Great article over at Yahoo Finance about the continued dirty tactics of the credit card companies. These companies are not our friends. I was once fooled into believing the hype of rewards and all these little perks you receive by utilizing X card over Y card and the bliss that came with it. I have a feeling we will see much more of the practices until the new rules for credit card companies go into effect:

“Nasty as it may be, the practice of cutting credit lines below the balance is legal — at least, for now, says Chi Chi Wu………Federal Reserve rules requiring lenders to give cardholders 45 days notice before reducing a credit line to the point that it would trigger penalties won’t go into effect until July 2010.”

“Paul Pensabene of Saratoga Springs, N.Y., received a statement from HSBC on Dec. 8 that said he had a $359.99 balance and remaining available credit of $8,640. But when he went online to pay the bill several days later, his online account showed that same balance put him over his newly-reduced credit line of $300. And that didn’t include the $35 over-limit fee.”

Poor Paul, a forced and unexpected plasectomy is never a good thing unless you have the money to cover it. Thank goodness his balance was low enough that he could pay it in full and close the account.

American Express, Visa, Mastercard, and Discover truly do live by Chase’s tag line “Freedom to do what you want.” Do you remember that commercial? Airplanes, money, merchandise all dancing around as rewards, makes me sick.