The Conservative Cave
Current Events => The DUmpster => Topic started by: terry on December 22, 2008, 10:11:14 AM
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CatWoman Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Sun Dec-21-08 05:08 PM
Original message
Credit card companies lowering limits based on WHERE you shop
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Kevin D. Johnson returned from a dreamy Jamaican honeymoon in October eager to check out wedding photos and help his new wife open stacks of beautifully wrapped wedding gifts.
Before getting distracted by the fun stuff, the 29-year-old entrepreneur opened the mail. Johnson’s mood soured when he got to a letter from American Express, saying it had slashed the credit limit on his account.
Johnson was surprised, since he has a perfect payment history and a high credit score. And he was floored by one of the reasons American Express cited: It didn’t like where he shopped.
“Other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express,†the letter said. Johnson complained to American Express by phone and letter.
“That doesn’t have anything to do with whether I’m a paying customer or not,†he said in an interview.
Johnson checked his charges to try to figure out what might have raised a red flag in the American Express data-mining model. He didn’t see anything but typical transactions, including purchases at Amazon, Ruby Tuesday, Wal-Mart, Starbucks and Federal Express.
“I understand the need for and the power of predictive analytics,†Johnson said, “But I think they have crossed the line.â€
American Express declined to discuss Johnson’s account. But it confirmed that it examines spending patterns. It’s just one of many tactics that credit card companies are using to try to keep default rates from growing higher. Along with studying shopping habits, American Express considers which mortgage lender a customer uses and whether the customer owns a home in an area where housing prices are declining.
These factors are combined with a review of other details to decide whether to adjust a credit limit.
“We’re just doing this to manage risk,†said Lisa A. Gonzalez, an American Express spokeswoman. She declined to say which retailers or mortgage companies are associated with consumers with higher default rates. She said it makes sense to examine these factors because “customers who have loans outstanding with certain lenders or customers who make transactions with certain merchants tend to have a higher proportion of credit issues or a higher probability of default.â€
“It’s not a fair practice,†said Travis Plunkett, legislative director at Consumer Federation of America, a consumer advocacy group. “I imagine this person feels this is guilt by association. It doesn’t work in the justice system, and it shouldn’t work when it comes to credit card charges.â€
http://www.ajc.com/news/content/business/stories//2008/...
TomInTib Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Sun Dec-21-08 05:38 PM
Response to Reply #7
9. I don't think they really care.
Amex has been bombarding us with unsolicited cards. We take them, charge $1500, pay it off and they give us 20,000 free air miles. I'll bet we have eight of those cards right now, in different names.
:whatever:
link (http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4697460#4697486)
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I dare someone to burn a mole and post "You are so full of shit, Tom" in response to that. I bet it gets deleted and the account banned faster than TiT's for posting about illegal activities (which $kimmer supposedly deletes).
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Amex has always been pretty picky about who they give cards to.
TiT hasn't been one of them.
Two hardest cards...traditionally...to get were the Sears credit card and AMEX...neither of which I'd be willing to bet TiT has ever had in his wallet.
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Two hardest cards...traditionally...to get were the Sears credit card and AMEX...neither of which I'd be willing to bet TiT has ever had in his wallet.
If he did they were never his to begin with.
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He isn't even trying any more.
Since you have to use your real ID to fly, what the **** is Souper Genius gonna do with frequent flyer miles under different names?
And also why does someone hooked up with a babe who owns $5,000 dollar a night rental properties NEED to rip off Amex for a few measley FF miles? :bouncy: :jerkit:
Zero Bongs.
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He isn't even trying any more.
Since you have to use your real ID to fly, what the **** is Souper Genius gonna do with frequent flyer miles under different names?
And also why does someone hooked up with a babe who owns $5,000 dollar a night rental properties NEED to rip of Amex for a few measley FF miles? :bouncy: :jerkit:
Zero Bongs.
Remember, he posted that it's not even his name on his driver's license! See, it all fits in with the fake credit card.
:rofl:
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He isn't even trying any more.
Since you have to use your real ID to fly, what the **** is Souper Genius gonna do with frequent flyer miles under different names?
And also why does someone hooked up with a babe who owns $5,000 dollar a night rental properties NEED to rip off Amex for a few measley FF miles? :bouncy: :jerkit:
Zero Bongs.
I do believe that wit regard to TiT we've been using the wrong scale to judge his tales of mystery and adventure.
(http://img388.imageshack.us/img388/1514/x1pxjqifqrfq7rscimllz0jlx6.gif)
Personally...I'd rate this latest story a 7 cow pie whopper.
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Two hardest cards...traditionally...to get were the Sears credit card and AMEX...neither of which I'd be willing to bet TiT has ever had in his wallet.
IIRC Sears would give their cards out to anyone with a pulse. Their credit card problems were legendary.
When I was in college, they were used as an example of what not to do.