Congress to Credit Industry: No More Card Tricks

credit cards

The credit card companies encourage balances and then cry foul when they are told they can't manipulate the consumer any way they see fit. If you cannot afford the standard rate for that card, don't take it, but after several years of paying on time at a reasonable rate to have the rate double or triple arbitrarily is unfair and makes it impossible for a person to ever get out of debt. There can be a big difference between 8.99 percent and 26.99 and that is what people are complaining about. Especially since our taxes just saved their businesses.

Go to the bank? Don't be naive

Foster: You must be unaware that many credit card holders can't receive personal loans from banks at low rates and face very limited options for borrowing cheap money. Since the crash, banks are not lending to many consumers...even those with good credit but no assets. It's a vicious circle that keeps many responsible consumers locked into loan shark options.

credit card should not carry your deb that is what banks are for

If you can't pay your credit card off every month, go to the bank. It charges less interest. Otherwise, don't buy it. F

Worst Credit Card Company!

Ge Money Bank is the worst credit card available. They lure you in with 0% interest for one year, after that the interest rate jumps to 26%. Once the interest is added you have paid for the items on your account twice. In addition to all of that the customer service is horrible.

Credit card "Bonus Points"

Instead of returning a percentage of purchases, some credit cards offer "bonus points" that seem to add up quickly. An offer of items available is enclosed periodically with the announcement that the points must be used or forfeited. The items are overpriced and poorly made and the cost of postage and handling exceeds their value. Hard to find in small print is a disclaimer stating that the offer is not related to the credit card company. Some such offers, if accepted, immediately put the credit card holder in a "buyers club" with annual fees - charged to the credit card, of course.

This should be one of the practices addressed.

Congress fails again

While the intent and the provisions of the legislation are noble, the latency in applying the rules has encouraged the creditors to turn the screws on the consumers immediately. My senator responded with a "some bad actors" notion, failing to acknowledge the widespread and immediate abuse by virtually all major creditors. Almost every one of our creditors has raises rates by as much as 10% or more, and/or reduced limits. Since I was laid off, the credit line has been a financial cushion, along with savings and the credit industry has trapped us when we're most vulnerable. We'll cancel the accounts and pay of the debt, but it will make recovery much harder.

Forget credit cards - go prepaid

Do what we did. Our Advanta cards where discontinued and we replaced them with prepaid business expense cards. Since we pay off our cards every month, there was no problems. We prefund a central account, and move money on the employees cards when we need to. We used Bank Freedom (www.bankfreedom.biz). Good luck! Robert

Credit Worthiness

I struggle with the notion of establishing credit worthiness with the use of credit cards. It seems to me that as long as credit scores require a credit card history, the credit card companies have an unfair position over the customer. With legislation, we could remove association of credit card history from credit scores related to non-credit card instruments. I simply do not like my kids being forced to build up a credit card history to get a mortgage. People should be encouraged to live credit card free. It is possible to do so, even though the current financial system pushes individuals to embracing these usurious piece of plastic.

Credit vs. Cash

If credit tightens any more, people will not only be unwilling to use credit - they'll be unable to. If the public starts re-orienting around a cash-only system rather than using credit, the Fed will have no way to pull the trillions in stimulus money back out of the economy. They do it by raising interest rates.

If people don't want to fall into the credit trap, they won't borrow money at *any* interest rate, much less higher ones. That means those trillions the Treasury is printing will stay in the economy.

That much money in circulation will cause the hyperinflation that a few months ago was deemed something of a crackpot scenario.

So either we remain enslaved to the creditors; or their incompetence leads to hyperinflation and all your money is worthless anyway.

No wonder gun sales are up - men with guns don't starve.

Propoal to regulate credit card companies

The proposal to regulate the credit card companies is long over due. In 2004 I received a notice from a credit card compny that my credit was so good they were raising my limit by $20,000. I am gald that I did not take the bait. Three months later they doubled my interest rate even though I had never been late with them or anyone within the last decade. I stopped charging. In 2006 another company bought the account, and reduced my interest rate to 6% but still with the large monthly payment.

In five years without a delinquency I have paid more than the initial balance but still have a few thousand dollars remnaining.

Since my computer crashed I have dificulty retrieving those certified memos to attmpt to get restitution.

Caviet emptor (Buyer be ware)