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50 million cardholders limits cut or accounts closed

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yapsalot
Regular Contributor

50 million cardholders limits cut or accounts closed

Article says 50 million cardholders limits cut or accounts closed recently.

 

Also says lenders not required to notify cardholders when limits cut. Is this true?

 

https://news.google.com/articles/CAIiEExOy-fsvubt2N9RnzCoB9AqGQgEKhAIACoHCAowyNj6CjDyiPICMJyFxQU?hl=...

 

 

Yapsalot
Message 1 of 41
40 REPLIES 40
AllZero
Mega Contributor

Re: 50 million cardholders limits cut or accounts closed


@yapsalot wrote:

Also says lenders not required to notify cardholders when limits cut. Is this true?


Thank you for sharing the information. It appears Synchrony and Comenity are fighting for first place in closure and CLD department.

Message 2 of 41
simplynoir
Community Leader
Mega Contributor

Re: 50 million cardholders limits cut or accounts closed


@AllZero wrote:

@yapsalot wrote:

Also says lenders not required to notify cardholders when limits cut. Is this true?


Thank you for sharing the information. It appears Synchrony and Comenity are fighting for first place in closure and CLD department.


Considering they're probably both with the most store cards seeing very little use at the moment that is not a surrpise

Message 3 of 41
sarge12
Senior Contributor

Re: 50 million cardholders limits cut or accounts closed


@yapsalot wrote:

Article says 50 million cardholders limits cut or accounts closed recently.

 

Also says lenders not required to notify cardholders when limits cut. Is this true?

 

https://news.google.com/articles/CAIiEExOy-fsvubt2N9RnzCoB9AqGQgEKhAIACoHCAowyNj6CjDyiPICMJyFxQU?hl=...

 

 


Who did not see this coming? Shut half the Worlds economy off due to pandemic panic, card issuers are going to respond. None of mine have shut down or decreased limits yet, but may do so soon. I have not really decided if I would care if they did. I canceled 1 myself, but also opened 2 others recently. I really hated that TD bank card anyway. The lack of use for over a year was sure to be closed by issuer soon, so I just decided to beat them to the punch. Considering doing the same to other sock drawer plastic, but want to space them out. Some cards are just too low in rewards to see any real use. I hope if nothing else good comes from this pandemic, it will convince everybody that credit lines are not a good substitute for emergency savings accounts. It will likely get worse before it gets better, because the issuers are under pressure to be lenient on delinquencies, and increased use of cards is happening. The issuers will not keep allowing all these charges with greatly decreased payments. They aren't a charity, and the uncertainty of this is making them all very nervous. I am surprised it is only 50 million accounts to be honest, but doubt they are done. On the bright side, the issuers are not real concerned with those of us who always PIF right now. For once, the sooner the better right now for them.

TU fico08=824 06/16/24
EX fico08=815 06/16/24
EQ fico09=809 06/16/24
EX fico09=799 06/16/24
EQ fico bankcard08=838 06/16/24
TU Fico Bankcard 08=847 06/16/24
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 4 of 41
Anonymous
Not applicable

Re: 50 million cardholders limits cut or accounts closed


@yapsalot wrote:

Article says 50 million cardholders limits cut or accounts closed recently.

 

Also says lenders not required to notify cardholders when limits cut. Is this true?

 

https://news.google.com/articles/CAIiEExOy-fsvubt2N9RnzCoB9AqGQgEKhAIACoHCAowyNj6CjDyiPICMJyFxQU?hl=...

 

 


Good read! Smiley Sad

Message 5 of 41
Shooting-For-800
Senior Contributor

Re: 50 million cardholders limits cut or accounts closed

So odd how different banks are.

I just got a $20k PenFed card and my 4th BB&T card - both were SPs.

Hang In there gang!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 6 of 41
SouthJamaica
Mega Contributor

Re: 50 million cardholders limits cut or accounts closed


@yapsalot wrote:

Article says 50 million cardholders limits cut or accounts closed recently.

 

Also says lenders not required to notify cardholders when limits cut. Is this true?

 

https://news.google.com/articles/CAIiEExOy-fsvubt2N9RnzCoB9AqGQgEKhAIACoHCAowyNj6CjDyiPICMJyFxQU?hl=...

 

 


So I guess the trillions of dollars the Federal Reserve shoveled into the coffers of the banking industry did not accomplish its supposed purpose of encouraging banks to lend and stimulate the economy. Why am I not surprised?


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 7 of 41
Revelate
Moderator Emeritus

Re: 50 million cardholders limits cut or accounts closed

I am leery of this being truly accurate, frankly wondering if this is sensational data science.

 

Small online survey and I suspect it was hosted somewhere on LendingTree's site and most stable credit people aren't looking for new credit right now.

 

myFICO is a microcosm of the greater community: yes we have seen some CLD's and closures over the past few months no question; however, the screaming would be much louder here if it were this prevalent just among the people who frequent the Credit Cards forum as most of us including yours truly are absolutely outliers in terms of available revolving credit.

 

Further we see a lot of people coming in historically when something goes wrong and just casually perusing the forums I am not seeing that.

 

50M Americans just doesn't sound right statistically.




        
Message 8 of 41
Anonymous
Not applicable

Re: 50 million cardholders limits cut or accounts closed

Agree with Revelate.  If there were even close to 50 million accounts being effected in this way, this forum would be would be going off the charts with posts about it.  It may come to this in time, but for now, I think this is more sensationalism than anything.

 

I spent a lot of time on this forum when I was trying to reestablish my credit four years ago, and only drop in on it from time to time now to get a feel for things in the consumer credit world.  I've actually been surprised that there haven't been more threads about closures and limit decreases.  A lot of these credit card balances that are being run up are never going to be paid, because they simply can't be paid.  This business is in for some "interesting" times.

Message 9 of 41
NoMoreE46
Community Leader
Senior Contributor

1 out 4 had limits cut

Interesting read with some good

details.

 

 

Message 10 of 41
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