Mad as hell: Credit card users tell the Fed they're not gonna take it anymore
Filed under: Banks, Credit, Ripoffs and Scams
The Federal Reserve gave consumer a few months to mull over this proposition: Should credit card companies be allowed to raise the rate on debt you already owe? Is it fair for them to constantly reshuffle your debt so you are always paying the highest possible interest rate and the most fees? Should banks keep secret the way to opt out of their overdraft protection plans, where they can charge a huge fee for a tiny overdraft? And can they send you an offer of one rate, then switch you to another?Guess what? Consumers overwhelmingly hate all these current practices. They think credit card companies should be reigned in. Nearly 20,000 people wrote in on the three parts of the proposal: credit cards, overdrafts and truth in lending rules. Many call for stricter rules and use florid language like "usury."
Also guess what? Banks think the rules are a stupid idea. Bank of America is not just worried about itself, of course. BofA is concerned about the "broad impact on the economy both at the retail level and in highly complex securitization markets, slowing growth and limiting access to financing. To quote Bill Murray: "Dog and cats, living together!"
BusinessWeek's Jessica Silver-Greenberg says that it's the most significant credit card rule change in 20 years. Till now, she writes, regulators were content to simply force banks to clearly disclose their terms (which resulted in those pages of small-type that practically nobody reads). So now regulators and getting around to actually regulating. The comment period ended August 4, (though the comment form is still up).
Reader Comments (Page 1 of 1)
8-27-2008 @ 4:15PM
Ed said...
I find it ironic that recent legislation severely restricted bankruptcy relief but the credit industry continues to operate withou restriction. Bank practices are now approaching the guidelines of "payday" loans and the current state of the mortgage industry speaks for itself. It seems to me that banks are trying to cut their losses in the mortgage market by resorting to loansharking practices in the credit card , personal and auto loan industry. I am not excusing individual consumer's poor choices, but the banking industry is not blameless here.
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8-28-2008 @ 5:15PM
mona lisa manor said...
yea we are been paid $0.50 per year interest on our money in their banks while they charge 24.99% interest on credit cards. where is the justice in this and where are the feds .... how are they any different from a loan shark ? banks are greedy and the government gives them the right to steal from us.... we MUST stop them by saying no to their high interest rate .... GOD HELP US ALL
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8-27-2008 @ 5:09PM
Hoxsie454 said...
I sincerely hope that all the poor folk who have lost their homes due to being duped by mortgage officers, now refuse to pay their credit card debt. The big banks are WORSE than the Mafia. And the government has condoned their deceiving, illicit, thieving money grabbing practices. If you have lost a home, why worry about a credit card.
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8-28-2008 @ 11:07AM
D. G. Stomp said...
In the 30's this was called loan sharking but since drug money and orginized crime has infiltrated the banking community any things goes when it comes to separating the average citizen from his money.
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8-27-2008 @ 8:32PM
jkcdiva said...
People are fighting back- its called Federal Debt Relief System. A group of lawyers are relieving people of their debt- legally- by litigation. Credit cards ILLEGALLY use YOUR DEBT as THEIR ASSET. This is unconstitutional!
If you don't believe it google the group and see for yourself!!
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8-27-2008 @ 5:55PM
JOSEPH A. said...
I HAD A CREDIT CARD FOR 14 YEARS AND NEVER MISSED A PAYMENT OR WAS LATE. THEN I WAS TOLD BY LETTER MY INTEREST RATE WAS GOING UP OVER 6% JUST BECAUSE ?. I CALLED AND WAS TOLD THAT WAS THAT AND I CANCELLED THE CARD THAT SAME DAY. TWO DAY'S
LATER I WAS MAILED A NEW CARD WITH THE SAME INTEREST RATE THAT I WAS MAD AS HELL ABOUT AND THEY THANKED ME FOR MY LONG TIME CUSTOMER CARD CARRIER AND GREAT PAYMENT RECORD. GO F--K YOUR SELF. END OF SR-------VICE.
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10-15-2008 @ 12:23PM
Phrmaczt97 said...
Joseph.. for what this is worth.. They did the same thing to me, CHASE.. and Washington Mutual. I was never late and paid more than the minimum. They told me it was because they didnt like what was in my credit report. Joseph, it is against the law for Credit Card companies to use your credit report against you. Write the Office of Comptroller for currency and file a complaint against that institution and also send the same letter with your letter to the Comptroller to the financial institution. Chase lowered my interest rate back to 6.9% and refunded me the difference in the interest I had paid.. I really dont think they think people know this.. Stand up for your rights... Kim