I'm reaching my (credit) limit

As a follow-up to my Fence Post letter (Jan. 10, Financial industry caused this collapse), I want to point out how our "friendly neighborhood banks" have gone to another level of legalized larceny.

Recent wrist-slapping legislation, enacted "to protect the consumer," has once again benefited the tycoons.

Banks are required to give captive cardholders a 30 day notice of credit limit changes - effective July 2010.

However, look at recent Internet postings from banking captives. You'll see how banks are rushing to pocket as much as they can now by implementing overzealous policies to protect their own interests.

They are lowering credit card limits with no notification to cardholders. Read how card holders are trying to make extra account payments for anticipated big ticket spending, travel, etc. only to find the banker moguls have adjusted (reduced) limits, causing customer's frustration, surprise and embarrassment when they try to use those cards.

Now, accounts are overdrawn, the customer has less credit and, by reducing limits as they have, the barons have taken unanticipated and unscheduled payments while applying new, reduced limits.

Then, they have the gall to offer a new charge account or a home-equity loan to "help" customers. This would only lower our credit ratings.

They would charge us for new fee applications, appraisals, etc. while creating yet another source of gluttonous income.

Good customers are being reported and labeled as poor customers. The banks have not allowed a reasonable amount of time to act and to avoid these circumstances. And don't believe that memorizing their cumbersome rates and terms would circumvent this.

They know that their customers can't afford to reduce and eliminate the credit they have. You do have a way to protest this bullying to pay off your bank ransoms - join a Credit Union.

John K. Nolan

Mount Prospect