Wow...Will credit card companies ever stop this?

“Do you think there will be more regulation”

They would like you to think that. They call the shots, those cancerous tumors that reach out like tentacles. Sucking the life out of you.

They would never think of regulating themselves.

Makes me sick. I am pissed they got rid of the usury laws in the 70’s. Credit card companies are like loan sharks. I have some empathy, because the debt is not secured, but they should be tighter with their limitsthen, not charging 30% plus ridiculous fees.

Credit cards companies and banks in general will do what ever they can do to take the money out of the consumer’s pockets. They don’t care how they do it or what other people think about it, it’s no surprise they screw people over just as long as their pockets are gleaming with cash in the end. So to answer your question no…they will never stop.

@HTDC Damn :(

Credit card companies will stop when people stop using credit cards.

Amen @Snarp!

I use a credit card for convenience and to get reward points. I absolutely never carry a balance from month to month, and I never miss a payment, so I don’t worry about rates and late fees. But the day they start charging an annual fee is the day I cancel the card.

@Snarp‘s first answer… and that will never happen. People have become too reliant on credit cards these days. There’s really no such thing as real money anymore, it’s more like a bunch of numbers on a computer screen.

I don’t have a credit card myself, no one in my family does, it’s just foolish to own one in my eyes, unless people use it intelligently which clearly isn’t a very high percentage of the population considering the billions of dollars of debt society is in.

They will only stop when forced to and, just as they have here, will attempt to circumvent any instilled restrictions through whatever loopholes are available. when your customers are dependent on you, and in many cases legally obligated to you because of their debt, as a company you can pretty much do whatever you want without fear of meaningful reprisal or loss of profit.

Straight forward, hard regulations, with quick responses to loopholes and clear meaningful punishments for violating companies would not be at all difficult but with the lobbyists and american reliance on credit as it is it will never happen.

You have better chances that your local loan shark regulates himself. Credit card companies pay off people to look the other way. Although what raises interest rates can be blamed more on the 3 credit bureaus. I get a regular credit report and I can’t tell you how many times they had things listed wrong. Addresses, Names, social securities numbers, whether and account is closed or open. I think they are the main culprit. And then they make you jump through hoops for something beyond your control. They once had a debt for a car I bought and sold years ago. The car was paid for in full. But it was a private dealership and they never reported it. It didn’t show that I was late or anything but the balance still showed as being there. The dealership had closed shortly after I paid off the car so I had no way of getting verification. The only thing that helped me was one of the credit bureaus had it listed as paid in full and closed. When I would compare all 3, they would never match. Credit card companies use the one closes to them to determine how you will rate to establish your interest. So if they go to the crappiest one than you will not do well.

@wonderingwhy

“St. Peter dontch’a call me, ‘cause I can’t go. I owe my soul to the company store.”—Sixteen Tons

They are sharks. And the reason the government has had to step in and regulate them, is because they went in for the kill after the housing crisis and economic downturn, which left a load of people with high credit balance open to abuse. So, these credit card holders with high balances were then forced to contend with really high interest rates on top of their debt. I recall personally that in one year I paid $1000 interest that year on a $5000 or less balance. Incredible! When I called the card company about it, they agreed it was high but told me they would switch me to another card with a lower interest rate. Totally bogus. Since then I try to have no balance, and am waiting to see what the card company will do to people like me who have nothing to offer them cancel me?

But I feel for those still stuck in credit card hell. I believe financial guru Suze Orman suggested on national tv that if you can’t afford to pay your exhorbitant credit card bill, to not pay and then call up the company and make a deal with them. Because if it is that or putting food on the table and gas in your car, they can wait for your payment.

@Siren Most people with really high credit card debt bought things they shouldn’t have. I am completely disgusted by the credit card companies, but the consumer played a part also. Credit cards should be a convenience, not a way to buy something someone can’t afford at the moment, I only buy what I can afford in full at that moment (not including a house or car in the past) except in extreme circumstance (God forbid) like a health problem or needing to put food on the table after doing everything right and then losing a job or something catastrophic. I am not talking about the $5000 you speak of, I mean really ridiculous outstanding bills.

I don’t think they will cancel you. I have always paid in full and I get solicited all of the time by the credit card companies, and they dole out ridiculously high limits. They make money every time you use your card. Many of my cards wave the annual fee, or lower it (my credit cards with frequent flyer miles have annual fees) sometimes I cancel the card if they won’t get rid of the fee.

@all What I don’t understand is why people did it? Why were they willing to pay the high rates? Not including people who really have a problem like compulsive shopping.

Also, I don’t remember the exact stat, but it is somethign around 40% of Americans pay their balance in full every month, I read that about 2 years ago, maybe it is a little better now. I was suprised it was that high to be honest. I think we should promote this in the media, that it is “normal” to pay the bill in full. I think a lot of people think it is normal to pay over time. In the same article it had said that 30 something % of homes are owned outright with no mortgage attached.

@JLeslie: I agree. I think some people got into debt juggling healthcare costs with living costs. Interestingly enough, I no longer get card companies soliciting me. Don’t know if that is good or bad. My credit should be okay. I think I’m no longer a good client for them (pay in full). They actually owe me $4 because I overpaid the last one.

We should start a trend in calling them convenience cards like you pointed out. Maybe then people will get the hint of what they’re actually paying for. I think I will start calling them that.

@siren convenience cards. Yes, we can start a trend. I actually always thought og my credit card as SAVING money. I had the money for a few weeks before the bill was due, and was earning interest on it. I have made a few thousand over the years having that mind set. Plus, getting money back or free flights.

You are more generous than me. I think most people got into debt because they bought a bunch of stuff they didn’t need, or bought the Mercedes instead of the Honda. Of course there are people like you describe also.

@all are you in favor of the government helping to get a person out of some the debt? Government money going to help with mortgages or credit card debt?

@JLeslie I am in favor, although I’m not educated enough on this topic to make an educated answer, just going off of what I feel is the best. Sometimes people need help from the government.

@JLeslie: I am in favor to help people out who legitimately need help. However, I am completely against the government bailing out organizations that take huge risks, make a lot of money or lose a lot, destroy an economic sector, then expect the government to help them out of their own private sector business woes with our tax paying dollars.Why am I paying for someone’s yacht or another summer home???

I am kind of against the government helping people who got into debt. I would be ok with legislation that gave people a little time to figure out a plan, get their act otogether, but not be given money. Too many of us did the right thing, sacrificed, and did with less to not get into debt we could not handle. If people have lost their jobs I have complete empathy for them, and support them getting unemployment and help to get back into the work force, but not just bail out someone who can’t afford their mortgage and credit card debt because the debt they got into by their own decision was too much. And, even those who lost their jobs, if they are over the age of 30 and make a good salary, there is no excuse for them not to have a few months of savings to cover their expenses.

Like a relative of mine said, “if I knew the government would help me if I bought a mortgage I could not afford, I would have bought an apartment twice the size I live in now.” She lives in a studio in NYC.

“I am kind of against the government helping people who got into debt”
I understand what you are saying. But where does that way of thinking end?

Next thing you would be saying is, “I am kind of against the government helping people who are not as capable as myself.”
United we stand divided we fall.

We were set up. As far as the credit companies go. And some of you have been able to stay within your means. Shit happens to us all.

I think the government should take the stimulus money and do nothing more then pay off the national credit debt.
That is around 600 billion. Saving us 400 billion. This would not be free money, and some people/businesses will not take that offer. They wont have to.
And, the banks get their money back with out restrictions. Except for how they do business in the future.

But, the ones that do take the deal have to follow a guideline. Like not able to have credit for 5 years, unless a secured credit card.
This giving us all plenty of time to figure out a way to avoid it from happening again. Something that should be on top of uncle Sam’s to-do list.

Also, you might argue that why should you get bailed out and I don’t. Me being the “responsible” one.

It is win win for all of us. First the people that can not control themselves ( these are the people that the credit companies do love to have) will be stopped long enough to hopefully develop better spending habits.
All that money that is now freed up since it is not going to the credit companies will get injected directly into the economy. You will see results over night.
Instead of the the current passing around of fluff money. What we are currently doing is nothing more then showboating.

Example: You are a business owner. Business is down since people have no extra money. Well now they do. And they are now buying your product. Especially since they cant fall back into debt.
You might have great credit and did not need to be bailed out. But you are benefiting from it due to increased business. Say you are retired, cash in the bank 0 balance on your credit card. How do you benefit? Well, your favorite restaurant is not going to close due to lack of business and you friend or family member now has a job due to the increase in spending. Besides a stable economy equates to an easier way of living for us all.

@ChazMaz I think we should get taxed for the next 3 years and pay of the national debt. So I am ok with taxes first of all for the greater good. The reason I am willing to do this is because I like a balanced budget. I am kind of judgemental of people who spent a shitload of money that was needless and irresponsible. I am not talking about the poor, but more critical of the middle and higher who got ridiculous jumbo loans and bought up real estate thinking they could not lose as investments. If they lost it in the stock market they would get nothing, but since it is real estate, and affects their neighbor also by destroying home prices and properties go into foreclosure we are all more concerned. I have now kind of agreed with your line of reasoning, that helping them helps everyone, but it still pisses me off.

I am ok with the bailouts of wall street and banks, although it could have been done a lot better and cheaper, because a complete economic crash would be unacceptable.

I think your answer was more about the big bail outs than the individual guy on “main street” as they call it. Maybe I misunderstood. I actually have very little confidence that people will learn their lesson, especially if they don’t feel a lot of pain.

One more thing. I think foreclosures should be separated into primary housing and secondary. A lot of foreclosures are investment properties. I don’t know how many, but I would be interested to know.

“I think we should get taxed for the next 3 years”
If we are freed up to spend again. Those purchases will be taxed as are most purchases. The increased taxes from the increases purchases will do the job.

“but more critical of the middle and higher who got ridiculous jumbo loans and bought up real estate thinking they could not lose as investments.”
That is the banks fault for allowing it to happen. They knew what they were doing.

“I am ok with the bailouts of wall street and banks,”
Would be accomplished with paying off national credit debt. Currently the only thing we are doing is sending the money from the left pocket to the right.

“but it still pisses me off.”
Yea… I know how you feel. :-)

“I actually have very little confidence that people will learn their lesson, especially if they don’t feel a lot of pain.”

You having a visa and some not having a visa. They will feel pain but in the end accomplishment.
It has to be a, “if at first you don’t succeed” thing. As a nation and people we have to operate that way. Until we get it right or fail completely.

“One more thing. I think foreclosures should be separated into primary housing and secondary.”
Good point. :-)

@ChazMaz I agree the banks knew what they were doing. But, the little guy has to take some responsibility also. Buy what you can afford. What happened to that idea? Too good to be true. What other cliche can we come up with? I mean really. I have a couple of smart friends, educated, earn over $100K a year, who still have jobs who wound up having to foreclose. There was no need. They did it to themselves.

The bank lenders should probably be in jail. There are laws, or at least regulations on mortgage brokers (at least in FL there is) that you cannot sell a mortgage to someone when you know it will be difficult to repay. Seems that was ignored over and over again. I don’t really blame the broker though, so many of them took those crazy loans themseves. But, the big businessmen at the top knew what they were doing, or they were really stupid. Maybe that’s it. They really thought it would go on forever. I think they looked at the homebuyer as a scout, buying up property that was going up and up in value. If they foreclosed the bank would own the property at a much higher price and have all of the interest already paid in by the homeowner. I think that was the gamble they were taking. Can’t lose right?

“Buy what you can afford.”

The generation that followed that guideline did not have such juicy carrots dangling in front of them as we do. Or did. :-)

That mindset comes from a generation that is no longer here. :-)