Comments on: Congress Takes Aim At Credit Card Policies

Lawmakers Threaten Legislation If Industry Doesn't Voluntarily Curb "Sky-High" Interest Rates And Fees

[lyndaepostal-2009]

It's about *** time. My husband and I are on a fixed income. He is a 100% service-connected disabled veteran.
About 3 years ago BofA raised the interest rate on our credit card. It went from 13.66% to 19% for no reason. We'd had the card for 33 years, for crying out load. NEVER been late, always paid more than the $134 payments. I called them. To paraphrase their response: Too bad. Then from 19% to 21% (payments are now over $250) and then a payment was posted 1 day late; and the rate went to 32% and the payments over $750 per month (more than 20% of our income)

Following BofA in their quest for even higher profits, other credit card companies followed suit, then the law that changed payments from 2% to 4% (enacted January last year) hit. Then we were done. We are filing bankrupcy now. To say I am bitter is an understatement. If these thieves do not regulate themselves, Congress needs to step up and do it for them.

[rmdenman]

After hearing the news report on March 7 there was relief in our household. We were beginning to think that there was some mismanagement of our credit cards. I began reviewing the statements and how the charges did not make sense. Along with the review there were letters that had to be composed to the credit card companies in question. The charges were excessive and were made at the discretion of the company, meaning they added charges whenever and whatever. My husband and I have two properties that we are paying on in Michigan and are trying to start a little business. Michigan is a tough state to try and make ends meet and this is putting us over the top. No matter how much of a payment we make towards the balance it never seems to be enough. Example - a payment due of 69.00, I pay a 90.00 payment. This does not go very far when there are overlimit charges and the finance charges, late fees, if any and the charge that is made if the payment is made over the phone. It goes on and on. We are in need of some answers and some help. I plan to contact Senator Carl Levin concerning this as my hope is that many do who are in this situation.

[shanev137]

Banks have no money of their own. The money they beg people to borrow belongs to the same people who are borrowing the money.

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Wow, that pretty much says it all.

[jjp735i]

This issue of being screwed by the credit card companies and banks for over the hill charges has been before Congress year after year after year. Like anything that affects the consumer, Congress holds hearing to look like they are doing something, then move on. Just like they will after this hearing. Congress will do nothing and move on. Nothing but a waste of time for everyone.

[anopinion1]

DO NOT BUY ANYTHING WITH YOUR CREDIT CARD THAT YOU DO NOT PLAN TO PAY IN FULL WHEN YOU GET THE BILL STATMENT AT THE END OF THE MONTH.

If people are just plain stupid enough to do this then let the sharks eat them alive.. as for the people in this article charging 3k dollars to build a ramp for his home!!!!!!!!go to a damm bank and take out a loan... dont use a credit card geneous.

we should have no sympathy for them, none zero zilch..

if you cant get a bank to give you a loan for whatever it is you wanna have done then you probably should'nt be spending the money anyway.

[afmca]

Part of the problem is the self-righteous states that promote their lack of consumer friendly laws for a few back office credit card jobs. Delaware promotes itseld as a tax-free mecca but then allows in credit cards companies to screw both their citizens and the rest of the country. South Dakota comes across so self-righteous and they do the same. All this would end if the states would do their jobs and agree to a common set of consumer friendly rules for the banks and credit card companies to do business by.

[antoniof123]

This began in the 80's with the bank deregulation remember that. It allowed banks to do this type of thing with out any government regulation. Let me see Regan said it would be good for the economy. I was an auditor at the time. I quit because I was so disgusted with the failed savings and loans. Please those of you who have no knowledge of finance should shut up because your opinion is worthless.

Before you make that credit card purchase...just remember...if you can't pay the balance in full at the end of the month...you are already bankrupt in your personal finances! You are spending money you don't have and you can bet the vultures will be circling.

[adian1-2009]

Nothing is going to happen. Banks and American Express have a lot of money extracted from consumers, money that in turn they use to lobby legislators. Then, legislators either loosen regulations or pass laws to screw consumers and protect or favor credit card issuers like banks or American Express and others. So, again, nothing is going to happen. During the last twenty years, no rules or laws have been reversed to favor consumers against greedy banks and credit card issuers. Why? Because they have the money, which is what counts for the legislators. We have only a minimal residue of democracy, which is our votes. But we do not know how to use it effectively, or worse, the vote has absolutely no value in a corrupted legislative branch.

[long_rider]

The banking industry needs to have more controls, and limits placed upon it to protect people from greed.

I know an 80 year old man in Ohio who's memory is not what it should be. He over drew his checking account by $2.00, and ended up $835.00 in overdraft fines. I don't care what planet anyone is from - this is not right - just plane greed.

Just look at the ATM industry, just plane greed. Banks try to give the impression that they are friendly, don't believe them for one second, they will cut your throat for a dime.

[alphaa10-2009]

Jebby_One said, "Such extreme interest rates, as compared to the cost that banks are paying for the funds via deposits, create a debt buried society comparable to the old "company store" situations of the old days. When people run into trouble the banks raise the interest rates to 30%+ and tack on prohibitive late fees that can create a situation from which there may be no escape."
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Excellent points--

The banks and credit card lenders are "predatory" in the full sense of the word. Like sharks, they strike when blood hits the water.

The moment a credit card consumer is late with a payment or somehow loses points with another lender, the card company gives itself the right to charge higher than even loan shark rates.

This is am injustice, and all lenders-- no matter how large-- who act like loan sharks should be regulated like loan sharks.

[alphaa10-2009]

phineasgage1 said, "The banks have a right to make money."
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Even the most reprobate GOP rascals can spot an unfair price. Listen to them complain at the gas pump!

Apparently, they believe a fair price is not simply the highest the market will bear.

Clearly, a decent profit comes from a decent price-- decent, in the full sense of the word.

Even our GOP reprobates pride themselves on understanding that another man's profit is also the price theypay.

It all comes down to an ethical principle, on the order of the Golden Rule. All can understand this golden rule-of-thumb-- impose no unfair price on others, even as you would have no unfair price imposed on you.

Unfortunately, many of the same GOP rascals complaining about high taxes get above-average tax breaks, themselves. They also voted for Bush and his huge national debt, but want other generations to pay.

As any Tyco or Enron executive might have protested, "It isn't illegal!" But the question remains, is it right? Does that make it good for everybody else? We Americans need to start thinking of the community interest, and the global picture.

[alphaa10-2009]

Typo-- the law's title is "Bankruptcy Abuse Prevention and Consumer Protection Act".

Despite its title, however, this 2005 federal law actually promotes widespread abuse by the banking and credit industry. Surprised? That was the unexpressd purpose of this lobby-written bill.

The law offers no protection for consumers, but actual harm to the American middle class. Write your congressmen, demanding restoration of full protections for the American consumer.

[alphaa10-2009]

cbville72 said, "... let's not forget the poor "inner city" kids that need those stereo "systems" in their cars."
---
Such apocryphal stories are repeated by Bush and congressmen tied to wealthy backers from the banking and credit lobby.

That same financial patronage led most GOP (and quite a few Democratic) congressmen to ignore their actual constituencies, voting in 2005 for the innocently-named "Bankruptcy Abuse Prevention and Consumer Protection Act Fact".

Despite its pretty title, the 2005 GOP-sponsored law is an ugly, heavily-armored weapon for credit card companies, hostile to the American middle class. The credit companies actually wrote the law to place consumers at a disadvantage, and closed the last escape for consumers struggling with insurmountable debt.

According to consumer research groups, personal savings for most families are now at an all-time low, leading many to live month-to-month, too close to the edge. When sudden illness, injury and/or loss of employment strikes, most families face a financial near-death experience. Those declaring personal bankruptcy most frequently face huge and intractible medical expenses..

The credit lobby is an industry of greed second only to the oil companies for price gouging. The rationale? "If it is not illegal, it must be good."-- a statement worthy of any Enron or Tyco executive. With a new congress, all Americans should demand full reinstatement of consumer protection laws, not a timid palliative like "voluntary compliance".

[tuckerndfw]

Spending more than they make and being irresponsible- I have no sympathy. The banks have a right to make money.

Posted by phineasgage1 at 01:12 AM : Mar 08, 2007

Banks have no money of their own. They money they beg people to borrow belongs to the same people who are borrowing the money.

The bank or loan shark is a middle man who takes a cut off the top for loaning people their own money.

Presumably, if a loan goes bad, it is the lender's fault for making it in the first place. Why do you excuse lenders from responsibility for their irresponsible lending practices?

[j0hnwi11iams]

27% is unfathomable GREED. Eat the rich.

[phineasgage1]

Funny how these people weren't complaing when they were spending the bank's money !!! Spending more than they make and being irresponsible- I have no sympathy. The banks have a right to make money.

[shanev137]

Loan sharks should bear the responsibility for their actions.

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Exactly. They charge 18 to 25% interest based on the -MYTH- that they are assuming a risk of not getting paid back. The truth is that they have very little risk because there is no such thing as unsecured credit anymore. With their new "government insured bankruptcy laws" intact, you basically have to be dead or homeless without a nickel in your pocket to not have to pay them back. Plus they know people can't financially function in this country without a credit card or with bad credit, so even if you do BK they know you'll be back. Hell, you can't even open a regular checking account anymore, buy auto insurance or rent a car with bad/no credit.

[jebby_one]

"People need to grow up and take responsibility for the decisions they make and stop blaming others.

hmmm ... that's like saying that drug distributors share none of the blame for our children and young adults becoming addicted to drugs.

[jebby_one]

Put money in a bank savings account
and you only get 1% interest per year in return

http://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/individuals/savings/page/moneymarket_savings

Borrow money via a credit card from that same bank and you pay 14% to 29% interest per year

http://www.chase.com/ccp/jsps/cards/dynapp_popup.jsp?type=terms&sourcecode=646Z

Such extreme interest rates, as compared to the cost that banks are paying for the funds via deposits, create a debt buried society comparable to the old "company store" situations of the old days. When people run into trouble the banks raise the interest rates to 30%+ and tack on prohibitive late fees that can create a situation from which there may be no escape.