Credit card racket ratchets up

Probably the biggest consumer scam going on in America right now is credit ratings.

Financial firms worship credit ratings much like the airline industry does the no-fly list. And it's wrapped in just as much secrecy. While firms conspire to keep credit scores on you, you can't even find out what your credit score is. You're supposed to be able to get one free credit report a year from each of 3 organizations - but I've tried getting my report, and they won't send it.

So that's another lie on their part.

This fraud is nothing short of organized crime - in other words, racketeering.

But, little by little, it just gets worse and worse.

Now credit card companies are profiling customers based not on what the customers do but on what shoppers at the same stores do. Companies lower customers' credit lines - which in turn lowers their credit scores.

Upon slashing by more than half the credit line of a customer who had an excellent credit rating, American Express sent him a letter saying, "Other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express."

So they're saying it's this customer's fault?

As you're reading this, I'm sure you're demanding a law against this practice. But I'm not certain there aren't already laws like this. Now that Bush is gone and laws are no longer just "damn pieces of paper" (as Bush would say), we need to see if there is such a law - and enforce it. If there is no law, we need to make one.

(Incidentally, American Express got federal bailout money.)

Also, the Federal Trade Commission alleged that Compucredit, a third party credit card issuer, reduced customers' credit scores if they used their cards for services like marriage counseling or retreading their tires. Compucredit evidently believed that these services were a sign that the customer was approaching financial ruin.

As for the man whose credit line was cut because of the stores where he shopped, he now has a news blog exposing the credit card industry's fraudulent ways. It's at:

http://www.newcreditrules.com/

(Source: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3711072)