Brazilian Central Bank to Keep track on my American Express

[Steve_A]

Hi Everybody,

Not that I'm bragging, but I have a green American Express charge card. Together with my monthly extract came a nice little letter which I will translate in full:

"Know the new norms of the SCR: Credit Information System of the Central Bank

The Credit Information System of the Central Bank (SCR) is the principal instrument used by the banking supervision to accompany the credit spread of financial institutions. Based on positive information, it contains data about the behaviour of clients in respect to their contractual obligations in the financial system. In this way, it performs an impórtant role to guarantee the stability of the National Financial System and in the prevention of crisis, proportioning more ease for clients of financial institutions and more transparency for society.

In accordance with the Resolution of the Central Bank of Brazil No. 3.658, of the 17th of December 2008, which instituted the SCR, the Bradesco Organization (who administer my charge card), communicate to its' clients who carry the American Express Membership Cards that:

All and any charges and responsibilities arising from operations with characterisitcs of credit realized by the customer together with the Bradesco Organization will be registered in the Credit Information System (SCR) generated by the Central Bank (Bacen), as well as in the systems that compliment or supercedes it;

The SCRs' objective is to deliver information to Bacen with the objective to supervise credit risk which are exposed to financial institutions and to provide an exchange of information between these institutions with the objective to subsidise credit and business decisions;

The client may have access the current data in their name in the SCR through a Public Attendance Center of the central Bank of Brazil;

Calls for corrections, exclusions, the registration of legal measures or protests of disagreement about the current information of the SCR should be directed to the Bradesco Organization by way of founded written application and, when is the case, accompanied with the respective judicial decision.

The consultation of any information to the SCR will depend on the authorization of the client.

For more information consult the site of the Central Bank of Brazil:
www.bcb.gov.br "

What does this letter and legislation mean? It means that now the government along with any financial institution can track where, when, how, and how much I use my charge card.

The rot is setting in. Beware UK and US... you will be next.

Remember you heard it here first!

Best regards,

Steve

[Northern Boy]

What they are attempting to do Steve is alter the conditions of your contract and unless you consent to it they cant do it. Does your card contain a chip in it

My Royal bank Visa which I received over a year ago has a chip in it I refuse to use it and in fact have not even called the 1- 800 number to activate it . Every month they put this job loss insurance on it ........ Got me thinking if I haven`t activated the card how can they charge any thing to the card. We will wait and see how it plays out but me thinks they are going to be eating a lot of debt real soon

[Dantheman62]

Credit Bailout: Issuers Slashing Card Balances

by David Streitfeld
Tuesday, June 16, 2009


The banks were bailed out last fall, the automobile companies last winter. For Edward McClelland, a writer in Chicago, deliverance finally arrived a few days ago.

Mr. McClelland’scredit card company was calling yet again, wondering when it could expect the next installment on his delinquent account. He proposed paying half of his $5,486 balance and calling the matter even.

It’s a deal, the account representative immediately said, not even bothering to check with a supervisor.

As they confront unprecedented numbers of troubled customers, credit card companies are increasingly doing something they have historically scorned: settling delinquent accounts for substantially less than the amount owed.

The practice started last fall as the economy worsened. But in recent months, with unemployment topping 9 percent and more people having trouble paying their bills, experts say this approach has risen drastically.

They say many credit card issuers have revised internal guidelines to give front-line employees the power to cut deals with consumers. The workers do not even have to wait for customers to call and ask for a break.

“Now it’s the card company calling you and saying, ‘Let’s talk turkey,’ ” said David Robertson, publisher of the credit industry journal The Nilson Report.

Only a few creditors are willing to confirm the practice. Bank of America and American Express say they decide on a case-by-case basis whether to accept less than the full balance. Other card companies refuse to discuss the subject, but their trade group, the American Bankers Association, acknowledges that settlements are becoming more common.

The shift comes as the financial services industry finds itself losing some of its legendary power. A credit card reform bill that makes it harder to raise rates on existing balances and prevents certain automatic fees flew through Congress and was signed by President Obama in late May.


For the rest of the article..... http://finance.yahoo.com/banking-bud...bb-creditcards