Credit Card Debate over Consumers' IQ

Credit Card Interest Rate Abuse

I believe that Congessional attention to the credit card process has been a long time coming. There is not a reasonable justification for the high rates that cards charge when they start to increase. I am an informed credit card user fully aware of the tactics used to increase rates. It isn't about risk, its about inevitability. Even the most concientious credit card user will make a mistake in making payments on time. There have been state laws that set limits on interest rates as usurious. Like others, I have decided that credit cards are dangerous to one financial well being.

Robert StClair of AK @ Dec 06, 2007 12:52:57 PM

High credit rates

I have a Chase Credit card and without notifing me they raised my interest rate from 8.9% to 18%. I am never latge nor do I ever send in the required amount. If the payment is $50 I will send in $100-200 per month. Their excuse was I have a $4,000 limit and my balance was $2800. So now I am considered a risk even though I have had my card for years, never am late, and always paid more than the required amount. I called and told them I am on a fixed income and could not afford such a high interest rate. They also charge me $8.00 for fraud protection and almost $40 a month for insurance on my account so where is their risk? I hope someone steps in and helps the consumer with these greedy, gouging banks. The Bush administration gave them a green light to do what they please and they are going nuts--I call it theft and abuse of their customers.

Ann M. Gutierrez of IL @ Dec 06, 2007 12:34:29 PM

Credit cards

Oh, quit your whining. It's about living within one's means. IF YOU CAN'T PAY CASH YOU CAN'T AFFORD IT! It's that simple. Why is that so hard for so many people? The last time I paid credit card interest charges was in 1983 when the bimbo I was married too left because I refused to take out a loan for a vacation we couldn't afford.

The only "product" that credit card companies offer is immediate gratification. So control yourself.

The credit card industry refers to people like my wife and myself as "deadbeats" because we use credit cards (all two of them) all the time but pay off the balances in full every month. I guess the two to five per cent of each transaction they collect from the merchants isn't enough.

Walt of WV @ Dec 06, 2007 12:33:09 PM

Credit card reform

The head of the credit card unit at Bank of America explained that customers deemed a lower credit risk get lower interest rates and higher-risk ones get higher rates. So how come people who don't carry a balance have double-digit interest rates? I've talked to many friends and colleagues who don't carry balances and all have interest rates in the high teens. Since they pay off their balances, the rate doesn't matter. But what if you lose your job and can't pay them off each month? Suddenly you've got huge interest payments in addition to the balance. I'm sure this is how many people have gotten into trouble.

Ellen of FL @ Dec 06, 2007 10:24:34 AM

Capital One Credit Card Ripoff

Capital One raised our rates over 50%. We were never late, paid more than the minimum balances, and was no where near our credit limit. We did not have a FICO score drop. When asked they only say it was a business decision and they have the right to raise my fixed rate card as much as they want.

barry of FL @ Dec 06, 2007 10:22:12 AM

credit card practices

Your approach to the story is a different one. I've been reading several now for hours and what you write would have helped me stay out of dept. Instead I got lots of trouble.

I am being taken to court by a collection agency that has bought the "charge off" or dept from my bank. I started my own small bus. and would take out cash advances to finance it. I'd experienced every interest hike, cash advance fee, late charge, finance charge, overlimit fee, balance tranfer fee -you name it. All at least $29.00. and up to 35.00 each month. No payments ever applied to the balance. It all went to fees. I got the invoices w/ a week turn around due date and the stange excuses of it's the US mails fault we don't receive your payment and we need 22 days to process it. Right!

It brings back bad memories. Believe me the dept was not for new clothes or dinners out. A friend who did have all that was declaring bankruptcy (a few yrs ago). I tryed in vane and instead to try to pay it off without the courts help. Obviously, I could not dig my way out of that and it just became useless to try. The sub prime morgage lending reminds me of the credit card game. You sell people one rate they can manage, then give them another they cannot. Keep them there- then if they stop sending money- just sell of the dept to a collection agency. They call the morage loans sell offs reconfigured and restucturing, of course.

colleen of CA @ Dec 05, 2007 20:34:05 PM

Credit card interest rates

I have cut up ALL cards when the news that congress was allowing companies to raise rates astronomically. But I already had lard balances that I could not pay before the rates went from 8.99% to 29.99%+. Now I pay them as I can an they keep making money off me and I haven't even used the card in over a year.

I have called the companies to work with me but they won't. They have you over a barrel....if I stop paying I ruin my credit and the bill keeps growing.

The excuss they use for not lowering my rates so I can get it paid off is that I closed the acct. They say to reapply and when I have an active account they will work with me on lowering they rate. I apply for a new account and they deny me because I have a balance and closed my account.

GIVE ME A BREAK. Oh they send me an application for a new account every month too. GO FIGURE.

One card company went up on my rates when they mailed the invoice to me so late in the month that there was no way I could recieve it, write a check that day, mail it that day and have it reach them on time. I called them but how many others haven't?

I have even been to consumer credit couceling and that's a joke. I have to give up all my cards, pay them a fee each month to help me pay my bills. No thank you I am doing it myself and do not have CHASE rule my life.

I am on the road alot and need my gas cards.....now that's another story in it's self.

Shawnee Bayer of TX @ Dec 05, 2007 17:42:03 PM