Card claims federal required income update?

For just about anything you want to get off your chest about credit cards.
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jahsoul
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Postby jahsoul » Thu Sep 04, 2014 4:33 pm

yfan wrote:Because our dear banks almost caused a second Great Depression by giving out subprime liar loans to people they knew couldn't afford it. The CARD Act is there to protect the banking system from the banks.

Actually, it was meant to "protect" the consumer from unfair credit card practices, such as rate increases without notice, restriction of fees, easier to read statements and things like but it was actually the housing market and that bubble bursting that accelerated the economic meltdown, but like others have said, this is not a political forum. :D
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yfan
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Postby yfan » Thu Sep 04, 2014 5:33 pm

jahsoul wrote:Actually, it was meant to "protect" the consumer from unfair credit card practices, such as rate increases without notice, restriction of fees, easier to read statements and things like but it was actually the housing market and that bubble bursting that accelerated the economic meltdown, but like others have said, this is not a political forum. :D

That too, but that applies to credit in general and the two are mutual. The housing market's collapse in 2008 was led by much of the same practices banks used on credit cards (i.e. unverified income, giving credit to people they knew couldn't afford it).

dragon452
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Postby dragon452 » Thu Sep 04, 2014 7:37 pm

Please see my recent post: Income/update verification: not a good idea all the time? I address these income update notices as a potential big problem for many people. Capital One (who, as many of you know), never gives credit line increases after a certain amount of time, or after a certain credit line is reached. I've had my Cap One account for 13 years, and they would never give me an increase (over the original $10,000.00 limit). Now, they send me an email asking for "income verification" after all this time "...to consider you for a credit line increase..." yeah, right! Maybe I don't "have to" send them updated info (I don't want to, as my income has gone down since 13 years ago), but now I worry that they will take some negative action if they don't get the info, even though I maintain a perfect record and excellent FICO scores to this day. Something to consider in these crazy times.

randeman
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Postby randeman » Fri Sep 05, 2014 12:18 am

dragon452 wrote:Please see my recent post: Income/update verification: not a good idea all the time? I address these income update notices as a potential big problem for many people. Capital One (who, as many of you know), never gives credit line increases after a certain amount of time, or after a certain credit line is reached. I've had my Cap One account for 13 years, and they would never give me an increase (over the original $10,000.00 limit). Now, they send me an email asking for "income verification" after all this time "...to consider you for a credit line increase..." yeah, right! Maybe I don't "have to" send them updated info (I don't want to, as my income has gone down since 13 years ago), but now I worry that they will take some negative action if they don't get the info, even though I maintain a perfect record and excellent FICO scores to this day. Something to consider in these crazy times.


I would be interested to see how this thing turns out for you.
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No, they are deceiving you.

Postby Proformance » Sat Sep 13, 2014 3:01 pm

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.



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