Is is possible or even common that banks share information about their customers with each other directly?
Specifically, when one applies for a credit card, often there are questions about existing credit cards in other banks. Would it be possible for banks to verify the provided information?
Even more specifically, say I apply for a credit card with a $10,000 limit and tell the bank that I have a $20,000 credit card with another bank. They call me and tell then they would approve my application on the condition that I lower the limit on the other card down to $10,000 (or even close the card altogether). Would they be able to verify that I did so?
I guess the answer would depend on the market so let's assume Australia/New Zealand, but it would be also interesting to hear of the USA practices.