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All This Talk About CLD's... Post Here The name of the creditor that did it!

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It's not an official CLD but it may as well be: Hooters/Merrick has decided to wait a full week to increase my available credit back to the full amount after making a $1,000 payment. I've never had this problem before, have always used this same checking account to pay them, and have never had a payment rejected for insufficient funds. I submitted the payment request on 4/29 well before the cutoff, it posted to my account on 4/30, and the money was gone from my checking account on 4/30... yet I will not get the $1,000 returned to my credit line until 5/6.

The rep said it "may take up to 10 processing days" for the available credit to increase again, and that it should be available on 5/6. When asked why, she said "probably because it's a larger amount." They'll be receiving a complaint letter in the mail from me--not that they will care, but it will make me feel better.

(Note to self: Go back to making two or three small payments a month instead of one large one.)

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Yeah, I've had this happen once too. It depends on your payment amount. I was able to get my CL restored earlier by sending proof that the payment had cleared my bank.

Try to keep your payments under $500, that seems to be the trigger amount.

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They did this to me, too! I did the same thing with plans to use the credit immediately (not worth going into, but I was shuffling some things around).

The time they held my check, thankfully I was not planning anything but it really irked me. My goal that time was just to see the card paid to zero and all the credit available. I was able to wait for that, but it's a good thing it didn't happen the other time when I charged my apartment rent, which was due, to the card immediately! I needed that payment to clear right away so I could pay the rent in one payment. (don't worry, I paid the debt back like a week later. I use those cards with their huge credit lines and horrible rates for short term loans to myself and/or to consolidate payments from several sources into just one source).

p.s. sgip: You shouldn't even have to send them proof that the payment cleared the bank. Since they received the funds, they should be the ones to know that the payment cleared the bank!

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p.s. sgip: You shouldn't even have to send them proof that the payment cleared the bank. Since they received the funds, they should be the ones to know that the payment cleared the bank!

I only did this so I would have to wait the 14 days for it to clear on their end.

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Oh, I completely understand that. I was just saying that it was unreasonable for them to hold your credit until you proved to them that they had something that they knew they had. That's Merrick Bank for you, though.

Otherwise I've had no problems with them. But I'm not surprised that they treat every customer like a criminal.

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Oh, I completely understand that. I was just saying that it was unreasonable for them to hold your credit until you proved to them that they had something that they knew they had. That's Merrick Bank for you, though.

Otherwise I've had no problems with them. But I'm not surprised that they treat every customer like a criminal.

I was told that they only "hold" your available credit IF you make a single payment larger than $500 or several semi-large payments per month.

They said they do this because some customers had "bounced" checks in the past and then max the card out. Makes sense. They should just tell their customers of this policy.

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I was told that they only "hold" your available credit IF you make a single payment larger than $500 or several semi-large payments per month.

They said they do this because some customers had "bounced" checks in the past and then max the card out. Makes sense. They should just tell their customers of this policy.

Either that, or they need to do some better record-keeping. They got my money the day after I made the electronic payment, and they ought to be able to tell that the payment cleared.

What's considered "semi-large"? Over a year ago, I PIFed a balance of something like $760 with no hold. Now, I usually make two or three payments of $200-500. I never ran into a problem until I made one large payment of $1,000 last week.

I'd appreciate them being up-front and saying something like "payments greater than $500 are subject to hold." I sent them a snail-mail letter; maybe that's what they'll tell me.

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After months of getting nothing but CLI or having status quo, I've finally been bit. Amex canceled my account. A $3500 CL down the tubes. Only had $150 on it so its not that big deal, and I only used it sparingly as it was mostly a card to have on my report for utlization but it still sucks.

edit--Tring BBB complaint. Figured I've got everything to gain and nothing to lose.

Edited by thegame26

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I have noticed a trend - each time the creditor closes the account and you call to complain, they ask you to reapply. So are they doing it so they get everyone's new financials? Or are they doing it so they have new contact information? Can't be because of terms and conditions - because they can change that at anytime anyway.

AMEX is expecting 20% of the credit card balances to default (BTW same with Cap I). See this article: http://www.nytimes.com/2009/05/11/business/11credit.html

Its a little old (May 2009). But:

Every major credit card issuer has been approving fewer new applicants, reining in credit lines and canceling unused accounts. And Meredith A. Whitney, a prominent banking analyst, expects credit card lenders to cut the lines of credit they extend to borrowers by a total of $2.7 trillion through 2010. That is equivalent to a 57 percent reduction in the credit they made available two years ago at the height of the boom. ...

American Express, Bank of America and Capital One Financial showed first-quarter loss rates that hovered around 8.5 percent, roughly tracking the unemployment rate. All three said they expected higher losses in the coming months. Even Chase Card Services, which charged off just 7.7 percent of its card loans in the first quarter, expects its loss levels to surpass unemployment by the end of the year.

Card executives say there will little improvement until the economy stabilizes and consumers are more optimistic.

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I guess I really have two problems with what they did:

1. You've reviewed my account via soft pull every month since I had the card which has been since 2-08. There was nothing in this month's pull that was any different than the last month or when I orginally got the card. So what suddenly changed? And if you were that troubled by something you saw how about just reducing my CL?

2. You have my phone # on file. You can't call to tell me that your're canceling my account? So I could've gone and tried to use the card and looked like a fool because I didn't know what you did? I have to wait 5-8 days for a letter from you. If I hadn't checked my balance online as I do every 2-3 days I would'nt have known.

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Well, I applied for a credit card last night and NewcardServices calls me today at work to verify a few things. It was for the Fidelity AMEX, and I did not only get denied for the card, but she proceeded to tell me they were canceling my BoA credit card as well. HAHAHAHA! I simply laughed, gave her a little piece of my mind, and then concluded, "Oh btw, as you can see I haven't used the card in about 4 months so you saved me the time for closing it any ways...Now you have a great day!" and then I hung up the phone.

So just be cautious if you are applying for any credit cards and you already have a few. They pull your credit and might even back fire on you. But for me, one less card that I need.

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Either that or they are under the same umbrella - Newcardservice.com

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CHASE decreased my credit limit from $755 to $500. There reason: Total available credit on bankcards too low.

This is the first CC I got when I was in college - about 5 years ago. I do have a second one from them which I only use now.

...Well, I'll let them keep decreasing it b/c I won't be using; I'm only sticking to one credit card :)

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I got a CLD from $5500 to $4400 was Wamu but now Chase. No reason why. I have made all payments ontime.

Ditto. Chase gave me a CLD on my very first credit card I've ever had, but I no longer use it; only use one credit card now. $755 to $500.

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It's not an official CLD but it may as well be: Hooters/Merrick has decided to wait a full week to increase my available credit back to the full amount after making a $1,000 payment. I've never had this problem before, have always used this same checking account to pay them, and have never had a payment rejected for insufficient funds. I submitted the payment request on 4/29 well before the cutoff, it posted to my account on 4/30, and the money was gone from my checking account on 4/30... yet I will not get the $1,000 returned to my credit line until 5/6.

The rep said it "may take up to 10 processing days" for the available credit to increase again, and that it should be available on 5/6. When asked why, she said "probably because it's a larger amount." They'll be receiving a complaint letter in the mail from me--not that they will care, but it will make me feel better.

(Note to self: Go back to making two or three small payments a month instead of one large one.)

This is called payment float and it doesn't affect the amount of interest you pay, nor the date the payment posted to your account. It only affects your available credit. This is a smart thing to do as it ensures you won't overspend your account well beyond your credit limit should the payment bounce for any reason.

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I have heard of this but haven't seen it in action other than Chase, one year ago, reducing the credit limit on my $4,000 card to $3,788 ($20 more than my balance) right after I made a huge charge at the dentist's office.

My husband and I have been furiously paying balances off as fast as we can. He had carried a high balance on his Target VISA (most recently over $800 on the $1,000 limit card) and we paid it completely off in one month.

I eagerly checked the statement this morning to see if any credit line increase or other activity had taken place (other than the increased APR they imposed on all customers a month or two ago - it's at a crazy 23% or something so it was not intended to be anything but a sock-drawer or utilization-booster card) and I was shocked to see that they REDUCED his limit by HALF!

That's right - $500 available and $500 credit limit. When it was $1000 last month and had been for about two years. Those !@#$%^&s ! :evil:

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That's right - $500 available and $500 credit limit. When it was $1000 last month and had been for about two years. Those !@#$%^&s ! :evil:

Don't sweat it...they're doing it everywhere. I've been hit multiple times lately. Target even CLOSED my account. Lowe's, the place where I literally spent over $10,000 last year in CASH (rental prop upgrades), dropped my limit from $750 to $224. I have had perfect credit since my day of discharge in October 2004 and have a middle FICO of 720. Banks could care less.

Banks are trimming credit lines. It is healthy. They were so outrageously inflated in past years that the application of common sense requires deep cuts.

One of the problems is that unemployment is so pervasive right now that giving anyone chunky credit lines is risky. People with perfect credit can charge up their card and then default within a short period so that they can survive.

Besides, screw Target anyway. Get a cash back card and only use that card every month. You won't pay a dime in interest. At the end of the year, they'll send you a nice check. You can take your husband out for a night or apply it to holiday spending on the kiddies. Target ain't doing that for ya'!

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Well, thanks for the commiseration, and of course you're right that Target is crap. We have been well aware of that (23% interest - puh-leeze!) We only wanted it as a "placeholder," as it were - something to inflate the utilization since we have lots of debt and not a lot of money and would like a better ratio as we work to pay the debt down. But of course, a $500 cut is not a huge deal.

He's at 32% utilization or something now, and that's before computing in several cards he just paid off - and I'm sure Target didn't see those zero balances reflected yet if they checked credit (and they probably didn't.) I appreciate it that you shared your experience because now I realize how very impersonal and how unrelated to the individual this type of action is.

That's what I told him right away - it's probably not you, it's just Target. They don't want to lend a lot of money to a lot of people right now. Regardless of who those people are or what their credit histories are like.

We have USAA cards and they're great for rewards. Only problem is they're charged up right now since they're the ones with the lowest APRs. We just paid off high APR cards, though, that we had previously kept charged up (Sam's Club, Texaco, and Walmart.) That's a great feeling - to not pay 26% interest. That's right - Texaco notified me that they're now charging 26%, but I got out fast as soon as I heard that (21% was already a crime to carry a balance with) and I use and pay my card now - and pay them 0%!) :mrgreen:

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What're you laughing about there? By derivatives, do you mean options?

I stay away from those like I stay away from the moldy broccoli in the back of the fridge.

I have very limited experience with those, although I am proud to say that I have made more than I've lost with options. My main (and only) claim to fame is the little pile I raked in when the swine flu news hit and Mexico's stock market took a tumble (that I thought would be temporary). I was right, and I cleaned up. I cleaned up enough to more than offset my subsequent missteps (cough cough, Netflix - something I would never in a million years have otherwise thought to invest in) and found that kind of "investing" to be not worth my time or brainpower expended.

Lately what I've done is make a tidy pile on investing in KOL. Then I lost a smaller pile on KOL trying to catch a slow-motion falling knife. But it was a net gain to the tune of several hundred dollars (which is substantial considering the modest amount of money I have to invest.)

I took one pile of $750 spun-from-thin-air right off the table and paid an entire "toy" credit card off. That's the spirit, right?

Oops, I have really started rambling in this topic. Oh well, it's not like the conversation was exactly flying fast beforehand.

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LOL, no worries. I'm sure you're doing the right thing. Paying off credit card debt is a guaranteed 20+% gain per year. Where else can you get a guarantee like that?

I love Net Flix, but I've never looked at their stock. [in fact, I didn't even know they were publicly traded :oops: ]

"Invest in what you know."--Peter Lynch

...of course you're right that Target is crap...

I thought you liked the Target card... [Best strategy for getting the Target VISA upgrade?] Also, their rewards program is decent for a department store card.

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This is called payment float and it doesn't affect the amount of interest you pay, nor the date the payment posted to your account. It only affects your available credit. This is a smart thing to do as it ensures you won't overspend your account well beyond your credit limit should the payment bounce for any reason.

I'm aware of all of this. However, Merrick remains the only card issuer of mine that has ever chosen to exercise that option. I can understand it if the payment amount is over $1,000, or if I have had payments rejected in the past. Neither of these things were true the last time they held back my available credit a month ago.

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