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

[despido]

Not stupid?! These are the same "Business Savvy, Fiscally Brilliant" banks we're giving free billions to....rethink your generalization.

I guess you trust the "wisdom" of government too.....
Posted by nextgenman09 at 4:58 AM
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Banks generally don't issue credit cards themselves, they act as agents for VISA, MasterCard, etc. And no, credit card issuers are not stupid. They've bought an entire gov't, lock, stock & barrel, and their customers paid for it. As for those 'stupid' banks, well... what's that make the guy that gave 'em billions a month before they reported record profits. Smart? NOT.

[nextgenman09]

The credit card companies get paid by the merchants a small percentage of every charged sale. They don't need to lose their good customers by charging annual fees, or eliminating rewards programs. It would be stupid, only a government run organization would punish it's best customers, and credit card companies are not stupid.
Posted by oftencensord at 4:54 AM : May 20, 2009
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Not stupid?! These are the same "Business Savvy, Fiscally Brilliant" banks we're giving free billions to....rethink your generalization.

I guess you trust the "wisdom" of government too.....

[oftencensord]

"credit card companies may now have to go after the 45 percent of borrowers who pay their bills on time. "

Fear mongering statement.

The intelligent American who uses a credit card as a convenience or to gain airline miles, will merely stop using credit cards if it is not advantageous to do so. I don't even know what "interest rate" my card has, because I never pay any interest ! I learned in kindergarten that you do not pay the "minimum" on your statement, you pay the entire amount...If you need a loan with a reasonable interest rate, go to a credit union !

The credit card companies get paid by the merchants a small percentage of every charged sale. They don't need to lose their good customers by charging annual fees, or eliminating rewards programs. It would be stupid, only a government run organization would punish it's best customers, and credit card companies are not stupid.

[brianbwb-2009]

"When you sign up for it, you are given the rules and regulations governing the use of the credit."
Posted by at 4:39 AM

How your post got through without a sig is interesting, but you may not know that credit card companies routinely renege on the terms of their contracts, knowing there is little that their victims can afford to do about it. This is one of the problems being addressed by the legislation.

[brianbwb-2009]

"...Restrict yourself to what you earn instead of spending other's money and you won't have any issues with terms whatsoever..." Posted by formrusmcsgt

Y'know Sarge, you do have a very valid point, but I would temper that with this bit of info.

Before August, 1972, it was possible for an "average" family to live on what they earned, if they were careful, but since then the spending power of the average wage-earner has dropped to roughly 20% of what it was in 1972.

Unless you and your spouse are pulling in greater than 60k a year, it is hardly possible to live within cash-only means in most of metropolitan America, (and don't even dare dream of sending your kids to college) and if you should choose to move to the rural areas, then where are the jobs that would even pay that much?

My fellow americans. Nothing in the Constitution guarentees you the right to credit. When you sign up for it, you are given the rules and regulations governing the use of the credit. If you can't afford the item, don't put it on credit. We have become a "I want it now" society. You made the bills, now pay for them. Stop trying to find ways to get out of paying.

[despido]

This legislation does nothing to help out customers who have gotten into trouble.
Posted by endrepubs at 4:06 AM
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It's not intended to. The purpose of this legislation is simply a photo op and great press for Obama. He once again appears to be doing something meaningful, but by the time the media figures it out, he's moved on to another hot ticket.

[despido]

But you go on defending the mafia biz practices that the rightwing Neocon(victs) have pursued . . . thanks to you and them, the US looks more like Mexico everyday!
Posted by imprisonrove at 3:56 AM
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I was sympathizing with you until I got to the Neocon BS. Obviously, the masses are easily duped, whether by a credit card issuer or politician such as Obama. This constant blame game distorts facts and the dullards out there don't have the gumption to research their own propaganda. Jimmy Carter voided the usury laws and Bill Clinton deregulating banking. So please.... include them in your 'Neocon' rants.

[endrepubs]

All of the posters here who are chastising people for getting into credit card debt in the first place are right when they say if you can't afford it, don't charge it. But people don't always do what they should. It's like telling teenagers not to have sex but they do it anyway. So why should the punishment for someone who gets into to credit card debt be 36% or higher interest rates? Just because someone (and you don't always know their circumstances) gets into credit card trouble doesn't make it right for the lender to charge incredibly obscene rates of interest. Laws are supposed to protect people from predatory lending practices. The credit card industry has demonstrated that they will not play fair by imposing rates of 41% and higher to people who have been 1 day late on 1 payment. I'm sorry but that kind of crap should be banned. Shame on Obama for not demanding a cap of around 18% like it used to be in the 80's. There is nothing to stop them from charging customers 100% interest rates This legislation does nothing to help out customers who have gotten into trouble.

[egresor]

obama doesn't write the laws. those are done in the congress. so blaming him for what the congress put out is quite fair.

[egresor]

excuse me one_2258 but you seemed to be a bit mixed up on who did the actual damage to this country.

if americans are worse off it because the complete damge of bush and cheney hasn't all been seen by most americans and was kept hidden from us by bush and his conjoined brain cheney.

bush and cheney remind me of the mind leech creatures from futurama.

hahahah
(i'd be funny if it wasn't true!)


anti-american democrats?

in one respect you are right. the dem leadership sat on their hands fearful of being labeled unpatriotic while bush and cheney raped this country. bith financially and morally. if anybody is and was unamerican it is and was bush and cheney. they were the ones who bankrupted the treasury by giving everything away to buy public support. they were the ones who got us into 2 wars. one of them for nothing but to steal their oil. torturing people contray to the american way and even international treay. so who's the real unamericans?
i'd call THEM the real unamericans. why don't you?
:((

[egresor]

the same could be said of those in government too

:)

[tbbaot]

Bankers via the Federal Reserve (not a government agency) run this country so the loophole is planned. Law Makers are wanting to appear like they are against the banks, but in fact they work for them

[formrusmcsgt]

All these folks who are crying about credit terms sound like silly children.

Restrict yourself to what you earn instead of spending other's money and you won't have any issues with terms whatsoever......

[egresor]

the same could be said of those in government too

:)

[despido]

So McCain was spanked by an idiot, was he?

Sure doesn't say much for McCain, does it?

Poor John, runner-up to an idiot..........
Posted by formrusmcsgt at 2:07 AM
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So very true. My deceased mother could have beaten McCain. If McCain truly cared for his country, he would have withdrawn at the convention (or sooner). I felt he only entered the race to see his name in print anyway.

[formrusmcsgt]

nextgen, we will see just how far America has moved in 2010.
Since Obama and the anti-American democrats have gained
control, thing are much worse........................................................
Posted by one_2258 at 2:14 AM : May 20, 2009

I'd say that depends on your perspective.

If you like bully politics, elitist policies, hegemony, and war, I'd say your right.

But as I oppose all of the above, I'd say you're wrong.

[egresor]

excuse me one_2258 but you seemed to be a bit mixed up on who did the actual damage to this country.

if americans are worse off it because the complete damge of bush and cheney hasn't all been seen by most americans and was kept hidden from us by bush and his conjoined brain cheney.

bush and cheney remind me of the mind leech creatures from futurama.

hahahah
(i'd be funny if it wasn't true!)


anti-american democrats?

in one respect you are right. the dem leadership sat on their hands fearful of being labeled unpatriotic while bush and cheney raped this country. bith financially and morally. if anybody is and was unamerican it is and was bush and cheney. they were the ones who bankrupted the treasury by giving everything away to buy public support. they were the ones who got us into 2 wars. one of them for nothing but to steal their oil. torturing people contray to the american way and even international treay. so who's the real unamericans?
i'd call THEM the real unamericans. why don't you?
:((

[formrusmcsgt]

If you can't afford to pay a credit card off at the end of each month, you shouldn't have it.
Posted by one_2258 at 2:10 AM : May 20, 2009

If you don't have the cash to make your purchase, you (by definition), can't afford it.

[nextgenman09]

So typical of the new Obama administration....

There appears an article touting some supposedly significant legislative achievement of Obama, and immediately afterward appears another article describing how loopholes in the legislation will be exploited. ....And he smiles.
Posted by despido at 1:48 AM : May 20, 2009
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Yawn. Go screech on Fox. The 18% nutball fringe of the rotting GOrPse is irrelevant now. America has moved on.

[formrusmcsgt]

Hey morons, Obama didn't do a thing. The banks have nine months to do everything they need to do in regard to credit cards. Were all now going to pay for what moron Obama just did. He's the man. You dumb______ liberals must be proud of this idiot.
Posted by enjoylife63 at 1:44 AM : May 20, 2009

So McCain was spanked by an idiot, was he?

Sure doesn't say much for McCain, does it?

Poor John, runner-up to an idiot..........

[tmittelstaed]

Let's have a little honesty instead of this Chiken Little nonsense, folks!

1) Credit cards ALSO make money off borrowers who pay in full during the grace period because they charge the businesses who accept credit cards a percentage of the sale.

2) People who carry a balance are much more likely to declare bankruptcy, and if they have a large balance on their card and file bankruptcy the card company loses all the money.

3) If debt load is going down that likely means more people are giving up credit cards entirely, which means credit cards are now a shrinking market - and no credit card company is going to do anything to run-off customers in a shrinking market.

4) People who pay off their cards every month are least likely to need the cards to begin with - and if their card starts assessing an annual fee, they are going to be the first to give them up.

5) People who pay off their cards in full every month have higher credit scores and are the most likely to get approved by a competing credit card company for a credit card, and so have the easiest time to leave and go to a competing card if the card they are with starts jacking them around.