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I really thnik the real thing people ahve to realise is that waht congress did was to make easy crdit a thing of the past. The intend was to stop alot pf people from getting credit because that was the problem. People getting credit they couldn't pay back. Its similar to teh action of banking regulators in the 80's ;they require banks to increase the per centage of secured laons and for those secued to be backed with assets that more than secured the loans.They did this by removing so of the risk to loan incentive to loan money to people worth the risk. That after encouragign it for years.
Ironically the new laws don't apply to business cards, I guess you'll have to find someone else to blame (may I suggest looking in a mirror).
That is not what I was told by American Express just yesterday.
Why would you tell me to look in the mirror? Nothing has changed on my end in 18 months or more. These types of "feel-good" regulations passed by a bunch of insulated, career politicians always have many unintended consequences. Typically, Congress starts with an industry that may indeed need some updated regulations, pass a large bill that looks good on paper and then demonize companies when they don't stand still to get hammered by new regs. I guarantee you the same thing will happen with this legislation. I have already seen numerous news stories on interest rate increases, credit line decreases, accounts cancelled by the back, fees for those who don't carry a balance, etc. Ultimately, there will be calls in Congress for more regulations under the premise that they didn't go far enough. Unfortunately, it becomes a vicious cycle where the freedoms of the consumer end up suffering the most.
That is not what I was told by American Express just yesterday.
The law only applies to consumer credit cards, not business cards. If American Express cut the line on your business credit card than it is due to your credit profile. They certainly aren't doing this universally, I just got the limit on my business Amex card doubled. But maybe you are using a consumer card for business use.
But businesses should not be relying on credit cards in the first place, its one of the worst ways to finance things. Congress has pumped money into the SBA so they can guarantee loans to crappy credit addicted businesses. Why not complain about that?
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Originally Posted by Niners fan
Why would you tell me to look in the mirror? Nothing has changed on my end in 18 months or more.
Because getting your limit cut ultimately is related to your personal and business credit profiles. Credit has definitely tightened over the last 18 months though, but that has more to do with the collapse of the credit bubble rather than regulations on consumer credit cards.
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Originally Posted by Niners fan
I have already seen numerous news stories on interest rate increases, credit line decreases, accounts cancelled by the back, fees for those who don't carry a balance, etc.
These things were occurring before the regulations were even being discussed. To what degree the new regulations have contributed to rate increases and limit cuts is completely unknown as this would have occurred regardless, but that does not stop people from blaming politicians.
The law only applies to consumer credit cards, not business cards. If American Express cut the line on your business credit card than it is due to your credit profile. They certainly aren't doing this universally, I just got the limit on my business Amex card doubled. But maybe you are using a consumer card for business use.
But businesses should not be relying on credit cards in the first place, its one of the worst ways to finance things. Congress has pumped money into the SBA so they can guarantee loans to crappy credit addicted businesses. Why not complain about that?
Gee, thanks for the cash management advice. Most Amex cards are not credit cards. We have a Gold Card that we pay off each month. I was applying for a new Gold Card for a second corporation that we just formed with a new partner. When talking with Amex yesterday about why I had not received the Gold cards that they said were coming three weeks ago they said that they needed more things to complete my application due to the law that took effect on Feb 22.
So the law was not supposed to apply to business accounts but clearly Amex is applying it to business and personal accounts. This is an good example of the unintended consequences that I mentioned.
Most Amex cards are not credit cards. We have a Gold Card that we pay off each month.
Then why are you talking about interest rates and limits? The gold card has neither. What makes your claims even odder is that the laws apply to credit cards and not charge cards whether they are personal or business.
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Originally Posted by Niners fan
So the law was not supposed to apply to business accounts but clearly Amex is applying it to business and personal accounts.
If true then American Express is doing it because they want to do it, not because politicians are forcing them to do it.
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Originally Posted by Niners fan
This is an good example of the unintended consequences that I mentioned.
It is?!?! How in the world would a change in consumer credit card laws cause American Express to change their underwriting policies for their business charge cards? That does not even make sense.
Another oddity is that you originally spoke of it being more difficult to get financing, now you are talking about troubles getting a charge card.
Then why are you talking about interest rates and limits? The gold card has neither. What makes your claims even odder is that the laws apply to credit cards and not charge cards whether they are personal or business.
If true then American Express is doing it because they want to do it, not because politicians are forcing them to do it.
It is?!?! How in the world would a change in consumer credit card laws cause American Express to change their underwriting policies for their business charge cards? That does not even make sense.
Another oddity is that you originally spoke of it being more difficult to get financing, now you are talking about troubles getting a charge card.
I was talking about several accounts when I referenced credit lines, interest rates and credit availability.
And yes, Amex voluntarily gave me a set of hoops that was also part of the new regulations at the exact same time that new regs took effect. I guess you could call that a coincidence. To me it seems related.
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