Bank card extortion mills in overdrive

[Guest StuCotts]

I've just been advised by my credit card bank that in line with current trends, my APR rate on purchases will go to 23.99% in December. The letter goes on about increases on a host of other services as well, all of them even more rapacious. In the midst of all that there's a pitch to get me to transfer my other balances to this card. No idea of the meaning of shame, or sign that the author of the notification thinks the recipient can actually read English.

I'm so glad that none of this affects me personally.

[caeron]

Early this year, I'd run a balance when my wife went out of town to take care of her sick mother. We missed a payment because she normally pays the bills. They jacked my rate, without telling me, to near 30%.

It was a BofA alaska airlines card that I'd had for nearly 10 years. They were snotty as shit about it. I paid them off and cut the card up.

Screw 'em. I'd paid them plenty over the years, they got greedy and lost my business.

[TotallyOz]

What is the legal limit? 30 percent? I honestly thought that was not possible.

[caeron]

No idea. I admit I was pretty shocked that they would jack my rate through the roof and not even see reason when we talked to them.

[Guest JasonCarter]

That is probably why most of the major credit cards are issued from states with no usury laws, like South Dakota and Deleware, for example...

[JKane]

It's getting pretty bad out there, and the annoying thing is that there are finally laws to limit some of this BS--but they don't go into effect 'till February! So the biggest asshole-banks (usually the same exact ones up to their necks in the financial collapse--with pockets full of bail-out money no less) are trying to screw everyone as much as possible before those laws go into effect. B of A's name COMES UP ALL THE TIME.

Many people are starting to say FUCK THEM. If I had ANY B of A account I'd close it and replace it with one at a CREDIT UNION right f-ing now...

[TownsendPLocke]

Yeah-they are getting vicious.

Almost all of my cards have had my limits cut way down-one card by 2/3rds.This is very bad for those of us that travel since hotels and rental car companies often put holds that stay in place for 7-14 days.

Interest rates pretty much jacked up accross the board.This is the year that I pay off all my cards as quickly as possible-and will keep them paid off each month.

[lookin]

Living in a free market economy: Priceless!

[TampaYankee]

I could go on a multi-screen rant on this topic but I will restrain myself to a few choice comments.

Our laws do nothing short of enshrining legalized usury that would make Shylock grin if not blush, and legalizes financial entrapment. I still believe in free markets and competition, when there is competition. However, I believe there is more collusion and less competition these days, and that was suborned by the Bush administration and Republican Congress and, sadly, the Clinton Administration too. The collusion may not be overt as antitrust laws require. It is defacto collusion, in that Congress and Bush telegraphed that 'anything goes' and nobody will come after them. This results in the gathering of vultures to pick the carcas clean.

ALthough I may not like or think justified the high usurious interest rates that Banks desire to charge, I believe that they should have the freedom to charge whatever they wish up to a point. However, I do think public policy should exercise a curb on that maximum value as there does become a point when individual circumstances aggregate into adverse effects on the economy. When the a cetain proportion of national income goes to servicing debt rather than new pruchases and savings, that bodes ill for the broad economy.

I do object vehemently when they are permitted to apply new rates to old credit balances extended under lower rates. The cost of money lent at that time remains unchanged. Yet banks are permitted to jack up the profits on old loans within present interest climate. This is nothing other than legalized 'bait and switch' IMO.

Banks treat credit customers on a take-it-or-leave-it basis. That itself speaks to the fallacy of the 'free market competition' which is nothing more than a lie.

Simply put, as Dick Dubin said, "the Banks own the place" referring to Congress -- Republican and Democrat. I'll add Geithner and Summers to that.

So far, Obama looks like a failure in reigning in the too-big-to-fail institutions. He should pay more attention to Volcker and Baird and show Summers and Geithner the door IMO. Dodd seems serious at this late point, Frank, more of a question. But I doubt either can overcome the bought-and-paid-for Congress or the Admin Dynamic Duo.

The failure to follow-thru with breaking up too-big-to-fail institutions gives me some regret about the bailout that I thought was essential at the time. Congress, the Admin, and those insitutions themselves are sewing the seeds for a repeat of the next Almost-Depression because there is just too much money to be made for the fat cats without much downside as the taxpayer has been identified as the sucker who will pick up the tab.

If this stands then I will be forced to admit that the Republicans were right about letting the system collapse to rid it of the cancers that caused it. It would probably mean a decade or more of severe economic pain and misery. But is there any alternative when the doctor won't amputate the gangrenous limb to save the body. They are setting us up for a repeat. The bright side... in every economic catastrophe there is always great riches to be made for the few. And the rich few can always buy the cheap politicians for little more than a song.