I read cc companies can tell lots about their customers - they can predict who is going to get a divorce 2 years ahead of time! Our rate on a $30k limit card we had paid-as-agreed for probably 20 years went up for no apparent reason earlier in the year - about 4 months later I developed type I diabetes and now have $25k in medical bills!
I may be looking for an excuse but the fact they raised my rate for no reason other than they could right at the time so many people are hurting, including me, puts them at the top of my list to see the Chapter 7 form letter if it comes to that.
PeakOil is You
THE Karl Denninger Thread (merged)
Re: Denninger today
by Pops » Tue 15 Sep 2009, 11:19:03
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: Denninger today
by dinopello » Tue 15 Sep 2009, 11:21:03
$this->bbcode_second_pass_quote('Pops', 'I') read cc companies can tell lots about their customers - they can predict who is going to get a divorce 2 years ahead of time!
Sad, but true. I have a friend going through that right now.
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Re: Denninger today
by Plantagenet » Tue 15 Sep 2009, 12:02:46
$this->bbcode_second_pass_quote('', ' ')Our rate ... went up for no apparent reason earlier in the year
New credit card regulatory "reforms" resulted in credit card companies raising their fees, increasing interest rate charges, etc..
reform causes credit card rates to go up
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Re: Denninger today
by nobodypanic » Tue 15 Sep 2009, 16:59:24
$this->bbcode_second_pass_quote('', 'I')n a statement to Channel 6 News, Lee Terry (R-Nebraska) said, “Some companies have been very aggressive in their tactics. The House Financial Services Committee is contemplating hearings as to whether the federal regulations are tough enough and if they should go into affect sooner.”
In December 2008 the Federal Reserve issued final regulations regarding unfair and deceptive credit card practices that will go into effect July 1, 2010.
The regulations would…
--- Ban banks from raising interest rates on existing balances unless payment is more than a month late.
--- Prohibit a practice known as double-cycle billing in which a bank assesses interest on the entire amount charged during on month unless the bill was paid in full.
--- Would end “universal default” in which customers are charged a higher interest rate if they miss a payment on another card or if their credit score has dropped.
In December 2008 the Federal Reserve issued final regulations regarding unfair and deceptive credit card practices that will go into effect July 1, 2010.
The regulations would…
--- Ban banks from raising interest rates on existing balances unless payment is more than a month late.
--- Prohibit a practice known as double-cycle billing in which a bank assesses interest on the entire amount charged during on month unless the bill was paid in full.
--- Would end “universal default” in which customers are charged a higher interest rate if they miss a payment on another card or if their credit score has dropped.
http://www.wowt.com/news/headlines/39397492.html
so here's what i glean from the article:
1. the reforms haven't even gone into effect yet.
2. they're thinking about moving up the date of their implementation.
3. they'll revisit the reforms and maybe 'adjust' them if they don't seem to be doing the trick.
4. the reforms have some nice basic protections, listed above.
so, yeah, the reforms caused the CC companies to screw us and are horrible. VISA, etc., should be allowed to do whatever they want. regulations are bad.
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Re: Denninger today
by JJ » Tue 15 Sep 2009, 17:02:05
I would like to note that NO-ONE put a gun to my head and forced me to get a credit card (yet). I suppose thats why I find it hard to get very upset.
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Re: Denninger today
by Livewire713 » Tue 15 Sep 2009, 17:45:14
$this->bbcode_second_pass_quote('JJ', 'I') would like to note that NO-ONE put a gun to my head and forced me to get a credit card (yet). I suppose thats why I find it hard to get very upset.
True but in my case and Im sure for Pops, I transferred several other balances including medical charges onto my mastercard because they offered me a low interest payment until the balance is paid off. Never missed a payment but they raised my minimum payment from 2% to 5%. I know your supposed to pay more then the minimum but my interest rate was 3.9% so even the minimum payment was getting the balance down. So my payments went from $400 to $1000. Pretty tough for someone on unemployment insurance. So my option was make the new payment and keep my interest rate or make my old payment and I get a new 7.9% rate and then if its not paid off by 2011 it goes up again, I think to 11 something. While I know its all legal for them to do this it wasnt exactly what they promised me. So for me I had to take the higher interest rate.
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