tenlines wrote:I am very glad I've found this forum, great information, but I don't see a thread yet on what brought me here:
Chase sent me a message they'd like to re-evaluate my income for a credit increase. Discover card claims they are required by the Federal Law to collect my current income.
Discover is making it sound like I have to tell them - can anyone explain what I've missed in either the laws or policies…
The truth is that the Law does not require YOU to provide ANY information at all.
What they are seeking is voluntary "self reported data"
and it will be fed directly to the major credit bureaus as well.
Specifically, Federal Law does require lenders to consider income when making loans or extending credit lines but, that is not what they are doing with these mailings because you did not applied for new credit no have you asked for an increase in any existing line of credit.
Predictably, credit card companies are misrepresenting their due diligence responsibility to imply that it encumbers you to reveal personal private information. (A slimy tactic - but did you really expect change?)
The goal here is gather information on consumers at a substantially lower cost, to drive more qualified solicitations while simultaneously lowering exposed risk in currently unused credit lines. All of this is irrespective of you needing, wanting, or even using credit. This is neither the text or the intent of the law and it would be in direct conflict with too many other laws if it were.
As far as lowering your credit limit, there's nothing to prevent that anyway. You see your high limit and low balance as discipline/unused credit - while the bank sees it as exposed risk. What happens to your credit line can be just as closely tied to their business cycle as it is to your credit behavior.