@Anonymous wrote:
Wouldn't be surprised if CCC's are still doing it . It wasn't too long ago when race , gender and address were factored into your "credit worthiness" . Some people believe your address is still to this day factored into your Fico score . A person living in the getto is more likely to default than a person living in a nice upscale neighborhood . That's how they see it .
I once worked in the credit dept of a now defunct, luxury store. Many would be surprised by the default rate from upscale addresses - lots of people living beyond their means and other assorted reasons for non-payment that strained credulity.
@ArmyVietVet wrote:
@Anonymous wrote:
@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?
With the advent of bluebird, a number of MSers (including me) started making purchases at Walmart for the first time. No wonder we got shut down!
Oh ... you shopped at Walmart! Where was your mind? You must have lost your grounding and should seek forgiveness
I have. With Redbird, moved to Target (which is much more pleasant). Waiting for the WFBird, where you can load at Wholefoods (but possibly not a major demographic for the un/under-banked)
@FocusedAndDetermined wrote:
@Anonymous wrote:
Wouldn't be surprised if CCC's are still doing it . It wasn't too long ago when race , gender and address were factored into your "credit worthiness" . Some people believe your address is still to this day factored into your Fico score . A person living in the getto is more likely to default than a person living in a nice upscale neighborhood . That's how they see it .I once worked in the credit dept of a now defunct, luxury store. Many would be surprised by the default rate from upscale addresses - lots of people living beyond their means and other assorted reasons for non-payment that strained credulity.
It's not just supposidly rich people living beyond their means. People that are well off are often flakes. They don't pay bills when it is inconvenient or they are busy doing something else. I was once such a flake. Been there done that.
@sjt wrote:
@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?
I read the study and Im glad the banks stopped the practice. Although I dont blame the banks for redflagging excessive cash advances.
Yes, this can be a big red flag. Of course, when I was in college long ago I was taking cash advances all the time on my parents card, because I was in a different state and it was the easiest way for them to get money to me. The banks where they were did not have branches were I was.
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