Thanks for the link Star.
Banks and other lenders nationwide, seeking to reduce their debt exposure, are shutting off and limiting consumer credit card lines, even for many customers who carry low balances and pay on time.
As much as $2 trillion in consumer credit – nearly half of what is available – could be rescinded, according to an estimate by a prominent banking analyst.
Before I continue, I would like you to know that American Express received $3.4 Billion in bailout money from Mr. Bernanke.
The credit squeeze doesn’t just limit spending potential; it can also damage cardholders’ credit ratings by making them appear to be riskier borrowers. And in many cases, the institutions pulling back on credit took government bailout funds that were supposed to encourage them to lend more freely.
Diana Lawton, a 44-year-old freelance writer in Chelmsford, is one of those being affected by the change in credit-line policies. She said American Express Co.called her last week to say her two charge cards – one personal, one for business – had been frozen pending a “financial review.” Lawton, who had been using the personal card since 1988, said she was stunned. The company offered no explanation, accord ing to Lawton, but told her she could apply for reinstatement by submitting two years of income tax returns, along with three months of pay stubs and bank records.
This could be you next.
Don’t forget to pay the IRS early this year! We need to send more money to AMEX so that they will give credit to consumers. And the knife ran away with the spoon.
Outraged at having to undergo a 10-day investigation of her finances, Lawton canceled the cards. “I know the economy’s bad,” she said, “but this is just shocking to me.”
Good for you, girl!
And here’s Bank of Americaaaaaaaaaaa!
Most bankers won’t offer details about the cutbacks, but acknowledge they are happening. Betty Reiss, a spokeswoman for Bank of America Corp., the nation’s second-largest card issuer, said, “We’re taking a more aggressive look at accounts in order to control risk in the current environment.” The bank is one of the biggest recipients of federal bailout funds – $45 billion.
Somebody needs to take “a more aggressive look” at you, Bank of America. Where is America’s money?
Why hasn’t Barack Obama DEMANDED to know these details?
Why hasn’t Congress DEMANDED that these details be revealed to the public? Because they are too busy paying back their special interests with a trillion dollars and increasing their own individual petty cash pots by $93,000 this year, that’s why. Apparently, more than a million for each of them isn’t enough.
Who is watching the Watchers?