more than a token talking point.

[Tab]

11. Yeah, they cut me off on a trip for no good reason

I straightened it out, but I was at a restaurant or something, and when that's the case (or checking out from a hotel), and you're traveling, you just don't have a week's worth of time to straighten it out.

[xchrom]

15. +10 -- it's almost impossible any more to travel with out a card. nt

[dixiegrrrrl]

47. Traveler's checks????

[mwooldri]

51. Guess again.

In the world of travelers checks, American Express is the 800lb gorilla on the block in this particular market segment. It's a dying market, and American Express has a near-monopoly in this area.

Plus have you tried cashing the things? I had issues back in 1999 ... unsure about now.

[grace0418]

59. Nobody uses them any more. I've seen tourists get blank stares of confusion when trying

to use them. We got a few when we went to Europe in 1998 and never used them, so we haven't bought them since and have been overseas several times.

[NoPasaran]

73. Yeah, the last time I used traveller's checks

The cashier looked at my like I had whipped out a bag of wampum.

[anigbrowl]

70. LOL, you don't travel much

They're OK if you don't mind giving the issuer and cashing facility 5% of the money.

[ThoughtCriminal]

16. I dumped Amex last year after 20 years

Not missing it.

[47of74]

17. We need some more reform when it comes to these pond scum

When it comes to banks and financial services companies the government needs to clamp down so hard that if they blow their noses the wrong way they'll be sent to prison for the next 50 years.

[McCamy Taylor]

18. Sounds like federal prosecutor investigation material to me. Major scam

in the making, here.

[cascadiance]

19. AMEX is giving a LOT of people grief that they hadn't before...

It is THEY who are in trouble, not us. And they are trying to find excuses to limit their debt liability by either reducing people's credit line, canceling their cards or doing this kind of 'on hold' crap! I've been dinged too, and I've read of many others that are getting the same treatment now. They can claim you have a "bad rating", but it is only after they trim down your credit line to just above what you owe and then your debt to credit ratio AFTER their actions will go down when they reduce your credit. Then they use that credit rating to excuse their behavior.

I've written letters to my congressmen that we should basically tell AMEX to "GO TAKE A HIKE" if they ask for any more bailout money, unless AMEX cancels/renegotiates their "exclusive" contracts with other otherwise decent companies like Coscto, etc., so that they don't bring down Costco as well with their crap.

I've stopped using them altogether except for charges at Costco, and even then now I'm trying to minimize that as well.

[Trekologer]

50. They did the same thing to me...twice

Last winter they reduced my credit limit for a laundry list of reasons to just over what I typically charge a month. The only debt I have is my mortgage and I pay the credit card off each month. This winter they reduced my credit limit again due to ratio of debt to revolving credit limit. They penalized me for something they caused. Assholes...

Alas, the AMEX card is the only credit card I have. Looks like I'm going to have to change that.

[Pithlet]

76. Yes.

After years of being an Amex customer and loving it, and having nothing but praise for my experience, I can say that Amex can go to hell. Only a month after raising my limit they dropped it for no reason and without warning. I hadn't been late. I haven't missed a payment on any other card. My credit is fine. It's bullshit.

[SOS]

79. Amex is dying

That's why they are going crazy with the rate-jacking, cut limits, abuse etc.
The credit default swap spreads on Amex are now 652 bp.
That's even worse than Citigroup.

Amex is going to go under.
The abusive attitude toward their customer is little more than a death rattle.

http://baselinescenario.files.wordpress.com/2009/03/us-bank-cds-march-5-2009.pdf

[myrna minx]

82. Check out Kevin D Johnson's odyssey with Amex.

http://www.newcreditrules.com/

As a result of a good customer being jerked around my Amex, he's become quite a consumer advocate for these damned if you do, damned if you don't predatory practices.

[gristy]

20. So just cancel the cards.

Problem solved. I mean, really! Doesn't seem like a tough choice.

[brentspeak]

24. Can we cancel the credit card bills as well?

[Rockholm]

49. I have a hunch that is what will be coming next....

I am sure that some right-wing wacko is organizing a "stop paying your credit card bill" protest somewhere on the internets. I can see it now.. "These companies are receiving billions in bailouts and I want mine." Irresponsible pricks.

[marshall]

21. American Express taken over by foreigners?

What next? Wal Mart?

[glinda]

27. BWAHHHHAAAAAHHHAAAA. China already owns Walmart!

[EFerrari]

22. That happened to my mom and she had her business account since the 70s.

They told her she had too much debt and the way they calculated that is unclear. They just pulled the card even though she was a member in good standing.

[CoffeeCat]

28. The credit-card companies are finished with us...

The credit-card companies had a good run. They profited when people bought things
for which they didn't have the money.

Now, that fairy-tale is ending.

Amex and the rest of the cc companies know that the party is over. They've got their billions
in profits. They're happy, fat cats.

Now, it's time to squeeze every last dime out of their cardholders AND also piss off customers
to the point--that they'll just cut up the cards and close the account.

What does AmEx--or any other credit-card company care? They've bilked the body and now the carcass
is rotting.

This is just AmEx's way of getting you to cut ties---so they can decrease their default rate.

Plus, we're going to enter pretty bat-shit crazy economic times. Very soon I'm predicting. It's
going to become very evident that we're in a Depression that isn't going away soon. Unemployment
will continue to skyrocket, the market will continue tanking and things will get a whole lot worse.

Do cc companies really want a lot of their cards out there when this happens? People will start
freaking out and stockpiling essentials--preparing for horrendous times. People will be in panic
mode and they'll have no intention of paying those cards off. It won't matter. They'll realize
that what they can get NOW determines how well they survive this crisis.

Right now, cc companies are raising rates, charging late fees, reducing lines of credit and now
I guess they're demanding your IRS forms---because they're done with us.

We were useful objects, but soon--we could turn into liabilities.

That's what is happening.

[yorgatron]

40. you're right CoffeeCat,

if I think everything is going to shit I'm going to go to a sporting goods store and buy a tent,sleeping bag,guns,ammo,and then max out the rest of the card on canned foods etc. because FUCK'em if they think I'm paying it off.

[SheilaT]

29. I've been a cardholder since

1972, and don't use it much, but I like having AMEX just in case I need it.

Several years ago I upgraded to a Platinum card to take advantage of a particular feature. I no longer use that feature, so went back to the plain green card. I carry very little debt, so I'm not likely to be drummed out by them, although since I rarely use it they may decide I'm not longer worth their while.

[customerserviceguy]

30. Amex is getting bad

they were the ones who were deciding to either lower credit limits or raise interest rates based solely on where you shop.

At this point, I run my "pay it off in full" spending through them to get Hilton Honors points, but if they pull any bullshit on me, I'll just stop using the damned thing.

[tomm2thumbs]

31. she should ask THEM for their financial statements - since the govt seems not to know it

Amex should be the first casualty of this recession. We'd all be better off.

And she should take her business elsewhere. Me and my sister did.

[myrna minx]

83. Welcome to DU, tomm2thumbs.

:hi:

[Doremus]

33. Tax returns aren't going to tell them anything about ability to pay.

It's accounts payable that matters, not income.

I have no need for an AmEx card but I certainly wouldn't have one if I they pulled this sort of blackmail on me.

[Bette Noir]

34. Is this real? It sure sounds like a hoax.

Maybe someone is trying to hoax this woman into giving up her personal information.

[myrna minx]

84. At the link, this was confirmed by the writer of the column. Unfortunately, it's not a hoax. n/t

[quiet.american]

35. Credit card companies sell a product like anyone else, but we've given them almost total control.

Rifling through one's tax returns is more power than a merchant should have over their customers.

This is sleazy on so many levels.

[canaar]

36. Count me in as another

disaffected AMEX card holder. Been a cardholder since '84. Never defaulted. They notified me that they were setting a dollar limit on my card. I was under the limit and needed to use the card for business travel expenses. Was current with my payment and the expected charges would have been below the limit they set. Nonetheless, they denied the charges and their customer service rep demanded that I pay my accrued balance (2 weeks prior to the closing date) on the spot via bank transfer before they would approve the charges. Upon my return from travel, they sent me correspondence that they had reduced my pre-set limit by annother $1200.

As soon as I make other arrangements to take care of business expense cash flow, I'm going to sharpen the edges of the card and return it to them with an invitation for them to jam it up their ass.

[myrna minx]

85. This has been happening to so many Amex customers. It's just shocking how

they will become a "bank" to receive TARP money and turn around and screw their good, long time customers like this.

[progressoid]

37. Yikes.

That's some scary shit.

[BobTheSubgenius]

38. I've been SHOCKED by the new credit climate.

Not long ago, for the first time in my life, I had Visa decline a transaction. I know people for whom this is a regular occurrence, or at least a familiar one, but it surprised the hell out of me.

The purchase was $6.71, and the only reason I was using my Visa card is that I was too lazy to walk into the parking lot through winter weather to retrieve my cash from the vehicle. At the time, I believed it was because of a visible nick in the mag strip on the back of the card, but it turned out that my card was "shut off."

The reason? I was 4 days past the due date for a payment. NOT 30 days+, or worse. 4 f'ing days. Was I pushing my credit limit? The balance - NOT minimum payment, but BALANCE - $54.60. Less than $55 on a card with a $15,000 limit. What is that? .346% Yeah. Less than half of one percent of my credit limit.

I had NEVER had a transaction declined before, and I've been a Visa cardholder for more than 30 years. It took one phone call to straighten it out, but it will take a LOT more than that for the bad taste to vanish.

And, if you're wondering....no, I did not go off on the agent that took my call. It was FAR from his doing, and as he treated me politely and with respect, I did the same. I'm not terribly happy with people that "earn" my entire net worth ever quarter, but he didn't make the decision to create a hassle for me.

Besides, I WAS 4 days over the due date. :eyes:

[cosmicone]

41. The story omits some critical information

Just because she was never late on a payment doesn't tell the full story.

Amex cards have two types of credit. Some amounts are due in full at the end of the month while some (such as travel expenses) can be spread out over time and the debt carried by a cardholder increases. There is also a "Blue Cash" credit line card where one can pay over time.

What I suspect happened is that Ms. Jones was simply making the minimum payment due in a timely manner while her debt was increasing due to spending in excess of the minimum payment. This latter part would make any lender worried (even if it is your mother, let alone a third party)

If she carried a zero balance, there is no reason for Amex to worry and I doubt they would investigate under those circumstances because investigations cost money.

I have 6 Amex cards and the only time I am asked to substantiate anything is when my debt owed on them goes to scary levels. I therefore choose to pay the bill in full each month as much as possible to avoid an interrogation.

The tax returns are justified only to see if she makes enough money to justify carrying the balances she is owing. Remember, they didn't CANCEL her cards, just put a temporary hold. Doesn't a creditor have a right to use good lending practices? Would you rather see banks lend money without verification to people who cannot pay? Oh yes -- we tried that already. Didn't work so well. We even blamed the banks for doing so on this board.

As to the risk of identity theft -- I have a lock on credit reports with a password. No one can access them unless I let them.

As to all the xenophobic comments every time some work is sent to India -- nothing new on this board. Oh yes, other countries don't have privacy laws - only the US does. We all know people in other countries are incompetent, unethical and unscrupulous... not like Americans who are 100% paragons of virtue, working under strict privacy doctrines and strong oversight.

[GoCubsGo]

60. You also bring up a point that the whole thread is missing....

Many versions of American Express are a "charge" card, not a "credit" card. Diners Club is another example. It's in the contract that you pay it off at the end of the month or incur huge interest charges--unless you have an Extended Payment Option. The EPO lets you spread charges over a certain dollar amount over time. Part of the problem here is that people assume AmEx is a credit card and treat it as such, because they didn't read the contract before they signed it. Most of it is AmEx's fault for having a contract that nobody can understand, and for misleading commercials that make people think they're a credit card when they are not.

What problems I have had in the past have come from credit cards, not my AmEx. I always pay everything off at the end of the month, regardless of what card I use. The credit card companies call people like me "deadbeats". Nice, eh? I'm a "deadbeat" because they can't make any money off of me. So, what do they do about us "deadbeats"? Why, they shorten the grace period for paying off the balance to a week. That way, the bill comes three days before it is due, and there is no way of avoiding a late charge, because there is no way of getting it back within three days via USPS. Once I had a $39 late fee for a $36 balance. I cut that card up that day. (I only keep the account open to keep my credit rating up.) Yeah, I could have paid on-line, like I do with AmEx, but fuck 'em. I only use the credit cards because I don't like carrying lots of cash, and I can keep better track of my spending. I use American Express for just about everything because it gets me airline miles. If a store doesn't take it, I use my debit card.

[pipi_k]

62. One solution to the late fee

I pay most of my bills online through my local bank. Some bills get paid by the bank in three days, other get paid in five days. I prefer this to mailing the payment in because I just do NOT trust the USPS.

There are times when the online services aren't available/are down for maintenance or whatever, and this has worried me at times, although I do pay my bills within two days of receiving them...

Anyway, what I've been thinking of doing, especially with my credit card bills, is setting up my online banking to automatically send in a payment before I even get a bill. My charges are pretty much the same each month (plus I keep a record of what I charge), so I know what the minimum payment is likely to be. That way, even if my bank is down when I actually get the bill and am going to pay it, at least the minimum has been paid long before the due date and I can wait till the bank is back up to pay on the rest.

You might want to do something similar. If you keep a written record of all your charges, you will know pretty much what you owe, and you can even pay a buck or two over what you think you owe, just to be safe.


They think they're so damned crafty, the bastards!

We have to outsmart them at their own game...

[snappyturtle]

72. Be careful paying early......I've done that thinking it would go to the

up coming payment and no, it didn't! Capital One. They are sending me e-mails that my cc payment is due and if I pay it when it comes I would miss the upcoming payment. I think it's a scam and very slimey on their part. I called customer service and asked about it and they verified what I just said. OF COURSE, I could make another payment....which I had to do once because I had paid TOO early....going to be out of town so I paid it early....luckily I checked to see if my payment had been received and I still saw the monthly due date...that was the clue. I think they were setting me up to miss a payment...which I never have done.

[Pacifist Patriot]

68. I have no love for AMEX, but you bring up an important consideration.

One of my cousins has never missed a payment but is now $75,000 in credit card debt on a $23,000 per year salary. I do hold both my cousin and the credit companies partly responsible. He should never have spent above his means and they should never have extended additional credit. It was all done through balance transfers to add a new account. The credit companies have been way too aggressive with balance transfer/debt consolidation. It's way overdue for drawing the line.

[Pithlet]

88. You're simply guessing.

You suspect. But you have no idea. Amex cut my rate. Sometimes I do carry debt on my card, but not always, and never to "scary levels". They're doing crap like this to a lot of people.

[radfringe]

43. Where are the NOPers and FED on this?

In the past, to 'stimulate' the economy the FED bank has cut interest rates and NOPers advocate tax cuts - meanwhile Credit Card companies raise their interest rates.

Believe it or not the excuse for raising YOUR rates has nothing to do with YOUR credit record - it's the economy and the rising number of Credit Card delinquencies/defaults. In the twisted greedy logic of the Credit Card world - to make more money they raise your rates and fail to understand they are creating even more defaults/delinquencies.

The FED can cut interest rates and NOPers can push tax cuts - neither of which will help YOU out when the credit card crooks take it away with their obscene rates.

In the long term, people will remember the gouging and will be less likely to use a credit card, any extra money they may have now will go to pay down their cards and not "trickle" into the general economy.

I know there are those in Congress who are speaking about addressing these obscene rates at some point late this year. However, it should be done SOONER rather than later if we are to avoid a meltdown of the credit card industry that will be even worse than what we are experiencing with the housing mortgage.

There have been a few "satirical" articles advocating people to just stop paying their credit card bills - the theory being if EVERYONE stopped, what would the credit card companies do? If they lower EVERYONE's credit rating, the "new low" will become the "new high". Of course, to be effective a significant number of people would have to participate - and that's not likely to happen voluntarilly - however - if the credit card crooks continue to raise rates, more of us may be withholding our payments because we just plain can't afford it.

You've seen the commercials on TV, where the Pillsbury Dough Boy, Chef Boyardee, and Count Chockula (et al) are sitting around a table feasting on food while the Jolly Green Giant peers in through the window - all brought to you by using your credit card to put "food on your family" and everything will be fine and dandy.......until you next bill arrives and they have raised your rates.

I've mentioned this before and I'll mention it again - IF the credit card companies were smart - they would be lowering rates and spinning it as a way of helping people out, a show of shared sacrifice in these harsh economic times. Looking to the future - would you be more likely to use a card that raised your rates or one that lowered them?

[aikanae]

44. AmEx aren't the only ones doing this

On Consumerist there was a post about BofA doing the same thing. I discovered that because I'd had a charge denied. When I called the credit card my limit had been reduced to what I owed. That's over $3k less and looks like I've maxed out my limit to anyone looking at my credit report. They would not reinstate my original limit and would not tell me why, but said a letter was on the way (also in India - same call center?) I hadn't missed any payments and paid more than the minimum.

Well I got my letter - 3 weeks after my limit was reduced. It was a good thing I was sitting down or I might have fallen. The reason was:

"lack of open real estate accounts".

Huh? I own my home free and clear. There's no threat of foreclosure and that's a reason to limit my credit? After I stopped laughing, I searched online and discovered thousands of complaints about this, for all credit card companies. All of them recent, no notice and usually "just because they can". I realized how are people going to spend and bring up the economy if their credit is reduced to zero?

Everything is based on credit reports and scores; my insurance payments, how will my other credit card react? Will they want to lower my limit or raise my rate now that my credit score is lower? Even credit-worthy people, aren't any longer without available credit open and it's not their fault. Just like I didn't do anything wrong. There's a lot of things I can't do without a credit cared too. This will kill online business'.

This also means the only way a credit card company can make any profit will be off of increasing interest and bank fees.

And this really undermines Obama's recovery plan. Credit cards seem like part of the gang holding the US economy hostage.

[busymom]

46. Holy. Crap. n/t

[NNN0LHI]

55. Wait a gosh darn minute. ... can't remember being late on a payment ...

That is something I would certainly remember.

And why would someone have 3 AMEX cards? I don't get it?

I must be missing something here.

Don

[MadHound]

56. Screw 'em then,

Cut up your cards and your life will be better off because of it. Screw this idea of letting CC companies run your life.

[carlyhippy]

57. well, I would have asked for a higher up...

then told them exactly where they could shove their 3 amex cards, sideways. Then I would apply for a card where I would not have to deal with that kind of hassle

[Marrah_G]

61. This is absolutely insane.

The Dems and Obama need to get some regulations in place FAST.

[myrna minx]

64. This article made my jaw drop. n.t

[pipi_k]

65. OK I just read the article...Barclay Bank did the same thing

Mr Pip had a card through a different bank which was bought out by Barclays. I used it exclusively for nearly ten years and ALWAYS made payments on time and in full.

No problem while the card was at the previous bank. Once it was under the control of Barclay Bank, the same thing started to happen. Places I had used the card before (and on a monthly basis, like Netflix) were sending emails back to me saying that there was a "hold" on the card. The monthly balance wasn't ever anywhere NEAR the limit, and always got paid off in full.

Anyway, Mr P called customer service...some guy in India who spoke limited English. And this is not to denigrate people from other countries, but goddamn...when we're talking about something as important as finances, it's fucking nice to be able to actually understand what the other person is saying, you know? In any case, this guy didn't ask for tax records or anything, but because I was using this card, they needed "authorization" from my husband for me to use his card!!!

WTF???????? What the hell am I...a second class citizen???? I now need "permission" from my husband to use a card I had been using and paying on for nearly ten years?????

This happened three times...each time Mr P called customer service and told them specifically "DO NOT PUT A HOLD ON THIS CARD AGAIN WHEN MY WIFE USES IT". Each time the guy said "OK" and that he would make a note of it.

The final straw came when they did it a third time PLUS they raised the interest rate on a cash advance that was supposed to be separate from the charges put on each month.

The company refused to consider putting the interest rate on the cash advance amount back to the rate they first gave us (for about two months) even though all payments were, again, being made on time.

So Mr P transferred the balance to another card and told Barclays to piss off.

Like someone above said...pay your bills and get screwed over. Don't pay your bills and lose credit points. There's just no way to win. And they do it because they can. Or THINK they can.

[tjwash]

66. AMEX is the fucking worst.

Screw them...

[Fla Dem]

71. Over selling credit cards caused a lot of the financial problems the CC companies

are experiencing now. Get rid of all credit cads, Pay by check or cash. I'm outraged personal financial information is being outsourced to foreign countries.

[blaze]

78. Checks?

Last year, I paid my property tax via check. When I went to pay my property tax this year, it took me two hours to find my check book!! That's the only thing I've paid by check in over a year! I use my debit card for everything. Gas, groceries, starbucks.... I take $100 out in cash at the beginning of the month and sometimes less if I haven't spent the previous withdrawal.

I have one, small monthly charge that goes on my MC every month. With a very occasional additional charge or two around the holidays.

I'm not ready to change my habits at this point, but I'm sure keeping my eyes open.

[Uncle Joe]

80. Demand American Express' s tax returns for the past three years,

if they don't supply them or you find them unsatisfactory to your borrowing needs, drop American Express.

[robinlynne]

86. shit!!!!!!