topic Re: CLD Again in Credit Cards

CLD Again

Catch22 — Fri, 10 Oct 2008 01:50:02 GMT

I have SD most of my cards for this year and balances are way down, yet, FIA has again DL on accounts that have never been late, never overlimit, and not used. By doing so, my utilization increases becuse they drop it within $500.00 open Is this a racket or what? I am ready to cut every one of them up and send them back to them.

Re: CLD Again

CreditAble — Fri, 10 Oct 2008 03:25:25 GMT

Catch22 wrote:
FIA has again DL on accounts that have never been late, never overlimit, and not used. Is this a racket or what?
Did you call FIA and ask why the limit was reduced? Before the recent rash of CLDs, a credit card company in many cases only lowered the CL to get the customer to call the company and ask why the limit was reduced. That was how credit card companies would update dormant or seldom used accounts.

Frequently the customer was asked what it would take to start using the card more frequently. By the end of the call the consumer in many cases had a CL higher than before and lower interest rates. Occasionally 0% offers were made.

Especially in the current tight credit environment I would expect that the best way for a card company to get the customer to call and answer some questions is to reduce the CCL.

I know that CLDs was a favorite trick that MBNA used to get people to call, so that MBNA could try to motivate the customer to use the cards more.

MBNA is now FIA.

Re: CLD Again

Catch22 — Fri, 10 Oct 2008 04:57:50 GMT

Thank you for your response. I did call, but the person with whom I spoke could not give me any information. She said a letter was mailed to me explaining the reason. I'll update you after regular business hours tomorrow.

Re: CLD Again

Anonymous — Fri, 10 Oct 2008 05:56:55 GMT

Basically they're saying they no longer want to do business with u. If I were u I would just close the account. They want u to carry they're card but don't want u to use it. This has not happened to me but I'm thinking about canceling all of my cards but 3.

Re: CLD Again

jmbfl — Fri, 10 Oct 2008 06:21:11 GMT

@Anonymous wrote:
Basically they're saying they no longer want to do business with u. If I were u I would just close the account. They want u to carry they're card but don't want u to use it. This has not happened to me but I'm thinking about canceling all of my cards but 3.

Which three? It had better be the right three!

Bad plan.

Re: CLD Again

jmbfl — Fri, 10 Oct 2008 06:24:56 GMT

@Catch22 wrote:
I have SD most of my cards for this year and balances are way down, yet, FIA has again DL on accounts that have never been late, never overlimit, and not used. By doing so, my utilization increases becuse they drop it within $500.00 open Is this a racket or what? I am ready to cut every one of them up and send them back to them.

There rarely isn't a reason. In this case either a) they want to know if you are still alive, b) they are dogging you for non-use, or c) some other reason you don't know yet and might know when you get the letter. Disuse is never a good plan for retaining a good relationship with credit grantors!

Re: CLD Again

Catch22 — Fri, 10 Oct 2008 15:08:16 GMT

THen it appears to be a Catch 22. They offer it, you use it, they "ding" you. I'll let you know more later.

Re: CLD Again

Catch22 — Fri, 10 Oct 2008 16:35:46 GMT

Account Closed. I could NOT get a viable ansewer. All she kept saying was I did not qualify for my account. I did let her know that this ws a slap in the face to a customer who did not abuse the account. made payments on time, etc. I shredded the card and sent them the pieces.