Financial Times FT.com

Warning over cuts in credit card lines

By Saskia Scholtes in New York

Published: March 22 2009 18:56 | Last updated: March 23 2009 00:25

Banks trying to reduce their exposure to losses on credit card loans are driving some borrowers deeper into trouble, say credit counsellors and analysts in the US.

Major card issuers such as Bank of America, Citigroup and American Express have reacted to the economic crisis and rising credit card defaults by raising interest rates, closing inactive accounts and paring credit lines.

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