Card claims federal required income update?

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tenlines
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Card claims federal required income update?

Postby tenlines » Sun Dec 01, 2013 5:18 pm

I am very glad I've found this forum, great information, but I don't see a thread yet on what brought me here:

I have a Chase card that sent me a message they'd like to re-evaluate my income for a credit increase. Then my Discover card sends me that they are required by the Fed Act of 2009 to collect my current income before the end of the year. I'm reading through the law and trying to figure out what's up.

I am concerned because when that bill initially passed Chase knocked my limit down to $5k… I've had the Discover card for almost 20 years and have worked that limit much higher. All my scores are over 800, we just bought a tiny condo, but I've been unemployed w/o benefits for 8 years (long story, wrong industry and now get turned down for PT work at the gas station) and my spouse in under-employed working retail. I am concerned if I report the household income my spouse makes I'll lose MY high limit.

Discover is making it sound like I have to tell them - can anyone explain what I've missed in either the laws or policies… I'm a weirdo, I read all the fine print but I'm so lost and nervous.

Thank you in advance!


MemberSince99
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Postby MemberSince99 » Thu Dec 05, 2013 6:45 am

Discover is right by law they ARE required to get this information. You don't HAVE to tell them, they aren't going to send goons to break down your door and kneecap you if you don't divulge your income, but then they may close your account and probably will.


So yes, unfortunately you are in a pickle, and if you tell them they MAY cut your limit (I wouldn't be too surprised if they did) but if you file taxes with your spouse I'd use your household income and just let what happens, happen. I mean being unemployed, how much of a big limit would you need anyway? It sounds like it's just an ego thing, and if I was out of work that long I wouldn't have any ego left. In fact in this economy I don't have any ego left, the employers have let me know very well I'm a worthless POS and I hope that makes them feel like real stallions at home with the wife at night if that's what trips their evil little triggers. Just hang in there and dig yourself out of that the best you can. I would think that's gotta be more important than your Discover card limit at this point, unless there is more to this than you've let on like you are living on the card and paying minimum with no means to pay it back. Then you have bigger issues there.

tenlines
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Postby tenlines » Fri Dec 06, 2013 3:29 pm

I'm not sure how to reply… If it pleases the forum: we always pay our cards off at the end of the month (how else would I have +800 scores?) we don't live beyond our means and, I didn't want to bring up more political issues but, it is not an "ego" concern it is a "emergency" concern. As in, thanks to the AHA my husband's company now only offers healthcare with a $10k deductible. While I know most places used to be willing to work out payment plans, for me it is a great safety net to think I've got it covered no matter what monthly bills I've already charged if one or both of us ends up hospitalized. This is why I was concerned.

Thank you for the information that income gathering on established cards is now a thing - I still would like to see where, but I will speak to my card companies and hope that 19 years of loyalty still means something.

randeman
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Postby randeman » Sat Dec 07, 2013 10:38 am

Well, this is just supposition, but if they do cut your limit, once your income goes back up, you could always ask for a recon.
Cards and Credit lines Acquired:

Escape by Discover (7.75K), Barclay Holland America Visa (7K), Macy's store card (7K), Bloomingdale's store card (2.6K), Citi Custom Credit Line (3.5K), PayPal Smart Connect credit line (2.7K), Chase Freedom Visa (5K), Chase United MileagePlus Visa (5K), Chase Sapphire Preferred Visa (6K), Amazon store card (2.2K), Lord & Taylor store card (550), Nordstrom store card (1500), Gold Delta SkyMiles from American Express (3K), Discover It (6.5K), PayPal Credit Line (1K).

MemberSince99
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Postby MemberSince99 » Sat Dec 07, 2013 1:07 pm

I didn't mean any disrespect to you at all. I'm sorry if it came off that way. I'm just telling you that yes they are required to ask.


Just Google "CARD Act" and read up on it.


Yeah I know about the pain many are feeling from the "Affordable" care, what a joke that name is right out of Orwell, where the name of things is the opposite of what they really are like the ministry of truth that lies, etc. I'm sorry you guys are getting stung by that atrocity I know others who are as well, we are ALL paying for that health care we were told wouldn't cost us "one dime". Well all of us who work for a living anyway. Remember who pushed and voted for this, and be sure to tell them what you feel about it with your vote.

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More RW propaganda

Postby FactChecker » Wed Sep 03, 2014 6:24 pm

Oh, please, more right-wing whining. The ACA did not force your employer to offer a plan with a $10K deductible. I'm almost certain that such a plan doesn't even exist, but I purchased a Gold level plan for under $400/month on my state's exchange, and I believe I have a $2,500 deductible. Blame your husband's employer for putting their profits above the welfare of their employees. There are plenty of affordable plans out there, but Republican owned businesses will take any opportunity to blame Obama for everything. It's really quite tiresome. And also not true.

tenlines wrote:I'm not sure how to reply… If it pleases the forum: we always pay our cards off at the end of the month (how else would I have +800 scores?) we don't live beyond our means and, I didn't want to bring up more political issues but, it is not an "ego" concern it is a "emergency" concern. As in, thanks to the AHA my husband's company now only offers healthcare with a $10k deductible. While I know most places used to be willing to work out payment plans, for me it is a great safety net to think I've got it covered no matter what monthly bills I've already charged if one or both of us ends up hospitalized. This is why I was concerned.

Thank you for the information that income gathering on established cards is now a thing - I still would like to see where, but I will speak to my card companies and hope that 19 years of loyalty still means something.

takeshi
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Postby takeshi » Thu Sep 04, 2014 12:57 pm

(nevermind)

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djrez4
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Postby djrez4 » Thu Sep 04, 2014 3:06 pm

FactChecker wrote:Oh, please, more right-wing whining. . . .


I came here to say something like this and then realized how old this thread was. Now, I want to say something like this:

takeshi wrote:(nevermind)
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
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yfan
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Postby yfan » Thu Sep 04, 2014 3:37 pm

FactChecker is actually right on this, I can give you at least 5 stories of personal friends and family friends who all work full time but couldn't afford health care before and can now. The cost of my *employer provided plan* actually went down this year, while benefits became more generous. But then I work for a locally based nonprofit. But THIS is a credit card forum, not a political dance theater. So before you say things that will ignite political passions, please think twice.

Now, onto your issue, OP. Can they ask for an income verification? Yes. Will they close you down if you don't provide it? Probably not, but they may lower your limits. What kind of limits are we talking here? To say that they are "required" to get your income tax returns is incorrect. According to the CARD Act, lenders have to show that they are basing their decision on sound income data - which CAN be an estimate from your credit reports, btw. Why is this? 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.

With respect to emergencies like medical bills, there are some things you need to know. Assuming the health care plan you have is a family plan, your out-of-pocket expenses (deductible AND copays combined) are capped at roughly $12,700, and your insurance company is not allowed to have any yearly or lifetime caps (that is if it isn't a grandfathered plan in existence BEFORE the enactment of the ACA). Can your current savings accommodate that? If so, there is no reason to worry about your credit limit. Other things to think about

- Do you have an HSA? Since you have a high deductible plan, you would be eligible to put up to roughly $6500 a year in an HSA, in pre-tax dollars. If you don't you can start building that up.
- Is it possible for your husband to get his employer to only cover him? If so, you can go to your state's exchange under the ACA, and you would be able to get a subsidized plan depending on your family income - and from the sounds of what you said here, you would be able to get a much smaller deductible at a very subsidized price.
- If your husband were to do this, would his contribution to the employer's plan exceed 9.5% of his income? If so, HE too would be eligible to opt out and purchase subsidized insurance in your state's exchange under the ACA.

(Yes, I have actually read the law; page by page.)

If none of the above is an option, consider a "gap" insurance plan like Aflak. Or, ask your hospital if they would be willing to extend you a line of credit to be used in case of emergencies - which would protect you from a shrinking CC limit, and would probably be on a more favorable interest rate.

We may have some political differences, but I hope the information I have provided here can be of some assistance.

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Postby yfan » Thu Sep 04, 2014 3:37 pm

djrez4 wrote:I came here to say something like this and then realized how old this thread was. Now, I want to say something like this:


Hahaha well I realized that AFTER I wrote a long a** reply. Great.



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