A few ways credit card companies can screw you, even with new legislation

[StageLeft]

These were new to me.

http://finance.yahoo.com/banking-bu...UEc2xrA25ld2NyZWRpdGNhcg--?mod=bb-creditcards

Heck, 90 days? Why not 90 years?

In the past, issuers would generally use the highest prime rate in a cardholder's current billing cycle as the starting point for determining a credit card's rate for the month. However, a number of issuers have amended their terms this year so that they now can select the highest prime rate in the previous 90-day cycle, a move that costs consumers $720 million a year

Nice trick!

Minimum finance charges can be greater than the amount of interest owed. As a result, if a consumer owes only $0.50 in interest, he may have to pay $2 because that's the minimum interest fee.

I noticed this but almost thought I was dreaming. I was sure that years ago balance transfers trimmed something like 3 or 5% off the amount with a ceiling but I've not found that recently

Not only are the fees for these transactions rising, but many card issuers are implementing minimum charges and removing caps they once had in place to keep the costs from surpassing a certain level.

As always, if you don't like it, don't use it, but I bet most people didn't know about that minimum interest charge or the 90 day peak rate screw-over. I only use my credit card now for a couple of recurring charges and online purchases.

 

[Robor]

I'm fed up with the CC companies. I got a notice recently that the interest rate on one of the cards was changed to prime + 19.99%! I called the bank and asked why they hiked our interest rate when we have excellent credit and have never gone over or paid late. They gave me some 'blah blah' excuse. I told the CSR if they wanted to keep me as a customer they would have to lower it. A lot. They offered to lower it to a fixed 19.99. I said thanks but no thanks and told her to close the account. Another card we've had for several years was paid late by ONE day - the only time we've ever been late - and we were hit for a $39 fee. I called to request a 'forgiveness' waiver of the fee and was denied. I closed the account immediately. I've been told it's sometimes a minor hit on the credit rating closing CC accounts but at some point you have to make a stand.

We have a slew of dept store cards we never use and a few of Visa, Master Card, American Express, Discover, etc. We use the AmEx for pretty much everything and pay it 100% in full each month. We've still got a manageable balance on 1 visa we're paying down but once that is gone we will divert those payments to our savings and make sure any CC balance is paid in full every month.

 

[StageLeft]

I'm fed up with the CC companies. I got a notice recently that the interest rate on one of the cards was changed to prime + 19.99%! I called the bank and asked why they hiked our interest rate when we have excellent credit and have never gone over or paid late. They gave me some 'blah blah' excuse. I told the CSR if they wanted to keep me as a customer they would have to lower it. A lot. They offered to lower it to a fixed 19.99. I said thanks but no thanks and told her to close the account. Another card we've had for several years was paid late by ONE day - the only time we've ever been late - and we were hit for a $39 fee. I called to request a 'forgiveness' waiver of the fee and was denied. I closed the account immediately. I've been told it's sometimes a minor hit on the credit rating closing CC accounts but at some point you have to make a stand.

We have a slew of dept store cards we never use and a few of Visa, Master Card, American Express, Discover, etc. We use the AmEx for pretty much everything and pay it 100% in full each month. We've still got a manageable balance on 1 visa we're paying down but once that is gone we will divert those payments to our savings and make sure any CC balance is paid in full every month.

Citi raised the rate on my card last year despite me being an exemplary customer. Believe it or not, though, I checked this morning and my APR ON bankofamerica has actually dropped to the lowest it's ever been at 8.99 on purchases. For both accounts I carry no balance. Citi sees that in some way as a possible threat if I ever did (I guess, who knows, fvck citi), but BoA rewarded it by lowering my rate.

 

[rudder]

Unfortunately the public is not wise enough to stop using credit cards. Even if they were paid off every month... just imagine if people starting using cash. the CC companies would send someone to your door to lick your balls to get you to start using plastic again.

 

[Slew Foot]

Unfortunately the public is not wise enough to stop using credit cards. Even if they were paid off every month... just imagine if people starting using cash. the CC companies would send someone to your door to lick your balls to get you to start using plastic again.

But I want it all.... and I want it NOW

 

[StageLeft]

Unfortunately the public is not wise enough to stop using credit cards. Even if they were paid off every month... just imagine if people starting using cash. the CC companies would send someone to your door to lick your balls to get you to start using plastic again.

Why ask when you can tell. Instead they'd lobby that more and more purchases HAVE to be made with credit cards, you know to track terrorist activity. And then for those with bad credit they can get special chump-cards that do the same thing, all pre-paid or something along those lines.

 

[cubeless]

Why ask when you can tell. Instead they'd lobby that more and more purchases HAVE to be made with credit cards, you know to track terrorist activity. And then for those with bad credit they can get special chump-cards that do the same thing, all pre-paid or something along those lines.

sigh... too much p&n for you, you've gone over the edge... your tinfoil hat is in the mail...

if you don't like the policy of a card issuer, get a different card or don't use one... if you don't like the policy of a bank, get a different bank... market forces will drive different behaviors...

 

[Vic]

The interest rate is always 0% and the finance charges are always $0.00 when you pay off the balance in full each month and/or leave your card at home.

 

[spidey07]

The business of business is to make money.

 

[StageLeft]

sigh... too much p&n for you, you've gone over the edge... your tinfoil hat is in the mail...

if you don't like the policy of a card issuer, get a different card or don't use one... if you don't like the policy of a bank, get a different bank... market forces will drive different behaviors...

Actually I did not have to stretch for that. I could imagine such a bill. After all I'm sure a few years ago people would have laughed at the idea of the government mandating, at risk of paying substantial penalties, paying private companies for a service with rates set by those private companies (health care bill).

The interest rate is always 0% and the finance charges are always $0.00 when you pay off the balance in full each month and/or leave your card at home.

We know that.

 

[rudder]

sigh... too much p&n for you, you've gone over the edge... your tinfoil hat is in the mail...

if you don't like the policy of a card issuer, get a different card or don't use one... if you don't like the policy of a bank, get a different bank... market forces will drive different behaviors...

I don't know I kind of agree with Skoorb's assesment. Try to go sell something in the For Sale forum and add the words.. "Add 3% if paying with paypal."

The mods will lock your thread. Why do you think you cannot post that? Sure it relates to paypal.... but there are laws against stores saying you must add 3% for credit card transactions. I pay almost a 10% sales tax here in TN. Adding an additional 3-5% transaction fee into my purchases adds up.

Don't underestimate the lobbyists. Imagine if your government run healthcare only accepted payments via credit card.

 

[StageLeft]

I don't know I kind of agree with Skoorb's assesment. Try to go sell something in the For Sale forum and add the words.. "Add 3% if paying with paypal."

The mods will lock your thread. Why do you think you cannot post that? Sure it relates to paypal.... but there are laws against stores saying you must add 3% for credit card transactions. I pay almost a 10% sales tax here in TN. Adding an additional 3-5% transaction fee into my purchases adds up.

Don't underestimate the lobbyists. Imagine if your government run healthcare only accepted payments via credit card.

I said it because if you have a huge industry that has a very storied history of spending vast amounts of money on lobbying to modify and or stymie laws (as the CC industry has done on various occasions) and they were to face a substantial reduction in customers, they would think of aggressive ways to get new ones.

Already usury laws are for practical purposes inapplicable to credit card lenders now, as they base substantial operations out of states like south dakota where the laws are so soft. Most businesses do what they can to fvck money out of people but most are not as successful.

Oh and BTW a lot was made of this christmas bomber about having bought his ticket with cash

 

[Craig234]

I don't know I kind of agree with Skoorb's assesment. Try to go sell something in the For Sale forum and add the words.. "Add 3% if paying with paypal."

The mods will lock your thread. Why do you think you cannot post that? Sure it relates to paypal.... but there are laws against stores saying you must add 3% for credit card transactions. I pay almost a 10% sales tax here in TN. Adding an additional 3-5% transaction fee into my purchases adds up.

Don't underestimate the lobbyists. Imagine if your government run healthcare only accepted payments via credit card.

FYI, it's not laws prohibiting merchants from passing along the merchant fee, it's the contract.

Naturally, credit card companies want that fee transparent to consumers.

They want it very badly, enough to not take the business without it, because their competitiveness drops hugely without it, and having it forces the merchant to tax cash customers and pay them the tax.

 

[cubeless]

FYI, it's not laws prohibiting merchants from passing along the merchant fee, it's the contract.

Naturally, credit card companies want that fee transparent to consumers.

They want it very badly, enough to not take the business without it, because their competitiveness drops hugely without it, and having it forces the merchant to tax cash customers and pay them the tax.

must hold gag reflex back...

ok... i sorta agree with craig...

i think that the whole stream of costs associated with using a credit card should be transparent... your tape should show the fee and vig that the vendor pays on your transaction...

whatcha think the chance of that ever happening is???

if i want to use a credit card, i pay the freight... if i want to use cash, i get a 'discount' (if the vendor wants to allow that, or else i go somewhere else)... i always ask when i make a large purchase if they'll discount for cash... if they will chop off enuf to overcome the benefits i get from my cc i pay cash...

although i was just up in mi and the gas stations have a clearly marked 'cash' or 'credit' price... i've only seen one station here in orlando like that... so i don't think it's 'illegal' anywhere...

 

[cirrrocco]

I'm fed up with the CC companies. I got a notice recently that the interest rate on one of the cards was changed to prime + 19.99%! I called the bank and asked why they hiked our interest rate when we have excellent credit and have never gone over or paid late. They gave me some 'blah blah' excuse. I told the CSR if they wanted to keep me as a customer they would have to lower it. A lot. They offered to lower it to a fixed 19.99. I said thanks but no thanks and told her to close the account. Another card we've had for several years was paid late by ONE day - the only time we've ever been late - and we were hit for a $39 fee. I called to request a 'forgiveness' waiver of the fee and was denied. I closed the account immediately. I've been told it's sometimes a minor hit on the credit rating closing CC accounts but at some point you have to make a stand.

We have a slew of dept store cards we never use and a few of Visa, Master Card, American Express, Discover, etc. We use the AmEx for pretty much everything and pay it 100% in full each month. We've still got a manageable balance on 1 visa we're paying down but once that is gone we will divert those payments to our savings and make sure any CC balance is paid in full every month.

I think length of credit lines are 15% of your credit score.

http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm

so it is not wise to close old cards that you have a good history with. Just stop using those cards or become a cost to them. Buy stuff and pay back before month ends

 

[Patranus]

The interest rate is always 0% and the finance charges are always $0.00 when you pay off the balance in full each month and/or leave your card at home.

This.
No one forces you to use a credit card. Fact of the matter is that you shouldn't be buying stuff you cannot afford in the first place.

 

[dullard]

Another card we've had for several years was paid late by ONE day - the only time we've ever been late - and we were hit for a $39 fee. I called to request a 'forgiveness' waiver of the fee and was denied.

Try this with your remaining cards:
Autopayment of the minimum payment from your bank account. Never late, never a late fee, never a late mark on your credit score, etc.

 

[Hayabusa Rider]

I think length of credit lines are 15% of your credit score.

http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm

so it is not wise to close old cards that you have a good history with. Just stop using those cards or become a cost to them. Buy stuff and pay back before month ends

The interest rate on any balance goes up unless you cancel. I told them to screw off. If they think they can blackmail me with credit scores, they were wrong. Never regretted it for a moment.

These companies made bad decisions, many got bailed out and then paid their exec bonuses THEN had the nerve to tell me it was "market forces". I told them if their boss wasn't so incompetent we wouldn't be in this mess at all. If I screw up they will damn well jack up my interest, but doing so because they did? Hell no.

 

[StageLeft]

Try this with your remaining cards:
Autopayment of the minimum payment from your bank account. Never late, never a late fee, never a late mark on your credit score, etc.

i don't see that option for bank of america credit cards...

 

[spidey07]

i don't see that option for bank of america credit cards...

You should. They beg me to do it all the time with my BOA card.

 

[StageLeft]

You should. They beg me to do it all the time with my BOA card.

can't find the damn thing!!

 

[spidey07]

can't find the damn thing!!

Call them dumbass.

 

[rchiu]

The interest rate is always 0% and the finance charges are always $0.00 when you pay off the balance in full each month and/or leave your card at home.

Exactly. Bank and their credit card is like any other business. They can sell their product at any price and you are the idiot if you don't do your research and buy their over priced crap.

Bottom line, you have a choice, you don't have to borrow at those ridiculous rates. Use cash, your charge cards or auto pay your balance in full and you would never pay a cent in interest or late fee.

 

[cubby1223]

Bottom line is, businesses will get the money they want one way or another. The government cannot control this. The way to fix this is for the government to relax regulations and work towards better allowing capitalist market forces to move in, that is the only chance we have to truly improve the quality of the services.

 

[StageLeft]

Bottom line is, businesses will get the money they want one way or another. The government cannot control this. The way to fix this is for the government to relax regulations and work towards better allowing capitalist market forces to move in, that is the only chance we have to truly improve the quality of the services.

Excess capitalism makes most people fish with a few sharks. To defer to it says simply that greed and avarice should be primary deciders for society. Pure market forces can be very efficient but you might not always like what they efficiently create. With too much deregulation you'd end up with more of the economy being like a casino.