Credit card companies to "get the shit beat out of them by the President"

[Snake Doctor]

http://news.yahoo.com/s/politico/21612

About time someone gave a shit about the little guy instead of the giant corporation.

[seeandsee]

Originally Posted by Snake Doctor

http://news.yahoo.com/s/politico/21612

About time someone gave a shit about the little guy instead of the giant corporation.

[stever]

obama fo real

[woj]

What problems are there with credit cards? I've used them for years, never had any issues, even made $100s each year from reward/cash back/etc deals, and that even doesn't include the free 30 day "float" each month...

[Tom_PM]

Problems include them being able to raise your rates if you are late on a payment to ANOTHER card issuer.. just for instance, lol.

Maybe they should give you a bonus because you paid them and were late to someone else.. lol, crazy.

[woj]

Originally Posted by PR_Tom

Problems include them being able to raise your rates if you are late on a payment to ANOTHER card issuer.. just for instance, lol.

Maybe they should give you a bonus because you paid them and were late to someone else.. lol, crazy.

Yea, but it's pretty clear (at least to me) that interest they charge is variable and depends on numerous factors including your credit score, if you are late on payments, your credit score plummets, and so your interest rate goes up...

[Tom_PM]

Yeah but this is one of the major talking points about the bad side of cc's is all I'm sayin. Was just an interview on tv with someone about it, and sure enough it was the point he raised. Card A will raise your rate in a heartbeat with no warning (beyond the text of the agreement I mean) if you are late one time to Card B. And I guess some peoples problem with it is that the agreements are so long now it's not expected that people read AND understand them BEFORE signing, and that the card issuers dont give you any grace period on such penalty items like that.

Heck I'm a cash and carry guy, so no biggy to me personally.

[Tom_PM]

Another thing is lets say you have a $3000 limit and you owe $2500 on it which you pay montly without fail. Some people are having their limits DECREASED down below what they owe, lets say to $1500. Now this person is $1000 over their limit, AND being hit for the associated fees! LOL.

Sure it's in the agreement that all this is possible, but holy shit thats not fair hehe.

[woj]

Originally Posted by PR_Tom

Another thing is lets say you have a $3000 limit and you owe $2500 on it which you pay montly without fail. Some people are having their limits DECREASED down below what they owe, lets say to $1500. Now this person is $1000 over their limit, AND being hit for the associated fees! LOL.

Sure it's in the agreement that all this is possible, but holy shit thats not fair hehe.

yea, that is indeed a little pushing it...

[stevo]

Just got this in the mail today:

"We want to inform you of changes to your Account. Your standard Annual Percertage Rate (APR) for purchases will be changed to a variable rate."

Sweet, so now i guess they can just charge me whatever they fucking want!

[BradM]

Time to stop excessive spending for 12 months and pay off your credit cards kids

[Karupted Charles]

Originally Posted by PR_Tom

Another thing is lets say you have a $3000 limit and you owe $2500 on it which you pay montly without fail. Some people are having their limits DECREASED down below what they owe, lets say to $1500. Now this person is $1000 over their limit, AND being hit for the associated fees! LOL.

Sure it's in the agreement that all this is possible, but holy shit thats not fair hehe.

I had this happen to me. My credit score dropped big time during my divorce due to issues with the X and though I never missed a payment to them and payed more then the minimum they dropped my limit below what I owed and got hit with a ton of Fees.

[ADL Colin]

What next? Is Obama gonna meet with my drug dealer and tell him to gimme better prices?

[Tempest]

Originally Posted by woj

Yea, but it's pretty clear (at least to me) that interest they charge is variable and depends on numerous factors including your credit score, if you are late on payments, your credit score plummets, and so your interest rate goes up...

Yeah.. increasing interest rates is really going to help someone that's already struggling to make the payments.. all it does is force them to not be able to pay anymore... so the CC companies never get their money. And really, what does the person who fucked up their credit care.. Within 5 years they can fix that and the CC company STILL doesn't have their money. It's a truly fucked up model that someone obviously created with their head up their ass.

[Agent 488]

there is a reason every major religion bans usury ...

[Tom_PM]

Wow that sucks, Charles. Totally unfair..

And yeah, we're seeing people just walking away from mortgages because they're so far upside down and inside out that it's just cheaper and easier than trying to make right on the loan, lol. I think we've FOUND the tipping points on these things, lol.

[crockett]

It's about time.. I hope he actually does something to them. While I do agree people should be responable for their own debits CC companies are like vampires. They are nothing more than legal loan sharks IMHO.

Their entire goal is to get you so far in debit that you can't pay them back. The only diffrence between them and the mob, is they don't break your legs.

[IllTestYourGirls]

Originally Posted by crockett

It's about time.. I hope he actually does something to them. While I do agree people should be responable for their own debits CC companies are like vampires. They are nothing more than legal loan sharks IMHO.

Their entire goal is to get you so far in debit that you can't pay them back. The only diffrence between them and the mob, is they don't break your legs.

If you dont like their rules dont get their cards.

No one forced anyone to get a credit card. People voluntarily got a card. They should have known the rules going in. How is any of it the credit card companies fault that people are stupid?

Now let me guess I will somehow end up paying for someones default card. Because "the terms were unfair".

[Snake Doctor]

Originally Posted by woj

Yea, but it's pretty clear (at least to me) that interest they charge is variable and depends on numerous factors including your credit score, if you are late on payments, your credit score plummets, and so your interest rate goes up...

Yeah but in what other business can they change the terms of the loan AFTER the money has been borrowed?

It would be one thing if they said "everything you charge from now on is going to be at XX%", but they raise the rates on money you've already borrowed.
The only other person I know who can get away with that is

[phypon]

I'm not sure why people are sticking up for the CC companies in this thread. You do of course realize that by making changes to CC companies in favor of the customer ultimately helps all business online since nearly 100% of transactions are CC based.

To add to what someone has already mentioned about card A raising rates because a payment to card B was late: card B changed it's due date of the statement up without informing the customer thereby causing the customer to make a late payment forcing them to pay late fees.

See how they work. So now, one cards unfair practices play into another cards unfair practices. The customer has done nothing wrong and has had the rug pulled out from under them. Now they have extra fees from two card companies and their credit rating has now been affected. It never ends.

Of course the points made about not living in excess are totally valid and I agree with that, but that's a different discussion altogether.

[IllTestYourGirls]

Originally Posted by phypon

I'm not sure why people are sticking up for the CC companies in this thread. You do of course realize that by making changes to CC companies in favor of the customer ultimately helps all business online since nearly 100% of transactions are CC based.

To add to what someone has already mentioned about card A raising rates because a payment to card B was late: card B changed it's due date of the statement up without informing the customer thereby causing the customer to make a late payment forcing them to pay late fees.

See how they work. So now, one cards unfair practices play into another cards unfair practices. The customer has done nothing wrong and has had the rug pulled out from under them. Now they have extra fees from two card companies and their credit rating has now been affected. It never ends.

Of course the points made about not living in excess are totally valid and I agree with that, but that's a different discussion altogether.

Dont get me wrong. I think the terms are unfair. That is why I refuse to get a credit card. If I really needed money I would go to a bank and get a personal loan.

I have a problem with the government telling companies have to run things. I am amazed that anyone in this business would be happy about the government moving into a company and telling them how to run things, on what terms, and so on.

[phypon]

Originally Posted by IllTestYourGirls

Dont get me wrong. I think the terms are unfair. That is why I refuse to get a credit card. If I really needed money I would go to a bank and get a personal loan.

I have a problem with the government telling companies have to run things. I am amazed that anyone in this business would be happy about the government moving into a company and telling them how to run things, on what terms, and so on.

I understand what you are saying and I agree with that 90% of the time or better. The thing I have a problem with is when one company's unfair policies affect several others down the line. Card A affects card B and that in turn hurts my business and also affects the chain in which my business relies on.

Consumer's have rights too and I need consumers. With almost all "things", there are lines drawn in the sand. I think that line has been crossed for some time now and it's time to correct that. The bottom line is that the CC's are hurting everyone, including themselves (as one poster mentioned), in the process.

I don't want to see the gov. stick it's hand into how businesses operate, but if a segment of business can have such a ripple effect due to it's underhanded policies, I think something should be done. To me, intervening in this situation is as allowable as intervening with a monopoly that gouges, etc...

But again, I understand your point and agree with it (for the most part). I just see this instance as an instance that warrants action.

[Snake Doctor]

Living within your means and being frugal are of course important things, but when making that statement also realize alot of people are in this situation.

They get a credit card at 9%.
They want to buy some furniture for $5000.
The minimum payment on that is $87

Then they get sick, miss a week of work, and are late on their car payment.
They pay the late fee and catch up with the car payment, but then the credit card company finds out, raises their rate to 28%, and lowers their limit.
Now the minimum payment has doubled, to $165, plus the $35 over the limit fee that was triggered when they lowered the limit.
So now you're paying $200/month.

Do that on a couple of accounts and it's not hard to see how people can get in over their heads, especially in an economy like this one. Alot of people may have borrowed last year or the year before when things were great, and now they've lost their jobs and their CC payments have tripled because they fell behind.

Add to that the recent changes to bankruptcy laws (which were literally written by the credit card company lobbyists) and consumers have even less of a chance to get back on their feet if they ever fall behind.

[Snake Doctor]

Originally Posted by phypon

I understand what you are saying and I agree with that 90% of the time or better. The thing I have a problem with is when one company's unfair policies affect several others down the line. Card A affects card B and that in turn hurts my business and also affects the chain in which my business relies on.

I have illtestyourgirls on ignore, but unfortunately saw his post when you quoted him.

Umm yeah, why would we want the government involved? Let companies do what they want.

So what if a pharmaceutical company wants to sell a blood pressure medicine that causes cancer and hides the evidence, the "free market" will sort it out right?

So what if Wall Street wants to turn the stock market into a casino? The free market will sort it out.

So what if a company wants to give out mortgages to people who can't afford to pay them back, the free market will sort it out.

People go on and on and on about freedom and free markets but they forget that there's a social contract. We, the people, voluntarily ceded certain natural rights to the state in exchange for security and other guarantees. (See Locke, John....whose work was what the declaration of independence was based on)

I have personal freedom, but I'm not free to punch you in the face.

We have a free enterprise system which means I can start my own business, but I can't open a restaurant and poison the food.

For the past 20+ years we've had a government that has let the entire financial industry, not just credit card companies, do basically any damn thing they wanted with no oversight or regulation.
It's about time someone stepped in and did something for the little guy, because the little guy doesn't have an army of lawyers and lobbyists to buy his own laws in the U.S. congress.

[bushwacker]

Originally Posted by ADL Colin

What next? Is Obama gonna meet with my drug dealer and tell him to gimme better prices?

You should buy in bulk, it saves me money in the long run.

[Barefootsies]

Originally Posted by ADL Colin

What next? Is Obama gonna meet with my drug dealer and tell him to gimme better prices?

[Manowar]

Originally Posted by stevo

Just got this in the mail today:

"We want to inform you of changes to your Account. Your standard Annual Percertage Rate (APR) for purchases will be changed to a variable rate."

Sweet, so now i guess they can just charge me whatever they fucking want!

It's a hard life being a card company

[Nikki_Licks]

Originally Posted by PR_Tom

Another thing is lets say you have a $3000 limit and you owe $2500 on it which you pay montly without fail. Some people are having their limits DECREASED down below what they owe, lets say to $1500. Now this person is $1000 over their limit, AND being hit for the associated fees! LOL.

Sure it's in the agreement that all this is possible, but holy shit thats not fair hehe.

That's when you tell the bank to eat the card

[Snake Doctor]

Originally Posted by Nikki_Licks

That's when you tell the bank to eat the card

You can tell them that, but you still have to pay those egregious rates and fees, and if you don't, then there goes your credit.

[TheSenator]

Originally Posted by Snake Doctor

I have illtestyourgirls on ignore, but unfortunately saw his post when you quoted him.

Umm yeah, why would we want the government involved? Let companies do what they want.

So what if a pharmaceutical company wants to sell a blood pressure medicine that causes cancer and hides the evidence, the "free market" will sort it out right?

So what if Wall Street wants to turn the stock market into a casino? The free market will sort it out.

So what if a company wants to give out mortgages to people who can't afford to pay them back, the free market will sort it out.

People go on and on and on about freedom and free markets but they forget that there's a social contract. We, the people, voluntarily ceded certain natural rights to the state in exchange for security and other guarantees. (See Locke, John....whose work was what the declaration of independence was based on)

I have personal freedom, but I'm not free to punch you in the face.

We have a free enterprise system which means I can start my own business, but I can't open a restaurant and poison the food.

For the past 20+ years we've had a government that has let the entire financial industry, not just credit card companies, do basically any damn thing they wanted with no oversight or regulation.
It's about time someone stepped in and did something for the little guy, because the little guy doesn't have an army of lawyers and lobbyists to buy his own laws in the U.S. congress.

Agree Agree

[OY]

Originally Posted by Snake Doctor

Living within your means and being frugal are of course important things, but when making that statement also realize alot of people are in this situation.

They get a credit card at 9%.
They want to buy some furniture for $5000.
The minimum payment on that is $87

Then they get sick, miss a week of work, and are late on their car payment.
They pay the late fee and catch up with the car payment, but then the credit card company finds out, raises their rate to 28%, and lowers their limit.
Now the minimum payment has doubled, to $165, plus the $35 over the limit fee that was triggered when they lowered the limit.
So now you're paying $200/month.

Do that on a couple of accounts and it's not hard to see how people can get in over their heads, especially in an economy like this one. Alot of people may have borrowed last year or the year before when things were great, and now they've lost their jobs and their CC payments have tripled because they fell behind.

Add to that the recent changes to bankruptcy laws (which were literally written by the credit card company lobbyists) and consumers have even less of a chance to get back on their feet if they ever fall behind.

It is a vicious circle made worse by the guaging credit card industry. They are like wolves preying on us, the sheep.

[wargames]

Originally Posted by PR_Tom

Problems include them being able to raise your rates if you are late on a payment to ANOTHER card issuer.. just for instance, lol.

Maybe they should give you a bonus because you paid them and were late to someone else.. lol, crazy.

[Sausage]

"Oh no ... I am being offered a credit card that I clearly can't afford but since I am being offered it I have to take it and max it out! Please protect me Mr. Obama!"

Grow up kids and learn some responsibility.

[phypon]

Originally Posted by Snake Doctor

I have personal freedom, but I'm not free to punch you in the face.

It's about time someone stepped in and did something for the little guy, because the little guy doesn't have an army of lawyers and lobbyists to buy his own laws in the U.S. congress.

Good post and great points. I quoted what I think is the sticky point (the other line I quoted because, well, that's a great line!)

The part about the lobbyists and army of lawyers is exactly why I think gov. should not be too invasive when it comes to regulation. I think we are looking at it the same way but from a different perspective.

I definitely think it's great that, in terms of business entities, that the tables have turned. You're right, it's about time the little guy gets represented for a change.

The problems I have with intervention is as you mention, when the lobbyists buy laws that the little guy can not adhere to because of extravagant, unnecessary overhead. Obviously no one is going to argue that a law should not be passed to prevent your new restaurant from selling poison (btw, what's the name of that place? - I keed, I keed). But, if they tell you that you need to have 5 $10,000 mops or you can't operate...

Like I said, there are lines and gray areas abound, but in this instance (with cc's) it's a clear case of consumer's being defrauded.

Again, good post and well said.

[Snake Doctor]

Originally Posted by Sausage

"Oh no ... I am being offered a credit card that I clearly can't afford but since I am being offered it I have to take it and max it out! Please protect me Mr. Obama!"

Grow up kids and learn some responsibility.

idiot...

[IllTestYourGirls]

Originally Posted by Snake Doctor

It's about time someone stepped in and did something for the little guy, because the little guy doesn't have an army of lawyers and lobbyists to buy his own laws in the U.S. congress.

OMG all the lobbyists are out of washington now?! WOOHOO! Who the fuck do you think are going to be writing the new fucking laws? The same fucking people that wrote and ignored the old laws because of the lawyers and lobbyists. You really think things are going to change?

How much more did you willingly pay in your taxes this year? Or just like every other Obama supporter you expect others to pay for the massive mistakes of a few? How about those people pay for their own fucking mistakes and you all stay out of my pockets?

[96ukssob]

Originally Posted by stevo

Just got this in the mail today:

"We want to inform you of changes to your Account. Your standard Annual Percertage Rate (APR) for purchases will be changed to a variable rate."

Sweet, so now i guess they can just charge me whatever they fucking want!

thats fucked up. BofA recently did this to me. They sent me letters saying they have raised my credit limit up and other promos to spend the money. So I did a balance transfer from a business line of credit to the card... a few months later i get a letter saying my interest rate is now 24.99%

[IllTestYourGirls]

Originally Posted by phypon

I understand what you are saying and I agree with that 90% of the time or better. The thing I have a problem with is when one company's unfair policies affect several others down the line. Card A affects card B and that in turn hurts my business and also affects the chain in which my business relies on.

Consumer's have rights too and I need consumers. With almost all "things", there are lines drawn in the sand. I think that line has been crossed for some time now and it's time to correct that. The bottom line is that the CC's are hurting everyone, including themselves (as one poster mentioned), in the process.

I don't want to see the gov. stick it's hand into how businesses operate, but if a segment of business can have such a ripple effect due to it's underhanded policies, I think something should be done. To me, intervening in this situation is as allowable as intervening with a monopoly that gouges, etc...

But again, I understand your point and agree with it (for the most part). I just see this instance as an instance that warrants action.

If the policies of the credit card companies are hurting their own company they will change them. Because like you said they are hurting the customers and that means fewer customers. This would all sort it self out without the government stepping in. It would have to.

Snake likes to grandstand. I dont believe anything he said about my opinions.

He stated things where the government might want to step in. Credit cards are not killing anyone and credit cards are NOT NEEDED.

[pornguy]

The thing that gets me about the cards and the reason I dont have them any more. Is I sent payments. Bank checks and 2 times in a row, they were sent on time and got to them late. they raised the rate even though they got the check DAYS after the late due dates. And then refused to lower the rates..

Now days we have 1 card with a 2k limit on it. its for renting a car or what ever when traveling. Otherwise if we dont have it in checking we just dont have it.

[Snake Doctor]

Originally Posted by IllTestYourGirls

OMG all the lobbyists are out of washington now?! WOOHOO! Who the fuck do you think are going to be writing the new fucking laws? The same fucking people that wrote and ignored the old laws because of the lawyers and lobbyists. You really think things are going to change?

How much more did you willingly pay in your taxes this year? Or just like every other Obama supporter you expect others to pay for the massive mistakes of a few? How about those people pay for their own fucking mistakes and you all stay out of my pockets?

Yawn.

Is it like against your religion to discuss things rationally or disagree agreeably?

This isn't about new laws or lobbyists, this is about regulations that the executive branch alone can write and enforce.
This is about the fact that even though there were laws on the books regulating the financial industry, it's the President's prerogative whether or not to enforce them, and how strictly to enforce them.
We now have a President who cares about Joe Six Pack more than Joe the CEO and who will keep an eye on the credit card companies.

What's with this "like every other Obama supporter" line?
Maybe you didn't read the exit polling, but Obama won the vote of people making over $250K per year, the people on whom taxes will increase.

If you don't like it, you can move somewhere else. Of course, every other industrialized nation has much higher taxes, particularly on the wealthy, than the U.S. will even if Obama gets all of his proposals through congress.

I guess you could always move to a 3rd world country. Some of them have lower taxes than the U.S.
There seems to be plenty of work for web savvy people in Nigeria.

[2012]

they sure have been beating the shit out of us

[Pleasurepays]

Crazy idea.

I've got a really crazy idea.

Kinda kooky... maybe people should stop borrowing money from a bank to buy a CD or a pair of Levis or a $10.00 lunch?

and if you don't like the way your bank is treating you if you do.. .go to a different bank

[IllTestYourGirls]

Originally Posted by Snake Doctor

If you don't like it, you can move somewhere else. Of course, every other industrialized nation has much higher taxes, particularly on the wealthy, than the U.S. will even if Obama gets all of his proposals through congress.

I guess you could always move to a 3rd world country. Some of them have lower taxes than the U.S.
There seems to be plenty of work for web savvy people in Nigeria.

You are starting to sound like a redneck Bush supporter. The left is getting as laughable as the right at this point.

[Snake Doctor]

Originally Posted by IllTestYourGirls

He stated things where the government might want to step in. Credit cards are not killing anyone and credit cards are NOT NEEDED.

Really? Ever tried renting a car without one? How about staying at a decent hotel? Buying anything online?

If credit isn't important then why did a republican treasury secretary and a fed chairman appointed by a republican go to congress, hat in hand, and ask for $700 billion to "unfreeze the credit markets"

Maybe because credit is vital to an advanced economy, and credit cards are part of that equation.

[IllTestYourGirls]

Originally Posted by Pleasurepays

Crazy idea.

I've got a really crazy idea.

Kinda kooky... maybe people should stop borrowing money from a bank to buy a CD or a pair of Levis or a $10.00 lunch?

and if you don't like the way your bank is treating you if you do.. .go to a different bank

OMG really I can do that? I dont have to get a credit card? I can move my business to another business? I thought I was born with a credit card taped to my ass to use on things I don't need.

[Snake Doctor]

Originally Posted by IllTestYourGirls

You are starting to sound like a redneck Bush supporter. The left is getting as laughable as the right at this point.

You are a redneck Bush supporter, so go fuck yourself asshole.

I knew there was a reason I had you on ignore.

Now it's time to put you back on ignore and enjoy myself as I watch us slowly become Sweden.

kthxbai

[IllTestYourGirls]

Originally Posted by Snake Doctor

Really? Ever tried renting a car without one? How about staying at a decent hotel? Buying anything online?

If credit isn't important then why did a republican treasury secretary and a fed chairman appointed by a republican go to congress, hat in hand, and ask for $700 billion to "unfreeze the credit markets"

Maybe because credit is vital to an advanced economy, and credit cards are part of that equation.

You dont need CREDIT cards for that you can use DEBT cards for that. Yes they are currently using mastercard/visa for debt but that could change.

[IllTestYourGirls]

Originally Posted by Snake Doctor

You are a redneck Bush supporter, so go fuck yourself asshole.

Really? Thanks I didnt know! Im glad you stated my opinions for me again.

I liked it better when you had me on ignore lol

[Tom_PM]

Originally Posted by Sausage

"Oh no ... I am being offered a credit card that I clearly can't afford but since I am being offered it I have to take it and max it out! Please protect me Mr. Obama!"

Grow up kids and learn some responsibility.

lol I think people understand that for the most part, but it's really gotten to a breaking point here on these things.

I mean imagine making a buy today for $2000 ok, and tomorrow you get a notice that your limit was just decreased to $1000 and you now owe fee's for being over your limit, your overall credit score takes a blow and other lenders who's cards you havent touched in forever notify you that your interest rate just went up.

Mind you, all you actually did was buy something.

And the agreements on these things? Man it's like they contact the space program for the micro finest parchment science can create then use some typeface you can hardly see, and a skilled lawyer still needs a week to read it and have confidence in their comprehension.. It's to the point where it's no longer reasonable to assume that an average consumer could "agree" without legal council to some of these contracts.. seriously.

They are actually alledging that some cc companies set up business models specifically based around penalties and fee's. Pure scams taking advantage of the "stupid comsumer shoulda known better" umbrella.

[LiveDose]

Banks have been ruthless with credit cards. Fuck'em.