Chargebacks & Refunds 2009

[anasporn]

Originally Posted by anasporn

Over the past 6 months I have been hearing anecdotal evidence that these credit card issuers are resorting to more and more desperate tactics as delinquency and default rates rise: reducing credit limits (sometimes to *below* the account balance!) and offering cardholders a discount to pay off their balances and close accounts.

Anecdotal was just recently confirmed:

A new FICO study found that 11% of US consumers -- 22 million people -- have had their credit lines cut or accounts closed even though they have been paying their bills on time and retain a solid rating.

Don't have a link for it (yet) but was quoted in John Maudlin's weekly e-letter, and he is a very meticulous economic analyst.