Sunday, October 12, 2008

Credit limits slashed

After consumers failed for years to curb their runaway spending, credit-card companies are taking matters into their own hands - unilaterally lowering credit limits for tens of thousands of Americans.

The moves - tied to the finance companies' attempts to rein in credit risk - appear to be hitting critical mass just as the crucial holiday shopping season approaches...

American Express has increased the number of cardholders getting their credit limits downsized, from 20 percent of those reviewed to 50 percent of those reviewed, a company spokesperson said.

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