The New York Times has a frightening story this afternoon about credit card companies -- most prominently American Express -- that are cracking down on consumers without them even doing anything wrong.
American Express has reduced credit card limits on cardholders who frequent establishments for which they have been burned by previous consumers who defaulted on their credit card debt.
You're not told which establishments these are.
The reason: the coming financial ruin of some credit card companies. During good times, this nation's credit card debt was estimated to be $4.4 trillion. Who knows how much higher it has gone.
The next shoe to drop in the financial markets will be the ruin of a lot of credit card companies. They will apply for federal aid and say it is to preserve jobs. Hopefully, Washington will not fall for this appeal.
So American Express is foretelling the future all cardholders will have to endure. So reduce your debt now or beware.
Who knows how low these card companies will go?
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