Credit Card companies / banks get a bail out & the consumer gets the shaft

United States
December 27, 2008 7:00pm CST
Anyone else PO'd that Citibank amongst other card issuers are doubling & trippling peoples interest rates?!?!? I know they can change their terms at will, but this INSANE! How can they cry to the feds for a bail out and then do that to the consumer?!?!? They are supposed to keep their rates low so people will spend not jack them up and force people to have to decide between keeping their fridge stocked or paying a huge minimum payment & trying to avoid getting their interest rates increased again + late charges ect? There's no winning except for these big banks! Must be NICE to be them huh? The lil guy gets the shaft while they fly off in their corporate planes drinking champaign.
1 person likes this
3 responses
@stealthy (8188)
• United States
28 Dec 08
Actually it doesn't bother me personally since I always pay in full and have never paid a penny in interest to a credit card company. So what the interest rate is doesn't affect me. I use a credit card for almost everything and get cash back, too. It also allows me to put off paying for something for as long as 20 days sometimes depending on when I buy something relative to when the credit card bill comes.
• United States
29 Dec 08
Thats the sad thing is one will have to shop around all over gain for a new card with a better interest rate. Especially for those of us whom are not as fortunate to be able to pay off balances every month.
@lvaldean (1612)
• United States
28 Dec 08
Well the right answer is don't use your credit cards except in emergencies. The government is going to stop this but it won't be quickly enough.
1 person likes this
• United States
28 Dec 08
That's true. However if you already have an existing balance that is not easily paid off you are in trouble & I have an existing balance... it's the joys of being on one income til a few months ago and even then I don't know that we'd be able to cover the pmt when they jump up my interest rate. And I know others in the same boat. It's even on the news about small businesses financing improvments and now can't swing the payments because the interest rates on the credit cards were far cheaper than going to the bank and taking out a loan.
1 person likes this
• United States
29 Dec 08
If I wasn't a stay at home mom mainly (I work pt usually under 15 hrs) and could afford child care in wich then I would be able to obtain a decent income we wouldn't rely on a credit card to pay for things. But there are not a whole lot of jobs out that will leave me much income after day care expenses. I was making decent money 5yrs ago but if I made that now I could not afford to pay child care and my pt job pays half of the wages I made 5yrs ago wich in itself is depressing. But one has to work with the opportunity before them for any additional income now days & what works within their schedules.
@anniepa (27238)
• United States
28 Dec 08
I thought there had been some new laws passed a few years ago regarding credit card companies' practices but I'm not sure. I know it used to be and maybe still is that if your due date is a certain day and the payment isn't received before 8 am that day some of the banks would then charge a late charge and in some cases also increase the interest rate. In some cases that late charge coupled with the higher interest rate could result in the customer being over their limit, which would result in another fee. I think I heard something about some in Congress want to pass a law that says if they raise the interest rate the new rate can only apply to new purchases and charges, not the balance the customer already carried. I know the people are often to blame themselves but these credit card companies are so predatory. They would send out thousands of "pre-approval" letters with the promise of a super low rate but they don't tell you it doesn't include certain charges and that it will go up at a moment's notice. People have to learn to read the fine print! Annie
• United States
29 Dec 08
I know they are working on adjusting the laws and I believe they said it will take up to 18mo's to impliment wich I find it hard to believe. You are right they do send out tons of pre-approval notices wich at times that all it seems like a person got in the mail was not thing but solicitations from credit cards. I just don't think it's fair to the consumer to jump the rates with out probable cause... no late pmts, no over the limits nothing. I can see a percent or two fluxuation but not up to 200% higher while the fed reserve keeps cutting the rates... I swore when the fed cut rates most other rates followed the lead and dropped as well.