Credit Card Comments III

Credit

51.
August 6th, 2008 9:55 am
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More than anything, I want the regulators to impose the requirement of TRANSPARENCY (IN BIG LETTERS). It is not just that the card companies charge fees, surcharges, hike rates etc etc - but that it is not clear what triggers such charges, rate hikes.Yes, it is true that card companies send out notices and explanations of how they charge when and why - but I will bet that a Professor of Law will be UNABLE to figure out just what the heck they all mean - since it was probably written by another Professor of Law somewhere else who is in some other universe. So, what do "ordinary" people with say, PhD's or MD's or some such less recognized degrees do with deliberately obfuscating language??Let the engineers write such rules, using simple language. I have always believed that a problem with our legal system is that attorneys write most of the laws to keep their jobs. Engineers should write laws, attorneys can then fight with each other and we can then ask them to shut up.
— Krishnan, Huntsville, Alabama
Recommend Recommended by 3 Readers
52.
August 6th, 2008 9:56 am
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The exorbitant interest rates of credit providers are not merely unfair and indecent, but they are also major contributors to the present financial crisis. The business strategy based on higher interest on higher risk encourages credit to high risk borrowers, expecting them to fail and thus increase the profit of the lenders.The Congress, Democrats and Republicans alike, acts as if it were a subsidiary of the various anti-consumer lobbies. The constant invoking of the First Amendment under the umbrella Noerr-Pennington Doctrine, sound like the Yiddish expression of Samson the weakling. The hundreds of billions in profits of the likes of Exxon are not enough. The still need the protection of the US Constitution and exemption from anti trust laws.A possible solution is a cap on all credit interest including "fines," late payments and the like by making any interest above such cap illegal.Another change that Congress may welcome is forcing the anti-consumer lobbies to make a payment equal to their lobbying expenses to consumer organizations. In this manner the consumers will have lobbies of their own. The Congress will be happy too, for it will obtain twice as much money for travel, political education, campaign contributions and similar perks.
— Aharon Meytahl, Vestal, NY
Recommend Recommended by 9 Readers
53.
August 6th, 2008 9:56 am
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Unrestrained banks and credit card "services" have enjoyed the same freedoms to exploit borrowers as ancient tax collectors employed to exploit peasants, with all the same opportunities to lie, cheat and steal without fear of retribution. The hollow assertion that rational lenders would not lend funds they did not expect to be repaid, when protected by corrupt government these lenders knew they could collect millions of loot for every dollar lost in fines and penalties and bribes to their protectors. Nothing changes.
— Paul R Cooper, Yellow Springs Oh
Recommend Recommended by 6 Readers
54.
August 6th, 2008 10:04 am
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Congress allowed the credit card industry, along with every other corporate identity, to write the laws that we are now complaining about and suffering the consequences. For example: 32% default rate! for two late payments in one year! that is usury. Recently, I just had a credit line decreased on a loan for no reason other than the "banks exposure to potential loss" In 35 years I have never missed a payment, never late, etc. Our systemically corrupt system of government for to long has allowed corporations in all industries and manufacturing, through campaign contributions etc. to manipulate the electorial system so that corporations can make laws, really bad laws for the consumer. An example of bad law; required arbitration,(no corp. accountability) over the limit fees, and on and on....Personally, I going to write my own laws. Democracy is gone, we need courageous politicians and judges. In my opinion the entire economy is doomed.
— Ross, New York
Recommend Recommended by 6 Readers
55.
August 6th, 2008 10:04 am
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Of course, personal responsibility (not buying more than one can afford) is key (I feel fortunate that I instinctively knew - wasn't taught - to avoid credit card debt). However, that doesn't excuse some of the very sneaky practices employed by these companies. My friend's due date was moved up by 4 days with just a small "note" on his bill telling him so. He happened to see it, and adjusted his automatic-bill payment accordingly. But it was clear what the c.c. company was hoping for: that he wouldn't see that "note", not change his automatic-bill payment and become late so they could increase his rate.
— Michael, Boston
Recommend Recommended by 7 Readers
56.
August 6th, 2008 10:04 am
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All the comments about personal responsibility are absurd. I accumulated most of my credit card debt while obtaining a master's degree (we won't even discuss that amount of debt) and simultaneously working two jobs. I was not taking trips anywhere except work or school, and I was certainly not buying large extravagant items, unless you count food and electricity as extravagances. When salaries are not raised significantly in many years and the education necessary to get a job that earns a living wage costs upwards of $30,000 per year, it is nearly impossible to start one's adult life without significant debt. The game is rigged, and not in our favor. Personal responsibility doesn't come into it.
— BC, Brooklyn
Recommend Recommended by 9 Readers
57.
All Editors' Selections » EDITORS' SELECTIONS (what's this?)
August 6th, 2008 10:06 am
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"Congress should give consumers what they need and deserve — " -NYT todayI'm willing to settle for anything, affordable milk, cheaper gas, take your pick. I'm not holding my breath.But this is what happens when a wealthy ruling class makes the rules for those who have less. And that's why the word "revolt" is still in the dictionary. From time to time, it gets used.
— Pamela Laurens, Florida
Recommend Recommended by 26 Readers
58.
August 6th, 2008 10:06 am
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We gave up credit cards for Lent back in the 70s and don't miss them a bit. We stuck with our old 10% mortgage when everyone else told us we were crazy. Now our house is paid off and the only things sub-prime is our income.We do abuse our credit every time someone gets sick because with no insurance, it's impossible to pay the medical bills that can equal the cost of a new car in a matter of hours. When did America-AT&T turn into the new old USSR?
— DeathbyInches, Arkansas
Recommend Recommended by 4 Readers
59.
August 6th, 2008 10:12 am
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The Credit providers, like all US corporations, have one GOD, more money for me! They are heartless exploiters of a system designed by them and their political cronies; they take monies form the poor and give it to their rich owners and senior executives! They are creeps and deserve to be "crushed" for their cruel and vicious actions!Credit Cards are not a luxury service; but a critical element of all commerce. CC services extract money from all parties of these transactions; and proviide very little service for their extortion! Merchants pay 3% or more per transaction, plus fees for just about everything from the machines needed to read the cards to the phone lines used to get credit approval; buyers pay excess fees for use; interest rates that would be usurious envy of loan sharks; lay off the risk by charging everyone regardless of their credit history so they have no need to be concerned on anyones ability to pay for the credit extended; and now have created mass economic slavery by exempting these creditors from any responsibility for the easy loans they have extended; they parade the lack of virtue and personal responsibility for their card holders lack of disipline; while takeng no responsinility to ensure the credit given can be repaid! Until these "banks" are held responsibile, that they not the borrowers are responsible for debt not responsibly provided, that the banks take all of the risk for credit extended, that "bankers" go to jail for poor judgement.... Credit rates to merchants and charges to customers must be defended by real costs of providing the services; not insurance extortion to reduce the due diligence of creidt providers to ensure their users can afford the credit extended. Usury rates must be set and enforced as a basic disipline!
— Chaotician, New Mexico
Recommend Recommended by 4 Readers
60.
August 6th, 2008 10:13 am
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although I do believe credit card companies are worse than the mob, I'm happy to say I've been debt free for years now and have yet to use a credit card again. They are worse than the mob and, frankly, I believe I only really want or need something if I'm willing to save for it and spend cash I have on hand. Obviously I've cut back on frivilous spending as well...
— Bill, New York City
Recommend Recommended by 2 Readers
61.
August 6th, 2008 10:13 am
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It is high time for Congress to clearly draw a line which differentiates the practices of the credit card companies from those of lonesharks collecting their vigorish. At present, there are too many overlapping areas.
— jhannah3, Staten Island
Recommend Recommended by 2 Readers
62.
August 6th, 2008 10:13 am
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Beyond credit card company abuse, an even greater threat to the US is the generalized abuse of credit.We are the greatest debtor in the world, and the total US indebtedness is becoming unsustainable.Overconsumption, which in part is promoted by credit card issuers and users, is to blame.
— R., New York
Recommend Recommended by 4 Readers
63.
August 6th, 2008 10:13 am
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I beg to differ; the real burden to curb these abuses falls on the consumer. I'm no lover of credit card company usury, but the terms are laid out in the contract that the consumer signs.
— Dave Small, Arroyo Grande, California
Recommend Recommended by 3 Readers
64.
August 6th, 2008 10:15 am
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This is a symptom of how far we've gone from life's basics. I look at the Amish in Pennsylvania. I like how they are totally untouched by all of these crises - oil, credit, foreclosures, illegal immigration.
— Janice, Baltimore
Recommend Recommended by 9 Readers
65.
August 6th, 2008 10:15 am
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Legislative indulgences extended to the credit card companies are simply legalized loan-sharking, pure and simple.If you don't pay the "vig" every month, the loan keeps increasing. When you're finally punished for not being able to pay, they don't break your legs; they just break your financial future through legislatively-enabled bankruptcy constraints.It's literally criminal!
— Norm McDougall, Thunder Bay, Ontario, Canada
Recommend Recommended by 3 Readers
66.
August 6th, 2008 10:15 am
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"As borrowers become “distressed,” the credit card issuer has more time to pile on interest charges and fees until the client actually goes bankrupt. As heartless as that bankruptcy law has been for beleaguered consumers, the Democrats, who have controlled Congress since 2006, have not fixed it." - MannThe worst part of this comment is the way banks then increase rates on good credit history customers to pay for the losses due to bankruptcies!! I am a faithful payer with years of performance yet my rates are near and even above 30% for no reason!! It is impossible to get out at these rates!!I recently had an automatic payment hit my checking account. The banks accept them even though it put my account negative they charged me 36 dollars immediately and then 8 dollars a day after for my negative balance.They bank ended up collecting over 100 dollars for this "unusual" circumstance.
— Jeff C, New Britain, Conn.
Recommend Recommended by 0 Readers
67.
August 6th, 2008 10:34 am
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It's pretty simple. Outside of Homes and Autos, if you can't pay cash, you can't afford it. Stop overspending and take some personal responsiblity.
— RCK, Chicago
Recommend Recommended by 4 Readers
68.
August 6th, 2008 10:34 am
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I am sick and tired of the greedy and irresponsible -- that's both the lenders and the debtors -- getting a free ride. Lend too much? Do not worry, Congress to the rescue. Spend too much? Your legislative body is at your service.Wish I could get away with it. Then again, I suppose that our elected officials lead by example. How much has been spent on campaign financing so far?
— marymary, Washington, DC
Recommend Recommended by 4 Readers
69.
August 6th, 2008 10:43 am
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As Bill pointed out earlier, the problem is the lack of usury laws in South Dakota. However, the fact that so many credit card companies are not in the states where credit is being used means that all credit card business is interstate commerce, and Congress can regulate it.That said, Democrats have NOT, as the editorial said, been in control of Congress since 2006. The new class came in in 2007, and the Democrats' nominal majority in the Senate is insufficient to get around rules. The Democratic Party's refusal to take money from lobbyists is a step in the right direction for the future, though.
— Kim, Arkansas
Recommend Recommended by 4 Readers
70.
August 6th, 2008 10:43 am
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I agree with Commenter 24. "Legal personhood" in the form anthropomorphic "Corporations" creates a legal system with two types of "persons." There is the "Person-Person" and "Corporation-Person," both of whom claim legal protections and market rights as "persons."Then there are the investors, CEOs, and other "Person-Persons" who hide inside the amoral "Corporate-Persons," so to speak, and bail out with the money when the "Corporate-Person" falls into debt, fails, or dies. I would call these the financial "Parasite-Persons." They are the ones who live under the "heads-I-win-tails-you-lose" laws they have created for themselves under the 14th Amendment.As for the amoral "Corporate-Persons" who sell debt, they are merrily sacking the nation. It is easy to blame the borrowers, the "Person-Persons"who "should know better." Caveat emptor, and all. But if we have consumer safety rules about selling food, children's toys, drugs, cars, etc., why so few rules about selling debt?That is all banks do, by definition. They sell debt. They are debt pushers. They have an exclusive government license to sell contractual debt. We need an equivalent of the FDA carefully checking and screening the safety of this debt. It is sheer stupidity to listen to the bankers and the rating agencies when they tell us, "Don't worry. The market automatically checks the safety of all this debt. After all, why would anyone buy it if it weren't safe?" Right!Would we believe a drug pusher who said the same? So why believe a debt pusher? It really isn't that complicated. They just invented a mathematical language to make it appear complicated. I don't care how smart bankers and banks are. They need to be watched as closely as used car salesmen! The motives are the same. Especially when they are inside the government. All they are doing now is trying to figure out how to prop up the tires and sell more debt.
— Nelson Alexander, New York City
Recommend Recommended by 9 Readers
71.
August 6th, 2008 10:44 am
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Congress won't listen. It can't. Sorry to say, its full of deaf dudes.Shahid Hussein Qaboolpuria,Lahore, Pakistan
— shahid hussein qaboolpuria, Lahore, Pakistan
Recommend Recommended by 2 Readers
72.
August 6th, 2008 10:45 am
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Why do people need credit cards? Yes, there's the convenience of not having to carry cash... which can be perfectly done using a debit card.So, why do people need credit cards?Yeah, I know.- Look, I MUST HAVE the latest iPhone -AND I DONT HAVE THE MONEY TO PAY FOR IT- so, I charge it to my credit card.- I want to eat at a fancy restaurant -AND I DONT HAVE THE MONEY TO PAY FOR IT. No problem, I charge it to my credit card.- I want to travel -AND I DONT HAVE THE MONEY TO PAY FOR IT. Easy, I charge it to my credit card.- Even worse: I don't have money to buy groceries nor to pay utility bills, so I charge it to my credit card.Obviously, since I didn't have enough money last month, why on earth do I believe I will have enough money this month, and next month, and the month after?But the problem doesn't end there. Millions of people charge the iPhone to their Mastercard, the Caribbean cruise to their American Express, restaurant meals to their VISA, and so on. Moreover, millions of people take money from one card to make payments on the other cards. No wonder millions of people get trapped in this vicious circle.The answer: GET RID OF CREDIT CARDS!!!! Use cash to pay for groceries. Pay your bills using old-fashioned checks. Learn to balance your expenses according to your income. Use credit ONLY when your income allows you to do so.The New York Times will always tell people that the only solution for every problem is a new law.No way!!! People need to learn commonsense. That's what is missing in today's America.
— berrymonster, Orlando, Fl
Recommend Recommended by 5 Readers
73.
August 6th, 2008 10:47 am
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With its big bags of money and fast-talking lobbyists greasing the rails, the credit card industry has degenerated into a very lucrative but nightmarish fun house of escalating fees and interest rates. It is parasitical, predatory and rapacious. The country can't afford this mischief any more. Congress should drop a lasso on these guys ... pronto. The industry can make a decent profit without taking people to the cleaners or, worse, pushing them into bankruptcy.
— Innocent Bystander, Albuquerque, NM
Recommend Recommended by 6 Readers
74.
August 6th, 2008 10:47 am
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Had I known they were taking comments, it would have been 56,001. American Express has advertised and pushed the ability of small business to carry a balance for certain purchases, which I took advantage of to upgrade some equipment. Then they froze my card, which I use extensively for business travel, because it was their judgement I was not paying down the balance fast enough, though I was meeting and usually exceeding the minimum payment and always paying off the travel expenses. Recently, after budgeting a not-insignificant amount every month toward the card, they set a spending limit on the card at a level lower than the card's current balance and required a payment of three times the amount I had budgeted to pay to bring the balance below that spending limit. That is just the most recent example from just one of the companies. I too have personally experienced every consumer complaint listed in the article.
— Martha, Tallahassee, FL
Recommend Recommended by 5 Readers
75.
August 6th, 2008 10:48 am
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For those of you T.W. Smith who write in here worried about the nanny state, I would say "freedom of action"? Excuse me -- freedom to make sure that once someone is clearly already in trouble you can take them for all they are worth? You are often talking about people like me, who racked up credit card debt while students (along with student loans) simply in order to exist while working and getting an education. Now we have every intention to pay it off, but if one missed bill results in $60 in late fees and fines and all other cards going up to 29% interest, how exactly could we ever manage to get out from under the debt? Your definition of "freedom of action" wouldn't have been legal anywhere else, ever in the history of mankind!
— KL,, New York
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