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Bank of America increased my interest rates on credit card this week and it seemed that all CC companies followed suit! Now I have never missed a payment for anything and have exceptional credit. It is likely that many persons that carry a balance will now be pushed into bankruptcy because of these shady tactics by credit card companies like Bank of America, Chase, Citi and Discover! I found it very peculiar that every card did the same thing at the same time. Doesn't this look like collusion/antitrust violations?
Write to your lawmakers right away in an effort to change these horribly penalizing strategies by banks who have made some very poor decisions over the last few years. I don't think that any institution receiving bailout money should be allowed to raise their rates. What do you think?
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I found it very peculiar that every card did the same thing at the same time. Doesn't this look like collusion/antitrust violations?
I understand that this tactic seems to be the current practice of most (all?) CCs these days. If you check out your CC agreement (you know those micro-printed pieces of paper that are occasionally stuffed in with your statement?) you will probably see that they are allowed to make changes at any time they want to, but are required to inform you of the changes. It's a unilateral contract and there's not much that you can do about it other than paying off the balance and quit using the card.
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Hi willow, welcome to savingtools. :)
I don't think that any institution receiving bailout money should be allowed to raise their rates. What do you think?
I agree totally with you on that. Why should consumers be funding their poor business practices twice, first with the taxpayers' money that was used for the bailout and secondly through increases? They had their chance to claim what they needed to continue doing business when the bailouts were discussed.
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Nice to meet you, willow!
SavingTools does the article about opting out still apply? It was a good one. Willow, this was the article I'm talking about. I can't keep pace but it could help.
Did your credit card company raise your interest rates? Opt out!
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Hi willow, welcome to savingtools. :)
I don't think that any institution receiving bailout money should be allowed to raise their rates. What do you think?
I agree totally with you on that. Why should consumers be funding their poor business practices twice, first with the taxpayers' money that was used for the bailout and secondly through increases? They had their chance to claim what they needed to continue doing business when the bailouts were discussed.
On the other hand, was it not the responsibility of the organization that lent the money (federal government) to set the terms of the TARP loan? If Congress was smart ( a big stretch, I know), they should have made this a provision in the lending documents along with the no bonus requirement that many folks were screaming about a few months ago. But they did not and we (the USA folks) get the short end of the stick.
Seems like someone should be screaming about an investigation, a special prosecutor or at least a special committee hearing. But, alas, none will emerge.
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Hi willow, welcome to savingtools. :)
I don't think that any institution receiving bailout money should be allowed to raise their rates. What do you think?
I agree totally with you on that. Why should consumers be funding their poor business practices twice, first with the taxpayers' money that was used for the bailout and secondly through increases? They had their chance to claim what they needed to continue doing business when the bailouts were discussed.
On the other hand, was it not the responsibility of the organization that lent the money (federal government) to set the terms of the TARP loan? If Congress was smart ( a big stretch, I know), they should have made this a provision in the lending documents along with the no bonus requirement that many folks were screaming about a few months ago. But the did not and we (the USA folks) get the short end of the stick.
Seems like someone should be screaming about an investigation, a special prosecutor or at least a special committee hearing. But, alas, none will emerge.
I hope in the interests of transparency they do eventually. That was a major, major mistake on their part not to incorporate the no bonus rule. It was a panic step which is why it was so mismanaged. They wanted to be seen to be doing something and fast. Stupid really. I'm sure most folks would have gladly waited for a well constructed plan where all the angles had been considered, including that. Shame on the companies for handing out the bonuses at all.
And welcome, willow! Nice to meet you. :)
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Welcome willow, it's good to meet you. Please do hang out with us more! :) Did you have any luck with them about getting the rate raise reversed? They're a bunch of rogues, all of them.
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I just saw this Reuters article on this very subject. We should see new laws in place in the next month.
WASHINGTON (Reuters) - President Barack Obama will sign wide-ranging, pro-consumer credit card reforms into law by late May, senior U.S. House Democrat Carolyn Maloney predicted on Wednesday.
"President Obama seems very determined," Maloney, who met with Obama on Tuesday at the White House, told the Reuters Global Financial Regulation Summit in Washington. "He said, 'We're going to get that bill. We're going to enact it into law'."
Maloney, who chairs Congress' Joint Economic Committee, added: "I'm predicting by Memorial Day (May 25) we will have... a law."
The House of Representatives is expected to vote Thursday on Maloney's bill, dubbed the "Credit Cardholders' Bill of Rights."
Democrats, on behalf of the Obama administration, are expected to introduce a set of amendments including requiring card issuers to maintain low introductory teaser rates on credit cards for at least six months, and to warn card holders if they are about to exceed their credit limits, allowing them to avoid a penalty fee.
More...
"We need to change the rules of the game so that consumers are not caught by deceptively complex rules," Geithner said, adding that he saw support for reform in Congress as a "very strong signal of commitment to progress" on the Obama administration's financial reform agenda.
The Federal Reserve and other banking regulators last year approved rules against unfair and deceptive credit card practices but gave the industry until July 2010 to comply.
Lawmakers want to codify those rules into law and go even further, frustrated with surprise interest rate hikes and hidden fees from card issuers -- many of which have received billions of dollars in bailout funds aimed at boosting lending.
Banks complain that the changes could hurt their revenues at a time when they can least afford it and could actually reduce the availability of credit.
The head of the American Bankers Association, which represents the biggest credit card issuers, told the Reuters summit on Tuesday that he expects a final credit card bill "in the not too distant future."
Full article:
http://www.reuters.com/article/GlobalFinancialRegulation09/idUSTRE53S4RQ...
Hi Willow!
Lots of people are seeing this lately. There are some new laws to help this sort of thing, but they don't go into effect until next year.
See these articles:
I think the timing is probably related to them looking at their quarterly revenues and losses, and then trying to do things to make themselves more money, or reduce the risk of their current debt loads.
As you mention, it's a really unfair business practice, and the reason for the new laws in the link above. Sorry to hear you've been a victim of their current business policies.
Thanks for posting on the site!