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Target's response to credit crisis: Cut customers' limits
USA: Target, facing slower sales and rising delinquencies in its credit card business, last week said it is further tightening terms for its card holders - even those with good standing - and is being more aggressive in collection activity.
Executives told analysts at the company's annual investor meeting, held in Minneapolis, that it was lowering credit card limits for customers who are in good standing but live in high-risk areas such as California that have been hit hard by the housing slump.
It's also moving quickly to tighten standards for inactive cardholders, who typically are already in trouble with other lenders, company officials said. Reflecting the overall tightening of credit in the marketplace, Target noted that it's seeing lower credit card usage among its shoppers for the first time since 2001-2003.
