Complaint Review: GE Money Bank - Lowes

One comment, learn about credit before you assume you have the money. This is people lending you money and for some reason they calculate a bigger risk and lower your credit line. Its normal I used to work for discover and they do it too. Ever heard of debt to income ratio or credit score, well these are couple things that can affect your limit even if you pay on time.

What do you expect the FTC or any other agency to do? There is NO LAW or regulation violated.

""I have my own issues with fraudulent activity on a GEMB account that they refuse to even acknowledge the fraudulent activity - let alone fix. ""

So, is this the reason you seem to advise everyone to file complaints? You're on a vendeta?

""In some cases the lowered limit - did result in the customer now being Overlimit""

THAT would be illegal and a valid complaint. However, that does not appear to be the case for this report.

""Lowering the limit by one creditor will cause other creditors to lower their limits as well.""

It may or it may not. I'm 54 years old and I get by just fine with ONE credit card.

""The assumption being the customer did something wrong to warrant the lower limit.. ""

I don't think that is an automatic assumption-that the consumer did something WRONG. Financial situations CHANGE and it's reasonable for lenders to adjust their RISK exposure to adapt to the change. Many folks may get laid off and end up with a significantly LOWER paying new job. Seems appropriate to me to lower the credit limit when one's ability to pay has been reduced or if one is "over extended" because they now have 10 credit cards when one used to have only 2.

""Seriously limiting our purchasing power and ability to get new loans if necessary. ""

See remarks above.

""Creditors look at how much of your available credit you are actually using, lowering limits on good customers who always pay their bills on time will make it appear they are using far more of their available credit, when in fact it was not the consumer - but the creditor that is responsible.""

And you expect the FTC and the other agencies to what?

You are correct that the lowering of a credit limit can trigger action by other creditors. As long as lowering the limit would not put the cardholder into an overlimit situation, I can't see a problem. Credit markets are tighter than they were a year ago. Are you implying that financial institutions should not be allowed to reduce their exposure when market conditions change?

When you sign up for the card, you pretty much agree that the issuing bank can do whatever they like as far as interest rates and credit limits are concerned. Personally, I think it's a ridiculous way to borrow money, but if the cardholders are willing to borrow under those terms, I can't see where they have much room to complain.

I have been researching GEMB problems for a couple of months now -

I have my own issues with fraudulent activity on a GEMB account that they refuse to even acknowledge the fraudulent activity - let alone fix.

I have seen thousands of similar complaints on many different complaint boards from all over the world. GEMB tends to abuse its good customers.

In some cases the lowered limit - did result in the customer now being Overlimit

However all of our creditors do periodic credit checks on us.

Lowering the limit by one creditor will cause other creditors to lower their limits as well.
The assumption being the customer did something wrong to warrant the lower limit..
Seriously limiting our purchasing power and ability to get new loans if necessary.

Creditors look at how much of your available credit you are actually using, lowering limits on good customers who always pay their bills on time will make it appear they are using far more of their available credit, when in fact it was not the consumer - but the creditor that is responsible.

""Federal Trade Commission and Office of Thrift Supervision

While on FTC website - be sure to review
Fair Credit Billing Act
Electronic Funds Transfer Act
Fair Credit Reporting Act

GE Money violates these federal laws regularly""

To what purpose? What law, federal or state, prohibits a credit card company from LOWERING the credit limit?

This ROR is about simply lowering the credit limit and not about lowering the limit so that "over limit" fees can be assessed (that would be illegal.)

Federal Trade Commission and Office of Thrift Supervision

While on FTC website - be sure to review
Fair Credit Billing Act
Electronic Funds Transfer Act
Fair Credit Reporting Act

GE Money violates these federal laws regularly