by Prashant Gopal
Wednesday, June 24, 2009
After years of getting Americans hooked on credit, card companies are slashing limits and weaning themselves off all but the safest customers
Terry Mazzera has worked to keep her credit score above 730, paying bills on time, sending in more than the minimum credit-card payment each month, and keeping a [...]

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.