Getting something is better than getting nothing
The federal government is planning to impose restrictions on credit card companies and banks limiting the fees they can charge their customers. It’s too little too late. Upon hearing this the credit card companies and banks have started to raise their interest rates, double the minimum monthly payments, or charge fees for having a card.
For individuals who were, or are using their credit cards to help them during this downturn in the economy for long periods of unemployment, basic needs if their unemployment benefits ran out, or for an emergency, this is going to be devastating. If individuals were making payments but will now have them raised to the point they will not be able to make them, I suppose these banks and companies will start seeing a lot of people filing bankruptcy, stop making payments, closing their accounts, or just telling them they cannot afford their new rates and fees and letting it go to collection.
For thousands of people who have had good credit ratings and scores, but will not be able to keep up, this is only going to hurt the economy more than it is hurting already. If individuals will not be able to make their payments and their credit ratings are effected, in the future, these same people will find it harder to purchase anything; houses, cars, furniture, clothing, or what they use or want to buy. The trickle down effect on the housing market, auto industry, or manufacturing, will only make the current economic situation worse and another round of layoffs or people losing their jobs because of an economic downturn will surely happen because people will not be able to get credit or their payment histories will have had an adverse report. If people cannot buy, the economy will suffer. If people cannot buy, workers will suffer. If people cannot buy, everyone will suffer.
Instead of becoming greedy these banks and credit card companies should have considered, getting something is a lot better than getting nothing.
Jim Kozlowski
St. Louis
For those many Credit Card companies that suddenly decided to screw their customers with rates of 30% and many other overcharges, I say we shouldnt regulate them. Just stop paying them. I have NO problem with market forces but this is one market that has totally taken advantage of their customers. Screw them. I am a capitalist all the way but they deserve to go out of business.
Bad businesses should not be in business. People that got these cards did not go into these contracts thinking that they banks and credit care companies would screw their customers so bad. So, they need to no longer exist! That is gouging all the way!
I also have no problem to stop paying, if MY rates go up. I have a mortgage and do not expect to have any credit left anyway. I have a great credit score right now. BUT our credit score is now related to our ability to be hired. So we are screwed either way.
Well Maggie why can you not get hired? If you cannot why ring up credit cards?
diamondalan, I am a huge capitalist, but these unusual times and the Credit Card companies are cutting their own throat. Many have raised their rates to 29% and sometimes even higher for no reason. Unless these idiots want government to step in, which I dont want, then they will. Because of the IDIOCY of our elected officials, we now have an economy in trouble. What is the difference is between eating and paying for it with your credit cards with hope of paying them back or not eating? Lets be smart about this.
Maggie obviously has good credit and has paid her bills. Do you think its right for the Credit Card companies to take full advantage of good paying customers? Again, I dont want the government involved but better quickly rethink what they are doing.
Some times the answers aren’t so simple. I suggest my Conservative friends get out of the box and look at the big picture. That is of course unless you want government to take over everything!
Dave,
Gov’t already got involved. Rates are going up because of the CARD Act. While good intentioned, as usual, our congress missed the details. How did they think the CC companies would react? Idiots!!