A sign of difficulties for both the card company and some customers.
That's what's been happening at GE Money's credit card operation. GE Money is known for being towards the more expensive end of consumer finance, but it also operates one of Australia's biggest credit card businesses - mostly under store card names. Coles and Myer cards are really GE Money cards, along with many others.
As the global credit crisis in general and the US credit crisis in particular hit, GE Money has been pulling in its horns around the world, selling businesses and reducing costs to send the money home to head office where it's needed most.
That's why GE sold its Wizard business to Aussie Home Loans and the Commonwealth Bank last month. And that's only a small part of GE Money's campaign to shrink.
Reuters reports that GE last week finalised the sale of its GE Money units in Germany, Austria and Finland, its UK credit card and automotive finance businesses and its Irish credit card arm. It had already sold its Japanese consumer finance unit and tried but failed to sell its US private-label credit card operation.
It's hitting home at the Australian consumer level though with GE Money notifying some customers that they credit limit had been cut - and it doesn't seem to matter if those customers have had a good credit record or not.
It looks to me like GE Money is targeting customers in the industries it thinks are most vulnerable in an economic slow down, industries such as hospitality, construction and retail.
They also happen to be the industries where companies are finding that their banks are increasing their credit margins - although banks' nominal interest rates have fallen, they are increasing the margin over their base rates at which they are prepared to lend to companies in the front line of the slow down.
It is bemusing that GE Money - at the forefront of pushing credit at people - is suddenly the one taking it back.
There are a couple of general observations to make:
For a start, in my opinion the GE Money store cards are dud products to begin with, carrying relatively high interest rates, so consumers are often better off without them. (I'm yet to see any store card that I'd bother having.)
Secondly, take GE Money's problems as a wake-up call about your own finances if you are relying on credit card debt - it's risky and expensive. You don't want to go into a period of slower economic growth already heavily in debt.
Thirdly, even if you're adept at using credit cards and take care to pay them off in full, it pays to shop around. You'd be in a bad way if you're totally reliant on a GE Money card for your credit safety margin.
Check what's on offer from the banks and don't forget the credit unions either - in some personal finance areas, the good ol' mutual credit unions have the best products in the field.