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(MSNBC)   Congress prepares to take on credit card company practices because if there's anyone who's an expert on sound fiscal practices, it's Congress   ( msnbc.msn.com) divider line
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3041 clicks; posted to Main » on 04 Dec 2007 at 11:12 AM (9 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2007-12-04 09:53:50 AM  
As important as this -- if not perhaps more important -- is that Congress is looking into doing something about mandatory arbitration clauses in consumer contracts. These clauses are found in many types of contracts, including most credit card agreements, and generally (IANAL) remove your right to sue the company for any reason. Google "arbitration fairness act of 2007" for more.
 
2007-12-04 10:51:52 AM  
AntiNorm: Congress is looking into doing something about mandatory arbitration clauses

Here here. I leased a Camry last month. Among the myriad of paperwork I signed was the arbitration clause. This caught me a little off guard as I sell these stupid cars. IF you don't sign, you don't drive off in the new car.

I sued Ford back in 1997 for a lemon F-150. The basis of the suit? It wasn't built Ford tough. In order to dodge the arbitration nonsense, my attorney used deceptive trade practices. It worked wonderfully well.
 
Ant [TotalFark]
2007-12-04 10:53:15 AM  
While they're at it, they should make it a death-worthy crime for credit card companies to "lose", "accidentally" mis-file, or otherwise delay processing of a customer's payment just so they can extract a late fee from them.
 
2007-12-04 11:16:46 AM  
I've read that people struggle with financial issues. I've even heard that I have people who work for me who have trouble paying their bills. It's very troubling.
 
2007-12-04 11:19:05 AM  
Don't want to pay interest? Don't spend more money than you have.
 
2007-12-04 11:19:34 AM  
/snicker at the headline
 
2007-12-04 11:20:25 AM  
Ant: While they're at it, they should make it a death-worthy crime for credit card companies to "lose", "accidentally" mis-file, or otherwise delay processing of a customer's payment just so they can extract a late fee from them.


Agreed. I've *never* been late on a bill of any kind, yet I have to deal with a late fee at least once a year. Two weeks ago, I finally received $400 because they screwed up by charging me interest they shouldn't have along with a late fee. I make *two* automatic monthly payments to the one card I have debt against, in an amount that is several times the minimum.

/Credit card debt-free at the end of this month...
 
2007-12-04 11:20:29 AM  
the way credit card companies issue fees is bullshiat.

i pay my cc off every month in full. one month a while back I accidentally wrote a check for $3408.85 instead of $3408.86, and the fee was over $100. They charge you interest based on the average monthly balance, rather than the actual amount you carry over. that's just wrong.

/they waived the fee because it was ridiculous and i complained.
 
2007-12-04 11:20:35 AM  
I'm sure Congress will cave, or draft some watered down piece of shiat, once the industry opens its checkbook.
 
2007-12-04 11:21:30 AM  
*average daily balance
 
2007-12-04 11:21:42 AM  
If congress wanted to do something useful about predatory lending and credit card company practices, they would institute, or fund an education program that would become part of public education. If kids were taught, in 10th grade, about some practical uses of math, instead of calculus, we might not have as many American up to their ears in debt, because they're currently learning about compound interest the hard way.

EDUCATE THE PEOPLE!
 
2007-12-04 11:22:12 AM  
ScottMpls: I'm sure Congress will cave, or draft some watered down piece of shiat, once the industry opens its checkbook.

Well said, good sir!
 
OZZ
2007-12-04 11:23:43 AM  
How dare the government make rules regulating the behaviour of business.

If one thing is true it is that business only has our best interests at heart.

Just look at working conditions during the industrial revolution.

/pines for the good old days.
 
2007-12-04 11:24:21 AM  
Madman drummers bummers: Don't want to pay interest? Don't spend more money than you have.

It's a snowball effect and we are all caught up in it. We have inflation in America BASED on the over-issuance of credit.

People have come to rely on credit so much that it is a neccesity. That is, the economic playing field is artificially lifted by the average American's willingness to sink into debt. It's come to the point where you MUST participate in the debt game to get ahead.
 
2007-12-04 11:24:27 AM  
yeah, Congress is in a race to spend the free money as fast as they can, Bush will make sure they dont waste any on non-friendly contracts to his friends and family plan
 
2007-12-04 11:26:15 AM  
Madman drummers bummers: Don't want to pay interest? Don't spend more money than you have.

mmm these threads are always wonderful for bringing out the personal responsibility kooks.

didnt even read the first paragraph did ya.
 
2007-12-04 11:29:16 AM  
Go Congress! Do something useful! Woooooo!
 
2007-12-04 11:29:16 AM  
I think government should stay out of this and consumers should learn what 22% interest really means....If you dont want a credit card you dont HAVE to have one, very novel approach.
 
2007-12-04 11:30:13 AM  
hachijuhachi: If congress wanted to do something useful about predatory lending and credit card company practices, they would institute, or fund an education program that would become part of public education. If kids were taught, in 10th grade, about some practical uses of math, instead of calculus, we might not have as many American up to their ears in debt, because they're currently learning about compound interest the hard way.

EDUCATE THE PEOPLE!


I have the same answer for that. If you complain, or object, you simple don't get the credit/car/whatever.

I went to sign up for individual health insurance and balked on the last step because of this arbitration clause. I didn't get health insurance. They ALL have the clause. I don't think an educated consumer is going to fix this. Foremost, because consumers can only be so educated. That's what laws are for, so we don't have to assume that everything is a scam.
 
2007-12-04 11:34:31 AM  
alostpacket: mmm these threads are always wonderful for bringing out the personal responsibility kooks.

didnt even read the first paragraph did ya.


Cool! I'm a personal responsibility kook now! But it's not my fault, really.

Yeah, I RTwholeFA and not just the first paragraph. Most of the abuses listed involved switching interest rates, especially when credit scores decline for unrelated reasons, and that's what prompted my comment - if you don't owe money, you're mostly unaffected by interest rate shenanigans. I do think there needs to be more transparency about interest rates, but there are many other things wrong with the industry practices. I'm sure this thread will provide dozens of examples.
 
2007-12-04 11:35:48 AM  
I'm in the process of finally paying off the credit card debt I piled on in college and in my first few years of working. Of all the things my parents taught me, how to manage credit cards was not one of them. I'll be damn sure to teach that to whatever children I may have.
 
2007-12-04 11:36:14 AM  
As long as they're discussing bailing out banks for their stupid financial decisions, I have no problem with the government keeping an eye on their lending habits. As it is now there's far too little policing of their practices and they're free to arbitrarily raise interest rates to nigh usury levels, charge fees for anything they want, and change due dates without warning to incur more fees. This is long overdue.

While they're at it, they should look at putting the smackdown on those damn payday loan places. Compared to them, credit card companies are downright charitable.
 
2007-12-04 11:36:53 AM  
If I can't barter a hogshead of turnips for it, I just don't needs it...
 
2007-12-04 11:38:47 AM  
vee-dubb3: I think government should stay out of this and consumers should learn what 22% interest really means....If you dont want a credit card you dont HAVE to have one, very novel approach.

Actually, yes you do NEED to have one. Otherwise you'll never get any credit score and therefore you'll never get any loans. I'm talking loans for stuff you NEED loans for, like a house or school. You might still get them, but the interest rates will be beyond ridiculous.
 
2007-12-04 11:43:27 AM  
Crown_of_Shoes: Madman drummers bummers: Don't want to pay interest? Don't spend more money than you have.

It's a snowball effect and we are all caught up in it. We have inflation in America BASED on the over-issuance of credit.

People have come to rely on credit so much that it is a neccesity. That is, the economic playing field is artificially lifted by the average American's willingness to sink into debt. It's come to the point where you MUST participate in the debt game to get ahead.


I agree - to a point. It depends on what you mean by "get ahead." If you mean you have to have the best SUV, house, lawn, 2.1 kids, etc., then yeah. Also, if you want to buy a house you're going into debt, unless you win the lottery or some such.

But I also think that to "get ahead" financially, one should avoid high-interest debt. In the long term, that's the way to save money. You don't save money by buying things on sale - you save it by not buying things.
 
2007-12-04 11:47:14 AM  
Calculus is useful, even for financial stuff.

We definitely need financial education, but not at the expense of calculus.

Perhaps we could ditch "pre-algebra" and have a year's worth of financial curriculum.
 
2007-12-04 11:47:47 AM  
Madman drummers bummers: Don't want to pay interest? Don't spend more money than you have.

THIS THIS THIS!
 
2007-12-04 11:49:04 AM  
I got into about $1800 debt a little while ago, nothing like the amount quoted in the article but I was definately preyed upon by deceitful lending. But for a college student it was unpossible to recover without parental assistance.


Perhaps some of you have seen Menard's commercials for No payments, no interest until xx/xx/xxxx on all purchases over $299.

Its not all purchases over $299. Its' only your first purchase over $299. So how exactly does all purchases >$299 = your first purchase >$299. I dont know.

So I couldnt afford my monthly because I wasn't planning on a bill at all! Atleast until 2007. I needed help, so I started to look for a new balance transfer credit. I found Chase was willing to cover the minimum amount I owed, which included some fees.
They said I could transfer my balance with no interest and no payments for six months....

Nope that was a lie too.
 
2007-12-04 11:54:10 AM  
vee-dubb3
I think government should stay out of this and consumers should learn what 22% interest really means....If you dont want a credit card you dont HAVE to have one, very novel approach.

stryker4526
Actually, yes you do NEED to have one. Otherwise you'll never get any credit score and therefore you'll never get any loans. I'm talking loans for stuff you NEED loans for, like a house or school. You might still get them, but the interest rates will be beyond ridiculous.

Exactly, I have no interest in getting any loans and I still finding myself needing it. I am 24, I make just under $50k a year and I have to have my parents cosign my lease. My rent is $500/month, I mean I can easily pay it but the real estate agency won't let me move in unless they put themselves on the hook. And because of that, I can't build my credit because my parents are the ones on the lease.

It's not that I have bad credit, its that I have NO credit. I need to get a credit card and put like $10/month on it just so I don't have to have my parents get involved in every transaction of mine. Kind of silly.
 
2007-12-04 11:54:38 AM  
I remember a few years back that CA wanted to put a bill forth that REQUIRED CC company's to disclose at the bottom of the bill how long it would take to pay off the debt at the minimum monthly payment. Providian (a HUGE CC servicer) lobbied and got the bill tossed out...totally disgusting on their part!!!

I think consumer education is what will ultimately solve or put great steps towards solving a lot of consumer debt problems.
 
Ox
2007-12-04 11:56:08 AM  
EDUCATE THE PEOPLE!


haha, that would cause change to the system, now who would want that..
 
2007-12-04 11:59:06 AM  
Madman drummers bummers: Crown_of_Shoes: Madman drummers bummers: Don't want to pay interest? Don't spend more money than you have.

It's a snowball effect and we are all caught up in it. We have inflation in America BASED on the over-issuance of credit.

People have come to rely on credit so much that it is a neccesity. That is, the economic playing field is artificially lifted by the average American's willingness to sink into debt. It's come to the point where you MUST participate in the debt game to get ahead.

I agree - to a point. It depends on what you mean by "get ahead." If you mean you have to have the best SUV, house, lawn, 2.1 kids, etc., then yeah. Also, if you want to buy a house you're going into debt, unless you win the lottery or some such.

But I also think that to "get ahead" financially, one should avoid high-interest debt. In the long term, that's the way to save money. You don't save money by buying things on sale - you save it by not buying things.


Yes, well put. And I was exaggerating a bit, too. It isn't high interest debt, per se, but the fact that everyone is expected to take on debt because "everyone is doing it" that is the problem. The entire economy is inflated by the sheer quantity of people willing to take on such heroic debt.

Look no further than the housing debacle to see that prices were driven unrealistically high by people with no interest or ability to actually pay off their mortgage. For many, it wasn't the usurious terms of their loan, but the fact that they couldn't pay it off at ANY interest rate. That puts responsible borrowers at a disadvantage.

Because this scheme has driven our entire economy for the past decade, the "credit shell game" has come to affect all of us, in more ways that just housing, or luxury items.

Bottom line, if people were issued less credit, all products/services would come down in price. The normally balancing system is when credit is maxed out, across the board, a situation the FED will stop at nothing to prevent because of its obvious economic implications.
 
2007-12-04 12:00:19 PM  
SnakeLee,
Obviously I'm not the best person to give advice, based on the above; however, I might suggest getting a credit card and using it to pay your utilities and only utilities.

This is how I'm getting my score back up (after the fiasco I was at 630)
 
2007-12-04 12:02:10 PM  
If the opposite of a "Pro" is a "Con" then what is the opposite of Progress...?
 
2007-12-04 12:03:25 PM  
The fail is strong with this headline, although the story is interesting.

Seriously, Congress spending lots of money it doesn't have is not related to credit card issuers doubling your interest rate because there's a week in the month or the planets are aligned in a certain way.
 
2007-12-04 12:06:24 PM  
Had a CC company two months in a row not take out the scheduled online payment on time. Luckily I printed out the confirmation. Not luckily, they corrected the first one, refunded the late fee etc etc, but the next month when it happened, they jacked up my interest rate by a factor of 3 because I had two late months. I told them about the first one, and gave them the confirmation from the second one. They said that I scheduled the payments for the day they were due, but that means they get the money after that. *blink blink* So, because I scheduled the payment when it was due, I am late??? Is Tom Coughlin running this company? I managed to get them to return the late fee, but now I am dealing with the interest rate. They are not budging on it. All I am getting is that if I pay on time for 6 months, it will go down some. Well, someone needs to tell me what the fark on time means, because it does not mean what I thought it meant.
What pisses me off is that I paid off two cards last month with cash I had come into. I left this one because of the better rate it had. It is like it all comes down to one person. "Gonna pay off cards huh, well we will make sure to get that cash from you."
They are starting to fall back onto the declining rating (due to carrying high balances) for the increase, even after saying it was for late payments.
Gonna screw me no matter what I do.
 
2007-12-04 12:08:16 PM  
Crown_of_Shoes: Bottom line, if people were issued less credit, all products/services would come down in price. The normally balancing system is when credit is maxed out, across the board, a situation the FED will stop at nothing to prevent because of its obvious economic implications.

Well, it's going to have to break sooner or later. There'll come a point where you can't pay off the debt and what will happen then? Eventually either concessions are going to have to be made to the consumer en masse in forms of debt forgiveness or substantial pay raises or everybody is going to default and fark the whole system. Plus with our new bankruptcy laws that require you to make payments if you can make 1% of the total debt, doesn't that say 'go ahead and really fark up' to someone up to their eyeballs in debt?

This needs to be solved. Maybe a debt interest rate ceiling is required. Or maybe the credit card companies need to take one for the team and go out of business. Why should we bail out a company screwing us again?
 
2007-12-04 12:09:06 PM  
SnakeLee It's not that I have bad credit, its that I have NO credit.

Having no credit is having bad credit. If you don't have a history of making timely payments, then you are considered a credit risk and you will either be unable to obtain credit or be forced to pay through the nose for it. This will affect lots of things like your insurance rates, not just your credit cards.

The fastest way to build your credit history is to get a regular credit card and a couple of department store cards (e.g. Circuit City or CompUSA, that type thing). The department store cards have the highest interest rates, but they are also the easiest to get. Use the credit card but pay it off fully every month -- it's a myth that you need to carry a balance for it to "count" on your credit history, you just need to use it. Buy like one thing on each dept store card on a six month no interest plan, and then pay it off on time. Do this for a couple of years and you'll be all set as far as being able to get car loans, rental leases, etc.
 
2007-12-04 12:09:16 PM  
SnakeLee: Exactly, I have no interest in getting any loans and I still finding myself needing it. I am 24, I make just under $50k a year and I have to have my parents cosign my lease. My rent is $500/month, I mean I can easily pay it but the real estate agency won't let me move in unless they put themselves on the hook. And because of that, I can't build my credit because my parents are the ones on the lease.

It's not that I have bad credit, its that I have NO credit. I need to get a credit card and put like $10/month on it just so I don't have to have my parents get involved in every transaction of mine. Kind of silly.


It also affects your insurance rates, and sometimes even your ability to get a job. You really should build a good credit record, because it benefits you greatly to have one. And that is for reasons totally unrelated to going into debt (the "no credit" people for some reason just don't get that it's not just about debt). And chances are that you will want to take on some debt at some point, maybe for a mortgage. You will save a LOT of money on that loan if you have a really good credit score.
 
2007-12-04 12:11:13 PM  
Crown_of_Shoes: Madman drummers bummers: Crown_of_Shoes: Madman drummers bummers: Don't want to pay interest? Don't spend more money than you have.

It's a snowball effect and we are all caught up in it. We have inflation in America BASED on the over-issuance of credit.

People have come to rely on credit so much that it is a neccesity. That is, the economic playing field is artificially lifted by the average American's willingness to sink into debt. It's come to the point where you MUST participate in the debt game to get ahead.

I agree - to a point. It depends on what you mean by "get ahead." If you mean you have to have the best SUV, house, lawn, 2.1 kids, etc., then yeah. Also, if you want to buy a house you're going into debt, unless you win the lottery or some such.

But I also think that to "get ahead" financially, one should avoid high-interest debt. In the long term, that's the way to save money. You don't save money by buying things on sale - you save it by not buying things.

Yes, well put. And I was exaggerating a bit, too. It isn't high interest debt, per se, but the fact that everyone is expected to take on debt because "everyone is doing it" that is the problem. The entire economy is inflated by the sheer quantity of people willing to take on such heroic debt.

Look no further than the housing debacle to see that prices were driven unrealistically high by people with no interest or ability to actually pay off their mortgage. For many, it wasn't the usurious terms of their loan, but the fact that they couldn't pay it off at ANY interest rate. That puts responsible borrowers at a disadvantage.

Because this scheme has driven our entire economy for the past decade, the "credit shell game" has come to affect all of us, in more ways that just housing, or luxury items.

Bottom line, if people were issued less credit, all products/services would come down in price. The normally balancing system is when credit is maxed out, across the board, a situation the FED will stop at nothing to prevent because of its obvious economic implications.


I vote we go back to the '20s and annihilate the department stores that first started this shiat with tacnukes.
 
2007-12-04 12:11:43 PM  
OZZ
How dare the government make rules regulating the behaviour of business.

If one thing is true it is that business only has our best interests at heart.

Just look at working conditions during the industrial revolution.


Why do you hate America?
 
2007-12-04 12:11:48 PM  
Crown_of_Shoes: Yes, well put. And I was exaggerating a bit, too. It isn't high interest debt, per se, but the fact that everyone is expected to take on debt because "everyone is doing it" that is the problem. The entire economy is inflated by the sheer quantity of people willing to take on such heroic debt.

Look no further than the housing debacle to see that prices were driven unrealistically high by people with no interest or ability to actually pay off their mortgage. For many, it wasn't the usurious terms of their loan, but the fact that they couldn't pay it off at ANY interest rate. That puts responsible borrowers at a disadvantage.

Because this scheme has driven our entire economy for the past decade, the "credit shell game" has come to affect all of us, in more ways that just housing, or luxury items.

Bottom line, if people were issued less credit, all products/services would come down in price. The normally balancing system is when credit is maxed out, across the board, a situation the FED will stop at nothing to prevent because of its obvious economic implications.


I agree. When mortgage lenders started offering 50 and 60 year mortgages and interest-only payments, I thought, "Here it comes." People don't buy cars and houses based on their price anymore - they buy based on what they can pay monthly. If a $2000 monthly payment that's interest-only can buy them a $500K house, while a conventional 30-year fixed mortgage with a $2000 payment can only net you a $300K house, well, the half-mil doesn't seem like much anymore? (I just made those numbers up. I know the math is off.) What does this do? Increases the number of people willing to buy $500K and up houses, which helps the bank, the builder, the real estate agents, the home furnishings store, the locality (from increased assessments and thus taxes)... everyone, it seems, except the homebuyer, who's stuck with only whatever equity derives from possible increases in market prices (far from guaranteed).

I'm just not sure it's Congress's job to fix everything. There's only so much you can do to protect consumers from their own poor choices, though obvious fraud should be addressed.
 
2007-12-04 12:12:25 PM  
Guntram Shatterhand: Crown_of_Shoes: Bottom line, if people were issued less credit, all products/services would come down in price. The normally balancing system is when credit is maxed out, across the board, a situation the FED will stop at nothing to prevent because of its obvious economic implications.

Well, it's going to have to break sooner or later. There'll come a point where you can't pay off the debt and what will happen then? Eventually either concessions are going to have to be made to the consumer en masse in forms of debt forgiveness or substantial pay raises or everybody is going to default and fark the whole system. Plus with our new bankruptcy laws that require you to make payments if you can make 1% of the total debt, doesn't that say 'go ahead and really fark up' to someone up to their eyeballs in debt?

This needs to be solved. Maybe a debt interest rate ceiling is required. Or maybe the credit card companies need to take one for the team and go out of business. Why should we bail out a company screwing us again?


Debt forgiveness is a terrible idea because it hands tons of cash to irresponsible borrowers. The system doesn't have to be farked by making these people suffer. A period of higher interest rates, coupled with deflation of the dollar would amount to a 3-5 year recession, if we get started now.

We are not talking about people being homeless, we are talking about less junk from China filling our McMansions.

Unfortunately, it will me Wall Street takes a big hit, consumer spending takes a big hit, but really, it's what we need.
 
2007-12-04 12:12:50 PM  
Guntram Shatterhand: Maybe a debt interest rate ceiling is required.

That would have precisely the wrong effect. It would make people take on MORE debt, not less, because debt would be cheaper. Interest rates should be HIGHER, not lower, on credit cards to discourage more people who are credit risks from taking on lots of credit card debt.
 
2007-12-04 12:15:22 PM  
mynameistim: the way credit card companies issue fees is bullshiat.

No kidding. I paid off my credit card last month, three days before it was due. So, I didn't get a bill this month, but didn't expect one, since I hadn't used the card since my payoff.

I happened to look at the account ten days before it was usually due, just to make sure the payoff had been credited okay. I not only found that there was an unexpected balance of about $240, but it was also due the next day, not on my regular payoff date.

I called customer service, and the billing cycle had been changed two days after I had made my payoff. No apparent reason, they just moved it up. She also said that the extra $240 was for "finance charges". She wouldn't say what the charges were for, but did say that she'd take them off.

If I hadn't happened to look online at the account, they would have not only had those bogus finance charges on, but they would also have flagged me as late to pay them when they changed the billing cycle on me. WTF, BoA?
 
2007-12-04 12:15:54 PM  
Mnemia: SnakeLee: Exactly, I have no interest in getting any loans and I still finding myself needing it. I am 24, I make just under $50k a year and I have to have my parents cosign my lease. My rent is $500/month, I mean I can easily pay it but the real estate agency won't let me move in unless they put themselves on the hook. And because of that, I can't build my credit because my parents are the ones on the lease.

It's not that I have bad credit, its that I have NO credit. I need to get a credit card and put like $10/month on it just so I don't have to have my parents get involved in every transaction of mine. Kind of silly.

It also affects your insurance rates, and sometimes even your ability to get a job. You really should build a good credit record, because it benefits you greatly to have one. And that is for reasons totally unrelated to going into debt (the "no credit" people for some reason just don't get that it's not just about debt). And chances are that you will want to take on some debt at some point, maybe for a mortgage. You will save a LOT of money on that loan if you have a really good credit score.


The whole point is that it's complete and utter bullshiat that you have to do that sort of thing. I don't buy anything unless I have the money for it, and it's going to STAY that way. That means paying with cash or my debit card. I'm not going to get a farking credit card because my neurosurgery left we with terrible short-term memory and I'd most certainly forget to make the payment on time AT LEAST five times. That's why I don't have one right now. This entire credit-based economy is bullshiat, and if that means I have to save up $100,000+ to buy a house in cash, so be it. I guess in reality I'd probably be able to get a house for far less if I had cash on the spot. Tends to work that way with big stuff like that.
 
2007-12-04 12:17:08 PM  
Crown_of_Shoes: Debt forgiveness is a terrible idea because it hands tons of cash to irresponsible borrowers. The system doesn't have to be farked by making these people suffer. A period of higher interest rates, coupled with deflation of the dollar would amount to a 3-5 year recession, if we get started now.

We are not talking about people being homeless, we are talking about less junk from China filling our McMansions.

Unfortunately, it will me Wall Street takes a big hit, consumer spending takes a big hit, but really, it's what we need.


I'll agree with the 'big hit' premise, but aren't we shielding the companies who made these decisions from their errors? They are the ones who gave credit to everybody and anybody to make money. Why should they be granted immunity against the coming crash? Any business who behaved this way would have gone out of business, and the same should apply to credit card companies that were stupid enough to let this happen.

Again, why are we bailing them out? I say we cut back on credit, forgive the borrowers while cancelling their credit, and move on to a new system. Let the giants of plastic fall due to their own arrogance.
 
2007-12-04 12:18:07 PM  
honk: mynameistim: the way credit card companies issue fees is bullshiat.

No kidding. I paid off my credit card last month, three days before it was due. So, I didn't get a bill this month, but didn't expect one, since I hadn't used the card since my payoff.

I happened to look at the account ten days before it was usually due, just to make sure the payoff had been credited okay. I not only found that there was an unexpected balance of about $240, but it was also due the next day, not on my regular payoff date.

I called customer service, and the billing cycle had been changed two days after I had made my payoff. No apparent reason, they just moved it up. She also said that the extra $240 was for "finance charges". She wouldn't say what the charges were for, but did say that she'd take them off.

If I hadn't happened to look online at the account, they would have not only had those bogus finance charges on, but they would also have flagged me as late to pay them when they changed the billing cycle on me. WTF, BoA?


There's your problem. Bank of America.
 
2007-12-04 12:18:48 PM  
Another nice fix would be if the CC companies (and mortgage companies as well) all used simple interest instead of compound. They still make a profit, but it no longer kills the user.
 
2007-12-04 12:20:01 PM  
You can always have a home lender manually underwrite you for a home loan. I know lots of people that have gone that route because they have no FICO score. FICO is an acronym for "how good are you at being in debt score".

And then there are people that pay cash for houses and school. think of that!

//better than I deserve!
 
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