Posted on 01/21/2009 11:34:59 AM PST by BGHater
If an italian loaned me money at 14-21%, he would be arrested for loan sharking. I still don't understand how the banks can get the money for .25% from the feds, lend it to CC holders at 20%, and yet the banks need bailout money. Something isn't right, and it can't be simply explained away as the higher interest rate covers the cost of fraud and non-payers.
I read somewhere that last year the CC banks made 43 million dollars in credit card fees.
Someone find that online? I’m not going to google, it could be more.
Where’s my bailout??
I manage my credit card by never using it. My debit card works just fine.
Oh now...THAT one ain't gonna fly. No frakkin' way.
I pay my bills on time and more than once the companies don’t credit it in time (scam) and try to charge you higher interest rates...I won, but CC companies can be very sleazy.
“It’s not your fault!”
I hear that just about everyday at work from some guy running this “Transforming debt into wealth program”. Seems the delusion is catching.
CC companies will make the same money...
The unwary will pay less, but the wary will pay more.
Where to begin...
“There’s a simple solution to all the flapdoodle about rapacious credit card issuers: Pay your bill in full each month.”
Wouldn’t it be nice if everyone could have an emergency and perform this way? Problem is that the real world just doesn’t work like that.
“This avoids interest charges and builds a solid credit rating while using the bank’s money interest free for about a month.”
Hardly true... There are finance charges (fees), and if you do this, your credit line can and will be diminished in short form in today’s climate - this is happening to a lot of people that pay on time and have a good credit rating.
“But this is America, land of the perpetual victim, where no one bothers to review a credit card’s disclosure statement.”
I’ve read mine and my expectation was that per the contract - as long as I pay at least the minimum payment on time (I always pay more than the minimum when there’s a balance), then my credit line and APR would at least stay the same, I would be rewarded with a higher line of credit or a better interest rate, or both. This plays into another point I will make soon enough.
“New credit card regulations take effect in July 2010. Representative Carolyn Maloney of New York has reintroduced the Credit Cardholders’ Bill of Rights, which offers the same reforms and would become effective 90 days after President Obama signs the bill into law; the proposed plan could effect such issuers as MasterCard (MA), Visa (V) and Capital One (COF).
The changes, the most significant in about 30 years, affect how banks market and bill credit cards. Here’s what you need to know:
* Higher interest rates on a current balance will be permitted only under specific conditions such as the expiration of a promotional rate, late payment or a variable rate. Interest rates on new transactions can be increased only after 45 days’ advance notice.”
This is how my contracts read on all my cards already, yet the banks choose to increase my rate threefold by fiat for no purpose other than that they can get away with not honoring their contract with me. They also choose to lower my line of credit to the point that interest and fees will cause me to be over limit on my next statement so that I have to pay late fees and will be in default because of it.
“* There will be no more universal default, nor raising interest rates based on a customer’s payment history with utility companies or other credit issuers not affiliated with the bank issuing the credit card.”
I’m pretty sure that was also agreed to in all of my contracts...
“* Payments will be due at least 21 days after the bill is mailed or delivered. Credit card issuers will no longer be able to set early morning deadlines for payments.
* When a different interest rate is applied to various balances, payments will be applied first to the balance with the higher rate or divided proportionally.
* Customers exceeding their credit limit will no longer be hit with a fee if a hold has been placed on their account. This routinely happens to customers who reserve a hotel or rental car when merchants place a hold on the account for the entire amount to be billed several weeks or months in the future.”
I think all of this is good common sense stuff.
“* Finance charges on a balance due will be computed on charges in the current cycle rather than going back to the previous billing cycle. Double-cycle billing hits customers who pay their balance in full one month, but not the next.”
Great, I believe this is fraud anyhow - regardless of if you read and understand your contract or not.
“* Terms will be disclosed in plain English.
The new rules sound great, but may have the unintended consequence of forcing those who manage their credit well to subsidize those who don’t. This could mean higher interest rates for everyone.”
I see the point, but I don’t see the connection between debtors who exceed their obligations to their creditors on a regular basis having to bail anyone out - this just doesn’t wash (unless everyone suffers higher fees and APRs because of it (this happens anyhow in the current situation). This bill and its effects won’t change that one iota!
“Still, some people refuse to understand this bit of folk wisdom: If you haven’t got it, don’t spend it.”
Sure I can agree to a certain extent, but as I stated before... emergencies happen! If I can afford to pay interest for a loan I reasonably believed would not have term changes inconsistent with my contract, then that should be between the lender and me (the debtor).
Of course now that my revolving line of credit is decreased simply because the CC company decided to do so because they screwed the pooch and are hurting, I have more trouble trying to get new credit because my overall creditworthiness is diminished due to unscrupulous practices of the issuers.
There’s more I could say, but why bother...
Thanks for the input.
Sure, no problem. Frankly I thought I’d get flamed for what I said because it seemed like I was being righteously indignant as I was typing.
If you couldn’t tell, I’m a little irked at more than a few CC companies that got bailed out to the tune on hundreds of billions of taxpayer’s money (collectively), all while doing this stuff.
Citi (was WAMU) did this to me. Those two lenders received collectively more than 55 billion IIRC. Seems I’m about to get the same treatment from CapitalOne (I hear tell they’re doing this to a lot of people). Best credit card - HA! What’s been taken from your wallet?
Thanks for the opportunity to vent :)
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