Credit Card Abuses

[Indiana Oracle]

People who cannot read or ignore the relatively straight-forward credit card disclosure documents will not be helped by anything Washington does, because they will need to read and understand it. Nothing Washington can do will change irresponsible behavior. Contrary to what some of those in Washington seem to think, they do this on purpose.

But I am also in the camp that feels banks engage in a lot of abuse and have been allowed to get away with it for some time due to the bank-wall street-politician cabal. So in this light and the above, I anticipate something will be blustered up but will amount to little.

The thing that really grates me is when the victim is a person who abused nothing.

 

[Dis]

I think they SHOULD make it clear that if you pay your VISA bill late, that Mastercard WILL impose a default interest rate, sometimes 30%, even if you've never been so much as five minutes late paying your mastercard.

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

What happened to you happens to people all the time. And in some cases, the minimum payment then goes up so much that people can't ever pay off the card. The way an average credit card is constructed, if you make minimum payments only, I think it takes approximately 30 years to pay off the debt... all at usurous interest rates.

I'm all for laws that keep companies from engaging in those types of predatory practices.

FWIW, I have one credit card which I use for things like online purchases (b/c I won't use a debit card for that) and hotel reservations and the like. But it's paid off every month. If it can't be paid off by the time the bill comes due, I don't buy it.

And the ONLY reason I got the card was because I needed a co-signatory for my car lease because I didn't have enough credit since my co-op is paid off too and when I bought it, I took a passbook loan and not a bank loan.

I don't like debt. Scares the bejezus out of me. I'm silly that way.

But I also don't like companies taking advantage of people because they have good lobbyists.

I have two CC's that I use.. One is a higher limit for things like hotel reservations, and car rentals should I need them.. The other is just tied directly to my checking account, and I *think* that one has either a daily, or weekly limit - not sure. I don't ever carry cash with me, nor do I carry the larger credit card with me.. The card tied to my checking account is for daily things like gas, coffee, groceries, department store shopping, etc.

If I make a large purchase (TV, dryer, sofa, etc.), that's still in cash, and comes out of my savings account. But I won't allow that account to drop below a certain amount (6 months salary, minimum), either...

I think debt scares the crap out of anyone with a head on their shoulders. Just because some CC company tells me I can afford something, doesn't mean I actually CAN afford it.

 

[007]

I think they SHOULD make it clear that if you pay your VISA bill late, that Mastercard WILL impose a default interest rate, sometimes 30%, even if you've never been so much as five minutes late paying your mastercard.

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

Since you now closed all of your accounts your credit score took a dive. Now your insurance rates will also be hiked.

That's probably true for some, but it didn't happen. I've been with American Family for almost 35 years, and my car and bike insurance actually came down, probable because the difference for Reno and here, out in the sticks. Home owners went up though, because now I'm in a house and not an apartment.

 

[Dis]

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

Since you now closed all of your accounts your credit score took a dive. Now your insurance rates will also be hiked.

That's probably true for some, but it didn't happen. I've been with American Family for almost 35 years, and my car and bike insurance actually came down. Home owners went up though, because now I'm in a house and not an apartment.

American Family is a bit slow on the uptake. Check again in 6 months. I've been with them for about 15 years... They get you on *everything* eventually.

 

[jillian]

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

What happened to you happens to people all the time. And in some cases, the minimum payment then goes up so much that people can't ever pay off the card. The way an average credit card is constructed, if you make minimum payments only, I think it takes approximately 30 years to pay off the debt... all at usurous interest rates.

I'm all for laws that keep companies from engaging in those types of predatory practices.

FWIW, I have one credit card which I use for things like online purchases (b/c I won't use a debit card for that) and hotel reservations and the like. But it's paid off every month. If it can't be paid off by the time the bill comes due, I don't buy it.

And the ONLY reason I got the card was because I needed a co-signatory for my car lease because I didn't have enough credit since my co-op is paid off too and when I bought it, I took a passbook loan and not a bank loan.

I don't like debt. Scares the bejezus out of me. I'm silly that way.

But I also don't like companies taking advantage of people because they have good lobbyists.

I have two CC's that I use.. One is a higher limit for things like hotel reservations, and car rentals should I need them.. The other is just tied directly to my checking account, and I *think* that one has either a daily, or weekly limit - not sure. I don't ever carry cash with me, nor do I carry the larger credit card with me.. The card tied to my checking account is for daily things like gas, coffee, groceries, department store shopping, etc.

If I make a large purchase (TV, dryer, sofa, etc.), that's still in cash, and comes out of my savings account. But I won't allow that account to drop below a certain amount (6 months salary, minimum), either...

I think debt scares the crap out of anyone with a head on their shoulders. Just because some CC company tells me I can afford something, doesn't mean I actually CAN afford it.

similar process. we were actually looking at a house and I couldn't bring myself to do it. I like my apartment. my son's in a good school and so i have no reason to move yet (that might change depending on what high school he gets into). the thought of a mortgage made me lose sleep.

but... there are also people who have no choice but to incur debt.. they may have gotten ill (50% of bankruptcies are because of unanticipated health problems and there are almost 80 million people with no health insurance in this country); or there's a divorce and parent a decides he doesn't feel like paying child support to parent b who then can't buy shoes for child C except on credit... oh yeah, and to get child support, parent B has to use her credit card to get a cash advance to pay lawyer D.

Stuff happens, even with our best efforts to micromanage....

 

[007]

I think they SHOULD make it clear that if you pay your VISA bill late, that Mastercard WILL impose a default interest rate, sometimes 30%, even if you've never been so much as five minutes late paying your mastercard.

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

What happened to you happens to people all the time. And in some cases, the minimum payment then goes up so much that people can't ever pay off the card. The way an average credit card is constructed, if you make minimum payments only, I think it takes approximately 30 years to pay off the debt... all at usurous interest rates.

I'm all for laws that keep companies from engaging in those types of predatory practices.

FWIW, I have one credit card which I use for things like online purchases (b/c I won't use a debit card for that) and hotel reservations and the like. But it's paid off every month. If it can't be paid off by the time the bill comes due, I don't buy it.

And the ONLY reason I got the card was because I needed a co-signatory for my car lease because I didn't have enough credit since my co-op is paid off too and when I bought it, I took a passbook loan and not a bank loan.

I don't like debt. Scares the bejezus out of me. I'm silly that way.

But I also don't like companies taking advantage of people because they have good lobbyists.

Fortunately I had the savings to pay them off. I'd always heard that it was a good idea to carry a 10% balance of your credit limit. That was best for your credit rating, so I didn't have a tremendously huge balance to pay off, but big enough that it took a bite out of my savings to do it. I'll never do it again. I have a debit card that's good anywhere a Visa card is, but as you probably already know, that's "my" money. It's not credit.

I'm all for some laws governing these shit heads too. I think jacking your interest rate up to 30% because you were late on something other than their account is pure robbery... legal as it may be, for the time being, it's still robbery.

 

[jillian]

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

What happened to you happens to people all the time. And in some cases, the minimum payment then goes up so much that people can't ever pay off the card. The way an average credit card is constructed, if you make minimum payments only, I think it takes approximately 30 years to pay off the debt... all at usurous interest rates.

I'm all for laws that keep companies from engaging in those types of predatory practices.

FWIW, I have one credit card which I use for things like online purchases (b/c I won't use a debit card for that) and hotel reservations and the like. But it's paid off every month. If it can't be paid off by the time the bill comes due, I don't buy it.

And the ONLY reason I got the card was because I needed a co-signatory for my car lease because I didn't have enough credit since my co-op is paid off too and when I bought it, I took a passbook loan and not a bank loan.

I don't like debt. Scares the bejezus out of me. I'm silly that way.

But I also don't like companies taking advantage of people because they have good lobbyists.

Fortunately I had the savings to pay them off. I'd always heard that it was a good idea to carry a 10% balance of your credit limit. That was best for your credit rating, so I didn't have a tremendously huge balance to pay off, but big enough that it took a bite out of my savings to do it. I'll never do it again. I have a debit card that's good anywhere a Visa card is, but as you probably already know, that's "my" money. It's not credit.

I'm all for some laws governing these shit heads too. I think jacking your interest rate up to 30% because you were late on something other than their account is pure robbery... legal as it may be, still robbery.

m'dear, you may have just found the one issue we can agree on.

 

[Dis]

What happened to you happens to people all the time. And in some cases, the minimum payment then goes up so much that people can't ever pay off the card. The way an average credit card is constructed, if you make minimum payments only, I think it takes approximately 30 years to pay off the debt... all at usurous interest rates.

I'm all for laws that keep companies from engaging in those types of predatory practices.

FWIW, I have one credit card which I use for things like online purchases (b/c I won't use a debit card for that) and hotel reservations and the like. But it's paid off every month. If it can't be paid off by the time the bill comes due, I don't buy it.

And the ONLY reason I got the card was because I needed a co-signatory for my car lease because I didn't have enough credit since my co-op is paid off too and when I bought it, I took a passbook loan and not a bank loan.

I don't like debt. Scares the bejezus out of me. I'm silly that way.

But I also don't like companies taking advantage of people because they have good lobbyists.

I have two CC's that I use.. One is a higher limit for things like hotel reservations, and car rentals should I need them.. The other is just tied directly to my checking account, and I *think* that one has either a daily, or weekly limit - not sure. I don't ever carry cash with me, nor do I carry the larger credit card with me.. The card tied to my checking account is for daily things like gas, coffee, groceries, department store shopping, etc.

If I make a large purchase (TV, dryer, sofa, etc.), that's still in cash, and comes out of my savings account. But I won't allow that account to drop below a certain amount (6 months salary, minimum), either...

I think debt scares the crap out of anyone with a head on their shoulders. Just because some CC company tells me I can afford something, doesn't mean I actually CAN afford it.

similar process. we were actually looking at a house and I couldn't bring myself to do it. I like my apartment. my son's in a good school and so i have no reason to move yet (that might change depending on what high school he gets into). the thought of a mortgage made me lose sleep.

but... there are also people who have no choice but to incur debt.. they may have gotten ill (50% of bankruptcies are because of unanticipated health problems and there are almost 80 million people with no health insurance in this country); or there's a divorce and parent a decides he doesn't feel like paying child support to parent b who then can't buy shoes for child C except on credit... oh yeah, and to get child support, parent B has to use her credit card to get a cash advance to pay lawyer D.

Stuff happens, even with our best efforts to micromanage....

I'm not saying people don't need temporary credit, or help in some cases.. but on the other hand, if you can't afford a $10 pair of shoes now, because you don't have the cash, how can you afford to pay the interest on that pair of shoes PLUS the cost for the shoes themselves? Also, it's not just shoes.. It's TVs, boats, stereos, etc.. With 99% of all people, there's micromanaging that can be done to accomplish anything that's needed. It's a matter of simply getting off ones patootey and doing it. There's always someone else that has to fuck it up for that remaining 1% that actually needs help, tho.

Go for the house.. Trust me. I was scared to freakin *death*. Rent was only $700 a month.. That was *easy*.. The thought of $1500 a month was scary..But on the other hand, you're getting nothing for your $700 a month, whereas for your $1500 a month, you own it. You can do what you want with it; you don't need anyone's permission, you have way more room, etc.

 

[007]

Since you now closed all of your accounts your credit score took a dive. Now your insurance rates will also be hiked.

That's probably true for some, but it didn't happen. I've been with American Family for almost 35 years, and my car and bike insurance actually came down. Home owners went up though, because now I'm in a house and not an apartment.

American Family is a bit slow on the uptake. Check again in 6 months. I've been with them for about 15 years... They get you on *everything* eventually.

Yeah they did that with a ticket. When I turned in my Nevada DL and got a WI, they must have checked and found a year and a half old ticket, and jacked up my insurance. Not much though... still less than in Reno. Nevada was all high risk, as they purported that one in every four drivers in Reno and Las Vegas were legally drunk.

 

[Dis]

That's probably true for some, but it didn't happen. I've been with American Family for almost 35 years, and my car and bike insurance actually came down. Home owners went up though, because now I'm in a house and not an apartment.

American Family is a bit slow on the uptake. Check again in 6 months. I've been with them for about 15 years... They get you on *everything* eventually.

Yeah they did that with a ticket. When I turned in my Nevada DL and got a WI, they must have checked and found a year and a half old ticket, and jacked up my insurance. Not much though... still less than in Reno. Nevada was all high risk, as they purported that one in every four drivers in Reno and Las Vegas was legally drunk.

Gee.. Having been in a Las Vegas cab, I can't possibly imagine why they'd all be considered high risk.

Thought for sure I was going to die getting from just Caesars Palace to the Hard Rock Cafe.

 

[Vel]

Excellent. This shows that you were well able to handle the situation on your own and didn't require an act of Congress to save you.
If the general public refuses to abide by changing the rules in mid stream then we'll find that they change their tactics. It's only because so many people are willing to play their game that they continue. The public has the ability to make current credit ratings obsolete.

That's nice... so you think less capable people should be victimized by banks?

And good luck living or operating a business without credit.

You won't get a phone company to hook you up; won't get gas or electric for your home; won't get a car except for cash... can't get improvement loans to expand your home or business...

I guess it's ok if you want to spend your life in the woods with a shotgun and hunt for your own food, chop wood for trees, etc.

But it sure isn't reality.

No, I don't think less capable people should be victims. I think that the post Dis made following mine says it superbly. I also believe that the public has a greater ability to affect their credit rating than they ever exercise. If, out of principle, you end up with someone marking your credit report, be certain to write to the reporting agencies and have them attach your explanation to your report. People need to be proactive and remember that if they feel a company is practicing unfair tactics, stop doing business with them as soon as possible.
If enough people are willing to make a stand and remind credit card companies that they can't exist without consumers willing to patronize them, things can change.

 

[007]

What happened to you happens to people all the time. And in some cases, the minimum payment then goes up so much that people can't ever pay off the card. The way an average credit card is constructed, if you make minimum payments only, I think it takes approximately 30 years to pay off the debt... all at usurous interest rates.

I'm all for laws that keep companies from engaging in those types of predatory practices.

FWIW, I have one credit card which I use for things like online purchases (b/c I won't use a debit card for that) and hotel reservations and the like. But it's paid off every month. If it can't be paid off by the time the bill comes due, I don't buy it.

And the ONLY reason I got the card was because I needed a co-signatory for my car lease because I didn't have enough credit since my co-op is paid off too and when I bought it, I took a passbook loan and not a bank loan.

I don't like debt. Scares the bejezus out of me. I'm silly that way.

But I also don't like companies taking advantage of people because they have good lobbyists.

Fortunately I had the savings to pay them off. I'd always heard that it was a good idea to carry a 10% balance of your credit limit. That was best for your credit rating, so I didn't have a tremendously huge balance to pay off, but big enough that it took a bite out of my savings to do it. I'll never do it again. I have a debit card that's good anywhere a Visa card is, but as you probably already know, that's "my" money. It's not credit.

I'm all for some laws governing these shit heads too. I think jacking your interest rate up to 30% because you were late on something other than their account is pure robbery... legal as it may be, still robbery.

m'dear, you may have just found the one issue we can agree on.

Winner, winner, chicken dinner...

 

[jillian]

I'm not saying people don't need temporary credit, or help in some cases.. but on the other hand, if you can't afford a $10 pair of shoes now, because you don't have the cash, how can you afford to pay the interest on that pair of shoes PLUS the cost for the shoes themselves? Also, it's not just shoes.. It's TVs, boats, stereos, etc.. With 99% of all people, there's micromanaging that can be done to accomplish anything that's needed. It's a matter of simply getting off ones patootey and doing it. There's always someone else that has to fuck it up for that remaining 1% that actually needs help, tho.

Go for the house.. Trust me. I was scared to freakin *death*. Rent was only $700 a month.. That was *easy*.. The thought of $1500 a month was scary..But on the other hand, you're getting nothing for your $700 a month, whereas for your $1500 a month, you own it. You can do what you want with it; you don't need anyone's permission, you have way more room, etc.

no question there is some credit card abuse. but those people aren't teh ones who get victimized because they don't care if they run 10 or 15 credit cards that they pay the minimum on. they just belly up when it gets to where they can't pay anymore.

but it isn't the average. the average is the person who gets nailed. it's not that i don't think they should exercise responsibility... it's that IF they exercise responsibility, the banks shouldn't be allowed to victimize them. I think that's fair.

As for the house... well, I have a co-op that's paid, so i have some equity (although nowhere near what a house would be) and it's not like i'm paying rent to enrich a landlord... we do pay maintenance, though, which pays for the upkeep of the building and property.

i'm figuring i can't deal with the house for now. the boy starts college in six years... maybe when i'm done with that.

 

[007]

American Family is a bit slow on the uptake. Check again in 6 months. I've been with them for about 15 years... They get you on *everything* eventually.

Yeah they did that with a ticket. When I turned in my Nevada DL and got a WI, they must have checked and found a year and a half old ticket, and jacked up my insurance. Not much though... still less than in Reno. Nevada was all high risk, as they purported that one in every four drivers in Reno and Las Vegas was legally drunk.

Gee.. Having been in a Las Vegas cab, I can't possibly imagine why they'd all be considered high risk.

Thought for sure I was going to die getting from just Caesars Palace to the Hard Rock Cafe.

Yeah... and that was what, three-four blocks down Las Vegas Blvd?

I know what you mean.

 

[Dis]

Yeah they did that with a ticket. When I turned in my Nevada DL and got a WI, they must have checked and found a year and a half old ticket, and jacked up my insurance. Not much though... still less than in Reno. Nevada was all high risk, as they purported that one in every four drivers in Reno and Las Vegas was legally drunk.

Gee.. Having been in a Las Vegas cab, I can't possibly imagine why they'd all be considered high risk.

Thought for sure I was going to die getting from just Caesars Palace to the Hard Rock Cafe.

Yeah... and that was what, three-four blocks down Las Vegas Blvd?

I know what you mean.

Unless something got moved somewhere, I think it was farther than that.. I remember someone telling us we couldn't walk; either it was too far, or too unsafe.. don't remember.. And I remember the 15 mins in that cab being the longest 15 mins of that entire trip.

And WTF's with the moving sidewalks? Put one friggen foot in front of the other, and push.

(off-topic rant over)

 

[007]

Gee.. Having been in a Las Vegas cab, I can't possibly imagine why they'd all be considered high risk.

Thought for sure I was going to die getting from just Caesars Palace to the Hard Rock Cafe.

Yeah... and that was what, three-four blocks down Las Vegas Blvd?

I know what you mean.

Unless something got moved somewhere, I think it was farther than that.. I remember someone telling us we couldn't walk; either it was too far, or too unsafe.. don't remember.. And I remember the 15 mins in that cab being the longest 15 mins of that entire trip.

And WTF's with the moving sidewalks? Put one friggen foot in front of the other, and push.

(off-topic rant over)

My son lived right behind the MGM Grand and I had to "rescue" him from Vegas. Had to drive down from Reno. Living there didn't agree with him, or him with it. He lasted a whole month. Partied most of the time. But he and his friends walked to the Hard Rock from up by the MGM. I've never been to the Hard Rock myself so I don't know. Don't wanna know. If I ever see Vegas again it'll be too soon. Lived there for 4 years and been through there more times than I care to mention. They can have it. I'm EXTREMELY happy to be back in Wisconsin. I like it here. It's home. Can't say much for the liberals running this state though...

 

[Zoom-boing]

I think they SHOULD make it clear that if you pay your VISA bill late, that Mastercard WILL impose a default interest rate, sometimes 30%, even if you've never been so much as five minutes late paying your mastercard.

This happened to me. When I moved back here from Reno I missed a payment on ONE of my five credit cards. The bill got tossed into a pile or something, I don't know, but I missed it in the confusion of moving. In any case, I didn't panic because I'd had that card for over twenty years. I thought I'll just call them and pay whatever to catch it back up. Well I did that BUT, they hiked my interest rate from 10% up to 23% without notice. I called them and asked them to lower it back down to what it was and they said, "that might be possible if I didn't make another late payment for a YEAR!" I told them to stick their card where the sun don't shine and close the account. In the meantime, the other four credit cards I had began automatically raising my interest rate also, AND lowered my credit limit. I called and asked them what they were doing that for when I'd never, EVER missed or had a late payment to THEM, and they said because of what happened on the OTHER card. I also then told them to stick their cards where the sun don't shine and close the accounts. I now have NO credit card, and feel absolutely LIBERATED. I don't think there's a bigger group of SHYSTERS on earth than those filthy credit card companies.

WTF -- you're a loyal customer for 20 years and they screw you over because you missed one payment? This type of thing is flat out wrong.

Bailing out people who don't read the fine print? No. Changing the way cc and banks screw people? Yes.

 

[jreeves]

The White House said Sunday that it will back congressional efforts to clamp down on credit card abuses in an effort to address the recession's effect on Main Street.

The House and Senate are considering a credit card bill of rights to limit the ability of credit card companies to raise interest rates on existing balances and to require greater disclosure. White House economic adviser Larry Summers said people need to save more, but that the government also needs to curb credit card pitches that addict people to plastic.

President Barack Obama is "going to be very focused, in a very near term, on a whole set of issues having to do with credit card abuses, having to do with the way people have been deceived into paying extraordinarily high rates that they wouldn't have paid if they knew what they were getting themselves into," Summers said.
Obama to address credit card abuses - White House- msnbc.com


How about the credit card abuses committed on the credit companies from individuals who charge up their credit cards? When they know there is no way in hell they will be able to repay it. What happened to Obama's era of responsibility?

Can they not read the fine print?

If you charge something you are required to pay xx amount within xx time frame. Late payments, non-payments, insufficient payments - all get whacked with fees. Transfer balances? Read the fine print, there are conditions! Credit cards are a convenience, that's it. Rule of thumb to follow with credit cards: if you don't have the money to pay for the item, don't buy the item. Not exactly rocket science.

o back up there stinky....fine print? o i have read it...i always do...credit cards are usery...loansharks cant loan you money at outragous rates but credit cards sure can
and you show my ass where it says...if you dont pay your car insurance on time they can raise your rates....go on...i will wait here....but they do and will...

no its not rocket science but they the devil is still in the details

If you don't want to pay those high rates don't get the card. People should be responsible enough to read their own contracts, after all that is what a credit agreement is. Actually most credit agreements, specify if your credit rating is compromised then they can raise your rate. If you or anybody else doesn't pay their other bills, then the credit company is taking on more risk on you as a consumer. After all, they extend a line of credit to you based on what your credit rating is when you sign up for the account.

 

[jreeves]

Personally, I've always found that the easier you make something for someone, the more they're going to take advantage of it... You dumb down the wording, and they're going to find a loophole. How is THAT the banks, or CC companys fault? "Oh, well they should have been more explicit"?

I understand that as a philosophy, I guess, although I disagree with it totally because, by nature, the banks/corporations have so much greater power than the consumer. And corporations simply don't do the right thing if left to their own devices because corporations are wholly amoral.

Greater power being the key. The average person or business that uses credit can not fight a bank. Major banks are abusing this power. They may have contracts but that does not mean they will abide in the contracts that they wrote. I may not know much about banking but I know when I sign a contract I expect both parties to meet the obligations of that contract. You can't have one party that is a giant changing the contract mid way at their own discretion. That is exactly what these banks are doing and have been doing. If I sign one piece of paper a bank has no legal right to add to that original paper I signed and agreed too. Credit card companies/Banks are changing the contracts after the fact.

If a bank doesn't follow through on their end of the credit contract then under current law you do have legal recourse.

 

[KittenKoder]

I understand that as a philosophy, I guess, although I disagree with it totally because, by nature, the banks/corporations have so much greater power than the consumer. And corporations simply don't do the right thing if left to their own devices because corporations are wholly amoral.

Greater power being the key. The average person or business that uses credit can not fight a bank. Major banks are abusing this power. They may have contracts but that does not mean they will abide in the contracts that they wrote. I may not know much about banking but I know when I sign a contract I expect both parties to meet the obligations of that contract. You can't have one party that is a giant changing the contract mid way at their own discretion. That is exactly what these banks are doing and have been doing. If I sign one piece of paper a bank has no legal right to add to that original paper I signed and agreed too. Credit card companies/Banks are changing the contracts after the fact.

If a bank doesn't follow through on their end of the credit contract then under current law you do have legal recourse.

Okay ... so then what's the problem.

You both sign a contract on terms you both agree to, the law upholds said contract. I don't see any problem at all.