Posted on 06/07/2007 9:19:04 AM PDT by outfield
Both the Senate and the House have held hearings this year on what consumer advocates regard as greedy practices by credit-card firms. Historically, charging interest was a perilous business, especially at times when anti-Semitism was rampant. For instance, in 1290, all Jews were expelled from England, with "usury" cited as the official reason – charging interest was considered blasphemous. Almost all their property went to the Crown. Today, credit-card companies often charge interest rates to consumers that many would regard as usurious, that is, excessively high. Fortunately, the heads of these firms no longer risk banishment for what is a legal business, and one highly useful to most of their customers. But Congress is on their case. Both the Senate and the House have held hearings this year on what consumer advocates regard as greedy practices by credit-card firms.
(Excerpt) Read more at csmonitor.com ...
Does anyone else think the credit card companies are ripe for some changes, whether it's fees, transparency or some other area?
the practice of mailing statements with progressively shorter time-to-pay intervals in hopes of triggering late fees is my favorite...
Didn’t they just increase the minimum required payment, under the guise of helping people get their credit under control...all with the blessings of congress?
IMHO, absolutely not. Credit cards are optional. Those who use a credit card as a method of finance are either stupid or extremely naive.
The second is an elimination of "universal default" based solely on credit reports. Credit reports aren't accurate enough to jack up peoples' rates from 18% to 30+% based on one report in them. If you don't pay a credit card, that companies' cards could go up, but not every other companies' cards.
The checks cleared, as usual.
By barely allowing enough time for payments by US Mail, they may also be trying to coerce people into setting up automatic payment from their bank accounts in order to avoid late payments. They get their money faster; and they avoid the labor expense of processing physical paper.
They really ought to go to work on “Payday” and “Title Loans”.
Their rates amount to loan sharking.
Yup. I agree that there's a need for some additional laws, and they've brought it upon themselves.
Do yourself a favor and cut up all but one credit card. Keep that one in your house safe or safe place. Only use it for emergencies. REAL emergencies.
Pay cash or with your cash card. Most Hotels and rental car companies will accept Cash cards. IF they don’t...find one who will.
My wife and I went debt free over about a year ago. It was the best move we ever made. Now we only pay for things we saved for. (Imagine that?!?!?).
Their rates amount to loan sharking.
I have no problems with these businesses at all. Their high rates are high for a reason, and they don't try to hide them. Potential customers are perfectly free to not get the loan.
The fees that anger me the most are the $20 late fees, no matter how small your balance is. Several times I’ve been hit for $20 late fees on payments that were less than a week late and where the beginning balance was under $100.
I usually pay off the existing balance each month.
Shortly after Chase took over, I paid a bill off. When the next statement came it, however, it showed a few $$$ in interest charges. The interest charges were added about a week after the pay-off date.
I called and was told that the billing date and interest cycle were different. I told the CS that that didn’t make sense and that I would cancel the card if they charge interest AFTER the account balance is paid. The CS credited my account with the interest charge.
Point: What them like a hawk. They will try every gimmick to get a few more $$$. Even if it is a small amount for you, multiply it by millions of card holders, and it adds up to a nice amount for them.
I had a long-distance phone account that always overcharged me a few cents (they would charge day rate for obvious night-rate calls). I would call and complain; they could credit my account. I wondered how many of their millions of customers didn't check their bills closely. A few cents on a few calls on a few million bills added up to a nice overcharged amount -- for them.
The local postmaster says the most effective way to slow down this crap is to write an appropriate note on the application form and mail it back the business reply envelope. He says that even if they ignore the note, business reply mail is very expensive for them and this is what gets their attention.
Not to mention those tax preparation companies that offer "instant refunds" at rates that would make the mafia blush.
I am of the thinking that the objections were merely to look good. They must know that a lot of people probably will have a hard time modifying their budgets, thus resulting in more revenue for the credit card companies, through late fees and continued payments...but I’m cynical that way.
Credit card companies just got in bed with government a few years back to buy favorable legislation in regards to bankruptsy. Now the government monster is turning on them. I’d have a lot more sympathy for them, but live by the sword...
“They really ought to go to work on “Payday” and “Title Loans”.
Their rates amount to loan sharking”.
...it never ceases to amaze me how some still don’t get it! Why “go to work on” anyone who operates a business in a legal manner? There are people out there that are so dis-organized and just plain stupid with their money, that a “Payday” is the ONLY place they can get money. Why should these places put 6% on a loan from someone that’s bankrupt and defaults on their mortgage and car payments?
If you do substantial business credit cards are NOT optional.
You MUST have one to stay at hotels and many of those do NOT take debit cards.
Rental car companies abroad do not take anything BUT credit cards for security.
If all you want to do in life is live a working class low end, go nowhere but land travel existence then yes, you don’t need a credit card.
Saying you don’t need a credit card is like saying you don’t need to use banks. Possible but very very very limiting.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.