Universal Default Clause. In UK yet?

wenwen

This is the latest Credit Card scam from the US. Does anyone know if it is here yet and which cards use it? See link http://finance.yahoo.com/expert/article/millionaire/26303

The Universal Default Clause

If you own a credit card, you know by now that if you're late with a payment the credit card company will charge you a late fee in addition to raising your interest rate. But did you know that they can raise your interest rate if you've made a late payment on any of your other cards, including those issued by other companies?
Not only that, but your interest rates can skyrocket to 30 percent or more if you make a late payment on your car loan, mortgage, or even your phone bill!
"How can that be legal?" you may ask. The answer is found in the fine print of your credit card agreement, and it's called a universal default clause. According to the Institute of Consumer Financial Education, currently almost 40 percent of credit card issuers apply this policy to their customers.

Petmidget

I dont know how credit files are monitored in the US but this would be difficult to administer here as every serach of your credit file has to be authorised by you, card companies cannot periodically check your entire file.

realaledrinker

Fairly sure that they can, and do, check on a periodic basis where you have given your consent as part of a credit application. Hence the reason given by certain card companies recently when they slashed people's credit limits.

Petmidget

They can of course make unilateral assessments based on information they have already or that you give them if requested. But to gain access to credit data from other source providers they need your express permission on every occassion.

That is what creates a search mark on your file, if they did it periodically as a matter of course peoples files would be covered in them.