Are MC/VISA cutting off credit to low income NO refugees?

[rrrevolution]

If you read the cardholder agreement that comes with your credit card, it typically provides that the credit issuer(Mastercard/VISA)can withdraw("pull") or reduce your line of credit without a reason, or if they believe you are no longer worthy of the credit line established.

For example if you are late on a cable bill or other local obligation, they can reduce the credit line, withdraw credit altogether, or just raise the interest rate to the default rate(often approaching 30%)without prior notice--even though you were never late on a payment to them in your life!

It would not surprise me that they would be "pulling" credit cards from NO folks with lines of credit that correspond to most everyone except the rich.

They don't have to tell you their thinking, but I am sure they would view credit card purchases by folks who lost everything as likely never to be repaid.

[Cassandra]

1. The poor mostly don't have credit cards but...

the middle class may get a rude awakening.

[LTR]

2. A little good news

Ford Motor Credit and GMAC are allowing customers affected by the disaster to defer payments.

http://www.detnews.com/2005/autosinsider/0508/31/01-297876.htm

I think this was a very nice move.

[ret5hd]

3. yeah, except they are MAILING the "application" for the program...

to those affected. Make sense to you?

[rrrevolution]

5. Just Reality Recognition--How Many Pmts Did They Expect to Receive?

from NO people who lost everything?

At least they got a little good PR out of it.

A later post in this thread reveals the truth -- mailing an application for people to defer payments might as well be no program at all. The mail to NO folks wont be delivered for months and months.

[pointblank]

4. It wouldn't be MC/VISA doing that...

It would be the issuing bank.

The CC comapanies do not dictate credit lines, rates, approvals etc...The banks do

[rrrevolution]

6. You Would Be Amazed How Many Poor Have Credit Cards w/High Interest

and low credit lines of $300-500 each. Remember, once maxed out, these cards generate huge income to the issuer in the form of default interest rates up to 30%, over the limit fees, late fees, etc.