How to Blow Your Credit Limit -- Without Spending

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MzSnowleopard
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How to Blow Your Credit Limit -- Without Spending

Post by MzSnowleopard » Sat May 16, 2009 3:26 am

I found this article through the DMP program site I'm with. I can't count how many people have told me this is a myth... The act of credit card issuers slashing credit limits below what a person actually owes is a fact...

The interesting part of the article is the response from the different companies- "did not respond to requests for comment".

Just because there's not a law against a practice does not make it right... The act of decreasing some one's credit below what they owe and then profitting in the form of ' overdraft fees ' is well... immoral.

Shame on the credit issuers.

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Of course it would be easier for consumers to simply stop using their credit cards. With the advent of the debit card I would think it'd be a better choice.
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Dark Angel
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Post by Dark Angel » Sat May 16, 2009 5:58 am

Actually it may soon be against the law along with a whole lot of other things they do...
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MzSnowleopard
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Post by MzSnowleopard » Sat May 16, 2009 8:24 am

"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," says Wu.
Unfortunately it's already a little to late for some people. And some banks- like First Premier are choosing to not accept the terms of repayment through a DMP. This is all good and well- and I'm fine with it. What I'm not fine with is this $ 7 " maintenance fee " that 1st Premier charges to each card. Whether you have charges on them or not- with this company you will always, every month have that $ 7 fee to pay.

Yeah, I am seriously wishing that I had not gotten this card. I'll most likely close it when my credit can stand against a 50 point drop.
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