Monday, April 13, 2009

Outrage, Indeed

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.


Gail said...

It happened to me too. Capital One - I had he card five years, never was late or missed a payment. I have a 7.99% fixed rate, and was recently informed, that due to "the economy" it is being raised to a variable of 19>99% to 24.9%!!! What?

And, the supposed monies for FHA mortgage holders where lower rates are being offered Well, we called our bank to have our interest rate decreased and sure,they will do it, but it would cost us $8000.00, yes EIGHT THOUSAND DOLlARs in closing costs.!! What?

SO, I hear ya!!

struggling in Connecticut

alarob said...

That's a great chart. Straight to the point.

Lisa said...

Maddening. Just maddening.

The flip side of this is that when you do get into trouble, they sock you with so many fees, etc. that you can't dig out. Bankruptcy, as it once was, no longer exists. We lost a car and house, but the credit cards are getting their money. Go figure.