Posted on 10/04/2008 5:31:40 PM PDT by Clintonfatigued
You've got to love the banking industry.
As our friends in the financial sector were passing the hat among taxpayers last week for $700 billion in bailouts to cover their crappy mortgage investments, they were simultaneously condemning the House of Representatives' passage of a "Credit Cardholders' Bill of Rights," which aims to crack down on some of the industry's more troublesome practices.
The legislation -- HR 5244 -- would, among other things, end card issuers' self-proclaimed right to change interest rates at any time. Instead, a 45-day notice would be required for any increase.
It also would give cardholders more time to pay by requiring issuers to mail bills at least 25 days before the due date, as opposed to the current 14 days.
Similar measures are being considered by the Federal Reserve, the National Assn. of Credit Unions and the Office of Thrift Supervision. But they wouldn't carry the force of law and could be weakened by more industry-friendly regulators down the road.
Absolutely. We need a level playing field. Perhaps, if federal regulators can't fix things. No way. Lawmakers should mind their own business. The House bill still needs to be tackled by the Senate, and it's unclear what its chances are there. The Bush administration has signaled its opposition to the legislation.
"The timing of all this couldn't be more glaring," said Bill Hardekopf, chief exec of LowCards.com, a website that tracks credit card rates and trends. "While banks say they would be tanking without taxpayer money, here comes a bill that would help taxpayers, and the banks say it isn't right.
"I'm amazed that there's not more humility at a time like this."
(Excerpt) Read more at latimes.com ...
After getting bailed out by we the taxpayers, they should be bending over backward to do us favors.
The big question is whether the credit card underwriters will continue to be able to underwrite credit cards, or if there will have to be mass cancellations of cards. If it is a possibility, it would be very wise to get an additional instrument, a debit card, to insure you have timely access to spending money.
If you can’t afford to pay off your credit card at the end of the month, you pretty much should never use it.
Americans CAN live with less “Made in China” crap that fills our McMansions!
It’s time to get to a simpler, common sense life, within your means. More credit to the uncreditworthy is not the answer!
Credit card companies suck. They encourage people to spend money they don’t have and probably can’t pay back.
Self-proclaimed? It's as if signing a contract is just a meaningless annoyance you have to put with to get the card.
“It’s time to get to a simpler, common sense life, within your means. More credit to the uncreditworthy is not the answer!”
Its not the uncreditworthy they are after. You spend more money if you use a credit card than cash or check. Retailers love ‘em as does the govt. Credit card records make it easy to track peoples spending.
So credit card companies are deliberately trying to lose money?
Wait don't tell me... I see it now... They're going to make it up on the volume right?
“Self-proclaimed? It’s as if signing a contract is just a meaningless annoyance you have to put with to get the card. “
Yes and they reserve the right to change the terms of that contract any time they want.
You are seriously contending that credit card issuers are honest businesses?
Those who don't misuse them don't suffer.
“So credit card companies are deliberately trying to lose money? “
Oh I dunno, why else do they issue credit cards to college students with very little income. They encourage people to carry debt.
“Wait don’t tell me... I see it now... They’re going to make it up on the volume right?”
Wait don’t tell me, credit card company’s don’t take advantage of people. They are just honest business owners trying to help you take that vacation.
Why is it I receive about 20 pre-approved credit card forms a week?
Yes of course I am. If the terms of the contract you agreed to allow them to change rates then they can change rates. No one puts a gun to your head and forced you to take a credit card. You aren't going to suggest that a credit card is some kind of right, so where is the credit card company being dishonest?
“Those who have a problem with credit cards shouldn’t have them.”
The issue I have with them is the business practices of most credit card companies.
If you pay your credit card off each month it actually hurts your credit score.
I have a problem with greedy people.
Um... because they are in the credit card business maybe? What kind of flyers do car dealerships send you? Pizza parlors?
There is nothing wrong with soliciting business. Are breweries to blame if you get drunk?
“If the terms of the contract you agreed to allow them to change rates then they can change rates.”
The terms of those agreements allow them to change all the terms, not just the rate. Numerous companies will delay processing payments to increase fees.
“You aren’t going to suggest that a credit card is some kind of right, so where is the credit card company being dishonest?”
Nope, its not a right. We once banned loan sharks on street corners but allowed them to put a tie on and take the corner office.
“Um... because they are in the credit card business maybe?”
They take advantage of people.
I’ve seen the credit card industry from the inside. Its all about greed and not about providing a service.
But the key word is "agreement". It's only dishonest if they tell you one thing and do another. If you sign an agreement and the company acts within the terms of that agreement then you can't say they're being dishonest.
“So if you think your credit score is being affected, don’t use a credit card on a monthly basis.”
Not using it also hurts your credit score. The credit score is really a measure of how likely they are to make money off of you. They want you to carry a balance so they collect interest.
I like credit cards. They've helped me in my business.
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