Remember when you first started working and learned that your IT department had access to all of your emails? Some employees probably learned that the hard way, and now some credit card users are learning they're being punished for behavior they didn't know was being monitored.
The Federal Trade Commission (FTC) has filed a suit against card issuer CompuCredit for "deceptive marketing practices." A representative from the FTC said, "The company touted that cardholders could use their credit cards anywhere. What they didn't say was that you could be punished for specific kinds of purchases." Borrowers weren't aware that using their cards at tire and retreading shops, massage parlors, bars, billiard halls, and marriage counseling offices would hurt their credit.
CompuCredit uses its proprietary scoring system instead of FICO, and the issuer does not disclose to consumers that it uses behavior-based scoring. What do you think of purchasing behavior determining creditworthiness?