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Maybe in some cases, but my bank which I have been a member with for over 25 years and who has always been fair and straight with me basically say that they have to in order to balance out the cost related to the caps that are coming. CC companies make back a lot of their money on fines and penalties associated with rate hikes to customers who fall in bad standing. Take away their ability to compensate based on those who are bad and it pushes the company into a direct loss. So they must compensate across the board to be able to adjust for the fact that they can no longer penalize those who actually deserve it.
I don't like it, but I understand it. The responsible card holders are carrying some of the burden of those who are irresponsible. The only other option as I said is for the CC company to start taking losses. The better business they do, the more benefits they offer the good customers. Some might think it profiting on the poor, but it really is profiting on the irresponsible and personally I have no problems with them doing that. It is one of the downfalls for being irresponsible and there should be a price for such.
The problem I have with it is that by raising interest rates to 30-35%, and by increasing penalties and fines, they are actually increasing the number of people who will eventually fall into bad standing. Because these rate increases are unprecedented. Why is it that some lending institutions can make a reasonable profit on a car loan at 8% interest, but that they cannot make a profit on a $15,000 credit card at 8% interest?
There is a point when the fees, penalties and usurious interest rate has more of a role in a credit card holder defaulting than that credit card holder's lack of financial intelligence and responsibility.
The problem I have with it is that by raising interest rates to 30-35%, and by increasing penalties and fines, they are actually increasing the number of people who will eventually fall into bad standing. Because these rate increases are unprecedented. Why is it that some lending institutions can make a reasonable profit on a car loan at 8% interest, but that they cannot make a profit on a $15,000 credit card at 8% interest?
There is a point when the fees, penalties and usurious interest rate has more of a role in a credit card holder defaulting than that credit card holder's lack of financial intelligence and responsibility.
This is why i've kept low balances on my credit cards. I've cancelled two so far when they jacked up my rate from 9.5% to 18 and 22%. I now only have one credit card and since i barely use it, i constantly get these annoying feature enhancement phone calls.
They have proven to be the anti-for anything good for the average working American Party. They are so obviously corrupted and should be thrown out on their gluttonous fat asses. How can they come up for an excuse for this?
The Senate schedule is packed with nominations, health care and appropriations bills, leaving no time for a prolonged floor fight over credit cards.
The only way Democrats could pass the bill in time for the holidays would be with the support of the GOP -- all but five of which voted for it initially.
Dodd, on Wednesday afternoon, asked for unanimous consent to move the bill forward.
"On behalf of several senators on this side of the aisle, I object," said Sen. Thad Cochran (R-Miss.). And that's the end of it.
The people of Mississippi will appreciate this a-hole's stance on this? Glad the state is doing so well fiscally.
Last edited by sickofnyc; 11-19-2009 at 12:26 PM..
This is why i've kept low balances on my credit cards. I've cancelled two so far when they jacked up my rate from 9.5% to 18 and 22%. I now only have one credit card and since i barely use it, i constantly get these annoying feature enhancement phone calls.
Quickly getting to one card myself. Had some cards I should have canceled long ago, but never got around to it.
As an example, I had one card with a 15k available balance that I rarely ever used. It had an annual fee, so I often thought about canceling it. I received a letter saying they were dropping by credit limit to 1k. When I called they suggested I should consider keeping it open in case of emergencies. Frankly that is why I had kept it in spite of the annual fee.
Another card went from 8% interest to 22%. Canceled that one also. BTW, I never had any problems paying on the card.
Hopefully not all vendors will go this route. I think many of these vendors are being short sighted. I don't understand the business model that punishes your best customers. Best being defined as routinely borrowing without a history of payment problems.
Oh well, like I said rapidly getting down to a single card.
Well, the repubs continue their worship of the Wealthy and maintain their well earned reputation as slimey dirtbags....how Un-American and treasonous if anyone supports these pigs...Guess it's true ....like attracts!!!!
The Democratic argument when it was pointed out that fees would go up and higher interest rates from the Obama passed legislation, resulted in "you can simply choose not to use your credit card if you dont like the fees", will apply here.
Dont like the interest rate, dont use it.. Hey, D words, not R..
you do realize that its not that simple for some people? right?
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