@pdxmike wrote:A Federal Reserve study in 2010 found that CCCs, including Amex, MasterCard and 5 of the 25 largest banks, had performed AAs against cardholders for things like using their card at used clothing stores, pawn shops, casinos and other lower-end establishments. Even shopping at a discount store when you didn't previously could trigger it. They even said one issuer monitored new cardholders for cash advances or running up a balance at jewelry and electronics stores. The report minimized the extent of it, and CCCs said in 2010 that they stopped, but does anyone think this might explain a mysterious AA they had?
So shop at second hand store or pawnshop and get your card shutdown, classy. The casino thing I assume refers to cheaper casinos and not major resorts on the vegas strip. Probably worried about people who are contantly gambling maybe getting into debt due to losses. The pawn shops and that is the lender basically assuming that if your shopping at those places you are having financial problems. Feels a bit too much like big brother to me.
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@pdxmike wrote:Regarding casinos, it talks about people running up gambling debts and not paying them off.
And regarding "low end," they mentioned seller categories, not individual store reputations. I wouldn't be shocked if bail bonds and divorce attorneys are also monitored.
I would be kind of surpised by that. Bail bonds? I guess if your bailing yourself out, but trust me plenty of people who are completely legitimate are bailing their relatives out etc. I can't begin to see why this would be a basis for potential AA. Divorce attorneys may signal a change in economics, but how would they even know its a divorce attorney versus a law firm drafting wills, helping you buy a house, starting a business etc. The attorney is certainly not going to and does not have to tell the lender what they do for them.
@Anonymous wrote:
@red259 wrote:
@pdxmike wrote:Regarding casinos, it talks about people running up gambling debts and not paying them off.
And regarding "low end," they mentioned seller categories, not individual store reputations. I wouldn't be shocked if bail bonds and divorce attorneys are also monitored.
I would be kind of surpised by that. Bail bonds? I guess if your bailing yourself out, but trust me plenty of people who are completely legitimate are bailing their relatives out etc. I can't begin to see why this would be a basis for potential AA. Divorce attorneys may signal a change in economics, but how would they even know its a divorce attorney versus a law firm drafting wills, helping you buy a house, starting a business etc. The attorney is certainly not going to and does not have to tell the lender what they do for them.
You really think your bank doesn't know when you have marital problems? Imagine someone had the following purchases atypically show up on their file
One night stays at hotels that are within ten miles of their house for the past few months
New lease on an apartment without cancelling your mortgage
Large bills at a lawyer's office.
Banks can reconstruct your life with a good deal of accuracy just from metadata. If you shop at Type III enhanced locations and the bank can see your individual purchases (you bought condoms although the wife is still buying birth control pills) then your bank likely knows you're gonna get divorced before you tell your wife.
I believe the idea that a bank developing that kind of detailed profile on all its customers through metadata is absurd. If it ever came out a lender was doing such an extreme degree of analysis of customer's lives I would terminate all my banking relationship with them instantly. No doubt in my mind about it.