Friday, August 21, 2020

Find yourself with sudden decreased credit limits due to the Covid-19 Pandemic? You are not alone!

So, here we are.  I have approximately 25 lines of credit with various banks. I took the option of deferred payments for three months due to the CARES package that allowed such things, then I started making monthly payments again after the deferrals expired.

What has happened? As a penalty...a punitive measure, against taking advantage, during the Pandemic, of deferred payments, banks suddenly reduce your credit limit.  This destroys your credit score/reports.  It will take you from using 30% of your available credit to 95% to 100% percent of your credit limit being used. This actively creates a domino effect...as other cards will see your reduced score and follow suit.

So, in reality, you are being retaliated against, for taking deferred payments under the signed "law", by our government.  This is sad, and will be investigated I am sure at some point, but in the meanwhile, you find yourself left in limbo.

My solution and choice...banks pull this shit with me, I cut off my autopay.  What more can they do?  They have already created damage that will take months, if not years to repair.  Is is through our fault?  No...it is due to the pandemic and their inability to appreciate those who have been loyal to them for years.  Excuse my French, but fuck them.  Any bank that suddenly reduces my credit limit after I have resumed making payments, will suddenly simply stop getting payments.

Their options...sue...okay, go for it.  I will move my monies to another account and/or withdraw it and keep it as cash on hand.

My next step is to file bankruptcy...so they will end up with nothing.  Does not sound like much, but let's look at 66k in debt and them getting zero balance.

That is where we are at with banks attacking us that are suddenly unemployed, at a loss of resources and under stress for our health.

Covid-19 has certainly shown what corporations and corporate people think of us as consumers...Those of us who have years of on time payments...They simply are saying, "fuck you."

So, join me in returning the favor to them.  I am not employed, so they can not "garnish" wages.  I can prove in bankruptcy court my income, limited as it is, can not support any payments to banks.  So, at 64 years of age, what else can they do?  I simply will live on a cash type system, and save lots of money in monthly payments and criminal interest charges.

So far I list the banks that have penalized me for taking advantage of the pandemic deferred payment "law"....that states that one would not be penalized for such things....Overall, I mean, interest on balance due was still charged.....a pity even at that. These banks I have taken autopay off of at this time.  I have contacted them, but no response...no consideration....no adjustments to their stance.

My hope is that the Biden/Harris administration will review and resolve these issues, perhaps penalizing the banking institutions that have retaliated over taking the deferred payment option offered by the CARES package that was "law". 

Banks that have retaliated:
CitiBank - 2 accounts
First Bank Card - First National Bank of Omaha
TJx Rewards - Synchrony Bank 
American Express - Magnet Card (36 years loyal customer!) 

Edit: 9/30/20:

Discover Card has done the same as of today!

Edit: 10/06/2020:

Wells Fargo has done the same as of today. 

Edit 10/14/2020:

Barclay's has done the same as of today. 

Edit: 10/26/20:

B of A has done the same as of today.

Edit: 11/19/20

Ebay Mastercard has joined the ranks.

Link regarding this and a good read: 

COVID + Credit: How Will a Lowered Credit Limit Affect My Credit Scores? 

https://www.equifax.com/personal/education/covid-19/lowered-credit-limit-credit-scores/

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