[izme]

We just had a story on this tonight on the local news about the total gouging of Consumers by Credit card companies, where is our protection from this kind of stuff? Not in the BBB or federal trade commission. These credit Card companies are absolutely running over consumers.


Universal default rates
You have a perfect record with a credit card company, but your rate gets jacked up because something happened in another area of your financial life. Welcome to the world of universal default rates.

The survey found that 45 percent of card issuers impose a universal default rate, a slight increase over last year. The rates ranged as high as 35 percent (at Merrick Bank). Those with the second highest rate of 29.99 percent: Citibank, Bank of America and Providian.

Among issuers with default-rate policies, here's the percentage that cited the following as triggers:


Credit score falls: 90%


Late payment on a loan or other obligation: 57%


Bouncing a payment check on another account: 52%


Too much debt: 43%


Too much available credit: 33%


Getting a new credit card: 33%


Inquiring about a car loan or mortgage: 24%


What's next? and have you ever thought about just dropping the whole credit card nightmare out of your life? And what should we do about this type of fleecing of Consumers?

http://money.cnn.com/2005/07/28/pf/d...05_cardsurvey/

[bassetman]

Duh?

[izme]

Originally Posted by bassetman

Duh?

Of course

but what of their right to earn the big bucks and take what they can?

Or we'll hear "shut up and take it up the.. ..without a whimper!"

[coderitr]

I got a consolidation loan and paid off all my credit cards. I don't carry them any more. I do still carry a gas card, though. I can't think of a good reason to step into that quicksand again.

[Guyzer]

Buy only what you can afford to pay in full each month and never carry a balance. It's that simple.

[Stoner]

Originally Posted by Wimpy369

Buy only what you can afford to pay in full each month and never carry a balance. It's that simple.

Wise words, Wimpy......live within your means.....
It's worked well for me.

[LANMaster]

Simple answer is, yes.
However, it is perfectly legal.
When you order a credit card, you are signing up to agree to the corntractual terms of the financial agreement.
If you're stupid enough to volunteer to be fleeced, it is hardly the fault of the credit card company.

[Stoner]

Hidy ho LAN ....

True indeed.

If anyone ever saw how the loan sharks worked in Ohio, credit card companies would look like angels

Several years ago, check cashing lenders were allowed to legally charge up to 500% annually, and enforce it. As I don't see the ads nowdays, perhaps legislation was passed to prohibit that extreme abuse.

[Wino]

Originally Posted by Wimpy369

Buy only what you can afford to pay in full each month and never carry a balance. It's that simple.

.........and the CC Co.'s not only want to continue screwing those with balances, they are looking for a way to charge user fees to those that do pay off every month. The charging of usury rates should be regulated by the mafia to at least get them reasonable.

I no longer take any crap from the CC Co.'s..........paying in full monthly and mailing six days before due, still have been hit with interest and late fees......I just call them and give them options.........you can issue credit or cancel card and spend a fortune collecting the pitiful amount due, cause I will NEVER pay it.........so far they have all issued credits. I had been with AMEX (main CC) for over 30 yrs. and asked them to waive the yearly fee a few years back.........they refused.........I canceled account........now every two months are so I get an offer to renew waiving the yearly fee.........go figure that reasoning.........they had me, let me go, now want me back........it's almost like going through a divorce.

[Bush Lady]

I don't own a credit card. I keep getting phone calls from companies that want to issue me a credit card. I just say, "I do not want a credit card."

The credit card companies are not giving you anything for free, they charge a high interest for the card. If it were up to them no one would pay their credit card off every month. The credit card companies are just in this for the money.

[poochee]

It is disgraceful, IMO. I consider it stealing and something should be done about these exorbitant penalties! I use my card once in a while just to keep it active. I need one, once in a while, for ID, or emergency.

They are a rip-off, and unfortunately the ones who can afford it the least are the ones that get taken.

[LANMaster]

Hidy Ho Smilin' Jack!

[bassetman]

Originally Posted by coderitr

I got a consolidation loan and paid off all my credit cards. I don't carry them any more. I do still carry a gas card, though. I can't think of a good reason to step into that quicksand again.

Can you get a payment plan when you fill up on gas?

[Gabriel]

I became a CC Dumby about 5 years ago. I had never had credit cards before that. Now I have debt that will take me 2-3 years to pay off, and then another 1-2 years if they keep the interest going.
I was so much happier without them, but was dumb enough to get them and not understand the finance charge and interest thing until 2 years ago....

DOUBLE-DUH

Last year I paid $3,000 off....but that is only because one of the CC Co. took all the interest off, and settled for 1/2 the total payment.

The other 3 I owe on are not as nice, and I am deadlocked with them, so am saving $ to pay as big of chunks as I can to try and negotiate interest relief.

It takes an extra 14 hours a week of work to do the savings to pay them the chunks they will consider, possibly 6 months from now, unless they change their minds ....again.

And we all know that is a probability.

The active ones balances are coming down, and 2 of them I have almost at 0 balance.

I have 1 that is for business expenses, and only 1/4 of the way down...
2 that are what I call my little CC's and the best ones for me as they are easy to pay down substantially.
And 1 gas card.

The business one has outrageous interest and finance charges, so that is going to go away soon as I can.......the 2 little CC's, one will take the place of the business CC...the credit on that is half the amount.......and the other one I will keep for emergencies......also the gas one...that is for Gene's sojournes into the world.....

So by January, I hope to have the 3 little CC's......................
The business one half way paid down, and working its way to extinction..............
And at least one of the 3 CC Cos. that I defaulted on in negotiations to pay off

I admit I am not to bright to let it get to this point....but hey, some of us don't give up failure without a fight........

[bassetman]

Good luck!

They give them out like candy, and then complain when people can't pay them back!