Credit Card Co. are getting even nastier

As if by this point we all aren't aware at how much credit cards can hurt us in the long run and we are trying to pay them off as quickly as we can, it is about to get harder.........again!

Here is a snippet from a recent article from Daily Finance
Credit card companies piling on fees, raising rates ahead of new federal rules

It appears that credit card issuers are insisting upon exercising their right to abuse their customers in the name of higher profits. A survey of recent activities by the top eight credit card issuers reveals that since the Federal Reserve announced rule changes designed to curb unfair credit card industry practices last December, the companies have implemented even more onerous practices, raised interest rates more aggressively and increased the number of fees that they can impose on their customers.

The Center For Responsible Lending (CRL) released its findings on Monday and according to the report, Citigroup (C), Bank of America (BAC), J.P. Morgan Chase (JPM), Capital One (COF), HSBC (HBC), Discover (DFS), American Express (AXP) and Well Fargo (WFC) have each increased interest rates on existing balances for many of their account holders on an "any time, any reason" basis within the last six months. This practice will be illegal under the new Fed rules which take affect in July 2010. The CRL estimates that at least 10 million card holders have been affected, and some have seen increases of 10 percentage points or more on their existing rate at a time when many consumers are having trouble staying afloat.

"This shows that they are trying to get as much money as possible before the rules change," said Kathleen Day, a spokesperson for the center.

We all know that a lot of this has been happening for months now. People with great credit history, are having their credit cards closed by the Company for no apparent reason. Credit card Companies are raising rates on very minor reasons left and right.

Now don't get all riled on me and said, "Well, it's your fault that you used the credit card in the first place." Yes, I am fully aware of my accountability in the use of credit cards. What is not acceptable to me is when you signed up with a card, you agreed to the terms and you were aware of the costs of the credit card companies, then they decide to change that agreement midstream. That was NOT what I signed up for. I agreed to this contract NOT this new and improved contract.

Day said the companies were "revving up" practices that they know are unfair. The companies fear their revenues will be affected when the practices are banned or curtailed after the Fed rules take affect. Legislation moving quickly though Congress could also put a damper on revenues. The result is that the companies are hitting their "best" customers -- those that have been able to continue to pay even as the recession has worsened -- with additional fees and charges to offset lost revenues when these practices are outlawed, and to hedge against losses from possible credit card defaults as the recession continues.

I understand the need and desire for Capitalism. I know that Credit Card Companies are in this business to make as much money off of consumers as humanly possible. They are not there to help us or cater to us. However, once again, if you sign a contract and then at some point that contract changes, you should be held accountable for the original contract. Fine, freeze my credit card. I understand that you are starting a new policy, but I for one did not sign up for that new change so, I should be allowed to pay off my card according to my current contract and I totally understand that since I am not accepting this new policy you have no choice but to freeze that card so I can no longer use it. That actually seems fair to me. I don't like, but that's my problem.

And yes, I am aware of the extremely fine print in the contracts of credit cards stating that if this event or that event occurs a raise in interest to such and such amount will occur or the cancellation of my credit card might also happen. But, this is not what is happening. they are not following their own contract they made with me. It goes way above and beyond that original contract.

That is not acceptable to me.

No comments :

Post a Comment

Thank you for taking the time to comment! I love to hear your ideas. If you ask a question, I will answer it here in a comment back to you. Please check back! Thank you for visiting and have a wonderful day! Diann :)