Of course the banking industry is fighting tooth and nail against any such reform, and understandably so. You’d be upset too if you were suddenly being threatened with the suspension of your license to steal.

These institutions pay big money to lobbying firms to fight decent regulations and much of this money used against the consumer, was supplied by the consumer in the first place.

This shell game of sorts is exactly what has been going on for far too long and the US government has been slow to move on this. In the meantime, the gouging continues.

Is Washington really listening to the consumers or the lobbyist?

Congress is well aware of this issue and have decided to do something about it, but the timeline is too long and the banking industry is taking full advantage.

The doubling and tripling of credit card rates, without cause, is nothing short of legalized loan sharking. Of course the banks will tell you that you have a right to close your account, translation: pay me all that you owe now and take a hike.

In the meantime, the race is on, and the banks are gouging the consumers with impunity. There is no penalty for these actions and to be honest, these greedy banking Executives just don’t care.

Now keep in mind, many of these banking institutions would have likely had to close their doors were it not for the American taxpayer bailouts of a year ago. So look at the gratitude for saving their operations. This is disgraceful behavior and the banking industry is shameless.

Have a look at this video report from MSNBC.

As you can see, this is totally unfair to the consumer and the people that were sent to Washington to represent you need to step it up and freeze rates or institute some regulations with some teeth to protect the American taxpayer.

What’s your take on take on this?

You may add your comments below.

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.

With the economy being in the state that it is, there is no doubt that there are millions of people who have come upon hard times, having lost a job, and now find themselves in debt with no real means of paying all of the bills. This of course, leads to an assault on your credit rating as creditors report your latest payment history. Your rating declines and your ability to purchase on credit disappears, your buying power is greatly reduced.

Enter the credit repair specialists, companies offering services that will fix your problems quickly. These companies are everywhere it seems, advertising on television, radio, robo-calls and of course, the internet.

But can the credit repair companies deliver what they claim?

They tell the client that they know all of the “legal loopholes” to clean your credit report of all the negative data and that they have “inside connections” and “we do this all the time”. Claims of removing bankruptcy and foreclosure entries all sound exciting.

Desperate to have a fresh start you plunk down a $1500 fee after providing all of your most crucial information. Your credit card account numbers, social security number, mortgage and bank info, everything. After all, they will need this info to repair your record, right?

According to the Federal Trade Commission, last year saw a 50% increase of reports for credit repair scams. An FTC representative recently stated that “…to date, we’ve never seen a legitimate credit repair company”.

The Upfront Fee

They all want that upfront fee, and here is the reason why. They know that you can have no expectation of this repair happening overnight, so they tell you that they will be working on this during the next few months. You, in the meantime should keep an eye on your credit score. When you see no measurable change in your credit score during the next few months, you get on the phone to see how this is going on their end. This is when you find out that your credit repair specialist has vanished into thin air.

Other companies will actually file numerous reports with the credit reporting bureaus, disputing your debts, which may in some cases temporarily remove items while they are being investigated, thus making them look like they’ve actually done something, but this places your file in a “pending” status. If accurate, those items will return to your report in a relatively short amount of time. In either scenario, you’ll be out the upfront fee ($1000 to $2000) and nothing will have changed but the calendar.

The claims by these companies are numerous and the Federal Trade Commission says that they haven’t seen any legitimate credit repair companies, so who’s right? I’d bet my money on the FTC.

By now you surely realize that there is no magic wand for bad credit, it’s something that happens during the course of life, and it’s something that you have to work through. Regardless of your credit status today, if you can pay all of your bills on time going forward for two years, you may be surprised at the result. Everything may not be removed during this period (bankruptcy and foreclosure have long lasting affects) but you will be in a much better position than you are today.

For credit repair a better place to start, which will most likely provide a better result is to contact a legitimate credit counseling service who can arrange a restructuring of your payments or a consolidation plan. Many of these agencies provide free services, or a small fee may be required.

The National Foundation for Credit Counseling is a highly respected network that provides a variety of services. If you or someone you know has a circumstance that requires credit counseling or financial education, contact the NFCC and keep your dignity and peace of mind.

Victims of these scandalous companies should contact your state’s attorney general.

What do you think should be done about these companies who prey upon people already in trouble?

Lawmakers on Capitol Hill have been pressuring AIG for some time now, to be more forthcoming with what the bailout/rescue money was spent on. Nearly all of these large institutions in some way or another have benefited from government funds and John and Jane public have really become angry over this repeated practice.

You may read the entire story here N Y Times.