Lowe's rant

[Maurice Ungaro]

Times are tough....like that's big news. So, help me understand how, or why Lowe's treats good customers like this. I've had a Lowe's gold card since Feb. 2004, and have rehabbed one historic house with it, and built a new one from the ground up with it (well, mostly with it...). We had a credit line of $10,000 with Lowe's until just the other day, when we received notice that our credit limit had dropped to $817 (an odd number). What gives?????? We called Lowe's Credit Dept., and they said that they just did a random check on our credit report (our rating has stayed in the 780's), and noticed that the score dropped a little (two weeks late on a mortgage payment). Because of that, they put our limit in the basement.

Not to mention, the amount of money I've run through my business credit card there for jobs and projects. We've NEVER been late on a payment to Lowe's.....ever! I'd hate to see what they do to customers who are just your average Joe.

Well, I guess I'll just take my business to the local hardware store and lumberyards from now on. As for appliances, there's always Best Buy and Sears.

[Julian Nicks]

You just have to love a system that only looks at your score and not your payment history with them. Lowes probably isn't looking at your credit score, but the bank that lowes credit is using was. That's where the problem lies. I had a similiar problem with home depot, and it was citibank wich is who HD credit is through, not HD that I had the issue with.

[Joe Cunningham]

Sorry to hear Maurice. We seem to have gone from 'Bad credit, no credit? No problem' to 'Miss a payment, get dropped or have your APR raised 15 points' in the span of 12 months.

[Maurice Ungaro]

Sorry to hear Maurice. We seem to have gone from 'Bad credit, no credit? No problem' to 'Miss a payment, get dropped or have your APR raised 15 points' in the span of 12 months.

Is this supposed to be the "Change We Can Believe In"?

Keep the "Change".

[Chris Harry]

Were you paying the complete balance off monthly?

Credit card companies call customers who pay off their balances every month "deadbeats" and they are looking to try and rid themselves of them. Too much $$$ lost to people not carrying balances and paying finance charges, late fees, etc.

Maybe Lowes was just looking for an excuse to get rid of you?

What bank actually handles Lowes cards?

[Aaron Berk]

Is this supposed to be the "Change We Can Believe In"?

Keep the "Change".



:D:D:D now that's funny :D:D:D

Seriously though, credit company's don't seem to care about their card holders any more, I say we take em out fight club style.

[Dan Friedrichs]

Wouldn't you rather shop at the local lumberyard and hardware store, anyways?

There are both borgs within 5 miles of my house, but neither had a particular nut I needed a few days ago, so I drove 7 miles to an Ace hardware. They had the nut, and I practically got tackled by 3 different employees trying to help me find it. I'm going back there more often....

[Chris Harry]

Wouldn't you rather shop at the local lumberyard and hardware store, anyways?

There are both borgs within 5 miles of my house, but neither had a particular nut I needed a few days ago, so I drove 7 miles to an Ace hardware. They had the nut, and I practically got tackled by 3 different employees trying to help me find it. I'm going back there more often....

I call Lowes, Home Depot, Walmart, etc a "necessary evil". Unfortunately good places like Ace and lumberyards arent nearly as close and convenient as HD/Lowes.

Luckily the only large items I buy at the Borgs are because of a big sale. Granted Im sure they arent LOSING money, but at least Im helping bring down a profit margin while getting myself a decent deal.

[george wilson]

Everyone's credit limits have been lowered. A reaction to the financial mess we are in . I don't really care,because I'd never use a card even to the new lower limit,myself. We always pay the card off within 30 days,so I guess we are deadbeats,too. Funny how definitions change,isn't it? Some folks have formerly bought cars with their credit cards to get airline miles,etc. built up. guess they won't like the new limits.

[Prashun Patel]

As a small business owner that's wrestled with implementing a tighter credit policy, I'll offer an alternate interpretation:

They're system is probably just flawed - not sinister. It's very hard to come up with an accurate algorithm for evaluating creditworthiness. There are bound to be some false positives and false negatives.

You're obviously happy with Lowes otherwise else you wouldn't have purchased so much material from them over the past few years. Ask to speak to a manager; write them a letter.

Don't write them off because of a POSSIBLE mistake. While I don't think much of many of the BORG products, I have found their customer service to be pretty accommodating.

[glenn bradley]

Everyone's credit limits have been lowered.

Companies are trying to limit their liability numbers. If they offer less credit, that number improves for them. This happened on a couple of my cards. I just went online and asked to have it restored or in one case even increased. Both requests were honored. I think, as long as you're in good standing, it is just a matter of letting them know you don't want to be swept up with the crowd. If your provider doesn't agree, get a different card.

[Maurice Ungaro]

As a small business owner that's wrestled with implementing a tighter credit policy, I'll offer an alternate interpretation:

They're system is probably just flawed - not sinister. It's very hard to come up with an accurate algorithm for evaluating creditworthiness. There are bound to be some false positives and false negatives.

You're obviously happy with Lowes otherwise else you wouldn't have purchased so much material from them over the past few years. Ask to speak to a manager; write them a letter.

Don't write them off because of a POSSIBLE mistake. While I don't think much of many of the BORG products, I have found their customer service to be pretty accommodating.

Shawn,
Don't get me wrong - I have NO problem with the local Lowe's store itself, or the employees/manager. They are all great. However, when we called to discuss this with Lowe's Credit, the person on the other end was unwilling to transfer us up the chain of command. That's right, she refused to allow us access to her superior. When asked if she could see how much money we've spent outfitting our properties, she stated that she did not have that information. At that point, we let her know that a letter would be sent to the top stating WHY we will be canceling our Lowe's card.

We'll see if a response is forthcoming.

BTW, we seem to have always carried a small balance, what with the 12 month no interest deals for large purchases.....and we were NEVER even late for those payments.

[Greg Peterson]

Seems to me the credit business has been stacked against the consumer for a long while now. Everything is tied into your credit score these days, and has been for a long time now, this isn't a new or recent 'change'. There was a recent 'change' though that pulls the curtain back on these credit shenanigans and provides some protections for consumers.

Times are tight, credit is tight and every company I deal with is tightening their reins and limiting their exposure to liabilities. Creditors are lowering their exposure to risk and some folks will get caught in the cracks.

I'm sure the problem customers aren't going to make any public claim that they're habitually slow pay or behind several months, but I'll bet you dollars to donuts these folks are pretty much being cut off at the knees.

[brian watson]

Your issue is with GE Money Bank, the bank that issues and processes the cards, not with Lowe's. That's why the individual could not transfer you on up.

For a few years know the concept of universal default has existed in the credit card industry. Under universal default, if you default/go late, etc. on one financial obligation credit card companies can penalize you for that by changing the terms. You may have got whacked by that.

[brian watson]

You're going to see a lot of changes. We may lose grace periods, rewards programs, travel benefits, cashback, etc.

Everyones credit lines are being chopped. Way too much exposure.

[Stephen Tashiro]

So, on Sawmill Creek, when a member is reminded by the topic of a thread about some marginally related nostalgic event in his life, he is duty bound to bring it up, right? I'm reminded that I spent my teenage years in North Wilkesboro NC and met most of the founders of Lowes Hardware. Of course, they were grown ups so I didn't pay much attention to them.

Anyway, perhaps the following article will fan the flames. How all the big companies are just money grubbing.... etc.



http://www.thefreelibrary.com/Playing+the+hand+you're+dealt:+in+his+memoir,+form er+Lowe's+CEO...-a0197677397 (http://www.thefreelibrary.com/Playing+the+hand+you%27re+dealt:+in+his+memoir,+fo rmer+Lowe%27s+CEO...-a0197677397)
http://www.thefreelibrary.com/Lowe's+goes+public%3a+Leonard+Herring+recalls+all+ the+wheeling+and...-a0199584597 (http://www.thefreelibrary.com/Lowe%27s+goes+public%3a+Leonard+Herring+recalls+al l+the+wheeling+and...-a0199584597)

[Greg Peterson]

Here are some of the new rules kicking in first part of 2010:

1. No retroactive rate increases unless you're 60 days late. Can not raise your rates via universal default. And there is a provision to have your rates restored to the lower level after six consecutive on time payments.

2. 45 days' notice before key contract changes take effect.

3. Restricts card issuance to students. Students either need adequate income, a co-signor or have completed a financial literacy course.

4. Above-the-minimum payments will be applied first to the credit card balance with the highest interest rate.

5. Credit card companies have to send statements 21 days before the due date. Current law is only 14 days. Takes affect August 2009.

These are all positive changes for the consumer/customer, IMO.

[phil harold]

the credit card holders bill of rights starts in 2010
so
credit card companies are getting ready, by doing whatever they can before 2010

[whit richardson]

I work in Banking (stop throwing tools at me!) a midsized struggling bank that may not be around in 8 - 12 months, but as to this credit stuff. All banks huge to small have been working hard to build their capital and make sure their capitalization ratios are in good shape. We do that because if we don't the Fed can shut our doors, sad news for all. The huge banks are looking down the barrel of even huger losses mounting from their credit card business of years past with the "you stand upright, you qualify for a $10000 Visa Card!". So now they're looking at billions, yes billions of $$$ being lost in credit they issued so they are looking for all type of fixes, bailout, increase rates, late fees going up and yes "late a day!!! lower your limits!". Sadly bad, okay and good customers are being swept in by simple computerized system checks into auto defaults all to help preserve the capital of the huge bank. Lowe's doesn't do their own credit cards, really nobody does except Amex, Visa and Master direct. So your downgrade helps lower their "credit exposure" which allows them to count your credit they took back as $$$ into their capital they report back to the stockholders and the Fed. A crappy situation but this is the piper being paid finally.

Even those of us in this business get it too. I had a Sear card limit cut by 50% not because I was really late but because my electronic payment was posted by MC a day late. That in turn hit my FICO which dropped 30 - 40 points. I use my debit card (my real own money!) for everything now.

[James Harrison]

As a small business owner that's wrestled with implementing a tighter credit policy, I'll offer an alternate interpretation:

They're system is probably just flawed - not sinister. It's very hard to come up with an accurate algorithm for evaluating creditworthiness. There are bound to be some false positives and false negatives.

You're obviously happy with Lowes otherwise else you wouldn't have purchased so much material from them over the past few years. Ask to speak to a manager; write them a letter.

Don't write them off because of a POSSIBLE mistake. While I don't think much of many of the BORG products, I have found their customer service to be pretty accommodating.
There is no mistake and the contraian statement is just hope.
I have a credit card through my credit union that I have had for 35 years and my limit has been 14,000 for at least ten years. A month ago I got my bill and noticed that it had been cut in half. I called Visa and was told that I had never used the limit so they cut it in half. I have never carried a balance and pay early each month.
The credit card company's only want what we would call dead beats which they consider good customers, and those of us who have a rating over 800 and pay all each month they call dead beats.
I had never asked for the increases in limit that they had given me through the years
and the cut doesn't bother me. But just wait an watch them change so that if you don't carry a bal. they will start charging a huge interest on each purchase.
But I am sure our wonderful representatives in congress will protect us.

[whit richardson]

no reason to have any sympathy for these folks... yet I think all of us being sort of forced to make purchases we can afford is healthy. I will say that our bank customers, the small business owner needs credit and access to credit for business operations. It is critical to getting American businesses working again.

From Reuters today...

American Express Co (AXP.N (http://www.reuters.com/finance/stocks/overview?symbol=AXP.N)), the largest U.S. credit card company by sales; Citigroup Inc (C.N (http://www.reuters.com/finance/stocks/overview?symbol=C.N)), a big issuer of MasterCard cards; and Bank of America Corp (BAC.N (http://www.reuters.com/finance/stocks/overview?symbol=BAC.N)), the largest U.S. bank, reported credit card default rates rose over 10 percent in April.
If credit card losses across the industry surpass 10 percent this year, loan losses could top $70 billion.

[Tom Godley]

I do not have a Lowes card so I do not know how they handle their card - but almost all of the store / airline/ gasoline and other assorted linked cards are owned and managed by someone else. Target is one exception I can think of.

I would bet that Lowes had nothing to do with the change.

It may have been you had other cards with the lender without knowing it - it could have been your late payment or it could have been a corporate change that the card company made independent of anything that you did.

It is true that card companies do not make much money from customers that purchase small amounts each month and then pay off the balance - but they do make money from those that purchase a lot and still pay it off. That said -- it is through interest and fees that the card companies make the most from regular borrowers.

What can be frightening is when your credit is reduced below what is required to run your business each month -- and that is what is happening. I know people who have had revolving credit reduced to levels substantially less than they need.

If the card companies are to be believed it will be the most creditworthy customers who will pay in the future because they will not be able to provide free cards to those who rarely use them.

What I do not understand is why Lowes would not want to get a list of those customers who were accounts were involuntary changed and send out a letter explaining why this was done - even if it was a generic letter set to all explaining all the possibilities - it would be better than doing nothing.

[Greg Peterson]

But I am sure our wonderful representatives in congress will protect us.

And the banks have done a wonderful job of regulating itself? I thought the era of failing upward was over?

[John Shuk]

That has nothing to do with Lowes. That is GE credit. They need to cut their exposure and that is what they are doing.
You certainly aren't the only person this has happened with.

[Maurice Ungaro]

To all: I know full well that Lowes does not handle their own credit department. It is, however, labeled "Lowes Credit". It's just as if you hired a subcontractor to do some work for a custom home build for a client. The Sub either does a lousy job, or pisses off the client.

Now.......who do the think the client will be upset with? Who does the poor work reflect badly upon? That's right folks, it falls on the general contractor who is responsible for the job. Why, well, that's part of being a GC.

Lowes subs out their credit management. Their sub pisses off clients.

Fill in the blanks.

[John Shuk]

To all: I know full well that Lowes does not handle their own credit department. It is, however, labeled "Lowes Credit". It's just as if you hired a subcontractor to do some work for a custom home build for a client. The Sub either does a lousy job, or pisses off the client.

Now.......who do the think the client will be upset with? Who does the poor work reflect badly upon? That's right folks, it falls on the general contractor who is responsible for the job. Why, well, that's part of being a GC.

Lowes subs out their credit management. Their sub pisses off clients.

Fill in the blanks.

I know a person very involved with this program at said subcontractor and there are issues regarding who the customer holds responsible according to her. However the subcontractor underwrites the entire program and Lowes gets a large piece of the profits with no real risk on their part. Unfortunately financial institutions need to shield themselves from losses and you are just one of the many people affected. It is what it is I guess.

[Mike Henderson]

From Reuters today...

American Express Co (AXP.N (http://www.reuters.com/finance/stocks/overview?symbol=AXP.N)), the largest U.S. credit card company by sales; Citigroup Inc (C.N (http://www.reuters.com/finance/stocks/overview?symbol=C.N)), a big issuer of MasterCard cards; and Bank of America Corp (BAC.N (http://www.reuters.com/finance/stocks/overview?symbol=BAC.N)), the largest U.S. bank, reported credit card default rates rose over 10 percent in April.
If credit card losses across the industry surpass 10 percent this year, loan losses could top $70 billion.

You have to take statistics with a grain of salt. Note that the article says "Default rates rose over 10 percent in April", not that 10 percent of cardholders were in default. So if the default rate was 3% (3% of cardholders were in default) and that rose to 3.3%, it would be 10% rise in the default rate.

If 20% of the cardholders were in default and that rose to 22%, it would be a 10% rise in the default rate, but that would not be as "interesting" as quoting the 22% default rate so you wouldn't see it described as a 10% rise - you'd see it described as "Defaults rose to 22% of cardholders this month."

Mike

[Greg Peterson]

Lowes subs out their credit management. Their sub pisses off clients.

Fill in the blanks.

If Lowes is cutting you off imagine the indignities suffered by those with lower credit scores. Are you being forced to use the Lowes card? Credit limits are being slashed across the board and everyone is being affected. This is an absolute direct result of the banks not wanting any rules to constrain their activities.

[Paul Johnstone]

Were you paying the complete balance off monthly?

Credit card companies call customers who pay off their balances every month "deadbeats" and they are looking to try and rid themselves of them. Too much $$$ lost to people not carrying balances and paying finance charges, late fees, etc.

Maybe Lowes was just looking for an excuse to get rid of you?

What bank actually handles Lowes cards?

Yeah, from what I understand, credit card companies are trying to reduce the amount of potential money they have out there. We have had two cards canceled on us due to lack of use.

I have also heard that they are targeting customers that don't carry a balance. If the OP has a 10k limit but pays off his balance every month, the credit card company would rather give that 10k of borrowing power to someone that will hold a balance.

I agree that it's bad business.

[Maurice Ungaro]

As I posted before, I've carried a balance (12 months no interest on some appliance purchases), but we always pay our bills off early.

My beef with the drastically lowered credit limit is that they could have said, "hey, we're cutting it in half, because we need the money more than you right now", rather than leaving me with 8.17% of my original limit. As a contractor, I'll tell you, that hurts. Aside from that, what financial repercussions am i going to get from other institutions when they find out that Lowes slashed me like that? What's next? A note from MBNA saying, "ah...jeez, you're a credit risk since your available credit dropped so much overnight....see ya!"

[brian watson]

Maurice,

You nailed it! The universal default provision in most credit card agreements opens cardholders up to exactly what you have described. It can turn quite quickly into a piling on fest.

Unfortunately the banks have been a little too liberal with unsecured credit and that's a major portion of the mess we are in financially in the US. What's the fix: we have to run as fast as we can to the other end of the slippery slope without taking the time to make a rational decision. Or as my mother used to say: Cut your nose off despite your face.

[whit richardson]

You have to take statistics with a grain of salt. Note that the article says "Default rates rose over 10 percent in April", not that 10 percent of cardholders were in default. So if the default rate was 3% (3% of cardholders were in default) and that rose to 3.3%, it would be 10% rise in the default rate.

If 20% of the cardholders were in default and that rose to 22%, it would be a 10% rise in the default rate, but that would not be as "interesting" as quoting the 22% default rate so you wouldn't see it described as a 10% rise - you'd see it described as "Defaults rose to 22% of cardholders this month."

Mike
Mike you are one of those very detail oriented people out there... kudos. I'm not.. but the reference is just an item to show the big lenders have very serious credit exposure and what our bank has done, reducing limits, calling in loans from good customers, etc. is to shore up our capital ratios. My uncomforting message is that all of us Americans are going to see our "credit worthyness" reduced and curtailed to some extent because BofA can't afford to report credit risks/defaults of 10 billion with capital of 12 billion. Alert! Made up numbers.
Even though I work in a industry that grants credit and loans I really believe all of us could would be better off if we lived like our folks in the 60's and 70's that paid cash, used lay away (pay cash on installment) or really charge card (must be paid off each month) and saved more. Save the loans for homes.

[Mike Henderson]

Mike you are one of those very detail oriented people out there
Nanah, I'm just cynical.

Mike

[whit richardson]

Nanah, I'm just cynical.

Mike

Well I can understand I'm a member of that club too,

[whit richardson]

This says a lot about this situation...

http://www.bloomberg.com/apps/news?pid=20601068&sid=aQIewec5NTh4&refer=economy

[Dennis Peacock]

It's credit card misuse and over spending as well as corporate greed that got us in the shape we are in today. We all have contributed to the problem.

[David G Baker]

Whit,
Take a look at the furniture that Mike makes if you want to see some attention to detail. He is truly a MASTER! He makes sense as well. Having worked in the TV media for most of my career I would watch reporters pull statistics out of the air and there was no accountability for the twists in the information.
I am one of those guys that has paid interest on my credit card 3 times in the 25 or more years I have been with the same card company. Every time I get a correspondence from my them I study it like I was cramming for a test. I keep waiting for them to stick it to me. If or when they do I am going back to cash or checks.

[Steve Rozmiarek]

Whit, when you said that small businesses need access to credit, you nailed a big problem. Any credit restrictions have that trickle down effect, and us small business owners get caught. If my borrowing base decreases by 25% because the bank changed their current ratio criteria, it in effect decreases the size on my business by 25%. That is across the board cuts, 25% less employees, 25% less tax revenue, 25% less ability to actually help this nasty economy recover. Seems pretty counterintuitive to this dumb old farmer.

What we need for a fast turn around in this economy, is available credit to worthy borrowers. My compay consistantly turns a 25-30% return on investment, but I am being restricted and have been forced to downsize. Can anyone explain that!!!??? I know that I can double the size of this business, and increase those returns, but I need credit. If we survive this bs, that goal just got moved back 10 years. Guess I should lay myself off, and file for unemployment. Oh wait, I don't qualify. Change my foot. It's going to take decades to fix this mess, and I'd like to retire someday.

[Greg Peterson]

I know that I can double the size of this business, and increase those returns, but I need credit.

We find ourselves in the midst of a financial paradox. And guess who wins and who loses?

It has been years since financial institutions abandoned the sound and conservative lending practices that helped build the economy. The unethical, immoral and outright fraudulent practices they engaged in for the past decade or more are coming home to roost. However, the true victims of this willful negligence are also being told to pay for it. In the meanwhile, the recipients of our capital infusion are instituting draconian measures and telling us to 'suck it up, these are tough times'.

I've never seen or heard of a poor oil man or banker. And it's little wonder. They get to have it both ways. Meanwhile the guys and gals that put their pants on one leg at a time have to be subservient to these persons whims and needs.

Regardless, when we get out of this morass, we had better learn some lessons and apply some intelligent thought so this situation never occurs again.

[Steve Rozmiarek]

We find ourselves in the midst of a financial paradox. And guess who wins and who loses?

It has been years since financial institutions abandoned the sound and conservative lending practices that helped build the economy. The unethical, immoral and outright fraudulent practices they engaged in for the past decade or more are coming home to roost. However, the true victims of this willful negligence are also being told to pay for it. In the meanwhile, the recipients of our capital infusion are instituting draconian measures and telling us to 'suck it up, these are tough times'.

I've never seen or heard of a poor oil man or banker. And it's little wonder. They get to have it both ways. Meanwhile the guys and gals that put their pants on one leg at a time have to be subservient to these persons whims and needs.

Regardless, when we get out of this morass, we had better learn some lessons and apply some intelligent thought so this situation never occurs again.


Well said Greg.

[Robert McGowen]

the score dropped a little (two weeks late on a mortgage payment).


I understand all of the banks are bad, credit card companies are bad, etc., etc., but why the rant on Lowe's? The problem seems self-explanatory to me. :confused:

[Roger Jensen]

I'm sure there is nothing "random" about them checking your credit. I suspect they check all of their customers' credit ratings daily looking for any dip. Either that or your mortgage company broadcasts to anyone that cares that you were late on a payment.

The creditors are all on the same team, and it isn't your team.

Roger

[Andrew Rogove]

I have yet to have my limits dropped, thank goodness, but I did have a crappy thing happen. I had balance transfers at a low rate 2.9% for some time on a credit card that had no annual fee. Over the winter they imposed a new $10 monthly finance charge for carrying the low rate balance. That kind of changes the previously agreed upon interest rate. They did warn me a few months ahead of time, and said that the original balance transfer agreement is subject to change. The alternative to paying 10 bucks a month was to have the rate increase to 7.9%. I just paid the balance and cancelled the card- probably what hey wanted in the first place. I had that card for over 15 years. Bad way to treat a customer in my opinion.
BTW the customer rep that I spoke to to complain at the time said that 95% of his calls were about the new fees. He was very nice though.
Andrew

[Bonnie Campbell]

Chase cards started charging a 'balance fee' in addition to normal interest charges back in December I think it was. I heard it was NY state courts that decided that was illegal. I did get a refund back of $30. And I told Chase I wanted MY refund within 30 days or I would charge THEM interest. I had to cancel all credit cards when LOML passed away in January. And the more I'm seeing credit card companies figuring out ways to rob GOOD credit risks of money is horrible. I'll stick with my debit card now.

[Mike Henderson]

Several people have commented that they use a debit card instead of a credit card. The reason I've not used my debit card more is that places often charge a fee for using the debit card, while there's never a fee for using a credit card.

For those of you who use debit cards, do you encounter the same thing? And if you do, do you just avoid places that charge a fee, or do you consider it a cost of having and using the card?

Mike

[Matt Meiser]

I haven't encountered a fee if I tell them its credit. But if you use a debit card for travel beware that places like hotels and and rental car companies put holds on your card which can take some time to clear. For a credit card its no big deal as it just blocks you from using money that's not yours. But for a debit card it blocks access to your money.

[whit richardson]

Several people have commented that they use a debit card instead of a credit card. The reason I've not used my debit card more is that places often charge a fee for using the debit card, while there's never a fee for using a credit card.

For those of you who use debit cards, do you encounter the same thing? And if you do, do you just avoid places that charge a fee, or do you consider it a cost of having and using the card?

Mike

Mike most banks don't charge any fee for using debit since that model kinda died out (if your bank still does they may be hunting fees or your have a low service model account) but they still like to encourage customers to use the credit option because it allows the bank to charge the vendor when they can't for debit. Fifth Third bank in here has a "points" program to get you use the credit options for crappy gifts so they can charge the stores you shop in. I gleefully select debit every time!
Disclaimer* I actually work for another bank.

[Mike Henderson]

It's not the banks that charge a fee out here - it's the merchant. I've gone to gas stations that take debit cards and there's a sign on the pump saying that a transaction fee of $0.75 will be added to the bill for debit cards. I assume this is to compensate the merchant for the charges the bank, or the network, charges the merchant to process the debit transaction.

It irritating to me, because the merchant gets charged a fee for taking a credit card and there's no separate charge to me when I use my credit card - and I pay the same whether I use the credit card or the debit card. So why should I have to pay this transaction fee when I use the debit card?

Maybe that's only out here. But it makes me think twice, and look for those charges before using a debit card.

Mike

[Maurice Ungaro]

I understand all of the banks are bad, credit card companies are bad, etc., etc., but why the rant on Lowe's? The problem seems self-explanatory to me. :confused:

Robert,
Walk in someone else's shoes for a while. As a contractor, I had to take a $10 an hour job because nobody wants to buy, much less hire someone to fix up a home (DIY is big). Contracting was a new game for me, so I didn't get to hog off of the gravy train for the last 10 years and have a wad of reserves to get me through this.

We have two mortgages, one of them on the now rental property that we lived in while I was building our house. We had a tenant that was slow pay/no pay, and getting someone evicted ain't that easy. So, two mortgages, one income, etc. My wife & I are not extravagant people...we are diligent about paying our bills. On top of that, our mortgage banker stated implicitly that if it was not 30 to 45 days late, it would not count against us.


So, Robert, good for you. I hope you always remain way ahead of your bills.

[Robert McGowen]

Hi Maurice,

You seemed to have taken a statement of fact personally. I was just wondering what Lowe's did wrong. We all have problems. You chose to post your problems in a public forum and rant against a company that did not cause or have anything to do with your problems. You seem to think that because I do not see how any of this is Lowe's fault, I must not feel your pain, have never been late on a bill, and should "Walk in someone else's shoes for a while" Since I have had four surgeries on my knee, including a total knee replacement, in the past 18 months and have not been able to work since then, could I just limp along in your shoes for a while? :D:D:D I personally wish that my biggest rant in life right now was that Lowe's lowered my credit.

Take care and I truly hope that you get your problems worked out.

[John Fricke]

Several people have commented that they use a debit card instead of a credit card. The reason I've not used my debit card more is that places often charge a fee for using the debit card, while there's never a fee for using a credit card.

For those of you who use debit cards, do you encounter the same thing? And if you do, do you just avoid places that charge a fee, or do you consider it a cost of having and using the card?

Mike

I use my debit card almost exclusively, I have not yet encountered a fee for doing so. An occasional store has a $15 minimum purchase. I made an out of state purchase a few weeks ago that required me mailing a check, took me several days to locate it because it had been so long since I wrote one.

[Mike Henderson]

Okay, thanks, John. Maybe it's just something done out here.

Mike

[Andy Bardowell]

There’s an old marketing adage that if you make a customer angry they’ll tell ten people…1,420 and counting!

[Matt Meiser]

Okay, thanks, John. Maybe it's just something done out here.

I've not seen that in Michigan or Ohio either. But I don't really pay that much attention because I always choose credit.