Banks, it turns out, are dying to pay back that government money if keeping interferes with executive compensation (read that massive payouts to the top insiders). But this little post isn't about that insidious greed, it is about another quick trick the credit card companies are pulling.
I recently went on a business trip and had my business card turned down. Turns out the credit card company had cancelled all of their business cards and I had been notified by mail (only I did actually get notified for another 5 days). The story was that they did not have enough capital to cover that particular credit card line and they had cancelled all cards in that line.
OK .... suppose you buy the line that my card cap of like $25k is enough to put a major bank at risk ... so you agree that their dire straights means they can't offer credit ... would you expect to see them offer me a new credit line and card within days of cancelling the old one?
What they are really doing is trying to re-establish more profitable terms with existing customers by (without warning) cancelling one deal in order to offer another.
Needless to say, we won't be getting another credit card set from that bank.
If you haven't already been hit - and I know multiple individuals who had credit cards cut their limits signficantly - keep an eye out for this new sleezy business operation. Shop for different credit card companies and read the fine print.
After all, they need to pay back that government pronto, because Daddy CEO needs another $25M bonus.
MGoBlog 3.0: An Update
1 day ago