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Congress takes interest in credit cards (to save us from ourselves)
marketplace ^ | 3-7-07 | John Dimsdale

Posted on 03/07/2007 5:18:13 PM PST by Rakkasan1

Executives from some of the biggest credit card companies found themselves on the defensive on Capitol Hill today over their fees and interest rates. John Dimsdale reports.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: bankcard; bankcards; cards; congress; credit; debt
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Whenever I can't pay a debt, my 1st thought is to contact Congress.geez.
1 posted on 03/07/2007 5:18:16 PM PST by Rakkasan1
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To: Rakkasan1

More big-government socialism coming your way. Hallmark of the socialists.

2 posted on 03/07/2007 5:24:43 PM PST by EagleUSA
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To: Rakkasan1

Chase has a particularly nasty way of getting into their customers' wallets.

I had a cash withdrawal with a 'guaranteed' interest rate for the life of the loan as long as I wasn't late. I put it on automatic withdrawal to take care of that evenuality and forgot about it.

Some time later I looked at the loan--and it was considerably more than my original debt. Seems Chase has a 're-evaluation clause' in their fine print that says they can give your credit a negative rating, even if you are paying them on time, and kick the interest rate up from 7.5% (in my case) to 30%.

You'd think they'd have to at least notify you with a certified letter or something noticeable since they are changing a contract, right? But all they did was send one of those little fine print notices hidden among the ads stuffers for $4.99 sunglasses and such.

3 posted on 03/07/2007 5:28:48 PM PST by wildbill
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To: wildbill

Yes, Chase did that to me as well. I called them and they said something along the same line. THAT is what congress should address: the option to change the agreement based on such clauses. I have 1 CC now, in case of an emergency with the car or need to fly someplace.

4 posted on 03/07/2007 5:37:46 PM PST by theDentist (Qwerty ergo typo : I type, therefore I misspelll.)
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To: EagleUSA

Some of the credit card company tactics are really sleazy. Realllllly bad, i mean. Thank God I have all mine the ex whacked so hard all paid off now.

5 posted on 03/07/2007 5:39:59 PM PST by Fierce Allegiance (RINO = Rudy Is Not Ours! Keep scrubbing, Rudy supporters, the blood won't come off.)
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To: wildbill
"Usury (in the original sense of any interest) was denounced by a number of spiritual leaders and philosophers of ancient times, including Plato, Aristotle, Cato, Cicero, Seneca, Plutarch, Aquinas, Muhammad, Moses, Philo and Gautama Buddha."article on usury
6 posted on 03/07/2007 5:45:15 PM PST by Sabatier
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To: theDentist

Eventually, Chase bought out several other credit card companies where I had accounts. I could see that I was about to be victimized again, even though I've never been late, much less missed a payment.

It occured to me that two could play the game of abrogating contracts. I declared bankruptcy and left Chase with no money other than that which they had gouged from me on the increased interest rate.

It was very satisfying to stick it to them for a change.

7 posted on 03/07/2007 6:04:04 PM PST by wildbill
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To: Rakkasan1
Hmmmmm. By cutting out some luxuries, living within my (modest) means, and paying as much as possible each month I paid off one credit card last year and will finish the other this month.

When I started I had debt equal to about 3.5 months take-home pay.

Admittedly some outfits like Chase are really out to screw their cardholders and my credit-union is not.

But all other things being equal one can get out of debt without recourse to government intervention.

Oh, I didn't cut up the card I paid off and won't with the other. I am keeping them for things like gasoline, real emergencies and the like. But non-necessary stuff is no longer in the equation.

8 posted on 03/07/2007 6:09:53 PM PST by LibKill (Rudy-Lickers LOVE abortion! They ADORE a man in drag! 2nd amdnt Rights? HAH!)
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To: Rakkasan1

No, in this case something has to be done with the loanshark-like tactics that some credit card companies employ.

There needs to be a return of usury laws.

9 posted on 03/07/2007 6:17:26 PM PST by Yo-Yo (USAF, TAC, 12th AF, 366 TFW, 366 MG, 366 CRS, Mtn Home AFB, 1978-81)
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To: Rakkasan1
Nothing like having a firm grasp of the subject...

This isn't about acquired debt; this is induced debt; a scam perpetrated by the banking industry.
The RICO statutes should apply.

Class action suit.

10 posted on 03/07/2007 6:26:57 PM PST by Publius6961 (MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
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To: wildbill; theDentist

I posted my story on another thread, here it is.

I had a card with about 6.9% interest that I paid off every month until I bought my home, then I accepted the 2.99% cash offer and maxed out the card for a down payment.

After a few months of $1000.00 a month payments, I used the card for about $3,000.00 worth of household stuff like a refrigerator and shed.

When my statement arrived I saw that the $3000.00 portion was collecting interest at about 19%, and I learned that it was hidden behind the huge amount of the initial total, meaning that nothing I paid on the initial amount would go to that smaller part that was burning up the 19% interest.

I threw everything I could into paying off the card quickly, so my mistake and the Citibank mafia tactics only cost me a few hundred dollars, but it was one of the shadiest business dealings I've ever seen, and I know many people would have been wiped out by that immoral act by the credit card company.

The reason given for my interest jump from 6.9% to 19% was that by accepting the promotional offer for almost the card limit, I reached the high interest red zone.

A side note is how soulless the employees were at the other end in our conversations, I was reminded that you need to look at what you do for a living when you ponder what a high quality, wonderful, moral person you are away from your work.

11 posted on 03/07/2007 6:51:09 PM PST by ansel12 (America, love it ,or at least give up your home citizenship before accepting ours too.)
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To: Rakkasan1

In this case, I have to agree that the credit card companies need a visit from the Sopranos. You don't do this to family. Ever. Sayonara, dirtbags.

12 posted on 03/07/2007 6:53:16 PM PST by Sender (Try to look unimportant; they may be low on ammo.)
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To: Rakkasan1

Considering it was the credit card lobbyists who LITERALLY rewrote the bankrupcy laws the make the goverment a collection agency, they brought this scrutiny upon themselves.

We also have to remember the consumer has zero barganing power with the card agencies. It literally is an adhesion contract.

I find it unconscionable that a credit card company can use problems with one card for whatever reason to breach a client in other contracts even if the debt is current and good.

There is also the problem of wrong information. If a person has erronous information on their report a collection agency can and does try to legitimize the claim by papering the innocent person to death. Then even if they go to court, the demand summary judgment because some paper was not refuted.

13 posted on 03/07/2007 7:09:03 PM PST by longtermmemmory (VOTE! and
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To: All

I once knew an accountant who used to work for a credit card company. He said the business strategy meetings were intended to target those who had bad credit and lots of debt.

BTW, the credit card companies have a derogatory term for customers who pay their bills on time and don't run up interest: "Deadbeats".

14 posted on 03/07/2007 7:10:37 PM PST by b359 (The goat is old and gnarly....)
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To: All
Glad I'm reading all this crap about Chase and their tactics. I'm looking at a "pre-qualified" offer I got in the mail today for a Chase equity card up to 150 grand. This one will go into the fireplace with the rest!
15 posted on 03/07/2007 7:17:06 PM PST by 4yearlurker ("Nothing is true,and everything is permitted"--7 th Satanic vow. Sounds like Liberalism!)
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To: Publius6961


16 posted on 03/07/2007 7:27:36 PM PST by Natchez Hawk ("Truth: the anti-drug war")
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To: LibKill

nah,nothing can be done about anything anymore without gubmint intervention.

reminds me of the dram shop laws. 'I crashed my car because you made me drink.'

17 posted on 03/08/2007 8:47:47 AM PST by Rakkasan1 ((Illegal immigrants are just undocumented friends you haven't met yet!))
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To: 4yearlurker
all we another law.then stupid people and their money will never be separated from one another again.
notice the chump in the story - he didn't get and use the card to pay for cancer treatment or some must-have ,uncovered medical expense. dumbass spent it on wedding cake.cry me a river.
18 posted on 03/08/2007 8:52:59 AM PST by Rakkasan1 ((Illegal immigrants are just undocumented friends you haven't met yet!))
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To: Rakkasan1

I love my Citi Dividend card.

Implicit discount (thanks to paying for purchases up to a month later) and $50 cashback every quarter.

19 posted on 03/08/2007 10:05:58 AM PST by zendari
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To: zendari

obviously you won't be called to testify on crapitol hill.

20 posted on 03/08/2007 10:35:02 AM PST by Rakkasan1 ((Illegal immigrants are just undocumented friends you haven't met yet!))
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