Mastercard credit limits being reduced 90% without notice.

[Chipper Chat]

My mastercard was declined at two places today. I called and found out MY CREDIT LIMIT HAD BEEN REDUCED FROM $4,100.00 TO $490.00 and I was overdrawn by $245.00. All this WITHOUT NOTICE (excuse the caps but I am pissed).

The CS rep says this is no way a reflection on me but a company decision to "reduce losses." Now I've had this card since the early 90s from HBSC which used to be called Direct Merchants Bank. I usually pay off the total monthly balance and have no late fees and very little interest fees. The rep says I will be getting a letter of explanation. Whoopee! Well, I told her what I felt about the situation and was abruptly connected to a supervisor who just gave me the whole story again. I said I wanted to pay the $479 balance due and cancel the card. She said "Just when do you plan to pay this balance?" I said "immediately when I get off the phone with you." She replied, "Are you sure you want to do this? Once I press this button you wont be able to get the card back." I said "What good is a credit card with a limit of $490 in today's society? Yes, CANCEL THE CARD". She then curtly said "Is there any-thing-ELSE I can do for you? Oh god, you can imagine the things I wanted to say with my acid tongue!

Bottom line: What is happening here? Is HBSC getting ready to go under? Anyone else out there with a similar story?

[Spouting Horn]

1. They j ust upped ours,

I noticed on my last statement (never asked them too). We pay it in full every month.

Of course, we live well below our means, drive only one car, and save most of the money we earn. We are so stupid.

[SoCalDem]

2. The Crack dealers have lost their suppliers

and the customers will have to do with less..


seriously though, they should have at least told you :(and they should not charge any over-limit fees..:hug:

every month I look at my statement for the one card we have, and they have still not cut our credit limit..in fact a few months ago they raised it from $12,900 to $13,200 :shrug:

[originalpckelly]

18. What happens to people who can't get crack?

They get angry!

[Donnachaidh]

3. of course with you being officially overdrawn now can they hit you with

all sorts of nasty charges?

[sandnsea]

4. Credit Card Securities, just like mortgages

Somebody posted an article yesterday that said the credit card companies did the exact same thing the mortgage companies did, and they're getting ready to collapse too. I don't know, but maybe we're getting an inkling of that with all these credit card stories lately.

[SoCalDem]

7. It's the last shoe to drop..Maybe then, enough people will be affected

that real pressure will be put on congress to finally address the problem.

fake unemployment numbers
Market bubble
Housing bubble
credit card bubble

game over..


The lack of REAL income advances have been masked for ages, by EZ-Credit and plastic..

The party's over, and all that's left to do is clean up the mess..

people will soon see that they have not been making enough to live on, for DECADES..and all the security they thought they were building in their 401-ks is not there now, and really never was, since the only people allowed to "play with their money" were the same people who STOLE it all :(

[DJ13]

5. The CS rep says this is no way a reflection on me but a company decision

Thats incorrect, as the reduced credit line will put a negative mark on your credit scores, and now that they dropped your line below your existing balance yhey will charge you their "default" interest rate, which may be 30% or higher.

[Matariki]

6. Are they charging you a fee for being overdrawn?

I imagine it will affect your credit rating?

[Chipper Chat]

12. A fee doesn't show up in my on-line statement.

My balance is now 0 so I'll notice if they sneak one in. I'm still in shock.

[tblue37]

26. Watch them carefully. They sometimes institute a small fee for some

weird reason, and then charge you for a late payment when you fail to pay the fee you didn't realize you had on your card, because you thought you had paid the balance in full and canceleld the card.

[customerserviceguy]

53. It can be damned difficult

to "watch" a card that you've cancelled. Often, you've also cancelled the right to observe that account online as well.

[Obamanaut]

56. Citi did that to me. I sent a check for "balance due" and later got

a bill for another "balance due" because, the rep on the phone said, there was an accrual of interest between posting the statement and the receipt of the check. I asked how much should I write on the check that I would mail the next day along with pieces of the card to never hear from them again, and to close the account immediately. Sent them a check for under $%, the cut up card, and didn't hear from them for a couple of years. Got an offer for a card last week. Shredded it.

[bermudat]

8. 'Is HSBC getting ready to go under?'

You just ruined my day. I kept $$ in an account at the Bank of Bermuda. It was bought out a few

years ago by HSBC. I always thought well hell, at least I have some cash not involved in this

American bank debacle. *uck!

[sandnsea]

11. Stanford used HSBC

I don't know if that means anything, but it's worth knowing.
http://uk.reuters.com/article/burningIssues/idUKTRE51J1XO20090220

And HSBC has been involved in the rest of this mess for years.

http://www.google.com/search?hl=en&q=hsbc+bankruptcy

[alcibiades_mystery]

9. Direct Merchants bank (now a cc division of HSBC) is a predatory lender

Pay off the card and close the account as soon as possible. That bank is the most despicable of all the credit card outfits, and that's saying a lot. Just google Direct Merchant's Bank for a summary of the horrifying business practices. they're loan sharks. Don't do business with them.

[customerserviceguy]

55. I did business with them for awhile about ten years ago

but only to try to recover from the bankruptcy I filed back in 1996. They were predatory then, and I can only imagine how much worse they've gotten since.

[thereismore]

10. That's cause you didn't max out the $4,100. They would not reduce your limit then. nt

[pipi_k]

59. Maybe, maybe not...I don't know if they would, but...

if you max out your credit limit, that's not considered good either, as they've been saying not to have a balance that's over a certain percentage in comparison to your limit.

30%? 50%?

I forget.

So they get you either way, no matter what you do.

those bastards!

:mad:

[kirby]

13. Thank you.

I hope the supervisor didnt forget to end the phone call with 'Thank you for choosing HBSC'.

[Chipper Chat]

16. No, she didn't.

:rofl:

[Debi]

14. AMX cancelled my card - that had a $0.00 balance

the smae month Target Visa DOUBLED Mr. Debi's credit limit on his card! :shrug: There is just no sense to be made.

[October]

19. AmEx changed our "limit" without notice.

It's kind of strange because we pay it off every month... so there's no balance carried forward.

[cascadiance]

29. They "creatively dropped my limit at the end of last month...

When they'd *just* received a big payment from me, and right after a vendor "replaced" an order from me (refunded the old one and *tried* to charge a second one, obviously running against my credit limit and the order was cancelled. They didn't credit my account with my payment (which they should have KNOWN was being paid) until after they went through these games...

That to me is the sign of a company being run by some total a-holes!

[myrna minx]

39. Check out a little background on Amex and their despicable practices.

http://www.newcreditrules.com/

This is a site that was created by a regular Joe, who has now become a consumer advocate.

[unblock]

33. there is sense to be made

most likely it really is a reflection on the banks rather than on you (though it is possible, your credit score and mr. debi's credit score might have moved differently recently)

lots of banks are really changing their credit card criteria and are lowering or canceling accounts they never would have in the past and are increasing others just to shift "risk" to better profile accounts. so unfamiliar things are happening.


one of my limits was lowered the same day one of mrs. unblock's was raised without asking.

[Debi]

37. Agreed

There was no reason for AMX to continue the 'risk' of me having credit with them (as technically I have no income - I work for Mr. Debi w/out pay so I was using 'household income' to have the card).

Mr. Debi is the one with the income, I'm sure Visa was more comfortable with him having credit (for the time being).

[unblock]

38. if you're legally married the risk is actually the same

that is, debt incurred in either name is jointly owed -- a potential source of much marital strife.
so in fact there's no real difference there.

nevertheless, your credit histories and scores might be different (if only because not all creditors report consistently and accurately to all major credit bureaus) so you might appear to have different risks.

[Debi]

42. We set it up that way, actually

I hold all the revolving debt (except the one credit card my husband has), the credit cards & the 'overdraft protection' line of credit on my checking account. Mr. Debi holds the mortgage. His FICO score is (obviously) higher than mine b/c of that - which was our plan b/c it allowed him to get a lower % rate when we refinanced our mortgage.

I realize that the debt is equal if we were to ever have to divide it (such as in a divorce), but our credit reporting agencies don't.

[Renew Deal]

45. Amex is probably trying to reduce their load.

And their risk.

[Debi]

46. Yep. Even though I had a $0.00 balance on the card

I could always go charge at any time. Now their 'safe' from little-ole-shopaholic me :crazy:

[Renew Deal]

49. Well, you could be fired tomorrow

Or something else crazy happens. You'll go where you can. I wonder if they have a way of observing the unemployment rolls.

[Debi]

50. I'm not employed.

And haven't been for the last nine years. I used 'household' income to apply for the credit card. My husband is the only 'wage earner' in our home. Of course, Amx knew that wen they gave me the card and the credit.

[Stephanie]

72. Me too

I didn't owe them a penny

[Celebration]

15. Okay, all I can think of is that it has to do with where you use the card

I read that they are reducing the credit limits of people who shop at stores where other people have the same card, and who are credit risks. This is a sort of redlining of credit cards.

So, if you go to a Fred's Dollar Store in a lower income part of town and use the card, this is more likely to happen to you than if you go to upscale store.

I mean, these companies are so out of control it is ridiculous.

[Chipper Chat]

21. Interesting observation.

I did use it at Big Lots and , er, uh, Walmart. Flame away!

[Celebration]

40. LOL!!

Nah, when we go to the river we have to shop at Walmart. No options. I was going to say the big "W" in my post but I didn't want to get flamed either.

But, I think that's the answer. Don't use your credit card at Big Lots and Walmart very much unless you want your credit limit dropped.

Their models should reflect other things. These people have just gone bonkers.

Here is an article about it. Must be the Walmart......

http://www.ajc.com/news/content/business/stories//2008/12/21/creditcards_1221.html?cxntlid=homepage_tab_newstab&imw=Y

[marlakay]

17. It must be that bank is about to go under good you closed it

do you have another card to use instead? Chase just upped both of the two cards I have with them, geesh to like $20,000 per card. You could get into a lot of trouble with that but we pay off monthly and have for many years so i guess they felt safe with us.

[Chipper Chat]

31. I have an AMEX card and a visa debit card.

I liked the HSBC card because their statements are easy to read and you can search and print back 12 months. Also, when I made 2 big electronics purchases at 2 different stores on the same day they called me at home to verify it was me using the card which I thought was nice. One time they helped get a fraudulent charge off my bill. So my guess is they must be in dire straits.

[Blue Gardener]

65. Go to your local credit union

I have no trouble with them at all. They have called me many times to verify my purchases.

[cascadiance]

20. AMEX has been playing games like this recently. with me...

Fortunately I don't have any Mastercards now. Just VISA and AMEX. My two VISA cards (especially one with Commerce Bank) have treated me really nicely over the years. I want to keep using that for the most part now. Hope they also don't start these games too.

I still am thinking of starting a petition drive to Costco to get a "divorce" of their exclusive arrangement with AMEX. They will know that they've already lost a lot of business with me as a result, not so much because of me not wanting to get stuff from them, but when AMEX plays that same game, I need to get gas elsewhere. Don't want to start using a debit card instead there...

[onethatcares]

22. do you get charged for being over the limit at that point?

with the way the banks are at this time, I wouldn't doubt it.

[high density]

23. I have a HSBC MC

I haven't had any problems with them, but I think I'll probably pick up a third credit card elsewhere before they try to pull this same trick on me. (I pay in full monthly as well.)

[Dr.Phool]

30. So do I. They have the Union Plus program.

[Chipper Chat]

34. Check your online statement or call their CS line.

These changes just happened within the last few days.

[LSparkle]

24. I used to feel ashamed when I used my debit card ... NO MORE

I have NEVER been more proud of the fact that I am DEBT FREE and will do everything I can do avoid EVER getting another one of those damned things. I'll finance a car or a mortgage but other than that, if I can't afford it, I'm not buying it. Not even falling for the "free financing for one year" offers ... I hate the credit card companies and will not give them any more of my business.

[onethatcares]

28. amen to that, once you start to realize you're giving them

$8.99 extra for every $100.00 you charge, along with finance charges and fees, you realize you'll never get ahead if you keep buying wants.

I realize there are emergencies that come up, but for many, it's so much easier to put it on the plastic. It's time to change the game.

Peace

[eggplant]

36. Agreed!

We were lucky to be able to refi the first time Dubya tanked the economy, and roll all of our debt into our mortgage. We've never looked back.

Our solution to the emergency fund issue was a closed-end fixed-rate equity line on our house. We decided to only use it for capital improvements and emergencies. We had to pay a small closing cost on the loan, but it was worth it for five years of security with no fees, and ZERO RISK of the terms changing out from under us. We have since used it only a few times, mostly for capital projects (a generator and a driveway), and we'll probably tap it later this summer to replace an aging car.

The idea of going back to credit cards is about as palatable as sticking hot forks in our eyes.

[grace0418]

25. I keep waiting for that to happen with my American Airlines miles card. I have some

ridiculously high limit on it but never used more than 25% of it every month. I also pay off the entire balance every month (which makes me a enemy #1 as far as the cc companies are concerned). Every time I check my balance online I expect to see the limit cut in half. So far nothing but I'm sure it's coming.

[Ladyhawk]

27. Mastercard had no business giving me a $10,000+ credit line.

But they did.

I'm on disability and couldn't pay back that amount in a lifetime. Once when I was getting into serious debt, a friend gave me the money to pay it off and ever since then I've been really careful to live within my means. I've been paying as I go, using the card like a check card.

As a result, my credit report is very good. My APR has shrunk to 7.9%.

I checked last night to see if Mastercard pulled anything funny on me (been expecting it) and so far, no.

What if my friend hadn't helped me out of debt? I was trying to live like someone in the middle class, which I'd been my whole life. I'm no longer middle class. It took me awhile to figure that out.

A lot of people who have always lived within their means are understandably pissed. But I did finally learn after getting a "bail-out" from a friend. These people who over-stretched are not all hopeless. It might be good to bear that in mind.

[Ladyhawk]

47. I spoke too soon. Mine is going from 7.9% to 29.4%!

I can opt out and pay off what's on my card at the current rate. I'm thinking about closing out my account, but I might need credit for an emergency.

[1]

68. opt out and pay off the balance. your credit limit will be dropped to nothing soon...

just as soon as you choose not to opt out as a mater of fact. then they have you at that 29.4%.

just a word to the wise...

[Ladyhawk]

70. I'm paying off the balance this month as I always do.

I may keep the card while keeping an eye on MasterCard, but I'm thinking about curtailing its use.

[geek_sabre]

54. what did they force you to spend with it?

I'm sure they didn't just open a maxed-out line of credit for you out of the blue. Perhaps you had no business applying for such a credit line in the first place.

[Ladyhawk]

71. I didn't. It's what they gave me when I first got the card.

I got about $2,500 in debt, which is a LOT of money for someone on disability. It was a mistake on my part, yes, but to my credit (no pun intended), I got nowhere near the $10,000 mark.

Once the $2,500 was paid off, I was fine.

[Blackhatjack]

32. Were they on the list of big Madoff fraud victims? n/t

[Chipper Chat]

35. Just found this on g00gle:

Is HSBC Straining Under An "Unprecedented" Wave Of Fraud Activity?
http://consumerist.com/358842/is-hsbc-straining-under-an--unprecedented-wave-of-fraud-activity

[laylah]

41. My Lowes card just did

the same. Never missed a payment but haven't bought in over 6 months. Wonder how much GE Financial got on the bailout/corporatate wellfare bs :mad:

[MadHound]

43. Pay off your debt, cut up your card, live a happier, cheaper, and more rewarding life

I've never had a card, and I've been well rewarded for making that decision. My credit score is excellent, I don't have to worry about hidden charges, fees or ID theft, and due to forced budgeting, I've lived within my means.

Give up the credit card, go to a cash, debit, or check basis. Your life will be better because of it.

[demodonkey]

51. But you CAN NOT rent a car, at least from Enterprise.

I am stuck at home for two days (live where there is no public transportation) because car is at the shop and Enterprise won't reserve car using a debit Mastercard or debit VISA.

If anyone has any similar experience and different outcome, or knows of other car rentals that will reserve with debit card only please post.

[MadHound]

52. Really, I've rented from Enterprise before with a debit card

Perhaps it is a local, franchise thing, I don't know. But I've rented from Enterprise with my debit card not only here in the Midwest, but also on the West and East coast too:shrug:

[demodonkey]

64. I am near Pittsburgh. Enterprise will not reserve a car with debit.

You can rent with debit but have to show two paid-up utility bills in your name. (But how do you rent with no reservation?)

Strange.

You'd think that people who use debit cards would be preferable than those with maxed-out credit.

:shrug:

[eggplant]

69. You can rent from Enterprise with a debit card

But yes, it is dependent on local policy. If you are renting at an airport (and have a return ticket), then there is no problem, but they charge your debit card in advance an amount generally more than the rental cost, and then put the difference back when you return the car.

Local (in-town) rental policy will vary by location. Call them and find out what you need. If you are going to rent regularly from them, find out if you can avoid having to jump through the hoops each time.

I don't fault tem for their policy. After all, you are walking in there and asking to take a practically new car from them with zero assurance that you are going to return it. At least with a credit card, they can screw with you if you screw with them.

As for me personally, I only carry a debit card, and I only rent from Enterprise.

[high density]

67. Enterprise is one of the worst rental car companies... Rant warning

I rented from them a couple of times because their rates were attractive to people aged under 25, but their service is atrocious. The last time I went with them it was like pulling teeth to get a vehicle that was somewhat like the class I reserved months in advance. I just wanted a "standard" sedan like a Focus or Fusion. I don't really care what specific vehicle it is as long as the dimensions aren't too extreme in either direction, and I understand that the stock on the lot is finite. When I get there, they're trying to put me into SUVs. I politely decline and tell them I need a sedan. There's no way I'm driving around in an unfamiliar place in a huge vehicle that is too difficult to maneuver. Not to mention that gas at the time was over $3.50/gal.

So after a few minutes of the guy sighing behind the counter and acting like I'd requested a Bugatti or something, a Taurus suddenly becomes available. He makes a snide remark about how I've gotten a "free upgrade" out of them, as if my plan all along was to reserve a compact and strong arm them into giving me a full-size. Alright, that standoff is over, let's get the keys. Then the fun continues as I get to stand there while they diagram every little nick and scratch on the vehicle on the paperwork, check that the spare tire is there, etc. Yup, I promise not to ding it up any more than it already is. No, I don't want your expensive insurance. I'm really sure I don't want it. Yes, if you didn't hear me the first two times, I'm really really sure I don't want it.

Anyhow, dealing with an Enterprise rental lot is a very piss poor way to start a trip, and I will not do business with them again. My parents had the same experience with their attempts to force large vehicles on them that nobody else wants to rent. Just what a couple wants to do: go on vacation alone and then drive a minivan!

[Holly_Hobby]

44. They closed our $10,000 card via letter

We had a zero balance, said they were closing it for lack of use.

[pinniped]

48. Fuck HSBC & Direct Merchant Assholes. I canceled both when they tried to jack them up +4% each.

Crapital One is the worst, going for a 10% increase (canceled). The JP Morgan Chase Assholes only want +.25% (1 of 2 canceled).

[OKNancy]

57. My CapOne accounts just went from 12% to 24%

I'll probably pay it down, but I have a business and I have to have a card to order stuff. I have cash flow problems too, so don't all the high and mighty people here say... "don't use it." grrrrr

[BamaGirl]

61. I just got that letter from them too

It pisses me off no end. 8-24%? Seriously? I just paid off both of my CapOne cards and I hope they don't lower my limits. I use them mostly for work stuff and I have a conference to go to this summer. I could take cash or travelers checks, but the card is sooo much easier!

[TXN in WA]

60. My CapOne account was closed,

presumably due to lack of use. This happened sometime last year. I was pissed because I wondered how this might affect my credit score, but I was also kind of relieved that I was no longer a customer because the credit limit was a joke and their rates are too high.

[propagandagirl]

58. Same thing just happened to me...

Reduced my limit from 3,500 to 900.00!!

[KamaAina]

62. Ah yes, my dearly departed buddies at Direct Merchants

Last spring, my Direct Merchants MC started to be sporadically declined for no discernible reason. And I'm a "deadbeat" (cc parlance for people who dare to pay off their balances each month)! This left me in a tiff with my ISP, which left me a few nasty messages while I was on the mainland for a couple of weeks. Fortunately, I am no longer demographically dead, like I was when I got the MC in the first place (upper Manhattan ZIP code, outskirts of Harlem), so I fished out another come-on offer from the junk mail pile and got myself a new Visa, and started putting everything on that (including the new ISP).

Then last fall, I received an (undated) mailing from Direct Merchants/HSBC that amended my terms. Fair enough, I figured; this gives me an easy out. I'll just write to the opt-out address and be done with them. Wrong! Their response: "Your letter was received after the deadline. Therefore, you're stuck with us." This left me no option but to call them :scared: . Naturally, they transferred me to some guy who tried to sell me told me he was authorized to offer me a special rate. Finally I got the guy to close it.

All's well that ends well... :eyes:

edit: spelling

[RamboLiberal]

63. Happened last month on my GM Card

Who is backed by guess who - HSBC! Hate the bastards. I had a zero balance on my account for probably near 2 years now. They sent me a letter telling me they reduced my limit to a friggin' $300.

I'm never late with my other debts. Overpay the payment required. Etc.

Meanwhile the jerks at Citicard raised my credit limit to $16,000 in the same time period and near doubled my rate from 7.99 to 14.99. I paid those bastards off.

If U.S. nationalizes Citibank they damn well should drop all rates back to their previous rate!

[jmowreader]

66. Looks like they want to make money on overlimit fees

[TwixVoy]

73. HSBC is considered a sub-prime lender

A LOT of their cards are geared to people with below average credit. If you do not have below average credit you picked the wrong bank, sadly. They are cutting back on most of their card holders because most of their card holders are sub-prime and pose a great risk right now.

I would advise you to go with a prime lender if you have prime credit. Otherwise you will see more of this from HSBC.