why can a credit card company reduce the credit limit on a credit card holder who pays them on time?
the scenario being as follows:
Credit card consumer has a $3,000 credit limit and owes $2,500. Next thing the consumer knows, he gets a letter saying that due to his declining credit score, his limit is now $2400….which puts the consumer actually over his new limit and certainly in a maxed out position on that credit card, which of course will further cause his ceedit score to go spiral downwards.
How can they get away with this plus all the other stuff they do like raising your rates even on money that you have charged already, etc…
who writes such laws that gives these companies such power over the citizens??
I hear the government is now proposing to change some of these rules to make them more conusmer friendly and less pro credit card companies, but I hear these new rules won’t take effect until the middle of the year 2010.
What is up? They never should have had those old rules and even now they want to drag their feet to change them.
Anyone notice how the bad stuff always can happen instantly but the good stuff…takes time??
MPE…the question was why the laws allow them to do that to consumers.
I am zeroing in on the laws.
it sounds like some people believe that if a credit card company can enforce this:
“we can raise your intereste rate up to 40% if we want…on all your balances, we can reduce your limit and raise your rates if your scores go down even if you pay us on time, and we will charge you a late fee up to 20% of your balance if you are late or a mininum of $100.” and that the reason they can do that is that people signed the paper.
lol
thanks for the honest and truthful answer dino. Its really amazing how callous and unfair some americans are in their way of thinking…they are literally saying that because a bank gets your signature on a paper that they can legally rob you blind and abuse you. lol
John
