It’s in the Cards – The Sudden Rise of Credit Card Rates
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Being a sporting type of man, I have always enjoyed a sociable game of Poker, Pinochle, Black Jack and Bid Whist. Today there is suddenly a new game arriving at kitchen tables across America as the banks have shuffled the deck to their advantage. Yes, those banks that the American taxpayers bailed out to keep from going under.
For your kindness and generosity Mr. and Mrs. Taxpayer, the banks are now dealing from the bottom of the deck. They plan to pay back the taxpayer bailout money with, of all things, taxpayer money. You gaveth and now they will taketh away.
This new game of raising credit card rates for any reason under the sun has began in earnest and unless our government rides to the rescue, many will be in deep trouble. The teaser rates are gone and yeah, you’re paying 7% or 8% today, but there is a need in the minds of the greedy to raise your rate to a more profitable 20% , 22% and beyond. It was already going to take you years to pay off your balance, now they want to put you on the hook for decades. The housing shell game has closed out, so now a new means of gouging the public is on the rise.
Clearly the time has arrived for our elected officials and lawmakers to bring forth some legislation to halt this unarmed robbery of the people. Is this the bankers answer for stimulating the economy?
Credit card practices and the regulations governing them have long been in need of an overhaul, and this may finally get the job done. The American people will not stand for this type of treatment. Tricks like lowering a person’s credit limit, so that they are now over their limit and must now pay a higher fee is nothing short of a scam. Raising someone’s rate because they have been laid-off, although they have continued to pay on time, is really piling on. These companies can turn a decent profit without gouging the public. At a time of economic stress where many are struggling to make ends meet, the last thing that is needed is a doubling and in some cases tripling of credit card rates.
A friend of mine just had their rate raised, although they’ve never been late and never missed a payment. She got pissed and went to her credit union, secured a lower interest loan and paid the card company off.
So where is the government while all of this is going on?
Washington has already started to formulate some bills to address this issue and surely some form of regulatory overhaul will be in the works. If any bill put forth accomplishes nothing more than the removal of the small print it will be a success.
Look for much bellyaching in the meantime, as there will be those on “The Hill” who will be opposed to any form of decent regulation. That’s because they’ve been lobbied and paid by these companies.
Unlike most card games, this one provides no fun and leaves a nasty taste in your mouth.
