Comments on: Exploiting The Credit Card Law Loophole

Card Issuers May Hike Charges And Interest Rates Before New Regulations Take Effect; Borrowers Who Pay In Full Targeted

[enriquecaliente]

I think everyone needs to view this report. The way that the credit card industries are set up, is a win-win situation for them and them only. We need to get back to pay as you go. They've sucked everyone into living way above their means.

http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/

[jntlw]

A country whose businesses are out to rape and pillage the average person will not survive. Greed has no bounds and does not have the aibility to see when it has gone to far, (thus blind) so the greedy will not see the errors of their ways until there is nothing left to rob. That is exactly what is happening to our country - we are consumed by the insatiable greed of business.

[the74blaster]

If people are worried about the state of the economy now, imagine the panic that would ensue when they realized people were no longer using credit cards. That would be a trillion dollar loss in the money system.

Posted by 12345-908903 at 1:13 PM : May 20, 2009,

Great post. Normally I would report it all, but I need some room to comment.

It would benefit us all if we could organize and get everyone who is able to cut up their credit cards and use checks or pay with cash as a protest to the law. The panic it would cause would be worth it since meaningful reforms would follow.

Has anyone noticed the 25% increase in gas prices right in time for the holiday weekend? I would guess its big money and greed wanted to cash in on our travel.

Perhaps a holiday strike where everyone stays hope is in order. The hedge fund managers who are creating this price spike with our bailout money would loose their tail if everyone decided to stay home this weekend.

Pass this idea on and lets put a litttle instability in oil futures. If anything it would keep the gas prices lower.

[12345-908903]

To BerkeleySkirt - cutting up our credit cards is what we should all do, regardless of the fees the card companies are charging. If people are worried about the state of the economy now, imagine the panic that would ensue when they realized people were no longer using credit cards. That would be a trillion dollar loss in the money system.

Card companies and the American Banking Association are in the business of loan sharking. They will find a way around any law that is passed in favor of the consumer. You may have too many cards, or too few cards, carry no balance, or carry a too small or too large balance, pay on time, never default, and never universal default. It doesn't matter. They will screw you by tacking on charges, raising your interest rate, or by lowering your credit card limits, resulting in a lower credit score. Once they have successfully lowered your credit score, you become a greater loan risk and they can then charge a higher interest rate and tack on other "risk" charges. They long ago rejected the idea of simply not lending money to people they consider a risk in favor of making much more money by pegging all their customers a risk and charging them higher rates and fees. They have ways of putting it to us that we haven't even dreamed of yet.

[noloyalisti]

And we want these robber baron big corporations running ANYTHING? Name one thing that big corporations have done well except to rape and pillage and start disastrous wars for oil. We need Socialism now. We need a government not run by big money where our taxes pay for the benefit of the commons and the masses.

[TryTakingMyMoney]

Ok, now I understand what's going on here...if you don't pay on time, miss a payment, etc., this new Nobama "socialism" plan will help you by penalizing the credit card companies for hiking your rate. They will in turn charge people like me (one that pays on time and has NEVER paid interest on a credit card in my life - I just use it for convenience) annual fees, and interest the moment I put something on the card to make up the difference. Well guess what liberals, if this happens...I will cut up the card and use cash from now on. I will fight "socialism" my way! Yes I can! Yes I can! Yes I can!

[Reality_Chk]

Article States:

"Interest and fees are lenders' primary sources of profits. So to make up for lost revenue, credit card companies may now have to go after the 45 percent of borrowers who pay their bills on time.

Among the possibilities:

# Reviving annual fees
# Charging interest immediately on purchases instead of offering grace periods
# Eliminating rewards programs"

Merchants pay the equivalent of up to 36% APR for the privilege of accepting the credit card.
A very large percentage of Credit Card Customer, like myself, never pay interest on purchases on credit cards. I will simply stop using any of my cards which eliminate the grace period.

The only loser will be the bank that does away with grace periods.

Most consumers refuse credit card offers with annual fees.

Rewards programs are intended to lure new customers to use those cards over competitors.

Any of these changes would cost the bank more than it makes them - not likely to be implemented.

[jasperlily]

When they initially sign you up under certain conditions and then, over the next several years, triple your interest rate even though you've never been late, never charged anything near the credit limit - that's abuse; that's buying legislative approval via lobbying - which should be criminalized. This Bill does not go anywhere near far enough. Of course, we also have those who enjoy smirking at well-intentioned debtors caught in the premeditated snare of entrapment.

[avigil2]

If your credit card threatens to increase your interest rates for no reason, call them up and threaten to cancel the card. A consumer canceling a credit card is the worst thing for the company. They'll do anything to keep you.

[endrepubs]

Everyone can make bad judgments that gets them in hot water with CCards. Just look at the gigantic errors in judgment that the Wall Street banks made that brought down the economy. They made humongous mistakes and they got bailed out for it. The average consumer makes a mistake of missing 1 payment by 1 day and their interest rate goes to 41% or higher. Think about it for a minute. The huge institution goofs up in a major way and gets taxpayer bailout money to keep it going and the average consumer goofs up and gets hit with incredible rates of interest on their cards! Make any sense to you. The credit card Co's made an error of judgment when they extended large amounts of credit to people who shouldn't have got it. The only thing we have to protect us from an abusive industry is to have goven't rules in place to protect the average person. The rules as they now are simply not enough obviously. Government should be there to protect our citizens from things that are way bigger and stronger.