Truth In Comments, Post #1 – Credit Card Companies now caught practicing “redlining”

Here at ChangeInTerms.com, it’s never been just about this site, or about the guy who started it, “all by his lonesome” because of his own challenges with credit card companies (Dr. Lahm), but he knew he was surrounded by others who faced problems due to being treated unfairly, too. It’s grown, and we now have more and more friends, working both behind the scenes and as more visible contributors, who have joined in. This site was and always will be about getting the Truth out about — and changing – credit card company practices that go beyond reasonable risk-assessment and profitability measures, and cross the line to unethical. Often, their actions are underhanded and oppressive, and include other forms of maneuvering that are eventually prosecuted as illegal. Such practices can leave (and have left) thousands of innocent people indentured, destitute, and impoverished.

In light of that “bigger picture” purpose, with this post we introduce a new site feature — “Truth In Comments,” where we highlight comments left by others on the Web which shine the bright light of reason and insight on such “dark deeds.”

One such “dark deeds” practice, which has been getting attention in the media lately, is observed when credit card companies use “profiling” information about what and where someone purchases something, in order to re-classify that cardholder as a “high risk” customer (i.e. subject to usuriously-high interest rates, often as high as 25%-35%). “Ahava5″ pretty much nails it, with today’s “Truth In Comments” quote, coming from a lively conversation happening over at ABC News’ “Good Morning America” forum:

This is nothing “new” here – this practice has a name and a history. It’s called “redlining,” and it’s illegal. Trying to call it something else is simply a tactic to try and stay out of trouble. The purpose of this practice is to eliminate customers who live or shop in certain areas – and the defacto outcome is that minority populations end up being the ones redlined. American Express should already be under federal indictment for resurrecting this practice – since it isn’t, we expect that a lot of palms must have greased.

Ahava5 is right — Redlining is nothing new (follow the link and see for yourself). The fact that it’s happening in the midst of what is arguably the worst “credit crisis” in history, only makes it all the more deplorable.