Comments on: Fed Cracks Down On "Unfair" Credit Cards

Politicians Praise Biggest Industry Clampdown In Decades, Others Wonder If It Goes Far Enough

[ubrew12]

Element51 said: "I wonder why five years passed before anyone contacted [my son about his debt]. "

It''s called the ''time value of money''. Its that magical principle touted by Republicans, whereby a credit card company gouges you for interest, then congratulates themselves on teaching you the lesson of ''fiscal conservatism''.

I''m glad you were able to pay your son''s personal debt of $3000. Did the gov''t tell him that he also owes $30,000 due to THEIR spending rather than HIS? Gosh, those pesky details always get left to the fine print...

[michellem99-2009]

element51, I have heard ads on TV on this. If ye can''t afford the paymeats don''t take the credit. Who do I blame..the companys,people,the govt,greed. I ''member my friend on a card withdrew 20 dollars and they jackrd it up ''til he got that card paid off. I WOULD GO IN A STORE AND THEY WOULD PUSH THEIR CARD ON PEOPLE,I said no thank ye.

[element51]

When our son turned 18 he received an invitation from Providian to get one of their cards. He didn''t tell us, he just sent back the information and got the card. The credit limit was 300.00 and there was an activation "fee" of 65.00. He promptly maxed out the card and forgot about it. Five years later he came to us in a panic. Seems he had received a call from a collection agency demanding payment in full or they were going to come after him at his job. So I called them and it seems that 300.00 debt had grown to almost 3000.00. After some discussion I got them to accept 1700.00. We paid the debt and he is still trying to pay us back but has a wife and two kids now and is struggling to support his family. I wonder why five years passed before anyone contacted him. He made a mistake but how many 18 year old kids haven''t?

[jdatbs77]

It appears that someone who goes by "JT_Lancer" has just posted a message that starts with "Hey, Idiots," and then takes one of the most narrow minded, uninformed, and juvenile views of the credit card problem I''ve ever seen, and in some fashion tries to sound intelligent.

I don''t appreciate being called an idiot by someone I don''t even know, and who knows nothing about me or why I have any credit card debt at all, let alone someone with what appears to be a lowlife barroom mentality. That isn''t the purpose of this forum. If you can''t contribute something worthwhile, go do something else to feed your ego. I"m tired of people like you.

[kevsan1]

People are not idiots for using credit cards. Many have no choice given the way life is in the USA. Those who are "perfect" and pay everything with cash... good for you. But some can''t... you get car repairs, unfortunate circumstances, whatever - and a credit card is your ONLY way out. Now what''s crazy is what this article points out. How you can be blemished by a past mistakes with other creditors, no matter if you were sterling with your current creditor. That is wrong. Their excuse of extra risk is hocum... it is only an excuse to make more money. Unfortunately, most people in the predicaments shown are in too deep to get out quickly. The government is responsible for regulating the banking industry and they should put a stop to these unfair and deceptive practices. I''d like to see them go further and penalize collection agencies who lie and cheat and fail to report when a debt has been settled and paid in full. Once again I say, companies should be held responsible, their officers, board members and stockholders should be held responsible and their lowliest employees should be held responsible. They are dealing in a business that demands high standards and ethics but unfortunately they have neither. If they were all held responsible, most of the bad business dealings we hear about wouldn''t happen.

[redbarron73]

Hey, idiots. Don''''t like paying exorbitant credit card fees?

You have three choices:
1. Pay off your entire credit card bill monthly.
2. Don''''t charge so much!
3. Change credit card companies.

You have noone to blame but yourself. Quit trying to blame everyone else for problems that you created.

Posted by JT_Lancer at 11:41 PM : May 02, 2008


4. Don''t use credit cards at all.

I have a Visa check card attached to my checking account that will allow me to do anything I could do with a credit card except one thing,.................... spend money I don''t have.

[trillion1]

Isn''t this the same congress that green lighted this abuse in the first place? I never vote for an incumbent. If the sheep in America would start kicking these crooks out we might see more laws for Americans rather than big business.

[gaprddesc]

2. How come people no longer use the term "loan sharking"?
I do not know. Maybe it would shed more light on the bahavior the Industry is exhibiting and expose the secret to the FICO SCORE for the targeted people who fit the profile. It would take good investigation skills and no fear of being SCORNED and LABELED.. These fees only apply to a segment of the population that fit the profile. Then some in media and others spend every waking hour telling the people it is that person''s fault and they did it to themselves. What is the history behind FICO SCORES? How long has it been in existence?

[gaprddesc]

Two questions:

1. What percentage of interest on a loan is considered "loan sharking"?

If the average interest rate is 0 % to 4% to purchase a car through a loan, I consider 28 % that is reserved for the people who fit the profile Loan Sharking/ Usury. You see only you and the entity selling you the service knows what they charged and why they charged it. There is no penalty for unfair practices. There is no regulations that will keep some honest. The secret FICO SCORE will be altered so that you never can get a credit card, a loan, refinance and you will be Marked and Frowned upon if you do not fall in line and pay what you owe as well as any other fees they throw on top of what you owe. You may not even be able to get a job or a clearance to serve your country if you decide to fight back. Despite all of this we still live in the Greatest country on Earth and the fact that we can discuss it openly without fear for our lives is an example. Now you may be labeled,Tar and Feathered but consider the source. You may be scorned, ridiculed and shut out of mainstream America but who cares? This does not defined you or who you are. The secret algorithm in the FICO SCORE causes me great concern. As long as we have breath we can make it despite entities who prey on the unknowing behind close doors. The SCORE is used as a tool by the entity to identify who will pay the higher fees and interest rates and who will not under the guise of "RISK FACTOR".

[jdatbs77]

I made a mistake. Advanta Bank is not charging me 34% interest. It''s 36.99% on cash advances and 34.99% on purchases.

In my lifetime, interest at 20% and over was illegal. It was called "usury." Loan sharks operate differently than banks. They tell you up front what the interest is, AND THEY DON''T CHANGE IT ON YOU.

[laura552]

I agree that the credit industry has a lot of faults
in its operation. My bills come 3weeks before they come due and sometimes in 18 or 19 days.I got in the habit of writing the checks right away, and mailing the very next day. The interest rates have gone up a couple of times in the past 2 years, and the fees are
outrageous. I avoid extra fees by paying several times more than the minimun payment.It keep me sane
not to have a bunch of extra fees.

[gaprddesc]

I agree with the neo cons who say we are responsible for our action. That is a true statement. Are we also responsible the actions of others who prey on people and charge large fees for nothing? Have you ever sat down to really understand what is happening? Listen, you could have no credit cards and just a house and your score will be low. You could make six figures and your score will still be low. The IRS will make sure you are in a tax bracket that has no deduction to even the playing ground. I too gave up credit cards 15 years ago. Living off of cash is very hard when the industry squeezes the last penny. I guess the high gas price is my fault too. I guess the person who ran the red light and totaled my car, injured all my children was my fault too? I guess it is my fault that the Insurance company of the other person after four years still have not paid the bills? The differences between me and you is I admit when I%u2019m wrong? I know that you can%u2019t deviate from the Group Think labeling that you learned and the repeating of one-liners but I challenge you to debate me on the subject. You can use the script you have from the Group think files? Example of Group think is Operation Chaos. How un American is that? Hmmm?

[wl7bzh]

Two questions:

1. What percentage of interest on a loan is considered "loan sharking"?

2. How come people no longer use the term "loan sharking"?

[sistatee-2009]

Wait for the screaming when the banks stop giving credit cards to dogs, babies and everyone else who wants them. Imagine the economic slowdown when people actually have to start PAYING for the Christmas presents and junk they want.

[mick6411]

I feel there should be strict guide-lines with credit card companies and I am glad that something is being "attempted" to be done. I dont have any credit card debt any more. Haven''t had one for years but the practices that are being handed down to consumers is extremely unfair. They prey on people who dont have good credit and charge rediculous prices promising to better their credit score, only for the consumer to find them self in worse shape then when they stated. Companies claim to give you 300 credit limit, then charge you 250 to even get the card with no purches, tact on out ragous annual fee''s and other charges and to boot an APR that is totally in left field and expect you to jump on it and a lot of people do, why? because they have been told that their score is poor. In the mean time people are loosing their Homes, Jobs, Marriges are failing, they are merley trying to make ends meet and feed their families. Sure people have to be smart with the choices they make, but when you are desparte what do you do? The last thing we need is for these companies to take advantage of us, which they have been doing for far too long and I am glad an hopeful that some thing will be done and soon.

[hedonist3]

"If you think only a properly constituted sentence is acceptable in writing, you need more education."

Yes, I do think that only a "properly constituted sentence" is acceptable in writing. Oh, go ahead -- call me crazy. And, yes, I hope I never stop learning. Too little education is a major problem in this world. The lack of intelligence of most who are posting absolutely blows my mind. And they vote (or at least they have the right). Finally, that certainly is the point. No credit card company can defraud you unless you let them. Oh, wait; I forgot. Personal responsibility has gone the way of commen sense...

[michellem99-2009]

I will yr the problem. I am on a fixed income and legally blind and poorly educated. I was raised in foster homes and went to sp ed. I never *saw*/heard my than foster parents talk about the daily weekly monthly of running a home. Had I aksed about adult things like that and being female *thats none of yer business* I would have been told. It was not taught in the home/school. I am 53. Males and females got taught differertly. Girls groomed for wife and babies,Boys bread winner,husband,father etc, The male came first. Females 2rd class. If handicapped 3rd class. That was why foster parents made sure we were put in our place. what better way then be sure we was/is not taught. They felt that way for years. I said what about the ladies who don''t marry/have kids. I was told I had nothing to worry about. People like ye are put a way I was told. Yep. I have kinfolk that can''t read and write.A black lady told me Yes we still have slaves They to the credit carda. Ye pay rent or eat..

[jdatbs77]

NOTE: these comments are directed to the grown-ups in this group.

Has anyone here opened a credit card account because they thought the interest rate was fair? I did. American Express Blue, and Advanta Bank business.

Last month my interest rates for those two cards were 29% for Amex and 34% for Advanta. Why? I don''t know. They don''t tell you they''re going to screw you, they just do. I''ve never been late with a payment. I always pay way more than the minimum. So I guess these fat cats are just trying to out do the Angelo Mozilos of the subprime world. What to do? I won''t use any of my credit cards again. I tell everyone I know about American Express and Advanta Bank. What else can you do? All Congress does is "hold hearings." Lets watch our elected officials closely on this one, and see which ones are bending over for the banking industry.

[element51]

enlightemen....Thanks for your answer. It''s nice to have dialogue in a calm and civil manner. Even though I disagree with Obama on this issue I still feel he is our best shot at getting some changes made. I think it''s impossible to agree with any candidate right down the line but I''m willing to give Obama a shot. If he turns out to be unfit for the job we can vote him out in 2012. If that turns out to be the case I don''t think he can do enough harm to really change the current situation. I could be all wrong about this but if he gets the job I guess we''ll find out the truth. Plus, I think the main factor will be the changes in the House and Senate. The ability to pass bills and overide vetoes will determine the direction things will go. I will fully support whoever is elected until they give me reason not to. It''s the country first, party second, candidate third.

[enlightened-]

Ka-Ching!