DISQUS

AMERICAblog: Why is Congress ignoring "rate jacking" with credit cards?

  • gwpriester · 1 year ago
    It's usury. I have never understood how the banks get away with it. But they have the they continue to do so.
  • Chit · 1 year ago
    Here's a novel thought: don't charge what you can't pay off in full. Sorry, Chris, you're wrong on this one.
  • lucky hussein · 1 year ago
    Here's another novel thought: Regulate the piss out of these a-holes so that can't f people over... The people they work over are where they get most of their $. Time to cut them off..
  • Chit · 1 year ago
    I'm sorry, but the credit card holders are fing themselves. It really is this simple: DON'T SPEND WHAT YOU CAN'T AFFORD.
  • paulbot5 · 1 year ago
    The FDIC is preventing new banks from forming so we are stuck with these lousy ones, end the FDIC anyone?
  • Gregory Lyons · 1 year ago
    Congress is the power base of the criminal looting of the entire "credit" industry and have trashed even the most rudimentary credit to be given to the ruling class, which would be elected Democrats and Republicans, with negligible differences.

    The treasure and good will of the nation have been sold and re-sold.
  • Wisconsin Liberal · 1 year ago
    we have to "starve the beast" we have to quit using the cards as much as possible, and pay them off, I am working on it myself and it is tough.
  • Smith · 1 year ago
    Agreed. I always pay more then the minimum on my card, have never missed a payment, and the amount I owe is actually quite low, but because of the crappy economy, my interest rates still skyrocketed and my limit was decreased. It is madness. I fully agree that people need to try and wean themselves off credit cards and shouldn't be racking up credit debt, but banks shouldn't be allowed to do this to people. I can't wait to pay off the card then rip the fucker up.
  • paul94611 · 1 year ago
    After the decision by the Bush administration to impose the lunacy of "right of conscience" in the health care setting it is high time that concept was applied to usury. We should just pay the principal amount on our loans while submitting a written statement stating that the payment of usury violates my "right of conscience" and that federal regulations have been set forth holding this concept as a legal protection from personal or professional obligations. Make the credit issuers prove the matter in court that religious conviction relating health care and financial care differ.
  • Asterix · 1 year ago
    Allow me to humbly submit a proposal that any future bailouts offered by the government to a bank carry an interest rate equal to that of the highest credit card rate or payday loan rate (whichever is greater) offered by that bank.

    What's good for the goose is good for the gander.

    Come to think of it, the Fed might as well increase the funds rate to that level, as the banks don't seem to want to lend money anyway.
  • Rob Mule · 1 year ago
    Is Mikkka totally plastic?

    Brzezinski said she gave the mugger the $6 in cash she had with her, adding that he asked her for $20 and said something along the lines of "Give me money and nothing will happen."

    Imagine!
    The nerve of that starving homeless guy when Mikka barely carries soda machine money...Or, maybe it's the change from that $12 mocha frap she's always sipping?

    http://washingtontimes.com/news/2008/dec/18/msn...

    http://www.youtube.com/watch?v=E4g8Azg9Jco
  • Lee and Ada · 1 year ago
    Avoiding the credit card trap is hard to do and even harder to get out of after you do fall in. If I could be young again but still retain life's lessons I would avoid revolving credit card debt like the plague.
  • Rebecca · 1 year ago
    I have no sympathy for these people... don't buy what you can't afford! THE END
  • leo · 1 year ago
    Apparently you've never been out of a job -- or in need of funds when there are nothing else but the plastic in your pocket.
  • Rambling old man · 1 year ago
    10% interest use to be considered usury and illegal.

    By law no one has to accept the new rates. They can decline the increase and close the account. Then it has to be paid off instead of being carried month to month. What would happen if everyone started closing their accounts?

    On another point, If the first job doesn't pay the bills then it's time to get a second or a third.

    Too many have the attitude that they deserve it all and don't want to work for it. It's the entitlement mentality that irritates me. They go into debt thinking they deserve it then whine when they can't pay it back because their one job doesn't earn them enough.

    Medical catastrophies aside, debtors need to put the xbox down and get another job or two or three. ( I've had as many as five at one time.) Stop buying things you cant afford and stop making everyone else pay your bills. If you're only working 32-40 hours a week you need more work, not more government handouts.

    Stop smoking the cigarrettes. That's money just going up in smoke. I see so many people that can afford to burn $10-15 a day ($300 month) or more in cigs but then complain they can't make ends meet.

    Work isn't a bad thing. No one ever died from having more than one employer.
  • lucky hussein · 1 year ago
    Hard work is of course, great, and entitlement is very wrong, but these things imo, are not the answer to usury lending, and taking major advantage of people. The companies need alot of regulation.
  • old man · 1 year ago
    I agree. getting a bj from an intern you're not married to is not the only form of immorality.
  • FlyingToaster · 1 year ago
    And, because I do have my cards paid off (having cancelled a couple once they were paid off), I got a "transfer your balances for 3.9%" offer today.

    Pfeh.
  • Scy · 1 year ago
    Because, in reality, no one is on our side . . . not Dem and not Republican. There may be some individuals who are, but they are few and far between. Obama is one of the first politicians, in a long time, that I have believed is on our side.
  • leo · 1 year ago
    The main problem with any of the current moves so far is that they're not retroactive. For many of us, the damage has already been done.
  • lynchie · 1 year ago
    Lets all be clear on who allowed the banks to screw us on credit card rates---our friendly representatives in Washington. The credit card company lobby poured millions into lobbyists and into the pockets of our boys and girls sitting in the house. They changed the laws so when you declare bankruptcy you don't get rid of your credit card debt. At the same time they removed all restrictions on the amount of interest they can charge.
    Sure people need to live within their means, however, try having no health care or a kid in college and earn minimum wage. Try not to be tempted when they send credit cards to our kids when they are 12 and 13 years old. America is a credit card nation when America finally gets enough they will stop voting against their best interests and put senators and congressmen/women in Washington to represent our interests. Isn't our lobbying money enough after all we foot the bill for every pork barrel, illegal war, new weapon, war on whatever they can dream up. Yeah I am talking about our taxes. We pay trilliions in taxes and for some reason it doesn't get an ounce of attention from the crew in the nation's capitol. Personally i use Diner's Club. it has to be paid in full every month. No interest if you pay in full. I live within what I can afford to pay at the end of the month.
  • benb · 1 year ago
    Maybe it;'s time for a credit-card-free day once a week where we can keep that invisible 2% credit card surcharge in the local economy..

    I, for one, want to hear Citibank squeal.
  • political_correctness · 1 year ago
    Quite simple, Congress is bought and paid for.
    They could care less about the people as long as fatcat lobbyists are lining their pockets.
  • shak el · 1 year ago
    Too bad Americans won't go on a credit payment strike and refuse to pay. If its causes everyone to have bad credit who cares, if everyone's credit is trashed who are they going to lend to?
  • MNUSA · 1 year ago
    No one should charge anything on a credit card they can't pay off when they get the bill. Ever. Interest rates on credit card debt amounts to usury.
  • gymnjim · 1 year ago
    Bank of America pulled that on me a few years ago, Jacked my rates by 9%. Even though my FICO is over 750. I pulled money out of a retirement account and paid off the balance.

    When I called to close the account they had all kinds of low rates to offer me. I said sorry to late
  • anarchy · 1 year ago
    here's another thought: run 'em up to the max and
    then default on your credit card debts entirely!
    so what?
    it's not as if a bad FICA score is what it used to be.

    starve the beast until it dies, that's what I say.
  • Sir Real · 1 year ago
    There's another dark side to the credit card companies that most consumers are not aware of. They are as unfair to the merchants as they are to consumers. If a consumer buys something from a store, the credit card company usually gets about a 3% fee. For example if a consumer buys a $1000 item, the credit card company gets about $30. But if the consumer returns the item, the credit card company does not return the $30, so the store loses $30. Now, if the store tries to charge the $30 to the customer, the credit card company says that they are not allowed to do that. This may not seem like much, but if the store is selling a $5000 item, they lose $100.

    Also, in cases of identity theft, the credit card companies make the merchant eat the loss, even if the merchant has taken every precaution (such as calling the credit card company before the sale to make sure the customer is legit). If the loss were to be passed onto the credit card companies, you would see a massive drop in identity theft.

    So the credit card companies are doing their best to screw both the consumer and the merchants.
  • LLDEM · 1 year ago
    Hmmm. Got a call from Chase, wanted to know how they could become my only credit card... I told them a rate reduction would be nice... so they did. I have enough room on this card to buy a new Cadilac and keep a pretty substantial balance on it, but I also make pretty substantial payments every month as well. My buddy who's in the same boat had his taken away all together. Not sure what the criteria is for it all. It's a mystery.
  • um · 1 year ago
    in the last month Citi raised my rate from 6.99 fixed to 14.99 variable, and Amex from 8.99fixed to 16.99 variable. Luckily with the Citi I was able to opt out and they will close my card when it expires (in 2012, ha!) I transfered all of my Amex balance away. This is through no fault of my own, they are just gouging people. If it gets worse, I will just max them out and quit paying. I already sent letters to the bbb, the feds, the NY atty general and consumer dept, and everyplace else I could think of.
  • Marty Chenard · 1 year ago
    Citibank's credit card "rate jacking" doesn't compare to the damage being done to consumers and the economy on their "Mortgage Rate Jacking".

    The full analysis and report can be found at this site: http://www.stocktiming.com/maddow.htm