Credit Card Comments

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Wednesday, August 6, 2008


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Congress should listen to the thousands of disgruntled credit card users and curb abusive credit card practices.
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1.
All Editors' Selections » EDITORS' SELECTIONS (what's this?)
August 6th, 2008 7:31 am
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The real problem is in South Dakota, where all those credit card applications originate and all those Wall Street credit card companies are incorporated. (How do you suppose they get away with that?)There are no usury laws in South Dakota, so all those arcane fees and increases the credit card bandits help themselves to are perfectly legal in their "home" state.What Congress could do if it weren't owned by the multinational corporations is prevent corporations from incorporating other than where their headquarters physically exist. Do not hold your breath.
— Bill Appledorf, San Francisco
Recommend Recommended by 88 Readers
2.
August 6th, 2008 7:31 am
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Two words suffice to describe the attitude of the credit card companies toward their customers: bad faith.
— rmgrmg, CT
Recommend Recommended by 26 Readers
3.
August 6th, 2008 7:31 am
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The bill should pass. Credit card abuse is rife and outrageous.
— mnjam, Philadelphia
Recommend Recommended by 21 Readers
4.
August 6th, 2008 7:31 am
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On this issue, the Times almost hits the nail on the head.Allow me to expand upon your quote....for too long, ... "members of Congress have shirked their responsibility to ensure fair lending to credit card customers".As if this was something that I (and most of the country) wasn't already aware of.My question back to you would be; exactly what set of circumstances do you see transpiring in the near future that would motivate Congress to A) garner enough votes to pass something that might actually work, and B) have enough support remaining to override a Bush veto?
— jon, Arlington, VA
Recommend Recommended by 27 Readers
5.
August 6th, 2008 7:31 am
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My particular anecdote is about a certain well-known credit card issuer changing my due date without telling me. This then allowed them to slap on a "late fee," which put me over my limit, which then allowed to add an "over the limit fee." Now that I'm paying them off and not adding any more charges, they keep sending me "convenience checks," in the hope that I'll be dumb enough to use them. No thanks! My aim is to be completely debt-free in the near future, and I'm getting closer every month, using the "invest in your debt" method.
— pdxtran, Minneapolis
Recommend Recommended by 35 Readers
6.
August 6th, 2008 7:31 am
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It is high time that the Congress reinstate the Bankruptcy Laws. They made a mistake, cowtowing to the credit lobby. Soon thereafter Katrina struck and may suffered--because of the greed and hardheartedness of our representatives.
— Laxman, Berkeley
Recommend Recommended by 34 Readers
7.
August 6th, 2008 7:31 am
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You're right on. There're actually three ethical breakdowns here, feeding off each other.1. Because the effective interest rates that banks are allowed to charge are so high, they are encouraged to lend irresponsibly. That is, even if a significant fraction of folks default, the overall business is still very profitable. But this high default level is then used by the banks as part of the justification for the exorbitant rates and extortionate fees.2. For the same reason, the banks are motivated to see their money loaned out as long as possible, rather than being repaid. So, rather than promoting a savings culture, our American banks promote an owing culture.3. With this, not only is there no shame or concern on the consumer side about being perpetually in debt, it is seen as a lifestyle choice that - initially - lets one buy things without having to save for the purchase.Let's throw in some numbers to understand better.An individual who consistently gets 8-10% returns on their savings and investments would be considered both sophisticated and successful.Anyone can get half of that return, with almost no risk, with CD's.Yet, someone who maintains an ongoing debt, rather than savings, balance will likely be paying an effective rate of 25-30%.So, the swing from being a sophisticated investor to a novice saver is about five percent per year.But the swing from being a novice saver to a chronic debtor can exceed thirty percent per year.Finally, let's connect the dots.If my consumer debt is costing me 25-30 percent, taking out a home equity loan at even half that rate seems positively prudent.Guess where that'll take us.Oops.Already there.
— W in the Middle, New York State
Recommend Recommended by 54 Readers
8.
August 6th, 2008 7:36 am
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Parhaps if our government did not pray at the altar of Wall Street, we would not be in this mess. It seems to me that greed is running this country, and too bad for all the "little people", let them eat cake. I am so fed up with all of this. I really am. If our government is not there to protect its citizens, then just what is its purpose? Makes me wonder if anarchy would be better. I sometimes think we could better govern ourselves. Now, beyond credit woes, we will have higher heating costs; many will go hungry and cold all winter. What ever happened to the America I know? Where is the leadership? Oh, I know. They are busy helping Iraq become a democracy. And you need money for that. The casualties of this war stretch way beyond our brave troops.
— Janice47, Boston, MA
Recommend Recommended by 71 Readers
9.
August 6th, 2008 7:36 am
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A word of warning to the credit card companies: review enough anecdotal evidence, and it won't be too hard to design statistical studies inspired from this anecdotal evidence.As credit card holders, we are more than a little tired of those 8-page super-complex contracts in fine print which include somewhere in the text the phrase "We reserve the right to change the terms of this contract at any time" These credit card contracts are one-sided and make provisions for the kind of sleight of hand that would do a professional magician proud.It is time that the powers-that-be recognize that every dollar that is improperly and inazppropriately collected by the credit card companies is a consumer dollar that is not fueling the economy. I expect that cracking down on the credit card companies' nefarious practices will release more consumer dollars into the economy than any pitiful rebates that thepowers-that-be in Washington, DC could cook up.Reforming the bankruptcy "reforms" of 2005 and outlawing the credit card companies' nefarious practices will go a long way toward clipping their wings. I view the credit card companies' assertion that less credit will be available with supreme indifference. Consumer debt exploded from $US 8 trillions to $US 14 trillions in seven years. An economy based on consumer spending is one thing. An economy based on consumer debt is a whole different, thoroughly unhealthy and noxious situation. This country is not going to be a more sound place for economic activity unless both government and consumers start making an effort to reduce their debts.
— blacklight, New York City
Recommend Recommended by 45 Readers
10.
August 6th, 2008 7:36 am
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Sadly, I expect Congress to do nothing.
— Tom Paine, Windham, NH
Recommend Recommended by 14 Readers
11.
August 6th, 2008 7:36 am
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The 2005 bankruptcy bill was at least partially sold on the theory it would make credit cheaper for the creditworthy and strengthen lenders. So, is credit cheaper? Are lenders stronger? Or have greedy and foolish lenders been rewarded by a public bailout?
— Richard Friedman, Wilmette, IL
Recommend Recommended by 28 Readers
12.
August 6th, 2008 7:36 am
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No one can take advantage of you without your permission. Banks prey on the financially inept and the just plain stupid. If you think of a credit card as a 28 day loan that must be paid in full, you will never have a credit card problem. There should be a required course that starts in the eighth grade. And that course should drum into your head that you can not buy that which you can not pay for in 28 days, homes and autos excepted. And the auto loans and mortgages should come with huge print and the total dollar amount that will be paid over the life of the loan. REALLY BIG PRINT.
— Jan in Rochester, jsminteriors@rochester.rr.com
Recommend Recommended by 29 Readers
13.
August 6th, 2008 7:36 am
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Here is a better idea: stop whining, and don't overspend what you DON'T have.
— John-Robert La Porta, Little Rock, AR
Recommend Recommended by 20 Readers
14.
All Editors' Selections » EDITORS' SELECTIONS (what's this?)
August 6th, 2008 7:36 am
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Thanks to congress and the bank lobbyists, credit cards have crossed over from a service for bank customers to a predatory trap designed to suck the financial life out of citizens. Usury is the term, I believe.
— R. Keith Gargus, Coatesville, Pa.
Recommend Recommended by 60 Readers
15.
August 6th, 2008 7:36 am
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At what point does personal responsibility become the central issue? Anyone who actually took the time to read their credit card agreements would see that what the credit card companies are doing is simply their right under the contract with the customer. This does not make it any more pleasant for the unfortunate individual who is mired in credit card debt, but it does seem to support the need for better financial education for our citizens, not more regulation.It is simply not possible for Congress, or anyone else for that matter, to protect everyone from themselves in every instance. People make life choices, sometimes the wrong ones, everyday. If individuals will not read what they sign, will not buy health insurance (yes there are many who can afford to but choose to forego it - mainly young single males), will not save for their retirement, and so on, then these are the choices they make. We cannot sacrifice freedom of action on the alter of the nanny state.
— T. W. Smith, Livingston, Texas
Recommend Recommended by 16 Readers
16.
All Editors' Selections » EDITORS' SELECTIONS (what's this?)
August 6th, 2008 7:36 am
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Special attention needs to be paid to the aggressive pursuit of college students by credit card companies. Chase and other banks arrange for free pizza and other gifts if students only fill out a simple form - that students are sometimes not told are for a credit card. Most of these students have no job and run up debt without realizing the consequences. My college freshman son went for "free" pizza off-campus sponsored by Chase at a PA state university. When he realized that the paperwork he completed was to apply for a credit card, he asked for his paperwork back insisting that he did not want a credit card. The Chase employee refused to return his paperwork and he soon received a Chase card with a 10% interest rate. We cut it in half. These are outrageous practices. I understand legislation is being proposed that would stop these practices and require parent signatures for students under age 21 or proof of ability to pay.
— Solveig Spjeldnes, PhD, MSW, MAED, Athens, OH
Recommend Recommended by 39 Readers
17.
August 6th, 2008 7:36 am
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I remember a speech that President W gave where he stated that he believes in Laissez-faire capitalism; this is a doctrine that calls for minimal economic intervention by the state. However as we have come to learn, this is as long as the corporations are fairing well.When the corporations are allowed to run the economy with no intervention by the state then they create a "credit crisis". This is the point where laissez-faire capitalism becomes unpopular because the corporations are not fairing well and state intervention becomes very popular again and they ask for "government bail outs"How about an individual bail out for the consumers?
— James, Queens, N.Y.
Recommend Recommended by 22 Readers
18.
August 6th, 2008 7:36 am
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If Congress truly represented us, they'd pass a law saying that we--like they--can charge anything we want, and that anything we want should be simply put on the tab.
— BYOB, PA
Recommend Recommended by 5 Readers
19.
August 6th, 2008 7:36 am
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Life on credit? What a scary thought.Credit cards have become so pervasive and are being aggressively shoved into our pockets by all these banks and companies. I for one am forced to get a credit card because too many places (in real life or online: government agencies, international charities, churches, book sellers etc.) would only accept a credit card.When we create these millions and millions of plastic things that can instantly pay cash, little wonder that the businesses, big banks, companies, the con-men and hacks- all of them together- will make you bleed and suck your blood.Even when you don't want to go with the flow, THEY just suck you into the dark pit, alas...
— Rajiv Thind, New Zealand
Recommend Recommended by 6 Readers
20.
August 6th, 2008 7:36 am
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Anyone who has any doubt about the intent of banks levying addiitonal fees on cardholders who fall behind in their payments should consider the fact the banks do not cancel the credit cards. It is clear that the banks want to do as much damage as possible to the cardholders who are unable to pay them back.
— Aaron Kershenbaum, New City, New York
Recommend Recommended by 21 Readers
21.
August 6th, 2008 7:36 am
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I guess that if we had representative government the Mahoney bill would sail through.Unfortunately that era ended when Reagan turned the country over to voracious corporations.There is still representative government, but the representatives are all representing political action committees.
— Dan, Virginia Beach
Recommend Recommended by 33 Readers
22.
August 6th, 2008 7:38 am
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I have used cedit cards from multiple banks for 30 years. Like most people I talk with, I've rarely paid any interest or fees. Meanwhile, I've earned some terrific rewards, get to consolidate small bills, and keep my money for up to 45 days. Like all credit, if used responsibly, credit cards can be a marvellous tool.And re. the 2005 bankruptcy law, why should people be allowed to avoid debt for vacations and merchandise they couldn't afford.There are certainly sad exceptions, but credit problems can usually be avoided by exercising self discipline and personal responsibility.
— NC, Arkansas
Recommend Recommended by 21 Readers
23.
August 6th, 2008 7:38 am
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Americans, the quadarous (sp?) - you want credit and then balk at the terms. Granted they may be hidden, but there is the good old caveat emptor that is, or was, the slogan the baby boom generation grew up with. And now we have generations who think that they have to have EVERYTHING that's out there, think they are wiser and can better handle getting everything. My husband and I dabbled in the credit world for 10 years and then a medical situation (he got MS) crushed it all and how very happy I was. I bit the bullet and paid off every single credit card over a period of five years and today we don't owe a soul a penny - and we never will again. The best way to deal with the credit situation is to put them out of business by not giving them any business. How veddy, veddy simple!
— Allyana Z., Atlanta
Recommend Recommended by 14 Readers
24.
August 6th, 2008 7:38 am
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When an individual goes bankrupt, Congress gets all moral about the evils of borrowing beyond one's means. When an institution goes bankrupt, Congress bails them out with taxpayer money.We're at such a sad state that the idea of fairness between individuals and institutions, especially money institutions, seems like a pipe dream.For all the Republicans' religiosity, why do they value the rights of soulless institutions so much more than the rights of individuals?It's time for revolution! Let's take away insitutions' legal personhood. The only way we'll be human beings again is if we take away the rights of all institutions (corporations, governments, etc.), including most especially the right to sign and enforce a contract.Then we'll be borrowing money from each other, one human from another, and the moral responsibility of dirty tricks will fall on an individual conscience, not a diffused soulless collective entity.www.boldizar.com
— Boldizar, New York
Recommend Recommended by 47 Readers
25.
August 6th, 2008 7:38 am
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BRAVO, NYT
— Anna, New York
Recommend Recommended by 9 Readers
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