Interesting way the CC scam us further

[twuoo]

I got a letter from AMEX today. I had about $4,000 before I hit the credit limit.

The letter stated that they dropped my credit limit such that it is now closer to $200 before maxing out versus $4000 before maxing out.

I just realized the brilliance in this for them. What that means is when they tag on the late fee, it won't be long before I max out the limit. Then they can add an additional over credit limit fee too on top of a late fee. That will bag them even more money to be able to write off as a loss.

Any way you slice it, the cc companies get big dollars from us anyway.

[Granny]

They did that to me once when I was carrying a balance on the sign & travel portion of the card. After I paid it down, they raised it again. They shouldn't have done that, it was my savior during the tough times and they wound up eating it.

[wayne-o]

I was paying my living expenses, gas food with my amex that was paid off monthly. I spent more than normal one month and they stopped my use of the card and lowered my monthly spending amount. I had the card for 8 yrs and had NEVER been late. Their smooth move is what sent me to my first bk consultation.

[leftyf]

Write-off as a loss? Why would they want to do that? I guess if someone gets a bonus on the top-line maybe, but other than that, they've paid out $4,000 or so and now they're not getting any of it back...that can't be good. I think one of the great things about this country is that there is so much capital available that people are willing to take a gamble on a dead-beat like myself...haven't paid a creditor in 3 months, but the cash advance checks just keep on coming. I was opening a cash advance check from BOA the other day just as I noticed their collection dept. calling...very strange.

[SinkingFast]

That happens real often with the big CC's.

Those cash advance checks come from a special promotion company, retained months/years in advance.

Chances are, if you used one of those checks, it would bounce. BoA would not honor the charge to your past due acct.

[CATCHMEIFYOUCAN]

Cash Advance Checks from CC's are only good if you have the available credit! I thought American Express was unlimited? You just need to make sure you pay off the balance in full?

CMIYC