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Posted on 05/24/2009 10:35:09 AM PDT by Lorianne
Leave it to the banks to try to turn passage of credit card reform legislation Tuesday into bad news for many cardholders.
Here's the deal: Banks are basically saying that because they're going to have to change some lending practices to comply with the bill, they'll be facing greater risk.
To cope with that risk, they say they'll have to turn the screws on their best customers -- the ones who manage their finances prudently and pay off their bills on time -- by possibly raising interest rates, scaling back rewards and imposing annual fees.
''Those who have managed their credit well and currently have very good credit card deals will find that card companies are limited in their ability to distinguish between them and those that have credit problems,'' Edward Yingling, president of the American Bankers Association, said in a statement.
''The result will be some subsidy from those that manage their credit well to those that have problems, affecting negatively the terms the former will receive.''
That's a fancy way of saying the squeeze will be put on good customers to compensate for the banks lending to bad ones.
''The big issue is how much revenue they'll lose by treating credit card customers fairly,'' said Ken McEldowney, executive director of Consumer Action in San Francisco. ''Fee income has been huge for the card companies.
(Excerpt) Read more at mcall.com ...
Cash is king, baby.
I’ll go back to writing checks and paying cash for everything, rather than paying a fee to use a credit card. Like many here, I pay my cards in full every month. People like us who do that are NOT the problem, and like others, I will refuse to bail out those who cannot manage their finances.
Will lose mine for sure.
They’ll come up with something that makes you have to have a card to do anything and then charge you anyway..... Sigh
I fully expect this and will be shopping for a credit card company that treats it’s customers fairly. I would say I’m moving to cash only but that’s impossible in todays economy (what’s left of it).
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If people that are paying their debts on time, every time stick with it, they will be considered wealthy and the wealthy are a danger to this administration. Now the media is starting to talk about $6.00/gal gas. When they start that, it is to get you use to hearing it. Wealth is dangerous because they can stand up to the admin.
Concerning gas.....small cars, as the admin is suggesting, use less gas. This means less profit for the gas companies and less state taxes. They aren’t going to like it so they will raise prices. We are going to get screwed even if we go to smaller cars.
Simple answer - if you can afford to pay off your bill every month, you can afford to go to cash only - just get a debit card for your checking account. The only ‘credit card’ we use to any extent is AmEx for the frequent flier miles. When they go away, we go away.
Same for me. I buy everything on credit cards and pay fully at the end of the month. I do this for airline miles and have taken many nice trips this way. If they start charging for me be a responsible credit card user I shall change cards and or cancel them and just use a debit card and checks. F--- them. What the credit card companies do not mention is the fact that they still make money off me. I pay an 80 dollar annual fee for the card and they rip of the merchant 2 or 3 percent on my purchases. I
“I’ll go back to writing checks and paying cash for everything, rather than paying a fee to use a credit card. Like many here, I pay my cards in full every month. People like us who do that are NOT the problem, and like others, I will refuse to bail out those who cannot manage their finances.”
Me too. I already pay an annual fee, but get at least one SWA round-trip per year. If the terms change too much, adios. I’d rather pay cash anyway and not leave such a big paper-trail everywhere I go...but the SWA trips are a NICE perk (still, basically, unrestricted use).
Visa collects something like a $1000 per year in merchant fees for me, and all they have to do is send me a bill. If they don’t want my business, that’s their loss, not mine.
“I’d like to learn who these deadbeat thieves are.”
I think that they’re most of us...at least that’s what the CC people call those that pay off their card monthly. Let’s see how they do without us deadbeats.
Oh, I am sure this post will generate thousands of posters clamoring to give box-boy their financial history.
I’ve finally gotten to the point I can pay off my credit cards each month.
The advantage of using a credit card on major purchases is the extended warranty and right to redress through them.
If they start charging a fee I’m going back to the old fashioned way, checks.
End result will eventually = NO credit for anyone. Either pay with cash or barter with goods or go without.
I have two - and if they write to tell me my rates are going up then I’m canceling them ... I can use my debit card just like a credit card ... only thing that bothers me is my credit score may go down because I don’t have credit cards ...
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LOL! Sure they will.
You see, every successful company in America attracts droves of loyal customers by screwing them over as much as possible.
Michelle Singletary
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/23/AR2009052300041.html
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>>You see, every successful company in America attracts droves of loyal customers by screwing them over as much as possible.
But the goal in the Obamanation is not to be successful. The goal is to be “too big to fail” and then to fail. Then, the economic geniuses in DC will steal money from people who do what’s right and give it to you to continue the bad business practices that got you in trouble in the first place.
The idea is to discredit capitalism in the minds of the productive citizens, so that even we start demanding “our share” of the public pie.
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