topic Re: Diners Club Concern in Credit Cards

Diners Club Concern

LipzyDaizy — Tue, 04 Nov 2014 20:53:48 GMT

Am I the only thats a little concerned that Diners Club might do what OCCU did with the Duck card? I might just be over thinking this but the more I think about it, the more I'm starting to worry. I just received my card and I'm still shocked they gave me the CL they did. They more than doubled my highest CL and I'm sure no other bank would issue a limit like that with my current scores.

Re: Diners Club Concern

Anonymous — Tue, 04 Nov 2014 20:56:48 GMT

It's a possibility that it will happen, but no one knows until it actually happens. With all the generous CL and loose underwriting standards, it's either they are very aggressive (or high) or that they didn't expect the card to be this popular.

Or they could be shady and are waiting for the 30 days to be up so that customers cannot ask for a refund of the annual fee.

Or that they are feeling like Santa Claus since Christmases around the corner.

Re: Diners Club Concern

CreditMagic7 — Tue, 04 Nov 2014 20:58:17 GMT

@LipzyDaizy wrote:
Am I the only thats a little concerned that Diners Club might do what OCCU did with the Duck card? I might just be over thinking this but the more I think about it, the more I'm starting to worry. I just received my card and I'm still shocked they gave me the CL they did. They more than doubled my highest CL and I'm sure no other bank would issue a limit like that with my current scores.

If that concerns you too much you can always call them and just cancel that fine limit Prestigous new CC that they just issued you

Re: Diners Club Concern

Jlu — Tue, 04 Nov 2014 20:59:14 GMT

You shouldn't worry.

I'm sure Diner's Club is a LOT better equipped to handle large numbers of cardmembers than OCCU was. If you think some apps from the myFICO forum are going to bring down DC you are mistaken.

Re: Diners Club Concern

LipzyDaizy — Tue, 04 Nov 2014 21:04:35 GMT

@CreditMagic7 wrote:
@LipzyDaizy wrote:
Am I the only thats a little concerned that Diners Club might do what OCCU did with the Duck card? I might just be over thinking this but the more I think about it, the more I'm starting to worry. I just received my card and I'm still shocked they gave me the CL they did. They more than doubled my highest CL and I'm sure no other bank would issue a limit like that with my current scores.
If that concerns you too much you can always call them and just cancel that fine limit Prestigous new CC that they just issued you

lol Ummm...I think I've called them enough. Besides, I don't wanna be rude by not accepting it. I just like things being taken away from either. lol

Re: Diners Club Concern

LipzyDaizy — Tue, 04 Nov 2014 21:06:35 GMT

@Anonymous wrote:
It's a possibility that it will happen, but no one knows until it actually happens. With all the generous CL and loose underwriting standards, it's either they are very aggressive (or high) or that they didn't expect the card to be this popular.

Or they could be shady and are waiting for the 30 days to be up so that customers cannot ask for a refund of the annual fee.

Or that they are feeling like Santa Claus since Christmases around the corner.

That would just be mean!!

Re: Diners Club Concern

CreditMagic7 — Tue, 04 Nov 2014 21:13:11 GMT

@LipzyDaizy wrote:
@CreditMagic7 wrote:
@LipzyDaizy wrote:
Am I the only thats a little concerned that Diners Club might do what OCCU did with the Duck card? I might just be over thinking this but the more I think about it, the more I'm starting to worry. I just received my card and I'm still shocked they gave me the CL they did. They more than doubled my highest CL and I'm sure no other bank would issue a limit like that with my current scores.
If that concerns you too much you can always call them and just cancel that fine limit Prestigous new CC that they just issued you
lol Ummm...I think I've called them enough. Besides, I don't wanna be rude by not accepting it. I just like things being taken away from either. lol

IMHO your scores fully supports the SL that they assigned to your Diner's Club CC Account. Did you app for your second card yet?

Re: Diners Club Concern

LipzyDaizy — Tue, 04 Nov 2014 21:13:18 GMT

@Jlu wrote:
You shouldn't worry.

I'm sure Diner's Club is a LOT better equipped to handle large numbers of cardmembers than OCCU was. If you think some apps from the myFICO forum are going to bring down DC you are mistaken.

I'm sure you're right. At least I hope you're right. I worked so hard on improving my credit that I've become a little protective of what I've received and having it taken away might make me cry. lol

Re: Diners Club Concern

LipzyDaizy — Tue, 04 Nov 2014 21:18:35 GMT

@CreditMagic7 wrote:
@LipzyDaizy wrote:
@CreditMagic7 wrote:
@LipzyDaizy wrote:
Am I the only thats a little concerned that Diners Club might do what OCCU did with the Duck card? I might just be over thinking this but the more I think about it, the more I'm starting to worry. I just received my card and I'm still shocked they gave me the CL they did. They more than doubled my highest CL and I'm sure no other bank would issue a limit like that with my current scores.
If that concerns you too much you can always call them and just cancel that fine limit Prestigous new CC that they just issued you
lol Ummm...I think I've called them enough. Besides, I don't wanna be rude by not accepting it. I just like things being taken away from either. lol
IMHO your scores fully supports the SL that they assigned to your Diner's Club CC Account. Did you app for your second card yet?

oh gosh no!! It took 2 apps and 4 hps to get this one so I'm going to lay low for a while. Just wanted this one for the chip and pin, no FTF, some lounge access seeing I might be doing some traveling next year. And the annual fee on the Elite is a little rich for my blood at this point. I don't spend enough to warrant it. But maybe down the line....lol

Re: Diners Club Concern

Anonymous — Tue, 04 Nov 2014 21:32:09 GMT

Can someone fill me in on the OCCU situation. I've heard it referenced several times but not sure what happened. As I was just approved for the DC Elite I hate seeing any reference to something bad.

Re: Diners Club Concern

CreditMagic7 — Tue, 04 Nov 2014 21:39:12 GMT

@Anonymous wrote:
Can someone fill me in on the OCCU situation. I've heard it referenced several times but not sure what happened. As I was just approved for the DC Elite I hate seeing any reference to something bad.

563 Replies......rather lengthy.

http://ficoforums.myfico.com/t5/Credit-Cards/OCCU-Duck-and-Beaver-cards-compromised-Keep-an-eye-on-your/m-p/2764491/highlight/true#M789090

Re: Diners Club Concern

Anonymous — Tue, 04 Nov 2014 21:40:14 GMT

@Anonymous wrote:
Can someone fill me in on the OCCU situation. I've heard it referenced several times but not sure what happened. As I was just approved for the DC Elite I hate seeing any reference to something bad.

They had really loose underwriting standards and were approving most people (well not so much for people with BKs) with really high CLs. 5 digit credit lines seems to be "standard". After a couple weeks, they backtracked and started closing accounts. Could be due to a combination of not expecting the card to be this popular, and that the risk department caught up and said the bank / CU was overexposed.

It's hard to say what will happen with BMO Harris. If you have already gotten the card, that means you have already taken the inquiry hit (and possibly new account reporting if they do report), so there's no point worrying about something that may or may not happen. For all you know this may be well within their expectations and they may be even more generous down the road to invite more applications. Or that they could start closing accounts or reducing limits. Anything can happen.

Re: Diners Club Concern

Skye12329 — Tue, 04 Nov 2014 21:40:15 GMT

@Anonymous wrote:
Can someone fill me in on the OCCU situation. I've heard it referenced several times but not sure what happened. As I was just approved for the DC Elite I hate seeing any reference to something bad.

From my understanding is that they were giving out large starting lines (15 - 25k) Very loosely like i think scores could be 600's and basically they bit off more than they could chew and needed to close out a lot of peoples cards. Just my understanding i could be wrong.

As for the Diners Club Cards i think they are more established considering they are larger. Also ive noticed they have been approving cards for people with scores in mid 700's so i think they are a bit more secure.

Re: Diners Club Concern

Jlu — Tue, 04 Nov 2014 21:41:57 GMT

@CreditMagic7 wrote:
@Anonymous wrote:
Can someone fill me in on the OCCU situation. I've heard it referenced several times but not sure what happened. As I was just approved for the DC Elite I hate seeing any reference to something bad.
563 Replies......rather lengthy.
http://ficoforums.myfico.com/t5/Credit-Cards/OCCU-Duck-and-Beaver-cards-compromised-Keep-an-eye-on-your/m-p/2764491/highlight/true#M789090

One of us should add the story on their wikipedia page.. file it under 'Controversies'.

Re: Diners Club Concern

dilettante — Tue, 04 Nov 2014 21:44:53 GMT

I'm more worried that they'll nerf their award points structure! OP, don't worry too much, they're a bigger bank than OCCU - they even have a big stadium/sports/entertainment venue center named after them in Milwaukee and Illinois Just enjoy your credit success and have fun with the card or go to one of the lounges at the airport and relax.

Re: Diners Club Concern

Anonymous — Tue, 04 Nov 2014 21:49:43 GMT

@dilettante wrote:
I'm more worried that they'll nerf their award points structure! OP, don't worry too much, they're a bigger bank than OCCU - they even have a big stadium/sports/entertainment venue center named after them in Milwaukee and Illinois Just enjoy your credit success and have fun with the card or go to one of the lounges at the airport and relax.

+1.

I'm interested in this card, though I won't apply till middle of next year, but that's just because of the situation I am in with Chase. I'm waiting for them to reopen my account now that BMW finally removed the inquiry and account.

From what I've found online, the card is backed by BMO Harris, which is in turned owned by Bank of Montreal. They're not a big bank compared to say Chase or Bank of America, but they're not a small bank either. If you include the parent's company assets, they're the 9th largest bank in North America, 4th largest in Canada. So one would assume that they should know better about what they're doing compared to a small credit union, such as OCCU.

But they could always backtrack as well. Larger banks have done that, but mostly with regards to the rewards structure, not the credit lines. If I already have an account with them, I wouldn't lose sleep over what may or may not happen with the credit limit however.

Re: Diners Club Concern

Anonymous — Tue, 04 Nov 2014 21:56:45 GMT

@Anonymous wrote:
@dilettante wrote:
I'm more worried that they'll nerf their award points structure! OP, don't worry too much, they're a bigger bank than OCCU - they even have a big stadium/sports/entertainment venue center named after them in Milwaukee and Illinois Just enjoy your credit success and have fun with the card or go to one of the lounges at the airport and relax.
+1.
I'm interested in this card, though I won't apply till middle of next year, but that's just because of the situation I am in with Chase. I'm waiting for them to reopen my account now that BMW finally removed the inquiry and account.

From what I've found online, the card is backed by BMO Harris, which is in turned owned by Bank of Montreal. They're not a big bank compared to say Chase or Bank of America, but they're not a small bank either. If you include the parent's company assets, they're the 9th largest bank in North America, 4th largest in Canada. So one would assume that they should know better about what they're doing compared to a small credit union, such as OCCU.

But they could always backtrack as well. Larger banks have done that, but mostly with regards to the rewards structure, not the credit lines. If I already have an account with them, I wouldn't lose sleep over what may or may not happen with the credit limit however.

Yes, I would be more concerned over benefit reduction, but it's not clear that there is an issue there. The problem comes with a card like the Elite, if benefits were cut a lot, you might well decide that it wasn't worth the AF, and if you can't downgrade, you have to close. But these things can happen with any card.

And banks have lots of controls. They could start not approving charges as you get somewhat near say 1/2 your CL, so it's not really the whole CL they are risking!

Re: Diners Club Concern

LipzyDaizy — Tue, 04 Nov 2014 22:02:37 GMT

@Anonymous wrote:
@dilettante wrote:
I'm more worried that they'll nerf their award points structure! OP, don't worry too much, they're a bigger bank than OCCU - they even have a big stadium/sports/entertainment venue center named after them in Milwaukee and Illinois Just enjoy your credit success and have fun with the card or go to one of the lounges at the airport and relax.
+1.
I'm interested in this card, though I won't apply till middle of next year, but that's just because of the situation I am in with Chase. I'm waiting for them to reopen my account now that BMW finally removed the inquiry and account.

From what I've found online, the card is backed by BMO Harris, which is in turned owned by Bank of Montreal. They're not a big bank compared to say Chase or Bank of America, but they're not a small bank either. If you include the parent's company assets, they're the 9th largest bank in North America, 4th largest in Canada. So one would assume that they should know better about what they're doing compared to a small credit union, such as OCCU.

But they could always backtrack as well. Larger banks have done that, but mostly with regards to the rewards structure, not the credit lines. If I already have an account with them, I wouldn't lose sleep over what may or may not happen with the credit limit however.

Thank you guys and everyone else for helping me feel better! This forum and everyone contributing to this forum has been my saving grace in my credit journey. Without you all and my fiance I might never have embarked on this journey. again, thank you!!

Re: Diners Club Concern

Anonymous — Tue, 04 Nov 2014 22:03:55 GMT

Thanks everyone for the explanation. Sounds like it was a mess

Re: Diners Club Concern

rlx01 — Tue, 04 Nov 2014 22:04:04 GMT

BMO has $542 billion CAD in assets... I think they're a little different to OCCU.

But there's no question their CL allocation is insane. Seems to only look at FICO and not income. Their entire consumer credit operation is half baked and was launched prematurely...

I think they'll tighten up the lines in the medium term.