Furious at Credit Card Company

[Miss Firecracker]

It sounded very risky to me. If you were on their end, I think you would agree although it's hard to be objective right now I'm sure.

[mintblossom]

I've regularly asked for credit line increases every 6 months-1 year if it's not offered. Some of my cards have been increased by themselves. I don't see what's the point of maintaining any company or card loyalty like I have been doing then. Apparently, it counts for nothing. They can clearly see I have a clean and steady history. One of the guys at the company said if it were him, he would have just declined the increase but wouldn't have decreased it. What that says to me is that I happened to speak to the wrong person before.

 

I've now realized you can spend years building a solid credit history, a solid credit score, and upping your credit line, all for that to be dinged at the whim of a person at the credit card company once they think you are of no use to them. Just reinforces my belief, in this world, wealth and status are what counts and when you are feeling down and out, in my case, suffering a job loss, people and companies feel welcome to kick you. And I'm sure those same companies and people will be back sending me offers and pretending to be nice to my face once I regain a job position and earnings again. A cold harsh dose of reality.

 

Well this is a minor setback. Really pisses me off and I'm very resentful, and it has killed any loyalty I had to them, kind of a shock too. But hopefully, just a learning experience and I think will be easily overcome once I get over my feelings of outrage.

[avman]

mintblossom I think you might be missing the point here. The point isn't that they don't feel you are a loyal customer or that they don't appreciate your business. The point is that currently you are unemployed. They have no way of knowing whether that's a short term thing or a long term thing. And it does no good for a bank to have a customer with every desire and intention to pay - but not the ability because they are not employed. The result is the same, the bank is screwed. If your limits have been increased and increased and increased over time then I can understand that probably raised a red flag with you now being not employed. They have to take into account what the risk is now given your total amount of outstanding credit.

 

Please try not to take this so personally (though I understand it feels that way). Once you have yourself a new job and things have stabilized give the bank a call. Chances are good they'll restore your line of credit back to where it was.

[mintblossom]

I get the point, but I don't agree.

 

1. If I had been in dire straits, and this trick of theirs to reveal my financial situation (by saying decreases are "very rare"), I would have been totally screwed by this sudden decrease. So there is extreme resentment regarding - What if? What if I really needed funds? What if I were one of those Americans who were barely scraping by? I could just imagine it pushing me over the edge. I look at how I am treated during rough times (by friends, by companies)....those that kick me when I'm down will not have my loyalty and regard (personal or businesswise). This also makes me understand news articles I read about greedy financial companies sitting on billions in cash while tightening lending and refusing to hire, the very companies that started the crisis which jeopardized the financial situation of millions of americans.

 

2. Their screening processes obviously lead alot to be desired as they have focused on one detail and neglected the whole picture. I probably have better credit score than most customers.

 

3. The attitudes of the representatives could not have been ruder and more offensive. How do I describe it? It was dismissive, rude, without regard. They made it very clear they don't care and could not care less. I HATE it when companies and their reps think they can just talk to you in such a manner. If they had been kind and considerate, I think that would have helped some, nothing like being brushed off. As it is, I found scathing reviews of their customer service online and now I understand why. I also read reviews by people whose credit had been arbitrarily and randomly cut by the same company, and now I understand how they feel. I have dealt with credit card companies that did not treat me like this.

 

Ugh. Never again.

 

Yeah, one of the reps said he would bet my credit line would be restored once I get a job. However, this doesn't mean I'm going to forget what they did and doesn't mean I'm not going to look for a better card and switch. They might not know the difference, but I won't take my business where it's not treated with more respect. There has got to be a company that will value long-term customers who have built a good track record.

 

Anyways, I'm done venting. At least I got my feelings out.

[OptomisticGirl]

Yes, there are companies like that but you also have to remember banks are down to protect their bottom line - doesn't matter if you have been a customer for 25 years, if you become a risk factor, they aren't going to take that risk on you just because you are a loyal customer. Because anyone can be a loyal customer and then screw the bank.

[mintblossom]

If my intent was to screw the bank, then it would make more sense for me to lie.

 

As it is, I was honest and penalized for that honesty. There was no need for them to decrease credit. Most likely they have millions of unemployed customers who they don't know are unemployed and whose credit lines haven't been touched.

 

I watched a documentary with Elizabeth Warren who said that banks' favorite credit card customers are those who have already declared bankruptcy before. Why? Because they know such customers can't declare bankruptcy again, are likely to rack up balances and are likely to incur lots of high penalty fees. That's where banks make their most profits. That doesn't have much bearing on my case, but what I'm saying is that banks do lend to far riskier customers. It is not just about them avoiding risk.

[OptomisticGirl]

But you have to look at it from the banks' POV - the truth is, you are just a case number to them who has a credit card with them, it's not like you go on weekend getways with the owner of this bank, correct? There IS no personal relationship. As someone else said, I'm more than sure if you go back and read the fine print, it will clearly state they can decrease your credit if they feel you are high risk or something.

[mintblossom]

I don't know if you have ever had your credit line cut for whatever reason, but once you have, you'll know how it feels. This never happened to me before but I know the feeling now. There is no personal relationship, but there is a good long established credit history.

[Miss Firecracker]

Any bank would have made that decision. And as cruel as it may seem, they do not want customers that are in dire straits. When you apply for the card, you tell them your income and they give you a line according to that number. If it goes down and you happen to TELL them this, then they cut your line down.

[civilservant]

I just think you've taken what was a sound business decision far too personally. I agree that you seen to think that the bank ows you something because you've been with them for awhile, when in reality that never was the case. Just be thankful that you don't need the credit, that's my opinion.

[sadchick83]

I lend money for a living, and agree with what the bank did. It was not the reps fault for what happened as there likely is a policy for extending / examining credit when someone has lost their income.

 

You were not penalized for your honesty, you were penalized for not having a regular source of income. This has nothing to do with kicking you while you are down. Credit card lending is risky because there is nothing securing the debt. If you had a mortgage, I doubt they would have called the mortgage because you lost your job--The difference? There is an asset behind that debt. You make the bank out to be some sort of saviour/welfare state while you are under earning.

 

This feeling of entitlement, or rather that you are owed extended credit when you make less/no money is a little odd. I really think you are overreacting, even projecting anger against this company. Go for a run, relax, and pour this energy into finding your new dream job.

[Batya33]

Look at it another way- if the company extended credit to everyone in your situation, at some point they'd have to raise your rates or add fees, etc.

[FathomFear]

Again, I think the fact of the matter is that large financial institutions and/or credit card companies do not have the luxury to get to know people intimately. At the end of the day you just fall into a segment. If your segment (Unemployed + clean payment history + asking for an increase) is risky, on average, you will be grouped into that. Demanding that you speak with someone about your individual situation isn't going to do much. They will stick by their risk models almost 100% of the time. If they didn't, there would be chaos and they'd have no way to manage risk.

 

The kind of personalized service you're looking for, where someone can have an intimate relationship with an adviser and such, is best sought out at local credit unions. You will never get this kind of service over the phone with a large bank. I can understand being frustrated by it, but it's just not a realistic expectation to have of a large bank if you're familiar with how the industry works.

[OptomisticGirl]

I don't know if you have ever had your credit line cut for whatever reason, but once you have, you'll know how it feels. This never happened to me before but I know the feeling now. There is no personal relationship, but there is a good long established credit history.

 

I have, actually, and it was for this same precise reason - I lost my job and became unemployed. And I completely understood because I came a HUGE risk factor for them.

[sophie274]

Yeah, I agree with everyone else - while this can feel personal, it really isn't, and it doesn't mean that they're chastising you or kicking you while you're down. I agree that it probably did raise a red flag for you to ask for more credit while unemployed - unfortunately, lesson learned that next time (and hopefully there won't be one), it's best not to mess with things while you're not working.

 

The other thing is - a lot of time the phone representatives haven't necessarily had a lot of training, or they might be inexperienced, and IMO that's when you get misleading information or rude answers. I bank with Bank of America, and they've actually been quite good to me over the phone in customer service so far.

 

You must have had quite a high limit for them to be able to lower it by $5000, so I'm guessing you still have quite a bit of credit too, so you're not in dire straits. I haven't been in your situation but I do understand the frustration of them doing everything in a standardized way rather than taking the time to review one's personal situation. I opened my first credit card last year with Bank of America, and it was my first card and I was not making a lot of money. However, I had no rent payment (housing free with job), and so I saved more than half of my income. Anyway, the bank would only give me a $500 limit, which, honestly, is basically like NOT having a credit card. Then I got a new job in July that paid more than twice as much (still no rent payment), and I applied for a credit increase, but they told me I hadn't had the card long enough. Very different situation, and I totally see where they're coming from, but again, based on my personal situation I feel like they really could give me an increase, because it's frustrating to not be able to put ANY big purchases on the card. I always tell myself - joke's on THEM - as I pay off my balance when I get every bill, and they make zero money off of me, muah ha ha

[lavenderdove]

I don't think they lowered your line because you asked for more credit, they lowered your line because they found out you were unemployed.

 

Lending money is all about risk, and banks weight the odds of whether they might get paid back or stiffed if they lend you money. If you don't have a job, that puts you into a higher risk category. People don't realize that one of the main reasons credit cards have such a high interest rate is the huge number of people who run up their credit cards when they get into financial trouble or become unemployed, then they stiff the bank and don't make the payments or just declare bankruptcy.

 

So this has nothing to do with whether you are a good person or a bad person or anything else, it is a financial decision banks make based on risk and what risk category you fall into. Unfortunately even people with great credit if they fall unemployed may end up in bankruptcy and stiff the bank...

 

Also remember that the bank is about MAKING money and not being your friend to help you thru a tough spot or give you more 'insurance' if you are unemployed. You can't shift your own financial risks onto the bank because banks are a business and don't want to lose money.

 

So i know it is upsetting, but it is just financial reality and the way the world works. If banks find out you're in a situation where you are unemployed, they are not going to give you more access to spend more of their money if there's a chance you won't pay them back or might start making late or no payments, which happens very often with unemployed people who just don't have the money to make the payments. They have no way of knowing all the details of your own personal situation, so they have to place you into a risk group based on whatever information they have on you, and if you are unemployed, that drops you smack into the middle of a high risk group, so they will drop limits and frequently down to the level of only $100 or so above what you currently owe them. They just don't want to lend more money that they aren't sure they'll ever get back.