August 12, 2009
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The other side of the Credit Card Coin, Pt. 3
More of the same...More and more every day, it seems these kinds of credit card woes are becoming commonplace. Being caught off-guard like this is not only humiliating but very cruel. It doesn't help a thing to reach credit card customer service completely unaware of any problem only to be told by the agent that the account has been closed and no reason will be given until the notifying letter is received a few days later. It may be legal but doesn't seem ethical nor like a good way to "run an airline". We don't have numbers yet of how widespread this is but similar cases are coming to light in great proportions. Amex isn't the only bad guy here. There are similar reports concerning many other large credit card lenders such as HSBC Holdings PLC, J.P. Morgan Chase & Co., Citigroup Inc.. and B of A.
A New Jersey man recently faced a similar circumstance with his HSBC "Cash or Fly Platinum" credit card. Once again, here's someone out for some enjoyment and relaxation at this favorite sushi bar who's credit card is rejected. His first thoughts aren't "Oh, I guess they closed my account, it's a good thing I carry cash." No, his first thoughts are "Oh my God! What bad thing could have happened? Was the number stolen? Is it fraud?" To his frustration, he was to find out that HSBC had simply decided to perform some risk evals ("reassessing risk," they call it). He least expected this as he goes to great trouble to never miss a payment, never go over, never carry a balance and constantly monitor his credit card score.
It might be fair if a credit card has been abused to not notify some one. The abuse here, is on the part of the lender. The Equal Credit Opportunity Act has a whole in it and doesn't protect consumers. It allows a lender to wait up to 30 days before notifying a card holder that his account has already been closed.
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