Banks and Credit Bureaus are Ripping Off Customers

By Averett Jones, Southside Messenger Editor

Your credit score is one of the most important items in your financial portfolio. That little 3-digit number determines if you get a loan. That little number determines your interest rate and that little number may determine if you get that job.

However, unlike the other information about you, that little number is beyond your control. It is determined by various formulas, equations and witchcraft. You can have an absolutely perfect repayment history and have your score lowered for “balance of unsecured debt.” Your score can be lowered for using too much of your available credit. Your score can be lowered for not using enough of your available credit.

Years ago, I cancelled several credit cards. It was a solid financial decision for us. Then my credit score dropped. It turned out the cards I cancelled were the oldest cards. “Duration of Credit” affects your score.

Last year I received a notice from First Citizens Bank that they “were declining to renew” my credit card because my credit score had dropped below 700. Keep in mind I had no late payments or issues of any kind with them or anyone else.

Now, having a card cancelled, although First Citizens insisted it did not cancel the card, the “declined to renew” has an adverse effect on your credit score. Then a snowball effect takes place.

Although First Citizens resolved the issue, the snowball was already in motion. I then received a notice from Bank of America lowering my credit limit to just above the balance owed. This maxed out the card. Having no available credit on a card is detrimental to a credit score. My third and last card sent a notice advising a rate increase.. Although it wasn’t a problem, I don’t have a balance on that card, it would and could have been expensive and again detrimental to my credit score.

Last month, my daughter made a deposit at her bank. The receipt showed a balance of four hundred dollars. She then paid a bill for $140.00. Then Bank of America bounced the check stating that only $100 of her deposit was available for immediate use. The remainder was being held. The receipt showing a $400 balance meant nothing.

Monday my son had the exactly the same situation. Following his deposit he had a balance of $657.54. His mortgage payment check was returned. Bank of America charged him $35. In addition he has to pay a returned check fee and a late charge for not making the payment on time. This may also have an effect on his credit score costing him additional money in the future.

Last week I went to First Citizens Bank with a check from Farm Bureau Insurance company for a claim on damage to our home. I attempted to deposit the majority of the check. I was told they would have to “put a hold on the check.”

This is in no way a reflection on the tellers at First Citizens. As always they were polite and efficient. It is a reflection on First Citizens Bank. For over 20 years I have maintained multiple accounts with them and have paid them thousands of dollars in interest and fees. This is just greedy.

The fact that banks can manipulate accounts to lower credit scores and increase their income is criminal.