Known as balance chasing, banks have shown their complete and utter disregard for rebuilding the American economy by chasing down credit that was once approved for their customers. It is hurting the middle class by lowering their credit scores even though they have never missed a payment.

How well you pay your bills is just one part of your credit score, accounting for 35% of your score. 30% of your credit score is tied to the amount you owe as it relates to the amount of credit that has been extended to you. For instance, if the bank had granted you a credit limit of $10,000 and you used only $1,000, your debt to credit ratio would be a very credit-worthy 10%.

Chasing down your balance means that the bank changes your credit limit from $10,000 to $1,000 or, perhaps, $1,200. Your new debt to credit ratio is a shaky 81.25% Instead of the 10% ratio showing you know how to manage your credit, your credit report now shows the high ratio that flags you as a credit risk. Your credit score drops, and it becomes harder for you to get a loan of any kind.

I was talking with a friend about this the other day whole shared his story. He had a credit card with Bank of America that had a $9,000 limit. His balance was $0, and it had been $0 for a number of months. Bank of America notified him that his credit limit had been lowered to $500. Believing that $500 doesn’t mount to a hill of beans on his debt to credit ratio, he cancelled the card.

A couple months later he got a similar letter from Chase Bank. While normally maintaining a $0 balance, he had recently purchased items for a client for which he would be reimbursed. His balance when he received the letter was $1,400. He was informed that his limit had been lowered to $1,700 based on a check of his credit report. Again, he had always made his payments on time, when he had payments.

A New Credit Card Strategy

My friend is now working on a new financial strategy that doesn’t rely on banks he’s dealt with for years. He is moving his personal and business checking accounts away from Bank of America to a bank that did not beg the federal government for taxpayer assistance while putting the screws to those very taxpayers. Next, he is getting a Prepaid Credit Card (also known as a Prepaid Debit Card) that he will use in the future. In other words, he will begin loaning money to himself.

Now, of course, everyone is not in a position to immediately do that. But it is a plan that could develop quite a following, and I hopd it does. Click here for more information about Prepaid Credit Cards.

Definition: Balance Chasing [Credit Cards] – Balance chasing is a practice credit card companies are using to reduce their risk, find out what it is and what you can do about it. Balance chasing is when the credit card company cuts your credit… [[ This is a content summary only. …

TheyBannedMe.com – The Home of the Banned » Blog Archive » Bank of … – Limit chasing is the practice by which the card issuer lowers your limit to slightly above your balance whenever you make a payment. Can Bank of America legally engage in muggings such as this? Unfortunately they can (assuming they had …

Phishing ain’t fishing. Fishing is big business in Arkansas what with all the bass and trout honey holes in the state. And it’s just simply impossible to resist a plate full of golden fried crappie or bream (pronounced brim and also known as perch).

Phishing, on the other side of a shiny coin, is what thieves and folks with no moral values do to unsuspecting wonderful people like you who fail to learn from history and, thus, remain quite stupid. However, I do realize that some folks have just emerged from their caves and haven’t heard of this stuff which puts them in the Ignorant category; they are not stupid, yet.

Phishing counts on people being greedy and wantin something for nothin. And that’s probably why it’s most related to financial type stuff ’cause there ain’t nobody greedier than a banker or Wall Street person. And I thought long and hard about that statement because of the oil companies, corporations and Republicans. Now, I readily admit that a whole slew of Democrats have sold us down the river recently (think Health Care Reform) and I’m on the brink of throwing Barack Obama into that group.

Beware of Greedy Phishermen

A phisherman (used generically because there are probably some criminal-type women involved as well) ranks right down there with the aforementioned scum of the earth. Here’s a recent example dated May 17, 2009 and the email subject line is "# Hi, We Recruiting Officer (Human Resource Dept.) #" Now, the subject line itself ought to give you reason for pause. This email was written by a fellow named William Crawford who lists an email address of william2281@gmail.com. Here’s what he says.

We at Market World are a world class textile firm located in the United Kingdom and seek payment Personnel of our direct payments from customers in the United States. Below is the information about the Job.

WHAT YOU NEED TO DO FOR US?

The international money transfer tax for corporate entities (companies) is 19%, whereas for the individual it is only 4%. For this reason, We are recruiting and deploying agents to receive payments for our textiles (in money orders, cheques or bank transfers) on our behalf and then forward the money to us via Money Gram or Western Union Money Transfer. There will be profit maximization by operating in this manner.

There’s a lot more to the email like you getting a 10% commission and how the "job" requires no education, no going to an office and how you can earn a promotion. (continued below)

Stupid is as Stupid Does

Yes, phishing schemes count on you being stupid. And they work because the world is filled with stupid people; they’re not all in Washington, D.C. You see, here’s how it works. You receive a payment from "somebody" for "some reason." You must move fast in order to be promoted. You deposit the payment into your bank account. You then withdraw 90% of what you deposited, run down to the Western Union store and send it as fast as you can to the Market Health folks.

A day or two later, the money you deposited bounces because of insufficient funds. To make matters worse than they already are, your bank will probably charge you a hefty fee for depositing an insufficient check. Yes, you will feel stupid for falling hook, line and sinker for this scam. That’s a natural reaction to being stupid and doing stupid things. You are not alone. Read what others are saying.

Beware of MobileMe phishing scam – Several TUAW readers have contacted us about a MobileMe phishing scam. These readers are getting an email that looks surprisingly official (see below). When they click on the Log In button, they’re going to a page that has already been …

Another Facebook Phishing Scam Gets users Passwords – Where Geeks go to relax Spotlighting Technology, Fun, Gadgets, Games – GeeG.

Online Safety Advice: How to Recognize Phishing Emails? : MyOrbit Live – Beware of phishing email scams, which typically come as emails that claim that they are from a company that you most likely do business with, such as your Bank, PayPal or eBay. They will tell you that you need to go to the site, …

The best, however, must be this one:

Banks Blacklist Phishing Victim – A man in England who was victimized by a phishing scam found himself being blamed for it by his bank. 19-year-old Billy Brown got a phishing email claiming to be from the bank, and a few days later a check for a little over 8,000 pounds-roughly $11,000-was deposited into his account, and later a withdrawal for the same amount was made. Not surprisingly the check bounced, leaving Brown’s account overdrawn. What is surprising is that the bank immediately closed his account and blacklisted his credit rating because it insists Brown knowingly gave his bank info to the scammers, inferring that Brown himself may be one. Because of their actions not one bank in the UK will give him an account.