Your credit card company is watching you (for now)

I am absolutely disgusted with the credit card given to my mother from Juniper! We received a notice today that they were raising her rate by over 9%!! She has always made her payments on time and even paid way more than her amount due! I know thanks to the Credit Card Bill of Rights we could expect a higher APR, but 9%?? Also, this went into effect for her on August 1st. Yet we get this notice today, September 1st and they sent it out on August 27th…Everything is just not adding up here…

Yes, they have the right to evaluate my credit. I also have the right to demonstrate the error of their ways when they misjudge and take my business elsewhere.

If a cc co. gives me $5K limit, then I should be able to charge wherever I want without my privacy being invaded. What is next? Do they not allow a transaction to go through if they disapprove of what or where I buy something. One more reason to change to cash.
Very eye-opening post.

Is purchasing clothing at a 2nd hand store a red flag – or showing intelligence by not overspending?

Gambling and bail bonds I can see the questions for those purchases, but not a 2nd hand store.

If someone wants to buy a nice outfit from a 2nd hand store what is the negative pattern in that? There are a lot of designer clothes in these stores, and some are located in upper class neighborhoods.

Anything to raise the rates and ripoff consumers.

So if I buy an international air ticket will I be considered a flight risk? Will they change the terms of my card and make it more difficult just because I bought an air ticket?

Agreed that obtaining CREDIT is not a right, but this is too much nonsense; to base my financial behavior on random transactions.

Recently I paid my credit cards and canceled them, limiting myself to two ( I know, I should only have one). One I carry with me to keep for emerengencies and another at home. The one at home I hardly ever use.

Instead, I simply carry cash on me. Many people ask me why I just don't use my debit card, but I tell them "putting cash back into the economy is my way of helping to recover this nation." What many people don't know is that every time a person swipes any type of card, the merchant has to pay a fee to that company.

This is why some places only carry certain credit cards (eg. discover or AMEX) and why at least $3 worth of value must be bought from some places like gas stations. It pays back the fee to the credit card company.

Another reason for cash: spending more than you have is impossible. When my partner and I go grocery shopping I carry cash. If we have more groceries than cash, something (normally my Oreos) go back on the shelf.

Getting to this point took many months of "saying no" to things I don't need. This method worked for me, but everyone is difficult. Now, some of my friends are calling me for advice. Good luck to everyone

It's no different than the government monitoring everything we do! Yes I beleive it is ok for the Credit card companies to do this…if you were a business owner and someone came to you to buy something that looked as though they were homeless and asked for an advance of food with a promise to pay you back next meonth..would you question them in the back of your mind? Probably so…we are no different than the credit card companies…..If they loose to much money to those that do not repay…at some point they will have no more money to lend…and that my friends would be bad for all of us that pay our bills in full and on time..no one to borrow from…too many people chasing too few dollars equals what? Inflation!

I despise the credit card companies and their exorbitant fees. I understand, however, that they want to monitor their debtors, like any reasonable creditor would do if a lot of money is on the line. If you don't like to be monitored, use a debit card.

Funnily enough, that's exactly what some car insurance companies are planning on doing..To put a sensor on your car steering and monitor your driving habits. Good luck.

I have no objection to credit card companies using any information available to them to judge the credit-worthiness of their cardholders. Credit cards afford the cardholder a most wonderful privilege of an unsecured loan that one can use at any time to buy just about anything, up to a predetermined amount. This "loan" is totally unlike a mortgage loan, car loan, etc. in that the latter are secured by the house, car, etc. People these days seem to be losing sight of the fact that credit card companies face great risk in giving people these unsecured loans (however relatively small they may be compared to a house or car) and that receiving this credit in ANY amount is a PRIVILEGE not a RIGHT. You do not have a RIGHT to a credit card or a RIGHT to any particular credit limit! Simply by having this marvelous tool, you are among a very small percentage of the world's elite. Accept it for what it is, use it as best you can, and stop complaining about the credit card companies taking advantage of you.

It is reasonable and I believe best practice for companies who either extend credit or underwrite insurance to better understand the behavior and spending habits of consumers. Perhaps, if we did have closer scrutiny and analysis, we might even uncover other predictor variables not only of delinquency and loss but also of criminal activity.

The core issue is that there is an inherent conflict that banks have to continually address: banks' customers who are most profitable are not necessarily (and usually not) the same as those customers who are the most responsible (ie., pay on-time and in-full, etc). So, if the bank is disparaged from pulling back on lending to the riskiest segments, it must have the ability to better understanding buying and other behavioral patterns to assess risk and price it accordingly. Further, if the bank does pull back on lending to its riskiest/most profitable segments, it must do something to offset the revenue/interest loss.

And, during the housing debacle of recent past, while banks did shirk fiduciary and fiscal responsibility in (by passing this to brokers, who did not actually have it mandated by law as the banks do), banks have a difficult time in this environment.

Actually auto insurers have implemented systems to base premiums on peoples' actual driving behavior like how hard they break, how fast they accelerate, how often they make sudden turns, etc. Wouldn't you agree that people who tailgate and break hard often would be more likely to have an accident? Allstate and Progressive come to mind. Right now they are voluntary programs. Many people (including regulators) argue that this is a much more equitable way to rate than just based on driver characteristics such as age.

How does anyone believe that it's OK for card companies to engage in these types of practices? Would anyone accept their car insurance company tracking their driving and raising rates based on how they accelerate after stop signs? Check out Debtbeat to see how banks hurt consumers.

It appears the CC companies have no customer service. I have a CHASE card and have had it for over 22 years. I only carry two credit cards, one personal (the CHASE) and one business (AMEX). I pay my balance every month (always). I had a credit limit on my CHASE of 45,000 dollars and it took me 22 years of good credit to get that limit.

I just received a letter, they reduced my credit limit to 20,000 dollars. I called, all they could tell me was I did not use the card enough and did not need that limit. I tried to explain, I only have the one card and all my credit is on that card. I asked what I need to do to get my limit back, the answer was I could not.

All my loyalty and good payment record, got me nothing. This will also reduce my FICO score.

I would close the account and open a new one, but that would also reduce my FICO score. It I could use cash, I would.

Wow JMR. Where have you been hiding for the last 6 months? Do some research before commenting. Even responsible, credit worthy customers have been getting hit with ridiculous fees, rate increases, and limit reductions. The credit card companies are taking advantage of customers, regardless of their "good standing", and even worse, do not have to have a reason for it.
I guarantee that without the new laws these practices would continue, even if all of the "bad" customers gave up their cards.
And FYI- I have gotten rid of my credit cards because I refuse to do business with companies that honor their "good" customers this way. And yes, I paid them off (no "money for nothing" as you put it).

Those of you who agree with Donna and this very one-sided commentary are exactly the kind of customers that CC companies don't need. There are plenty of responsible people out there who use credit cards wisely and issues such as those raised in this commentary never become a concern for them.

You could do all of us a favor by cutting up your credit cards and never using them again. Our rates and fees would go down because we wouldn't have to pay for your undisciplined borrowing. Go ahead and give up the unsecured loan that the CC company gave you and buy everything with cash. If you can't live without the credit card, then stop complaining, be more prudent in your spending, and stop feeling entitled to "money for nothing".

For those of you that think this is a Big Brother problem…take a deeper look at what our government is currently doing with respect to "Big Brother" activities and then tell me you are still concerned about CC companies and their insignificant account monitoring techniques.

It's NOT OK for CC companies to track your spending behavior.
Quite simply, no other credit grantor does this, mortgage company, car financing, personal loan.
Once granted the loan the relationship is maintenance only.
It would seem that this proprietary purchasing information needs to be stripped from the credit card issuers hands as they are abusing their accessability to it

"Credit cards are a business, they are not in the market of losing money unlike our government."

Posted By Chris, Austin TX: August 25, 2009 4:02 pm

Losing money, such as bailing out banks who weaseled in some nasty loan rates when otherwise being the middleman caught because so many jobs have been lost to offshoring?

The situation isn't as cozy as you want it to be.

Raising interest rates does NOTHING to ensure repayment. All it really does is ensure that the CC company will receive more money. It's not protection. It's extortion & greed.

Marshall is quite right and I agree with him that "It really upsets me to have 2-3% skimmed of of most retail transactions in this country."

It has gotten hard to use cash as our employers pay directly into our accounts, ATMs only give out twenty dollar notes, and the largest note we have is $100. Unless I want to write checks (getting dirty looks from everyone else in line) I would need to carry a briefcase full of money. In Europe the largest note is 500 euros (about $600) and ATMs give out a selection of notes depending on your total request.

the basic question is whether this smacks of big brother. when you combine this issue with RFID tags, including in drivers licenses and passports, black boxes in cars, keychain tags for different stores – he!! yes it smacks of big brother.

Those of you defending the credit card companies and their status as business do not realize at least one important fact. THEY have access to every bit of information on you, your life habits, your changes in life habits, your spending habits, etc. etc. etc. To certain degrees, they can dictate your habits, especially with regards to money decisions. WHAT do you have to select them as your preferred business? You have access to nothing, except a pile of rhetoric that they're there to serve you. And note… there was a day when you got a discount for paying cash. Now you only get discounts if use a credit card with a cash rebate feature. You actually lose money by paying with cash. Personally, if our tax dollars are going to bail them out of their business ineptness, then they damn well better treat us better.

Anyone who thinks credit card companies should not be able to asses their risk is ignorant. If anything this will save people money by identifying high risk people and cutting their credit limit or canceling a credit card they should not use. Remember, it was poor risk assessment that got us into this whole mess.

On another note, twice in the last 6 months chase has increased my credit limit. Why? Because since opening a credit card at the beginning of college (7 yrs ago), I have paid my credit card bill in full and on time each and every month. If people took a little responsibility, and didnt spend more than they can afford to repay then you wouldnt be dealing with these problems. We now live in a world where everyone is looking for handouts and dont understand the consequences that their spending habits can have on their future. In the end, you are lending money and have a responsibility to repay, if you dont, there are consequences for your actions.

Take personal responsibility for your actions and stop looking for handouts, it will destroy this country.

…"sudden cash advances, using your card at a second-hand clothing store, gambling at a casino or for bail bond services are the kind of spending that can raise a red flag."

I can understand how cash advances, gambling, and bail bond services can signal a disaster waiting to happen, but second hand clothing stores? Come on! Anyone with kids should be shopping at these places. I find bargains there all the time and I have excellent credit! Bargain shopping and bailing someone out of jail are NOT equal!

Um, Duh? They SHOULD track your spending – although they should do a better job tempering the statistical analysis with some human input which they probably don't at this point.

If you're worried about being tracked, that add on the side of this CNN page probably installed a flash cookie that's tracking your browsing habits to better target their ads when you come back to CNN next time. I'd call that a bigger invasion of privacy than anything the CC companies do. And deleting regular cookies doesn't kill flash cookies, and those flash cookies can even repopulate regular cookies automatically! Doubleclick is watching!

They track your spending behavior to alert you if they suspect your account has been compromised. Credit card companies are running a business and as such you should have no reasonable expectation of privacy from the company that you want to process all of your spending transactions. Pay cash if you don't like the practice. Yes, you have to use a credit card to rent a car, book a hotel room, etc. but I don't see those on the list of transactions that would flag a problem. Personally I am tired of bailing everyone else out who can't pay their bills. If this helps keep my fees and interest rates from rising, I like it.

Buying pattern monitoring, while a little spooky, is not a big problem but is is a sign of riskier behavior of the CC companies. Their risk, previously, was based upon the customers ability and desire to pay the bill. When, decades ago, the CC companies were permitted to go beyond an 18% limit (presumably to extend credit to less desirable clients) they got really greedy, but with that greed came more risk — thus more analysis of credit payment default.
There are 2 things to be fixed:
1. Set limits on the interest rate (Prime + X %)
2. Let store offer a discount for cash, or a sir-charge for using "the card".
It really upsets me to have 2-3% skimmed of of most retail transactions in this country. You know,… A billion here and a billion there… and pretty soon we are talking real money.

The consumer must recognize that credit cards are basically for convenience, and maintaining a balance owed, is never in their best interest.

In fact, no one should have more than 1 card, and they should pay that off every month in full.

You should never charge more than you can pay. If you need to have term financing, there are far less costly ways to borrow money.

The Americans in this moment are no more a nation of powerful consumers but a nation of full debt people with few possibilities of recovery while their financial industry is each time more powerful without care the future of this country. Without consume the companies won’t have the opportunity of survive and the recession will continue.

My Citicard went up to 29.90 – they wouldn't change it even though my Fico score is 698 and I have never ever been late on any credit payment for over 30 years – I paid it off. None of these tactics surpise me. I've given up.

In ten years of having a citicard and paying all my balaces off within months of incurring them, I missed one payment by 3 days. I went on-line to discover that they raised my rate from 8.99 to 25.999 in one swift move as penalty for one late payment in 10 years. They returned my rate down when I called but then at the conclusion of the call asked me for the name and number of a relative. When I asked why I was told they could not disclose that information. Why would they ask such a question other than to solicit them? These companies are EVIL.

I can not stand the CC companies. I had been a member of a bank for 10 years. Never ran the balance to 0, got a bank owned CC about 6 years ago. Never ever late and always paid more than the min balance. Got into a bind after moving and had to use the CC to survive. Ran a balance of about 12K up on the card. In 12 months the balance was 0. Had an emergency trip for work, 2K on the card, the next month the balance was 0. Got a letter in the mail saying I dont meet their minimum standards, cut my line from 15k to 1k. Interest rate from 7% to 19%. I am no longer a member of that bank nor do I have that card.
I am sorry but 8 out of 10 times, you do need a CC to pay for things.
The fact that they "feel" like watching spending habits to determine if your a risk or not, makes me livid. You buy a new house and then you use your CC to buy stuff for the house that you would not normally purchase…does that say you are "at risk"? Who cares what we buy? Why should they care?

When you charge on a credit card, YOU are borrowing THEIR money. If I'm loaning money, I kind of like to know how it is being used. If you don't like it, don't charge it. PAY CASH!

Tracking your spending is wrong and it is an invasion of privacy. If the issuers think it is such a legitimate policy, why don't they disclose that to the card holders and see how many vote with their feet and tell the issuers to take a hike. We would, and the issuer would lose long term clients from whom the issuer has made plenty of money through merchant fees.

There are no good indicators of financial trouble, other than not paying the bill, or perhaps paying only minimums when in the past it had been in full. Spending at a bail bondsman can mean nothing more than bailing your kid out after an alcohol or marijuana bust. Spending at a second hand store could be for less advantaged others, or it could be a sign that the card holder is getting financially frugal, which is actually not a negative at all. Use of a card at a casino doesn't mean much either, and the holder could be going for points or the cash back offered by the issuer of the card. If its gambling addications the issuers are worried about, then prohibit use of the cards for gambling (probably not a bad idea to begin with – after all, gambling money should be money you can afford to lose (because you likely will), and using a credit card could suggest that you really don't have the money to lose).

We use our credit cards for everything (groceries, car insurance, purchasing of cars (to the extent the dealer allows it), college tuition, books, any business expense, – you name it), but always pay the balance in full. Annually we end up with between $1,500 to $2,000 in cash rebates or discounts.

Cash advances are another issue entirely, and issuers have been closing those down for a while now (as they should – at one time we had over $200,000 available in cash advance on our various credit cards, and if we ever decided to leave for good, that cash just sitting there would be tempting). There is also no upside to a cash advance to the card holder as interest applies immediately, and many cards have an additional fee. In most instances a couple of thousand from the mob would have less juice associated with it than what the card issuers want.

If card issuers are allowed to make their lending decisions on where money is spent the next thing you will know is that the issuers will be making moral decisions for the card holders. Can't spend it on hookers, adult entertainment, alcohol, cigarettes or any other vice or at places the issuers associate with a vice. I grew up a long time ago and don't need or want those for whom my spending habits make money telling me what I can, and cannot do. Try taking that role, and see how fast the relationship ends.

On what planet does someone who lends you money not have the right to protect that asset through an evaluation of your ability to pay it back?

The credit card company can do anything they want with this data. If you don't like it, then don't do business with them and stop whining.

From some of the comments here, it appears as though some now view having a credit card as a new "right".

This isn't just American capitalism. The "free market" has always been their to get your money whether it cheats its customers or kills them. Its been around since one caveman sold a dull spear to another caveman.
Face it we will always be faced with the "free market's" interference until a government and SLOWLY stops the madness.

People's attitudes here are sick.. Everyone wants something for nothing. Credit card companies are in business to make a profit, and they have a right to increase their profit any way they see fit, just as consumers have a right to change companies or not use credit cards. When you charge a purchase on your credit card, the card company is issuing you a loan. Of course they have a right to base your credit-worthiness on what types of purchases you make.. Your car insurance rates are affected by what type of car you drive, because insurance companies know that if you drive a fast sports car you're statistically more likely to drive dangerously than if you drive a minivan. It's the same with credit cards. Someone who makes most of their charges at bars, liquor stores, and McDonald's is probably more likely to miss a payment that someone that makes most of their purchases at grocery stores. If you want the credit card companies to loan you money, they have a right to know what you're using it for.

Misquoting one of CT's Lotto slogans, "You can't lose if you don't play."
I canceled all credit cards 17 years ago. I bought my first house and refinanced it twice in the last three years. Never had a problem with my credit score. I use a bank debit card and keep enough in an interest paying checking account for emergencies.

I agree that having a credit card is a choice. I don't think it is a privilage. Brilliant marketing has lead the consumer to think that it is though. Anything you think you "need" a credit card for can be done with a debit card. I have reserved hotel rooms, rented cars, etc. using my debit card. Yes, I still have a credit card, but I am working on my nerve to cut it up. They really are not necessary.

Why Credit Card companies are looked at enemies ??
If you use your credit card wisely ( withing your limit ) and pay off every month then i dont see a problem at all. In fact You earn some ( for me few thousands annually) cash back / points / rewards.
I never looked any of these APR/Fees and penalties.
If you start using credit card as your personal kitty then you need to worry all these terms/APR/penalties/fees.

Bottom line is, if you want a good credit line, generous terms and rewards on your card, there is a price to pay. Personally I am OK with this kind of monitoring practice – since I know it wont affect me in anyway. It is always people with weaknessnes that keep cribbing. Probably they should stay away from credit cards

Profiling, plain and simple. Where's the ACLU when you *need* them?

Wouldn't this put certain types of vendors at a disadvantage? Keeping in mind all merchants pay fees every time somebody charges something at their business… I went to one of the dollar stores recently and was proud to see that they do not accept cards other than PIN based transactions. Come to think of it the wholesale style stores don't process credit transactions either. It helps keep their merchandise affordable. Good for them, and good for us. Everything I get from either of those places is "paid for." There needs to be more of this so we can drive down the cost of things like "food". Allowing vendors to up charge for credit card transactions should be explored.

to much big brother!

It is far better for credit card companies monitor my spending than the government. At least the credit card company's motive is profit while government's motive is to take control of your life

If you make your payments to that specific CC company on time then the rest of a persons life is none of their business. If I had Bill Gates $$ I would start subjecting a lot of people in this world to their own practices and publicise their reactions to it. ie President of Visa would get all the business he subjects little guys too and then some. I would follow him 24/7 and every little mistake he made would be on the front page – then we could see just how much he thinks of big brother watching. not so much I'd bet

Some of these comments are hilarious. Like the big brother is the bad guy all while, by default, bank and credit card boards are the good guys. It's an foolish line of reasoning. Furthermore, it's this sort of erroneous, even devious, thinking that allows us Americans to be ripped off, left, right an center.

Someone who has lived in any other developed country knows that excluding the States, very few developed (civilized) nations allow such mischief to go on unnoticed. They certainly do not allow any private corporation, business or group to set the standards for their country.

After all, we are the country which absolutely loathes the government keeping anything on us, even for our benefit. Strangely enough, the same government we vote in. However we have absolutely no issue with any private company storing absolutely everything and anything under the sun about us. Even the FBI must purchase information from these same private sources, as they are not permitted to collect the information themselves.

While this practice is widely acceptable, even the norm here, it is quite illegal in numerous other developed countries; like the UK, Canada and Australia. As a result, without your explicit permission, no private company is permitted to store or trade any information about you.

The reality is, you can't live completely free of a credit card, not and have a normal existence in today's world…
Try renting a car w/out one, or paying for some items without one, or…

I'm not suggesting you can't / shouldn't minimize your credit card usage, but saying it's "optional" is not realistic.

I don't mind them "tracking" borrower habits and intervening early to stop major losses and keep the interest rates down for responsible consumers.

Even though I'm in a world of pain right now from losing my job and not being able to re-finance my house as "planned"

I know I'll work my way back up to a good credit score. It will just take awhile.

It's just crazy to think that where you spend your money can affect your standing. It obviously hurts minorities and the poor who tend to shop at discounters more.

Even people like me, I have never been late on a payment ever and have a pretty high score but I am a college student which means I've shifted to discounters and second hand stores. It does not mean I am less worthy based on where I shop.

It just smacks of Big Brother and American Capitalism.

Donna, you cannot be serious! You make it sound like a secret spy organization is watching over you and waiting for the right time to pounce. Risky behavior is what causes defaults and in turn causes higher interest rates. If they are using scientific methods to address risk, and even market services/products, I am all for it. If people managed credit better we wouldn't be in the mess we are today and we wouldn't be reading this absurd article.

@4:32

Capital one jacked my rate up from 6% to 15%. I got the notice in the mail and opted out, it automatically cancelled the increase went into effect.

Perhaps the adage "buyer beware" applies both to lenders and consumers.

"People must remember using credit cards is an option…. not a manditory way of spending…. If you do not like the company policies, do NOT use them….."

Good point, but what if the company doesn't sufficiently disclose its policies and practices, which seems to be part of the issue here?

If are a thrifty person and shop at thrifty stores all your life.

Then, a friend gets in trouble and you go bail him/her out of jail using your credit card because it is 3:00 am and you don't have $500.00 cash laying around.

A few months later you take a trip and spend a few hundred at a casino.

Next thing you know your credit card is cancelled.

You have always paid your bills on time and keep a zero balance but the credit card company flagged you because a sequence of ways you used your credit card.

NO, it is not ok to monitor a persons spending habit!

For quite a long time, we have known that the FICO score is a method used by credit card companies. The FICO score takes into account all of your borrowing and repayment practices throughout the breadth of your credit history. There are things you can do that can lower your score that are not necessarily related to your ability to repay (statistically, yes, but not a guarantee for every case). This is because of the statistics available to the credit rating agencies.

There is no way around the fact that a person's ability to repay is directly influenced by their spending (and saving) habits. When the CC company compiles the vast amount of data they are able to gather, they perform statistical analysis and look for trends. Some of the purchases the author mentioned are red flags that a person's financial footing might be deteriorating. This idea arises from the same method which tells the rating agency that opening a bunch of credit cards in a short span is bad news. It's all statistical analysis.

Can you blame companies who are in the business of loaning money for trying to find out what makes a person more/less likely to repay?

On another note, "big brother" refers to the government doing the spying, or whatever term you would like to use, not a credit card company.

Sounds like the credit card companies have been talking to the insurance companies as insurance companies have been basing their rate on your credit for some time. It shouldn't matter what I buy, it should matter if I pay for what I buy.

"People must remember using credit cards is an option… not a manditory way of spending"

…Unless you want to rent a car, book a hotel room, rent a moving truck, sign up for a gym membership, etc., etc., etc.

If you really need to buy something without anybody knowing about it, pay with cash…

I average 100k/month in credit card bills through my small business. Paid off each month in full, every month for the past 10 years. Get a letter from AX cutting my line in half. Thanks AX for the support.

Ah ha ha ha ha

I have known for a long time that the credit card companies are nothing more than financial slave masters.

They want you in debit so they can bill you for life, and manipulate what you owe and gouge you with the highest interest.

Thank god we tore all of ours up several years ago.

We owe them nothing, they charge us ZERO interest and when I get one of their pre approval rip off card offers. I mail it back to them so they lose money having someone open it that they are paying by the hour.
So we like to cost them money.

I am the exact type of customer they hate. If the rest of you would do this, their intest rates would be almost nothing.

As long as you all keep paying, they will keep ripping you off.

I suspsect that they are running a business and don't want to get "taken" which is rather costly.

Actually, I don't think it's bad business practice. The card companies need to manage risk like any business, including identifying and managing customers who are more likely to default. Higher rates of default and associated loss are otherwise passed on to responsible borrowers through higher interest rates and fees – and I'm getting tired of bailing people out.

It is not ok for credit card companies to track buying behavior. There must be a law against this. Credit companies have too much access to personal financial information. This should be prevented. The more aware I become of credit companies inconsideration and abuse, the more I tear them up. Soon as I'm done here I'll tear up another one.

People must remember using credit cards is an option…. not a manditory way of spending…. If you do not like the company policies, do NOT use them…..

by the time a law is in effect the credit card companies have already made the moves to change their policy and it is not for the benefit of the card holder! Capital I claims to have sent me a notice in January of this year about an increase in my card interest and what my options were. I never received it and they will not give me the benefit of the doubt….and believe me, they do not care if you can pay or not!!!

Why does it matter what I buy if I pay the card in full each month?

Read the book, Big Brother is the Government. I can change credit card companies, so no it doesn't feel like Big Brother.

I find it perfectly acceptable for banks to monitor my spending.
When you take a home loan, the bank knows where the money is going. Why should it be different for other loans?

Seeing as it is their money I am borrowing – I do not mind, as it probably keeps my interest rates lower. Then again I pay my credit cards on time and generally have a zero balance, as well as a FICO score of around 700 to boot, so I am not too concerned about them changing my terms.

Creepy??? Or good direct marketing??? A lot of both probably.

Well, it does smack of someone watching you, on what you would think would be a private issue, "Where I spend my money". However, it isn't private in the least. They are the ones paying the bills until the end of the month, which is when you get your bill from them. How they use that data is up to them, because in no way does it seem like the data solely belongs to the card user. So basically if you don't want someone to know where your spending your money, USE CASH. It can be very anonymous.

This is pretty sickening. I understand that credit cards companies want to make as much money off of you as they can, but to go into your history to track your purchases, and then to psycolocialy "profile" you to harass you when THEY raise the rates on your card so much you can't afford to pay anymore.

What ever happened to Usury laws? Now would be a good time for Congress to bring them back!

Simple. We no longer use credit cards. They no longer drain our bank account with high interest rates and fees, and they will have nothing to track us on, unless they place a GPS device on our cash, which is certainly a possibility for these greedy companies. In the long run, we win and the banks lose.

No I do not think it is ok for Credit Card companies to track my spending behaviors. Way to much Big Brother Watching

Ohh c'mon!
gimme a break!

Credit cards are a privilege, not a right. The companies are within their rights to determine your credit risk and tailor their product accordingly. Someone who has lost their job (no reliable income) and has major expenses (car payment, etc) is a HUGE credit risk. From the company's point of view, they have extended potentially thousands of dollars worth of credit to someone who is not in a good position to pay it back. If you saw a homeless guy on the street and he asked for $50, would you give him the money expecting to get paid back? Probably not.

Credit cards are a business, they are not in the market of losing money unlike our government.

Earlier this year, I paid for a car with an otherwise little-used credit card. I immediately got mail from the CC company, increasing my credit limit and offering me a "sapphire" card upgrade just for the asking. I didn't ask, so last week they sent me a notice that they were upgrading my card to that sapphire level anyway.

Not every change in spending patterns triggers a rate increase or drop in credit limit.

WAAAAY too much like George Orwells 1984. You can't travel down the turnpike in Florida, freely, without using a Sunpass, and, you can't get a Sunpass without a credit card, so, you are stuck having the government, in a sense, force you to have a credit card. Then, the credit card company is allowed by the laws to monitor your spending habits, and thereby make an insight into your mind, to determine how they can better show their boards of directors how they manage risk, and hence profit…. Oh you betcha this smacks of Big Brother. Very scary stuff going on in the country right now.

It is Big Brother. A simplistic approach without full knowledge of an individual's personal circumstances. It would be convenient if they published the effectiveness of their "risk analysis". Seems like another avenue for abuse of the public.

Taking Pychological information without consent is not ok. Scientists are not allowed to secretly experiment on people without strick rules,approval boards, and consent from persons studied….what makes businesses exempt from these rules? These folks should be jailed for this practice.

I'm okay with my card companies monitoring my overall usage patterns, including amount of credit outstanding, whether I'm carrying a balance or not, payment history, FICO scores, and so forth. But making 'adjustments' to the terms of my relationship with them because of the specifics of a purchase is crossing what seems to me to be a clear privacy line. If they don't like the use of cash advances (on which they make tremendous fees, by the way), quit offering (and encouraging) them. If they don't like card usage at casinos, don't sign them up as authorized merchants. There's an element of hypocrisy and predatory practices inherent in this type of data mining. Additional regulation is warranted.

It's their money. I would think it would be wise to gather as much info as you can about someone to whom you are extending credit. Don't like it? Then spend money you have.

Smacks too much of Big Brother to me. What's next, locking up people the government thinks might commit a crime?

Let's remember, "big brother" is when the Government is doing the spying, so that a credit card issuer does it cannot be called big brother. If it is, then safeway and pathmark are also big brother because they track what we buy through their loyalty card.

The issue is, not if they can do it?, but; Can they act on the information they collect?

There's no reason why a card issuer MUST provide credit to you, so how can you justify any other argument than: yes they can act on the information.

Data is not a substitute for judgement. I just can't believe that any software could accurately predict people's financial situations with any degree of accuracy. The data they would input – Amount spent, on what, andwhen – is just too narrow a set of data to be relied on so heavily. For example:

They visit a second hand store – lost a job, or going green?

Stopped going to fancy Italian restaurant – pay cut, or break up?

There are many other variables that affect spending habits other than financial health. The idea that spending is a leading indicator of financial health is logically flawed. If I go buy a $3,500 computer, does that make me a better credit risk? Then why should purchasing a small coffe at Wawa instead of a latte at Starbucks mean that I'm going broke? It doesn't make any sense.

Citibank has already jumped the gun on me by notifying me of a 6% interest rate hike. They gave me 60 days to decline the rate hike which will, in effect, close my account with them. I chose to decline and close!

The credit card issuers can do whatever they want. They are in a business to make money. If you don't like what they have to offer, then don't 'buy' it. I avoid certain companies and put my money where I like their policies.

Yes, it's ok for the credit card companies to track my spending in order to evaluate me – IF and only if they let me know that they will be doing that when I sign up for my card as opposed to hiding this in the fine print. Problem is not neccesarily what the card companies do, but the fact the it appears arbitrary.

No, I do not think credit card issurere
should track charges. This seems discriminatory to me.