Credit card companies going crazy! WTF?!

[tomato]

" This is a side effect of the pending changes the Credit Card Accountability, Responsibility and Disclosure Act will impose. After February 22, it'll be harder to introduce or enforce credit card rates and fees that are unfair to the consumer -- so banks are acting now. Among some of the things they're doing:

- Introducing annual fees for customers who don't meet a specific limit for charges on the card. (For example, if you don't charge at least $2400 on a credit card annually, you could be charged a $90 annual fee.)

- Boosting minimum payments and interest rates. (Although some have had to stop following public outcry.)

- Converting fixed-interest rates to variable interest rates.

- Levying extra fees on card holders who pay off their balance every month ..

Yeah, you read that last one right: next year, Bank of America is going to start charging people who pay off their balance on time."

Read more: http://www.sfgate.com/cgi-bin/blogs/dollarsandsense/detail?entry_id=50269&tsp=1#ixzz0V4vqxSRO


What a bunch of ...holes!!! :mad::bs:

[2+2]

Ya gotta admit these bankers have an interesting way of saying thank you.

In all seriousness though, I'm amazed at how stupid they are. Don't they realize that pushback is the only way anything political gets done in this partisan environment? The more the bankers show they have no pride, or remorse for what they've done or common decency the greater the pushback and the greater the likelihood that congress will bite the hand that feeds them and let them know that the frat party is over.

[BailOut]

In the consumer/credit culture that we live in, the best way to tell a company that you do or do not like what they do is by either spending your money with them or withholding it. In other words, if you don't like what your bank or credit issuer or mortgage lender, etc. does find one that has policies and practices you prefer.

Moving accounts around can be a PITA, but once it's done life is better. :smile:

[Kioshi]

Fuck Visa and Mastercard...AMEX all the way :)

[detroiter]

They are only pissing people off even more. Once I pay the rest of my card off soon, I'm done with cards for a LONGGGGG time

[EleKid]

This is really scary. Banks are going insane :frown:

[Kioshi]

They are only pissing people off even more. Once I pay the rest of my card off soon, I'm done with cards for a LONGGGGG time

you're going to cancel your card/s?
That would effect your credit score... :(

[tomato]

At $90 a year, I would cancel in a heartbeat. :rolleyes:

[2+2]

At $90 a year, I would cancel in a heartbeat. :rolleyes:
You can't charge $2400 annually until sanity comes back into style?

Groceries alone might get you there and there's quite a few bills you can use a credit card for like utilities. Of course gas for your car, oops it's a Yaris, sorry. It does hurt your credit score to cancel cards.

[tomato]

Yeah, I suppose I can, in fact, I probably charge more than that annually, especially when traveling.

It's just the principle that makes me :mad:

In addition to my regular credit card, I had a "safety " credit card, you know the one you don't use but you keep at home in case you lose your job or something. I ended up canceling it one year when Barclay's (i'm pretty sure it was them) wanted to charge me $75 for the non-use, because I hadn't used it in a year. I also went and canceled all my extraneous credit cards that year (macys, sears, etc.) and just kept the one I use now. I didn't know it went on my credit score. My credit is still OK, though (the dealership ran a check when I went to get the Yaris) plus I continue to get these "pre-approved" offers in the mail (in fact AMEX sent me one last week) so it couldn't be that bad. :iono:

Good to know, though, thanks.

[TinyGiant]

i dream of a day when all my cards are paid off. I have two of them canceled right now and am just hacking away at the ballances .. i have one that is still functional

[tomato]

yeah, credit cards are evil. :evil: If you don't pay them off on a regular basis, they'll eat you alive. :frown: Now I'm really careful with that because the interest rates are insane.

[TinyGiant]

the reason i closed mine is because the credit card company sent me a letter saying . keep the card and have an interest rate of 22% or cancel the card and keep your 5%

so i canceled them. then called and said I was having trouble keeping up and they dropped one card to 0% for a year and the other stayed at 5%

the crappiest thing is one of thecards is maxed from fixing the jeep i no longer have :(

i had to replace the tranny, brakes and windsheild. then like 4 months later because of the gas prices I unloaded it to get the yaris..

makes it even more defeating to keep paying it lol

[YarisSedan]

Ooh man this pisses me off even more at boa. I already have issue with them charging fees for having a checking account now. I cant wait to cancel all my accounts with them checking savings and credit card and move my money elsewhere. Once i get my american express blue cash i plan to use that instead of my bank of america visa. Sad thing is not all places take amex and if i cancel my visa i wont have a backup. Well i do have another card but thats a discover and the places that dont take amex usually dont take discover either. So dosnt help.

[brotan1x]

This will be regulated.. I think the financial institutions are trying to see what they can get away with. They will be smacked across the face very soon.

[TinyGiant]

we need a reset button :)

[Kioshi]

you mean a delete button, get rid of plastic money....
i tend to make the same mistakes over and over again haha

[TinyGiant]

true lol

[BluYrs]

Looking from across the pond, I have to wonder...

If banks start charging more for credit cards (basically you using their money), wouldn't it make sense to switch your consumer behaviour around? So instead of going through your next paycheck by using a credit card, why not use the money you have from your last paycheck? You wouldn't have to cut back on spending- if anything you'd have a few extra bucks which would have gone to pay off the credit.

Of course, this is based on the presumption that you don't spend more than you earn and that you have the ability to save a bit for unforeseeable expenses. Could it be that this presumption is not correct and that's why so many people have to resort to frequently using a credit card?

I admit that this is a much wider topic and also involves differences in long-time consumer behaviour between the US and the EU, but I have to wonder if the credit card has become a basic necessity. Dammit, I got all Carrie Bradshaw there, sorry...

[why?]

What we need to do is to adopt the common sense banking laws of England, and prolly some other countries, which make most of these fees illegal. Heck, my sister checked into getting a fancy bank of america acount in the states, one that allowed you to keep balances in dollars, pounds, and euros, and it would've cost her about $200 a month to have here, but in england, because of the laws, she can have it for free.

[Yaris Hilton]

Fuck Visa and Mastercard...AMEX all the way :)

I dropped AMEX years ago because (1) there are relatively few merchants who accept it; and (2) the annual fees were a bit too much.

[Yaris Hilton]

Of course, this is based on the presumption that you don't spend more than you earn and that you have the ability to save a bit for unforeseeable expenses. Could it be that this presumption is not correct and that's why so many people have to resort to frequently using a credit card?

I, like the majority of American credit card users, have always paid my balance in full each month. I use the card for convenience. The credit card companies unkindly call us "freeloaders," as we're not paying their exorbitant interest rates.

[tomato]

Carrie Bradshaw's credit card bills are probably out of control. She always seem to be wearing new shoes and clothes yet she doesn't know where the next paycheck is coming from :wink:

[TinyGiant]

its bad enough i gotta sit through skanks in the city when my wife watches it .. lol not on YW too!?! lol

[tomato]

Good point TG ;)

[AmyV]

Haha, funny you guys are talking about all this. I have an excellent credit score. I got a Best Buy credit card last year so I could get a computer there (they offered me 18 months same as cash). Paid it off in about 8 months.

Now, they just took changed my fixed interest rate and changed it to variable. This past month would have been 28% :eek:!!! Thank god I don't have a balance on the card!

It pisses me off though. :mad: Can't cancel the card, but can't carry a balance either. I guess I will buy like a DVD a couple times a year, charge it, then pay it off right away.

[Kioshi]

AmyV - i always say no to retailers offering their card to me. What cards i have, i can use them to pay for what i am buying.

Yaris Hilton - i can understand where you are coming from. I have a WaMu Visa as a back-up credit card aside from Amex Blue student card....i think the more business type of accounts get charged the annual fee, but Blue by Amex doesn't have an annual fee..you should look into them..again.

Amex has treated me well since Sept 2005, now WaMu/Chase..not really.... :(

[tomato]

Amex used to charge an exhorbitant fee to merchants so that's why they don't take it. I don't know how much they charge these days.

[yaris-me]

I dropped AMEX years ago because (1) there are relatively few merchants who accept it; and (2) the annual fees were a bit too much.

You should use the card that you like, but don't spread false information.:frown:

[tomato]

You should use the card that you like, but don't spread false information.:frown:

What do you mean? That's been my experience as well.
AMEX used to charge an annual fee in the past, and small businesses around here don't like AMEX either. where is the false information? He said "were" :iono:

[yaris-me]

What do you mean? That's been my experience as well.
AMEX used to charge an annual fee in the past, and small businesses around here don't like AMEX either. where is the false information? He said "were" :iono:

Relatively few merchants accept AmEx? Annual fees a bit too much?

[tomato]

You're just repeating yourself, but not adding any new info, so I can see you disagree with the statement but you're not saying why.

That's OK, everybody's entitled to their opinion :smile:

[Kioshi]

I kind of know what yaris-me is getting at, but not entirely...

I dont know how many retailers and stores in other states are accepting Amex..but i do know that I've seen an increase in stores now accepting Amex as of recent (this is based on me shopping at stores) in California.

[kustom play]

i just have 2 cards

one is a visa plat with a 2K limit (lol) and a master card with no limit (lol again)

i use to have a 20K limit on the master card, then I got a letter in the mail saying they upgraded me to unlimited so i dont have a limit

but it doesnt matter becasue my whole life since ive been 16, ive never had a balance on any of my cards. I pay them off every month

my visa I have my web hosting on 9.99 and the master card i use for everything else. I just use the card like cash, if i dont have the money in the bank then i shouldnt be using the card

I keep getting upgraded on my master card, i have all that cool stuff where i can call them and they get me tickets and everything else I need.

Im wating for somebody to offer me a Uranium card


I can see how people can get themself in trouble though, I was at toyota not to long ago and they told me i could qualify for anything on the lot including lexus

im like wtf i know i couldnt afford some of those cars, how can you JUST SAY i could?

[2+2]

and a master card with no limit (lol again)


You have a new best friend in Michigan. Feel free to stop by anytime. :w00t:

[Yaris Hilton]

You should use the card that you like, but don't spread false information.:frown:

No false information. That's why I dropped it, as I said, years ago.

I mainly use a Discover card now, with a Visa backup.

[Thej3sta2]

Craze crud man

[JBougie]

I know it's frustrating to deal with, but there are a couple things that we need to think about when we harp on credit card companies:

When people file chapter 7 bankruptcy and have their debts wiped clean, unsecured creditors get 1-5% of what they are owed, IF they get anything at all once the secured assets, again, if any - are sold. So what happens when someone with a $10,000 credit card walks away without paying anything? They have to re-coop that money somehow - that is passed back on to the comsumer in the form of annual fees, interest rate hikes, etc.

There is NO reason that people should rely on credit cards - we live in a 'who cares if I don't have the money, I want it' society and have dug ourselves into it. Everyone falls into it at one point of time or another, but you can't just say it's the banks fault - there is way more to it than what is on the surface. (*I know a lot of people don't do that, but 95% of Americans do). I don't have a credit card and don't want one because I would be that person sitting at the mall racking up everything I see - especially since I have a fetish for designer bags :)

I work in the Bankruptcy/Foreclosure industry, so I have learned a great deal about the behind-the-scenes things that go on. The banks aren't horrible people just looking to rob you blind. If you don't like having to deal with them, don't apply for that Best Buy credit card and save up the $1200 for that surround sound system you just 'have to have' instead of paying 17% interest for it....

I know it sucks, I'm not saying it's not - just my $.02

[tomato]

I know it's frustrating to deal with, but there are a couple things that we need to think about when we harp on credit card companies:

When people file chapter 7 bankruptcy and have their debts wiped clean, unsecured creditors get 1-5% of what they are owed, IF they get anything at all once the secured assets, again, if any - are sold. So what happens when someone with a $10,000 credit card walks away without paying anything? They have to re-coop that money somehow - that is passed back on to the comsumer in the form of annual fees, interest rate hikes, etc.

There is NO reason that people should rely on credit cards - we live in a 'who cares if I don't have the money, I want it' society and have dug ourselves into it. Everyone falls into it at one point of time or another, but you can't just say it's the banks fault - there is way more to it than what is on the surface. (*I know a lot of people don't do that, but 95% of Americans do). I don't have a credit card and don't want one because I would be that person sitting at the mall racking up everything I see - especially since I have a fetish for designer bags :)

I work in the Bankruptcy/Foreclosure industry, so I have learned a great deal about the behind-the-scenes things that go on. The banks aren't horrible people just looking to rob you blind. If you don't like having to deal with them, don't apply for that Best Buy credit card and save up the $1200 for that surround sound system you just 'have to have' instead of paying 17% interest for it....

I know it sucks, I'm not saying it's not - just my $.02


Great post! :clap:

With respect, I must disagree on some points.

The BANKS are the ones pushing the credit on people who can't afford it to begin with. Yeah, people are greedy, they want everything immediately because they're like 2 y old who can't stand having to wait for something, I know, I know. But greed goes both ways and the banks are not blameless.

This poster above was saying he has *unlimited* credit on his Visa. Unlimitted? Really?!! Wow!!! Isn't that a little risky? Whatever happened to extending the kind of credit people can afford to pay back?!!

I'm especially upset at the concept that if some deadbeat skips town without paying their $10,000 debt at the mall, I, as a responsible consumer who pays my credit card bill off every month, have to pick up the pieces. :bs:

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

[ddongbap]

So.... anyone consider NOT using them?

[yaris-me]

No false information. That's why I dropped it, as I said, years ago.

I mainly use a Discover card now, with a Visa backup.

Years ago, I can say the same about Visa and Discover. The people getting screwed over now are not with AmEx.

[yaris-me]

So.... anyone consider NOT using them?

There will always be cash, but the trend is towards electronic money. Eventually you will carry an ID chip and not have to carry cash.:biggrin:

[kustom play]

Great post! :clap:

With respect, I must disagree on some points.

The BANKS are the ones pushing the credit on people who can't afford it to begin with. Yeah, people are greedy, they want everything immediately because they're like 2 y old who can't stand having to wait for something, I know, I know. But greed goes both ways and the banks are not blameless.

This poster above was saying he has *unlimited* credit on his Visa. Unlimitted? Really?!! Wow!!! Isn't that a little risky? Whatever happened to extending the kind of credit people can afford to pay back?!!

I'm especially upset at the concept that if some deadbeat skips town without paying their $10,000 debt at the mall, I, as a responsible consumer who pays my credit card bill off every month, have to pick up the pieces. :bs:

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

i would totally agree

they give me an unlimited limit... so i can go just buy a 40K lexus tomorrow on my card

can I affored to do that? no!

are there some people who see that and then go "YES!!!!! BUY NOW!!!"

I would think most of us know enough not to rack up what we can not afford but there are some people who just cant handle it and live above what they can afford

all they want is your money, they dont care if you can afford it or not, they want you to be dumb enough to charge what you cant afford so they make money off the interest.

[DevilGirl]

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

More so than that, if you want to travel at all, stay at a hotel, book a flight, rent a car, or even some every day activities, you need some form of card, whether that is debit or credit.

I have been in several situations where, even though it is a card, they would not accept a debit card. It had to be a credit card. Even running it through as credit as opposed to debit, it was declined, because it was not actually a credit card. Granted, those are far and few between, but they still do occur.

[tomato]

More so than that, if you want to travel at all, stay at a hotel, book a flight, rent a car, or even some every day activities, you need some form of card, whether that is debit or credit.

I have been in several situations where, even though it is a card, they would not accept a debit card. It had to be a credit card. Even running it through as credit as opposed to debit, it was declined, because it was not actually a credit card. Granted, those are far and few between, but they still do occur.

That's true. I didn't want to bring up the case of people who travel because I realize that's not the majority of people, but yeah, you kind of need it.

Also, in some cases, a credit card is viewed as an acceptable form of ID, when they ask you for 2 form of ID's and you only have your driver's license on you, they'll take a credit card as proof of ID (Yeah, I know, doesn't make sense but they do here). It's either that or walking around with your passport or birth certificate :bs:

[TinyGiant]

So.... anyone consider NOT using them?

now that the wife and I have the house and car. I hope to pay off the credit cards and maybe have one for emergencies.

but i look forward to a time where i dont have any debt.. again. the money we have on the cards now was for emergency car repairs and some business stuff .. i cant wait to kill that drain on my finances :)


once you get the house and car you really dont need "credit" thats the only reason you build up "credit"

[JBougie]

Great post! :clap:

With respect, I must disagree on some points.

The BANKS are the ones pushing the credit on people who can't afford it to begin with. Yeah, people are greedy, they want everything immediately because they're like 2 y old who can't stand having to wait for something, I know, I know. But greed goes both ways and the banks are not blameless.

This poster above was saying he has *unlimited* credit on his Visa. Unlimitted? Really?!! Wow!!! Isn't that a little risky? Whatever happened to extending the kind of credit people can afford to pay back?!!

I'm especially upset at the concept that if some deadbeat skips town without paying their $10,000 debt at the mall, I, as a responsible consumer who pays my credit card bill off every month, have to pick up the pieces. :bs:

As to people not needing a credit card, it's not entirely true. A credit card is like that 5th tire you keep in the back of your car. Just in case. You never know, unexpected doctor bills, or you lost your job but have to bring food home while you're looking for another one, etc.

I fully agree. It is absolute crap. But, they don't have much of a choice - it's either go broke and not let anyone borrow anything or raise other things here and there to help continue the lending of monies.

And unlimited credit cards are ridiculous - they are absolutely asking for trouble when they hand those things out! I don't even want to know the damage I would do with an unlimited credit card ... lol ... they pray for people like me to get ahold of one, I'll be in debt and paying them off for the rest of my life!! :biggrin:

[JBougie]

i would totally agree

they give me an unlimited limit... so i can go just buy a 40K lexus tomorrow on my card

can I affored to do that? no!

are there some people who see that and then go "YES!!!!! BUY NOW!!!"

I would think most of us know enough not to rack up what we can not afford but there are some people who just cant handle it and live above what they can afford


all they want is your money, they dont care if you can afford it or not, they want you to be dumb enough to charge what you cant afford so they make money off the interest.

The 325,000+ active Bankruptcy files that my company monitors right now says drastically different .... lol

[kustom play]

thats sad

ive never carried a balance on a credit card from month to month

people just cant be happy with what they got, or with what they can afford i guess

[2+2]

I'm sure there are many, many cases of people living beyond their means and running up a hefty credit card bill.

A lot of time though it's just people buying necessities during tough times like maybe a layoff. If they don't get called back to work and have to accept a crap job the credit card debt doesn't just go away. Why do corps get to skate on debt though bankruptcy and individuals usually can't? Corps have 1st amendment rights just like individuals why don't they have obligations like individuals?

[DevilGirl]

A lot of time though it's just people buying necessities during tough times like maybe a layoff. If they don't get called back to work and have to accept a crap job the credit card debt doesn't just go away.

This is very true. That's how my credit debt started. I lost a job, took a few months to find a new one, had an apartment I had to pay rent on (used my savings for that), but all other bills and necessities went on the card. It's been hellish trying to get back on track (since 2004). Thankfully I now have a good job, and shortly will be eligible for working overtime, which I plan to take great advantage of in order to bring more money in to pay it off a little quicker.

[yaris-me]

There is NO reason that people should rely on credit cards - we live in a 'who cares if I don't have the money, I want it' society and have dug ourselves into it. Everyone falls into it at one point of time or another, but you can't just say it's the banks fault - there is way more to it than what is on the surface. (*I know a lot of people don't do that, but 95% of Americans do). I don't have a credit card and don't want one because I would be that person sitting at the mall racking up everything I see - especially since I have a fetish for designer bags :)

I work in the Bankruptcy/Foreclosure industry, so I have learned a great deal about the behind-the-scenes things that go on. The banks aren't horrible people just looking to rob you blind. If you don't like having to deal with them, don't apply for that Best Buy credit card and save up the $1200 for that surround sound system you just 'have to have' instead of paying 17% interest for it....

I know it sucks, I'm not saying it's not - just my $.02

Very insightful, but who is this 95% or is it 5%? :iono: So what is the future for the creditor? I know that many people will walk away from paying their debt.

[YarisSedan]

There was a time when i wanted a credit card. And my whole life i payed everything with cash. So i was declined everywhere. Their explination was insufficient credit history. Well duh thats the whole point of me getting a credit card. Even department stores would declined me.

[Kioshi]

Just use your debit card and charge as credit. Keep sufficient funds on it and never go overboard.... thats how i started out and started getting credit offers in the mail..then i went downhill, because of school...

[tomato]

I fully agree. It is absolute crap. But, they don't have much of a choice - it's either go broke and not let anyone borrow anything or raise other things here and there to help continue the lending of monies.



In that case, everybody should be paying a small annual fee for the use of the card, let's say $15 everybody, instead of that ridiculous $90 fee or whatever it is they want to stick to those who pay off their bill every month. Grrrr

[tomato]

There was a time when i wanted a credit card. And my whole life i payed everything with cash. So i was declined everywhere. Their explination was insufficient credit history. Well duh thats the whole point of me getting a credit card. Even department stores would declined me.

I started out with a debit card, and with that I got a gas card, then a department store card. A few years later, I got a credit card. Credit may be a little harder to get lately :iono: