Monday, March 16, 2009
Kotz / The Economy New Credit Card Scam: Cutting Your Limit Without Telling You
Posted by Pete Kotz on Mon, Mar 16, 2009 at 1:38 PM
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If you're unemployed, short of work, or just struggling to get through rough times, you may have been counting on your credit card to get you through the night. 
Don't. The card companies have found a new way to screw you by reducing your credit limit -- without bothering to tell you.
SmartMoney reports that companies like American Express are pulling in their credit lines, unbeknownst to customers. They're even cutting ceilings to below what you already owe, rendering the card useless. But you'll only find out in the most embarrassing way--when you're card is rejected while trying to make a purchase.
The practice, alas, is perfectly legal. In July of next year, they'll be forced to give you 45 day's notice before reducing your maximum. Until then, prepare to be embarrassed by that company that's long professed to "appreciate your business."
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