I declare War on my bank

[mzpro5]

Originally Posted by saea501

If you pay the balance in full each month the interest rate doesn't matter. A credit card to me is a convenience not a way to finance a purchase. I don't even know what the interest rate is on my card because there is never a balance.

Amen - same here

[GoldTeethII]

Originally Posted by saea501

If you pay the balance in full each month the interest rate doesn't matter. A credit card to me is a convenience not a way to finance a purchase. I don't even know what the interest rate is on my card because there is never a balance.

You can put me in this camp too. I actually get money back from my cc company a few times a year.

[Towen7]

I guess I'm less finalcially prudent than some others but I do carry a balance on my CCs (two of them). The plan for 2010 is to get them each to a zero balance.

I hate that banks can get away with jacking the rates as high as they have but I blame myself for being in a position to let it affect me.

[Haywood]

Originally Posted by mzpro5

A bulshyt practice - certainly. Unethical - probably. Fraud - No.

If you take time to read all the tiny writing in any credit card contract agreement and understand it you will find it is in writing that they can change the rate and a number of other things at their discretion. You agreed to those terms by signing your name to the agreement. No fraud there.

That's why I said it borders on fraud, rather than claiming that it was fraud.

[Haywood]

Originally Posted by Andy

I suspect this post won't make me any friends, and I don't want to sound like a prick, because I got a letter too and I didn't like it.

But...they didn't offer to lend people money for X% interest for Y amount of time. Credit card users agree to variable interest rates. And in addition, their risk profile has changed. It hasn't necessarily changed on the borrower's end, but it has changed on the lenders end with the new legislation. There are alot of things that they will no longer be able to do which impacts their operating profile. Most of it is stuff that was in a grey area and things you wouldn't do to a family member, neighbor, or friend. They employ practices that are unfair, yet people sign agreement to it. But...up until this point it was legal, and they knew it could make a difference with the way consumers used their product. And why wouldn't they? Don't they have an obligation to maximize their shareholder value?

If a credit card is the best available source of credit to you, then perhaps lifestyle alteration is needed before adding debt. Yes, it is unfair for the terms of an agreement to change between the time you take credit and the time you pay debt, but credit cards are designed to be sources of short term debt, not long term debt. All borrowers agree to the possibility of rates to change before the debt is paid.

Lending money is a business, not a social program.

Just for the record, I don't work for a credit card company or a lender.

Get diagnosed with Type I diabetes while working for a company with no health benefits, have a wife who needs $15k in dental work, have your house get destroyed by hurricanes twice in three years and then lecture me about the proper use of credit cards.

I understand that these banks are there to make money. I have no problem with that. The problem I have is that I have a credit score that is well into the 700s, have a nearly spotless payment history, have all of my cards on auto-pay to make sure they pay on time and they are paying 0% interest on the money they borrow to lend me. That in no way justifies a 30% interest rate.

I understand that interest rates are variable, but that variability is generally based on the cost of money. Their cost of money hasn't changed.

[Maximo]

Ok, so long story short, I was not very polite to the guy on the phone who "couldn't help me out" with my little problem. And so what do I get in the mail? Two letters. One stating that the card that I carry my debt on was reduced to just $300 over what I ower. And second, the "card" that is used as a buffer when we overdraft was cancelled. We do use the OD card from time to time, more than we should but that is because we have been agressive in paying off debt.

Well, I called the bank and was very nice this time and told them I thought this was realliation, hse reviewed the account and said it looked right. Although even though she wouldn't say it, she knew that because I was angry with the first guy, that is why I got reveiwed.

And you know what? That is fine. I am never, ever, going to spend money unnecessarily again. I have figured that is should take 12 hard months to pay down this debt. And then I am going to see what I can do to get into a credit union. Screw bank of america. I am done with you.

Bank of America will put the screws to you if you do not tow the line, so tow the line.

We are modern day slaves of our own doing.

[akula]

Credit unions aren't that hard to get into. They relaxed the rules a while back, and even around here many of them allow you to join even if you just live in a defined area.

[mzpro5]

Here is some interesting info on what the credit card companies and banks are doing.

Click here

[dentman]

These banks have a ton of exposure and they should earn a good buck on taking that risk . The problem is once again greed takes over and now they want blood money .

[mzpro5]

Originally Posted by jamhead

And, since you are such a good customer and pay off your balance monthly, you will become the beneficiary of a new "good customer" annual fee.

Bank of America is deciding what the fee should be....39 to 99 dollars, and Citi bank wants to levy a fee if you do NOT carry a 2500 dollar balance each and every month.

So, pay the high interest, or pay the fee. But make no mistake, you will pay. Oh yeah, and cancelling that card (if you're a long term member) will knock your credit rating down.

Well the only card I use is a Capital One card so I'm not concerned with what BoA or Citi does. Capital One has been an excellent company to deal with and though I can't say they won't do something like that I'm not too concerned. They did send me a letter a couple months ago indicating my interest rate would go from 9.9% to 11.9% on June 1, 2010. My business card is also thru Capital One.