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atlfootr
05-12-2009, 07:45 PM
Sitting here watching C-SPAN2 and SEN. MARK UDALL D-Colorado is currently attempting to pass the Credit Card Holders Bill Of Rights, GO Senator!

Senators are trying to cap the interest rate at 10% as of now, B of A, CitiBank and others want to charge their customers a 25-30% interest rate for no other reason other than because they can.

Your thoughts / comments ... fire away!

brucemac
05-12-2009, 07:52 PM
lol 25-30%

cheese and rice

ttu
05-12-2009, 08:25 PM
something needs to be done! i have a capital one acct that was 9.5% and received a letter from them a week ago stating " they were raising it to 17.5%. never late, not a high credit limit, credit score mid 700's.

called them up to discuss and they said you have 2 options. take what we are offering you or close the acct and they would still charge the new % on the unpaid balance.:mad:

trickskier
05-12-2009, 08:42 PM
I always pay my balances off each month...................Never paid a penny in interest to credit cards.........:D

etakk7
05-12-2009, 08:50 PM
What happened to free enterprise? Seriously, Americans are not entitled to having credit card debt for whatever price they choose. That being said, if you already have existing debt and they bump the rate up, that is more understandable to be upset. But outside of that, come on, these companies offer a product and we choose to buy it or not. The government is going to control everything before long, the banks, the auto industry, the credit card industry...

atlfootr
05-12-2009, 08:59 PM
ttu is correct, this is exactly what the credit card companies are doing.
If this has not happened to you yet, eventually it will.

Let us know, when it does.

captain planet
05-12-2009, 09:06 PM
I always pay my balances off each month...................Never paid a penny in interest to credit cards.........:D

Hey Tricky, we do have something in common, none of my pennies to those vultures in interest either!!!8p

Chicago190
05-12-2009, 09:30 PM
I always pay my balances off each month...................Never paid a penny in interest to credit cards.........:D

Agreed, credit card debt is by far the worst kind of debt (legal debt, I hear those mobsters can be a bit touchy about not paying up).

ttu
05-12-2009, 09:45 PM
What happened to free enterprise? Seriously, Americans are not entitled to having credit card debt for whatever price they choose. That being said, if you already have existing debt and they bump the rate up, that is more understandable to be upset. But outside of that, come on, these companies offer a product and we choose to buy it or not. The government is going to control everything before long, the banks, the auto industry, the credit card industry...


agree! but what makes it right when you have a valid contract at a certain % rate and they break the deal. with my house, my suv and oh my mastercraft, when i agreed to the financing agreement the interest rate is set and will not change. :confused:

TX.X-30 fan
05-12-2009, 09:59 PM
I always pay my balances off each month...................Never paid a penny in interest to credit cards.........:D

That's all well and good but the billions and billions given to these losers was not supposed to make them screw people trying to get by in tough times. Its a crock of Sh!t and the peoples Pres could give a crap less.

They are about to donate more of your dollars to the fools at CITI and others.

No offence Trick.

brucemac
05-12-2009, 10:02 PM
imo, what's garbage if i heard correctly is they're adjusting the rate for balances (money already spent). imo, it would seem more fair if the rate changed or went up on future purchases. at least if they did that you could tell them to take a hike. i guess imo it just seems pretty krappy to carry a balance at one rate and then all of the sudden it goes up for stuff you already bought. that seems shady imo.

Chicago190
05-12-2009, 10:04 PM
agree! but what makes it right when you have a valid contract at a certain % rate and they break the deal. with my house, my suv and oh my mastercraft, when i agreed to the financing agreement the interest rate is set and will not change. :confused:

They are not breaking the agreement, they are merely exercising their rights as creditors to change your interest rate. Most, if not all (American Express may be an exception), credit cards have adjustable rates, read your contract (you read it before you signed up for the 48 month 0% credit card, right?).

Congress is trying to protect consumers from credit card companies that wield exceptional authority compared to other lenders through the use of exceptionally high rates, preventing people from paying down their existing debt at lower rates, etc. It is, perhaps, shoddy business practice and should drive away consumers, but unfortunately people in this country have become so dependent on credit card debt that the government is forced to protect people from the very agreements they signed.

TX.X-30 fan
05-12-2009, 10:27 PM
imo, what's garbage if i heard correctly is they're adjusting the rate for balances (money already spent). imo, it would seem more fair if the rate changed or went up on future purchases. at least if they did that you could tell them to take a hike. i guess imo it just seems pretty krappy to carry a balance at one rate and then all of the sudden it goes up for stuff you already bought. that seems shady imo.

They are not breaking the agreement, they are merely exercising their rights as creditors to change your interest rate. Most, if not all (American Express may be an exception), credit cards have adjustable rates, read your contract (you read it before you signed up for the 48 month 0% credit card, right?).

Congress is trying to protect consumers from credit card companies that wield exceptional authority compared to other lenders through the use of exceptionally high rates, preventing people from paying down their existing debt at lower rates, etc. It is, perhaps, shoddy business practice and should drive away consumers, but unfortunately people in this country have become so dependent on credit card debt that the government is forced to protect people from the very agreements they signed.




Very true gentlemen, they were allowed to get out of control and now the seem to want the good customers to pay for their bad credit decisions.

That is not right, they issued credit to people that could not pay so don,t punish those that have lived up to their obligations.

shepherd
05-13-2009, 07:38 PM
So, you guys want more government regulation of the market? Boy, that sure sounds like liberal Democrat (borderline Commie) thinking to me.

Easy for me to say -- I pay off my credit bills every month, too. :rolleyes:

brucemac
05-13-2009, 09:49 PM
no, not a all shep. i just think it's a little shady of some of those companies to jack their rates up like that. just doesn't seem right if some of those rates are for real. mine have fortunately held steady.

CODY_YARBER07
05-13-2009, 11:33 PM
no, not a all shep. i just think it's a little shady of some of those companies to jack their rates up like that. just doesn't seem right if some of those rates are for real. mine have fortunately held steady.

I agree that it is sh*tty of the credit card companies to raise your interest rate on money you owe but I don't think the government needs to stick their head in and regulate this. We did sign an agreement that the interest rate could change and just because we never thought it would, doesn't mean it cant.

Still sucks!

I'm all for free enterprise! Limited government regulation and survival of the fittest but that's another story..

djhuff
05-14-2009, 09:24 AM
The only good thing I could see here is if there was a law that stated you could close your account to new purchases, and pay off at the previous rate. They used to do this.

There may be some bait and switch laws on the books that may be able to be applied here, but capping rates at 10% and these companies won't be lending any money. There still is a market out there, if govt institutes price controls, the supply will diminish since there is no incentive to lend. What happens when inflation hits 10+%??? The credit card companies would then be LOSING money by lending it.

(The inflation is coming, you don't insert $1+ trillion into the monetary system without it).

2RLAKE
05-14-2009, 10:27 AM
I'm sure i'll get hammered but here's my thoughts

Credit card companies, like any solid business, runs out their business model/underwriting/risk mitigation, etc, with an expect return on their investment for their shareholders. One of their major risk factors are the people who just don't pay their bills ... we get stuck with that. Yes they charge sup high rates because people continue to pay it. I saw something that the average American keeps over $5k balance on their card ... would be more economical to get a short term loan from your local credit union if you want to use your credit card as a loan.

Don't be a victim ... call and negotiate your rate ... everything is negotiable ... or switch companies. Also read the application ... they will have to state in writing before you sign if they have the right to arbitrarily change your rate

... or dont fall vicitm and pay off your balance ... they are there to make money ... its not a government social program ... yet

Chicago190
05-14-2009, 10:53 AM
Another issue with credit card debt and risk is that, unlike home mortgages or student loans, credit card debt can be discharged in bankruptcy, so the risk premium on credit card debt is much higher.

Monte
05-14-2009, 11:06 AM
I have no credit card.. I know I should have one for emergency reasons, but when I came out of college 5k in debt. I paid that off and said never again. They passed them out like candy to college students.. I didn't even have a freakin job..
That being said, I think it is lousy to raise the rates like they are doing now. Hell they are making how much? They are currently borrowing money from the fed at rediculusly low rates and pushing the consumer over the edge and filling their pockets with rediculously high rates. I can't see capping the rate because of the prior poster's argument that when Fed interest rates go up they will no longer be able to make money, but I think there should be a cap on the amout of interest they can charge in direct porportion to the fed..

shepherd
05-14-2009, 11:28 AM
I have no credit card..

Wow, I'm impressed. I wish I could say the same, but I need a credit card for things like online purchases (e.g., for boat parts), renting cars and buying airline tickets (and also for emergencies). My employer also requires me to have a card for travel purposes. That said, I believe the best strategy would be to have no card at all if you can get away with it. The next best is to pay them off every month.

Monte
05-14-2009, 11:33 AM
Wow, I'm impressed. I wish I could say the same, but I need a credit card for things like online purchases (e.g., for boat parts), renting cars and buying airline tickets (and also for emergencies). My employer also requires me to have a card for travel purposes. That said, I believe the best strategy would be to have no card at all if you can get away with it. The next best is to pay them off every month.

I do use Visa debit card for that stuff. But if it is not in the bank, I can't make the purchase:rolleyes:

mrprostar
05-15-2009, 10:52 AM
Like some have said credit cards contracts are pretty clear on their ability to adjust the rate. Its just like signing an ARM but the word adjustable is not in the title so people don't realize it. I'm so sick of the government thinking that they need to fix everything, its not why we pay them.

Thrall
05-15-2009, 12:10 PM
Like some have said credit cards contracts are pretty clear on their ability to adjust the rate. Its just like signing an ARM but the word adjustable is not in the title so people don't realize it. I'm so sick of the government thinking that they need to fix everything, its not why we pay them.

Exactly! What happened to "read the fine print"? I had CC debt coming out of college (hard to pay off EVERYTHING when you work parttime and no student loans or college fund). Yes I used CC's as short term loans for about 2 yrs, and just kept getting new cards with introductory rates, 0%, then I'd balance xfer to a new card before the rate went up!:D
BUT, I knew what I was on the hook for if I kept that balance too long on the card.
Same as dipchits signing ARM loans and complaining about the rate hikes, which I don't understand quite yet because the ARMs I've had were tied to prime rate which has been ridiculously low for years and still is! Would'nt have been in trouble on any of my ARM's (3 now) when the fixed rate ended with the interest rates for the last several years.
It's called capitalism and if there's enough gullible people to use credit on those terms, tuff chit for them. This is hard stuff to swallow coming from a VERY modest income family that didn't over extend themselves. My parents spent what they could afford, period. They Went through a recession, layoffs, working odd jobs to pay the bills, etc. Never racked up debt for luxuries when the elect bill was due!
Do I think Credit card rates are highway robbery, absolutely, that's why I don't depend on credit cards.

M-Funf
05-15-2009, 12:28 PM
I always pay my balances off each month...................Never paid a penny in interest to credit cards.........:D

Us, too.:D

We use our Costco AMEX card almost exclusively now. It pays 3% cash back on gas purchases, 2% cash back on restaurant purchases, and 1% on something I can't remember...8p. Pay off the balance every month.

This IS America. What you're talking about is capitalism...they can charge those rates because they CAN. If you don't want to pay those rates, pay off the balance.

shepherd
05-15-2009, 01:17 PM
We use our Costco AMEX card almost exclusively now. It pays 3% cash back on gas purchases, 2% cash back on restaurant purchases, and 1% on something I can't remember...8p. Pay off the balance every month.


That sounds better than my Discover card. Where can I get one?

I know: Duh........at Costco idiot. Is there an annual fee?

flipper
05-15-2009, 01:24 PM
Ramsey says credit cards are bad

M-Funf
05-15-2009, 01:50 PM
That sounds better than my Discover card. Where can I get one?

I know: Duh........at Costco idiot. Is there an annual fee?

You said it, not me...

I think the Membership fee is $100/year. The AMEX card does not have an additional annual fee. It's included in the hundy.

We more than make up for that hundy in rebates. The only downside is that some places don't take AMEX, so I have to carry a VISA as well.

Jesus_Freak
05-15-2009, 02:05 PM
I use a Statefarm Visa that gives me 1% on all purchases:

1. Buy only what I need (except boating/skiing expenses, which I never really "need":D, but I would get anyway using either cash, debit, or credit)
2. Pay the balance off every month (auto drafted from my bank)
3. Earn the rewards.

Nice proposition.

shepherd
05-15-2009, 03:25 PM
Ramsey says credit cards are bad

They are only bad if you carry a balance. Plus, I guess there is some risk associated with potential identity theft. Otherwise, using a credit card effectively gives you an (up to) 1 month, interest-free loan on the purchase price of what you're buying since you don't have to pay it off until the due date on your bill to avoid interest penalties. Add that benefit to any cash-back programs and I think credit cards are a good idea. I'm trying to convince my wife of this; she still insists on paying cash or using her debit card for purchases.

Again, this only benefits if you pay off your balance every month.

Chicago190
05-15-2009, 08:03 PM
They are only bad if you carry a balance. Plus, I guess there is some risk associated with potential identity theft. Otherwise, using a credit card effectively gives you an (up to) 1 month, interest-free loan on the purchase price of what you're buying since you don't have to pay it off until the due date on your bill to avoid interest penalties. Add that benefit to any cash-back programs and I think credit cards are a good idea. I'm trying to convince my wife of this; she still insists on paying cash or using her debit card for purchases.

Again, this only benefits if you pay off your balance every month.

Not to mention the fact that most credit cards give rewards. I have a Chase Rewards Card and I get a few bucks each month in reward points that I use to reduce my balance. So, if you use a credit card and pay it off each month then you are actually saving money compared to cash, checks, or debt cards.

suedv
05-15-2009, 09:41 PM
We pay ours off each month so we don't pay interest. However, I charge almost everything on it each month becuase I want to earn points. We have a Priority Club charge card and earn free nights at the Holiday Inn (plus some other hotels). We use those nights when we travel for competitions with the water ski team. We can't pull our 5th wheel to ski competitions because we pull the twin rig boat. It saves our family a bunch of money.

Chicago190
05-19-2009, 11:16 AM
The New York Times is reporting that those of us who have good credit and pay our bills on time will no longer enjoy many of the perks credit cards have offered in the past: http://www.nytimes.com/2009/05/19/business/19credit.html?_r=1&hp

Ric
05-19-2009, 03:07 PM
Hey Tricky, we do have something in common, none of my pennies to those vultures in interest either!!!8p
By gawd Captain planet and I agree on 2 things now. Mastercrafts and paying for what you buy! :D

Ric
05-19-2009, 03:09 PM
We pay ours off each month so we don't pay interest. However, I charge almost everything on it each month becuase I want to earn points. We have a Priority Club charge card and earn free nights at the Holiday Inn (plus some other hotels). We use those nights when we travel for competitions with the water ski team. We can't pull our 5th wheel to ski competitions because we pull the twin rig boat. It saves our family a bunch of money.
I think the changes goin on will probably eliminate all the perks and points... The dummies racking up revolving debt have been paying for our perks all along. Times, they are a changin.

M-Funf
05-19-2009, 03:22 PM
I think the changes goin on will probably eliminate all the perks and points... The dummies racking up revolving debt have been paying for our perks all along. Times, they are a changin.

So, bail out the deadbeats and punish the people with good credit that pay in full on time. What a joke.

Right now, I have no annual fee, and get good rebates. If they take that away, I'll be downgrading my membership at Costco to the cheapest card they have and pay cash for anything I can, checks for the rest. It's moving BACKWARD 20 years...

You're right, things are changing, and change is NOT workin out so good...not for us anyway. :mad:

shepherd
05-19-2009, 03:40 PM
"Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups."

Cash-back and rewards programs I don't need. But if they start charging annual fees or immediate interest, I bet they will lose a lot of business. ICBW, but don't these guys earn a good portion of their revenue by charging merchants who accept these cards on a "per transaction" basis??? But what do I know. I'm not a CEO...

Chicago190
05-19-2009, 07:17 PM
ICBW, but don't these guys earn a good portion of their revenue by charging merchants who accept these cards on a "per transaction" basis??? But what do I know. I'm not a CEO...

I think it's 3%. And I agree, I will never use a credit card again if it charges interest from the time of purchase until my bill is due. I'll switch back to checks or cash before I subsidize people with poor credit who fail to pay back their outstanding debt.

PA Prostar
05-20-2009, 10:27 AM
The last I knew in any detail, the credit card companies get 4-8% on each transaction. It used to be a flat percentage years ago, but the evolution of the rewards cards over the past 10 years changed all that. In any case, put me down for going back to cash and checks if they start charging immediate interest. Although they may have the right to do that, I can not even imagine that they would under any circumstances. They'd be losing too much on the per transaction fees. Think about it, a 4-8% fee for a month equates to a 48-72% annual return on the money they have out for that month. I'd keep that deal if I were them. That coupled with the loss of customers to other cards if any of the companies did switch would be disaster. It's just not going to happen in my opinion.