Credit card companies' dirty little secrets exposed

Alameda Times-Star ^ | 26 November 2004 | Susan Young

[Racehorse]

There was a time when I had little sympathy for people who could not manage their credit cards.  That was in the prehistoric days when taking on debt was a fairly straight-forward transaction.  Now . . . I say . . . screw the credit card vultures who prey on the American consumer.  Congress needs to take action to at least restore credit to a fair exchange between consumer and lender.

[.38sw]

If the credit card companies aren't interested in me, then why do I get at least 6 offers of new credit cards in the mail every week? According to them, I'm a terrible customer.

[anniegetyourgun]

"So when you start that shopping this week, remember that the money you save on that sale item probably isn't worth spending the next decade paying it off."

[randog]

If you pay your bills on time and generally pay off your credit card balance each month, credit card companies aren't really interested in you.

I've had the same CC company for over 10 years and haven't paid a dime in interest to them. I've heard about CC companies dumping responsible customers, but it's never happened to me....yet.

[anniegetyourgun]

I'd give anything to earn a buck on every pound of junkmail I get too.....

[Recovering_Democrat]

Under the law, credit card companies can change your contract with only 15 days notice.

One of my low low low interest rate cards sent me a notice of a rate hike. I cancelled the card, but they had to keep the terms of my current low low low rate. :) I told them they just lost a customer--a very good one--because THEY chose to hike my rate.

So now, I have a balance at an EXTREMELY low rate that I am paying off.

CC companies only lose money when they try to jack up rates on customers who are prompt with payments.

[exnavychick]

These type of shenanigans are why I don't have a credit card. I have a visa check card that does a lot of things a credit card does except charge me outrageous fees and allow me to pay later (and more) for an item. I save my debt for my car payment (and later this year, yay!) a mortgage.

[Cowboy Bob]

...MBAs to lay traps in fine print.

I thought it was the JDs (Lawyers) who did that.

[admiralsn]

DiscoverCard must really hate me. I charge everything on that card, and pay it off monthly. We usually get a few hundred dollars back from them (Cashback bonus) every year. Have been doing it for about 7-8 years now.

[AmusedBystander]

The real dirty little secret is that they make between 1.5% to 3% on each and every transaction that the merchant pays for. This is before they charge the consumer a penny for interest, fees, etc.

[Ciexyz]

I keep getting offers for new credit cards, even tho I'm retired. Go figure.

[TomGuy]

I seldom carry any balance on mine, but I've heard the new interest rates are upwards of 28 to 29% on those 'penalty' rates for slow payers.

[Irene Adler]

"I've had the same CC company for over 10 years and haven't paid a dime in interest to them. I've heard about CC companies dumping responsible customers, but it's never happened to me....yet."

Same here. Occasionally we don't pay it all of for a couple of months, like around Christmas in some years, but otherwise we do pay everything off every month. The credit card companies always treat us just fine.

[RebelBanker]

Let me get this straight - you are advocating government interference in the private business between credit card issuing banks and individual consumers, above and beyond the plethora of consumer protection laws already on the books. Are you sure you are on the right Web site?

[Diana in Wisconsin]

It's a Free Market society. I wouldn't want it any other way. You should "shop" for your credit card just as you shop for anything else from a washing machine to a car, to a house. And learn to avoid all "store" credit cards. They are the fast-track to being totally broke.

I don't blame the cc companies for hosing those that aren't informed. There are usury laws on the books that protect people against the totally unscrupulous, but with everything, it's best to just let the buyer be ware.

And what are these people doing living above their means in the first place? ;) (My personal "crusade" is financial management for my household and businesses while thwarting the Tax Man at every turn. This bores most people to tears, but I love it!)

[verifythentrust]

I saw the frontline special. A larger % of folks than I expected pay off the bill monthly. Can't remember the number. The companies abre busy manipulating the others. Two practices I thought that should be changed:

Changing the interest on an amount already charged under the contract.

Changing the interest because the holder has a debt problem elsewhere, even when they make their credit card payments.

We have 1 card and pay it off monthly. Best practice.

[krunkygirl]

Save to share with my son...

[longtermmemmory]

so much for usary laws...

[Bloody Sam Roberts]

One of my low low low interest rate cards sent me a notice of a rate hike. I cancelled the card, but they had to keep the terms of my current low low low rate.

Smart people like you (and myself) who keep tabs on their finances aren't affected by any credit card company shenanigans. It simply isn't that difficult to beat these companies using their own rules.

I really have no sympathy for people who can't keep this stuff straight. Would they consider driving a car with a towel over their head? No. Then why do they use these cards blindly and not watch every penny? I can't figure it out.

[.38sw]

Not only has my CC not dumped me, they upgraded my account to platinum, without my requesting it. My credit line was more than adequate before, since I pay off the balance every month. Maybe they're hoping if they raise my credit limit, my eyes will bulge out at the amount, and I'll go crazy buying stuff on credit, and not be able to pay it off every month. Sorry. That's not going to happen.