If you have any lines of credit and you use them to manage your financial flow, you should evaluate your personal money matrix so you’re ready in case all of them get cut. They’re cutting lines of credit even for rocket scientists like reader Rocky. That’s right, he’s an engineer in the aerospace industry, has never overdrawn, never been late, never incurred NSF charges, and has 3 Masters and 2 MBAs. Overnight, they cut his four lines of credit. Apparently his only crime was simply having them. He called multiple times and got nowhere, only to be told to talk to a credit counselor. A credit counselor? Bank of America, he doesn’t have bad credit, he has no lines of credit because you just cut them all. His story, inside…

Rocky writes:

I am writing this letter to state unequivocally the damage that is being inflicted upon not only this citizen, not only this economy, but every honest and hardworking individual in this country that has, for the past months, and continues to be, held hostage by the Banking Industry of this country.

I like many who have been impacted have had all credit lines blocked, or closed. Not because I have ever overdrawn the accounts (I haven’t), not because I have ever been late for any payment (I haven’t), not because I have ever incurred NSF charges in any account in any bank (I haven’t).

I am being held hostage, and have effectively had all of my accounts frozen or locked. I have (or the better word would be had), overdraft protection on my primary checking account, which is with Bank of America. This overdraft line is used as a lifeline by me to balance out obligations when I need to use it. It is routinely flat lined (zeroed out), every 60 to 90 days max. With no warning whatsoever, this account along with three other lines of credit with Bank of America has been locked. I have called Bank of America, and spoken with numerous account managers, all to no avail. Just to get this line unfrozen. On my last call, I was advised to contact a credit counselor.

I always have, and continue, to handle all of my credit responsibly, and the fact they (BOA) could find no late payments, and all payments were substantially over the minimum required, and all accounts have been continuously reduced, was of none of their concern.

I now state something that is an undeniable fact that is presently going on in this country as I sit composing this letter. The Banks in this country are not part of the problem, they are the problem. There are undoubtedly millions of small business men and women such as myself, who have worked hard to build up good credit records so they may have access to credit when they need it, but have had credit lines, and financing needed for their business frozen, locked or terminated.

The Banks in this country, particularly Bank of America are forcing millions of Americans into involuntary bankruptcy. I write this letter, not for myself, as I am not there yet, but I see the pain on the faces of many of my fellow citizens who I know are.

To add insult to injury, one line that I have used that did have a 5% rate, has jumped to 24.99% while simultaneously being locked. When I called Bank of America to see about reducing this rate for the remaining balance, I was read their standard script that there was nothing less available. Again, as I have stated previously, the Banks in this country (Bank of America) in particular are contributing in a large way to forced involuntary bankruptcy and default of millions of American citizens.

When credit will loosen up, is no longer the question. I fear the real question we must now come to grips with is IF credit will loosen up. The brutal truth is I can see no hope if Banks are allowed to punish responsible productive individuals and businesses with financial strangulation. They have clearly become so fearful of giving bad credit out, they now give NO CREDIT out. These Banks need to watch “It’s a Wonderful Life” until THEY get it.

I am employed in Engineering by a major aerospace company, and I will very soon have my third Masters Degree and my second MBA. You don’t have to be a rocket scientist to be able to figure this out, but if it was required, I qualify. In addition I have a second business and am a Licensed Real Estate Broker. In spite of the downturn in the Real Estate market in Arizona, I would be able to weather this economic storm if only the banking industry would be reasonable, but along with credit these are two commodities that are in short supply these days.

Respectfully,

Rocky W.

(Photo: jurvetson)

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