Monday, April 13, 2009
In which credit card holders are being asked to pay for the sins of the irresponsible.
To cite a personal example, my father's Bank of America credit card rate was abruptly raised from 8% to 29% back in November. He has good credit, has never missed a payment, and has never gone into default with that bank or any other credit lender. Each of the major players have now accepted billions of dollars in government TARP funds but continues to charge exorbitant fees anyway. More that just a Congressional inquiry is needed to right this wrong. We need the Obama Administration to address this problem head on and propose legislation to stop these usurious tactics.
Articles like this one understate the problem. The AYP rate for many cards has done more than just double--it has tripled or quadrupled in many cases. This is not a recent phenomenon, either. Many cardholders have noticed inflated interest rates for the past six months or so.