Credit card fee frenzy

I have an American Eagle credit card with a $350 credit limit. I lost my job of 11 yrs in June 09. During the time that I was unemployed I stayed in touch with all my creditors asking them to work with me as I looked for work and when I did find a job during that transition time of "catching up". While most creditors waived the late fees, American Eagle would not. I was due a payment on Dec 10. I went online to make a payment at 7am or so on the 10th and a late fee of $39 was already showing on my account. I made the payment by 7:30 am on Dec 10. I called AE to ask them to waive that late fee once again as I will never catch up if they keep doing this. I just spoke to the supervisor who said she "could not" waive the late fees. This is totally unacceptable and unjust. They are kicking me while I'm already down. I will now call the credit manager at 10 to make my plea again. I will not stop until these unjust fees are removed from my account. It's nothing less than thievery.

Starting Jan 1st 2010 Do not send anymore payments in to banks or Creidt card companies, Within 2-3 months they will be forced to listen to "We the People" Maybe then they will take notice of the hardship they are causing with all the fees and high interest rates.

Unbelievable…Bank of America raised my interest from less than 10% to just shy of 30% after being 2 to 3 days late on payment. Have had the same card since 1996 and mostly paid off the balance in full until the last two years. Who knows why the minimun payment was recently raised to nearly triple…after I had been paying double…? Can't believe this is legal…isn't this more like loan shark behavior, or extortion…???

All Unions, AARP, AAA, SEIU should make the banks remove their logos from their credit cards. They may substitute this for the Logo: " Beware Credit Cards may be harmful to your financial health" "Buyer Beware, your interest rate may explode at the will of the issuer of this card"

Let me say we can say what we want and its will not change a thing are govt gave are money to to bank for free and let bank do what they want it just greed years back credit card company cry people are going bankurpt so they have to raise rates so law was past you havee to pay some of you past card off if you go bankurpt but did the rate go down NO and why did they pass law for credit card company to help people and get them a year before it go into law so they could rip people off more money the law should been put in place asp not a year later with the free money the govt gave bank will are govt raise the rate at will so bank cant pay use back it dont think so but the govt let bank raise are rate up at will and that ok

Here the TAX payer has bailed these corporations and this is how they repay us. It time for ALL people not to pay these outragous interest rates and let these banks FAIL…EVERYONE NOT pay their payments for 6 months and see who is crying the most..I have had it with the out of control way banks treat us the depositors It's time to rebell.

welcome to wild wild west. no shame at all.

They say the consumers will come back and save the economy, ie doing the same mistake as they did before, lured into building credit to keep the shopping carts full and running. Don´t think so. This time it is different. They have pulled us around one time too many. What do they think? That they can fool us into running in to this again, after losing jobs and homes while they sit on their fat asses on Wall Street with their pockets full of taxpayers´money and bonuses, and grow even bigger after we started building up our debts again. No way!

Could you all possibly be a bigger bunch of whiners (except Tom in Boston)?? No one is forcing you to use credit cards. You go to work (some of you). Do you work for free? Because it's the "nice" thing to do? No, you get paid. And banks and credit card companies and everyone else out there gets paid for what they do too. This is not a communist country (yet). It is not illegal to make a profit. Grow up.

I'm gonna let everyone in on what is apparently a very little known secret.. If you pay your balance in full every month, you will NEVER pay interest!!!

Suggestion for Monie A., Dayton, OH: April 15, 2009 8:50 pm: (and everyone in fact)

BUY GOLD NOW!

SEARS credit card. My wife just got her latest bill and it shows a 588% effective interest rate (Yes, that's FIVE HUNDERED EIGHTY EIGHT PERCENT!) due to their "minium charge" policy. Wont' be doing business with SEARS any longer!

The credit card companies have us in their clutches and they are strangling the consumer. If you cancel your card with them due to their new fees and additional 13% interest increase for those even with no previous credit risk. The cancellation of your card will cause your FICO score to change, especially if it is an old account. Your insurance is tied to your fico score so you pay more for your insurance. So you’re stuck with them as they sock-it-to-us with fees and interest rate increases. Customers are hurt every which way they turn. What can we do? Everyone need to call their representatives and get the government to act now and not in a year or so as scheduled! We need to have the government work on changing the way FICO works too. This credit crisis is making fico scores drop daily. Don’t punish people because of the outrageous actions of the credit industry. If they don’t act now, in a year or so rates will be increased 20- 30 %. Of course the credit card companies will do fine with all the billions of profits from our hard earned money. I think this type of behavior should be criminalized.

no problem taking responsibility and pay my bills but…when i take out a car loan house note or any other loan they cant change the terms like they can on cards ..it is like a crack dealer giving it away till your hooked than raising the price as soon as they know your hooked .this is he same thing .

Bank of America got 40 some billion in TARP Money. They have bought LaSalle Bank&Countrywide.Closed one my account with zero balance,lowered the cap on another and is doubling the rate on it.
Bank of America should be prosecuted for fraud.(obtaining Gov't money under
False Pretenses)

Merrick Bank is the most commonly Al Capone organization that exists in the credit card business

I heard today that the CEO of Citi
was pleased about the 1Q stats.
I wish I could say I was pleased that
during this same period Citi raised the
interest on my zero balance Citi M/C
from 16 percent to 20 percent.

Instead of just venting, contact your Senator and demand that they endorse S.582 which is Bernie Sanders bill to impose same 15% usury limit (including fees) that applies to Federal Credit Unions. This bill has been sitting in committee since Mar 12, while they waste our time flogging AIG.

It seems so unjust that all the folks that pay their credit cards on time and manage their debt appropriately suffer as a result of the rest.

Not only have my credit card co's. increased my interest rates (even though I have not been making minimum or late payments) but also, when I called last yr. because my "guaranteed fixed" interest rate nearly doubled (just because they could), and asked if they could work with me on the interest rate, they not only told me "no we don't do that" but, they also knocked my fico score down about 100 points because I asked. Now JP Morgan/Chase has that account(was Wamu), and when they took over I rec'd "new terms" (same interest rates) which informed me that even if I have to file bankruptcy, I still have to pay them. Thought that was what bankruptcy was for – debt relief. How long is the government going to let the banks get by with this piracy?

I am disgusted with this whole bail out thing. My tax dollars are helping everyone but me and those other responsible people that bought a house they could afford, have paid mortgage & credit cards on time. my credit card interest rates are going up & I cant refinance my house for a lower interest rate cause of housing values. Guess I should go into foreclosure to get some help. I just want lower int rate to stop living from pay check to pay check now that costs of everything is going up. Does anyone have any suggestions?

Please do not include your credit score, first and last name, and city in your post. That is asking for someone to steal your identity as they will know you have great credit.

Rather than using a national bank's credit card, visit your local credit union and inquire regarding their credit cards. There is a reason credit unions are non-profit organizations.

The solution is right there people, right there. Stop using credit cards. Right now right this very minute, call your parents and ask them what was life like before easy credit. It was about budgeting and saving and not needing the latest phone or the newest HDTV. We are a nation of consumption addicts.
List your credit card debts make a plan cut back and pay them off. If that doesn't work file for a chpt 13 BK. If you are serious about not using the trap again then the BK option maybe an option.

YES!! And AMEX is one of the worst when it comes to punishing those people whose credit they were so actively seeking not so long ago!
They all should be made to forfeit those fees and hold their rates so they can get a taste of what it's like to be pressed from all sides, or better yet take back the TARP funds and let them go broke!

Might help to look at state usury laws:

http://www.usurylaw.com/state/index.php

I'll be investigating this when I have some time. I had a credit card since '99, and what did I get for being a faithful customer who paid on time?

Instead of 18% fixed, they put it on an adjustable scale, which right away gets them a whole % point off the bat. That was back in 2005-2006. Since then, as prime rates have dropped, they would revise their adjustable rate formula to not only make up the lost profit, but add to it. It's now at 21%.

Thank you FIA Card Services.

I have written my Congressmen and Senators on this issue, as well.

To Bobby Z of Staten Island –

Non-paying customers are not profitable by definition. The cash cows are the customers that lag behind. Get your logic right.

When your bank raises your interest rates, just call them up and offer them a deal:
3% and no fees
or
nothing (Bankruptcy)
If they think its morally right for them to do this to you, well then you can do it to them. See how they like it!!!

Just about everyone is to blame here.

Individuals were foolish by spending beyond their means and by counting on continued growth in housing prices and in the economy. They never seem to have learned to save for a rainy day. They do not seem to have ever heard of any of the economic downturns in history, or foolishly believe that it could never happen again.

Companies including banks were greedy, arrogant and ignorant – always a deadly combination. They seemed to be drinking the same koolaid that individuals did. Betting their very futures, and ours, on the continued economic growth and sustained housing price inflation. With individuals, you may believe that they did not understand how basic economic cycles flow. With the supposed top minds running businesses, and particularly, banks not seeming to understand this basic fact, this rises to the level of criminal. These geniuses understood they had a responsibility to the owners – the stockholders – of maximizing their return on investment while minimizing the risk such that they receive a reasonable return on their investment for the risk they were exposed to. Their return, of course consists of dividends received plus or minus any change in the stock price. Looks like they all failed miserably, doesn't it? Why are so many of them still there?

And last, but definitely not least, the walking, talking vegetables holding elected offices at all levels, and the semi-conscious minions they force us to shoulder the cost of as government employees. Their supposed purpose for existing is to make and enforce the rules and provide the services that society needs, at the direction of the public which they supposedly exist to serve, for the common good of the public. Instead they seem to be intent on helping the companies and bank that were instrumental in causing this disaster so they do not have to suffer the true results of their own actions and funding this stupidity by ensuring that we and our children and our grandchildren will get stuck with the bill for this mess for decades to come. To top this off, they continue with the exact same type of stupid decision making that got us here in the first place.

Years ago I heard a business joke that closed relates to this situation. It was called The Project Steps In Business (After A Failure) -
1 – The Search For The Guilty
2 – The Punishment of The Innocent
3 – The Reward of Non-Participants

At this rate, we are headed toward being a cheap labor market for another country. Good luck.

Back in 05, the community reinvestment act was passed to basically require banks to loan evenly in certain demographics. So underserved communities would be offered comparable, affordable loans. If I invest in a high risk stock, I expect high returns, likewise, safe, low risk stocks would give me a low return. How can a bank offer a loan to meet these requirements and keep investors buying loans? Answer: options arms, arms on LIBOR, interest only loans, high debt to income ratio and loan to value loans. All backed by fannie and freddy, and packaged into securities(401K's). Look it up. So now, regulation is being passed to lower interest rates for people who default and who are higher risk. So, how can a credit card company take that loss, and added risk? By raising rates on good customers. I am not anti regulation, I am not pro bank screwing people over, but all causes have an effect, and this story is a little biased without pointing out the behind the scenes truth. We all need educate ourselves on how things really work, and stop believing whatever someone writes as the golden truth. When we dont understand we lose control, and when we lose control we cant fix a problem.

I to have the same issue as Posted By LorraineT Chisholm, Charlotte North Carolina: April 15, 2009 10:12 am – my credit card company has raised my rate to 27.4 percent because I was one day late with a partial payment (I pay every two weeks) they had received two payments that did not total up to the minimum payment required about 10 dollars short – date due Friday, my payment which put me over the minimum by almost 100 was posted Monday. I have always paid almost 25% more than the mimimum, and I changed my payment to pay 150 every week, just paid $600 for March and they raised my interest from 2.9 (promotional) to 27.4 – have had this card for over 5 yeras. I am willing to pay, but not 10 times my apr. Just getting into negotiations.

UNcommonsenseguy – Not surprisingly, you miss the entire point. Yes, they are free to set up shop in the shady state of Deleware, one of only 2 states that does not have usury laws (read loansharking). Joe Biden has seen to that. However, any business whose business model is to rape their paying customers because they chose to grow their business by appealing to what they KNEW would be non paying customers will not be in business long. The free market will take care of that. This will be a lesson to people, and with any luck, they can enjoy raping thier good customers for a little while, but it time a smart person will set up shop and attract all these people, leaving what we have now to fight overhow much interest they can charge the deadbeats that they so zealously sought as customers. Oh wait, that's when Obama steps in to bail them out. Silly me, I forgot.

Now that the banks aren't making much money on mortgage as in the past, they are have to find another way of increasing the BOTTOM LINE. I am not supprised.
But ultimately I blame our representative in Congress for raping the consumer.

All of the giant failing businesses are doing so because they were allowed to grow to unmanageable size and had no one keeping a close watch on their books (because they can't even do it). They are currently gouging John Q Public because…well, because they can. Just like they manage their businesses badly to make more money, because they can.

What all of the so-called economists are failing to respond to, is that they have stopped letting the economy work the way it's supposed to. When businesses grow to unmanageable size, they need to be broken down and sold off to smaller businesses so that they in turn can grow. That's how it works. By allowing big businesses to stay too big and resort to finding shady ways to make the bottom line look good to investors, the economy has effectively ground to a halt. The government needs to get the big ones broken down and sold off in pieces to the smaller ones to jump start economic movement. This will also get rid of the greedy practice of the giants of gouging the people who can't afford it.

To Margret in Bellmore NY — if you cannot afford food and medicine on your income, how do you plan to handle food and medicine AND debt payments? Your plan is not working…this is not about being judgmental, this is just simple math. I wish you well, I really do, I hope you find a way to up your income and/or slash your expenses before you make your situation even worse.

In response to the comment from Spock in Florida: Unfortunately, with the economic downturn caused by the imploding housing bubble, a pretty fair number of people and firms just aren’t good lending risks any more.

If the banks had considered the lending risks of the borrowers over the past 8 years, we would not be in this financial crisis today. Instead, the banks and mortgage companies granted loans to people who could never pay them back or they bought the debt (ie the CDOs) which contained these bad mortgages. All of this reckless lending was based on greed because the banks knew full well that they could pass the risk off to the GSEs or Wall Street would sell the debt as AAA rated to unwary investors while the banks pocketed the hefty lending fees. The banks also knew that it was a no lose proposition because if the house of cards collapsed, then they would get bailed out by the Federal Reserve or the taxpayers. Bank America has even gone so far as to buy the most egregious of the lenders (Country Wide) because they thought they would be able to sell their financial products to all of these new customers when in reality they are now stuck with huge losses on these mortgages.

I notice that some posters state they can't change the terms of their contract. Well I did. I closed my account via mail and implemented a new user fee to my bank. They now have to pay me $500 user fee every time they send me something or try to contact me. Since they no longer have any contractual arrangement with me they have no right to bother me, send me junk mail, brochures or to seek my business in any way. I'm waiting to sue them plus charge them the same outrageous interest they want to charge. Personally, their criminal actions need to be dealt with. Maybe a few black SUV's, with armed men in black excorting them to Gitmo might send the appropriate message.

I totally agree. I have been paying all my bills including my credit card on time. I am a real estate broker, single mom of three daugthers. My business is totally dead at this point. I am struggling with jobs just to maintain my needs to be able to provide for my daughters (2) in college and 1 as junior in high school.
I was late 1 day on my credit card with Bank of America , now they charge me 27.4% interest. I think it is totally ridiculous. I call them to see if they can work some arrangement for me to make it affordable so I can pay them back until the economy gets better.The senior credit analysist told me not to pay my credit card, concentrate on pay your other bills. I told her that this is not a satisfaction answer to me as a responsible and honest citizen. I owe them money by using their credit card, I am willing to pay them back, but at this time I need their help so we can make an arrangement where I can pay them back every month but I need it to be fair and affordable according to my income at this time. She totally refuse to help me and she told me that Bank of America don't have such programm to help people like me at my situation. I told her that I cannot believe the kind of respond that they give to honest person like me. I ask her how many people who are willing to pay you back, in consideration to people who just used the credit crad on never have any intention to pay it back. That is why our economy is where we are because of people who don't have any common sense who make rules and regulations for Banks and other Businesses. We need people who have common sense to make rules and regulations to operate businesses.
I will continue to write until this issue is corrected and fix for all of the people who are in this same situation like myself. Bank needs to fix this!!!

Yes, I am certainly going to remember who has treated me decently through all this!! Discover Card & Home Depot have both increased my credit limits during all this financial crisis. My Discover went from 7.99% up to 8.24%. I can live with a 1/4% raise, but my BOA cut my limit from $23,000 to $11,500 on two of my cards and jacked the rate up to 16% from 7.99%. And Chase has also jacked my interest rates up. After this is all over my Discover Card will definitely be my card of choice and the rest can sit in the drawer at home!!!! Thank you Discover for trying your hardest to help strapped consumers!!!

Legal loansharking comes to mind when I think of CC companies. I pay my balance off every month but they do a little thing called lagging so they can charge interest on your balance if you carry one. I also noticed they post charges a bit late so when you pay off your card you never have a true zero balance. They are also making money on the business that used your card to make purchases. If they can't absorb the risk of non-payers then they need to issue fewer cards and make us pay for their mistakes. I hate card companies but you need one to rent a car or pay for airline tickets anymore. The banks are now under the microscope but regulation of them is still years away.

I know fees are a cash cow for banks,but I wonder what would happen if we rolled back the clock and banks actually stopped people from spending money or going over their limit.

I see no problem charging a consumer an over the limit if that limit is breached by interest charges or late fees. But why bother having a credit limit if the bank will just approve anything. Most banks I know see debit cards the same way for charging overdraft fees.

Banks need to suck it up and deal with a little less revenue for a solid balance sheet…..seems like a mantra of the times.

Have paid off >$200,000 in credit cards and signature loans over the last 5 years by working Financial Peace University of Dave Ramsey. The sense of control, peace, and vision this has given me is incredible. I use a local credit union where the people know me and am nearly done paying off the "big bank" mortgage so that I never have to do business with those crooks again. They need to be heavily regulated, their fee-based profits limited, and their "spread" between deposit and credit rates limited to 2%. By the way, most of the big banks own "Payday Lenders" who skirt the usury laws of every state. Let them fail!

I would like to know what is the general financial background of all the people who can pay off their balances every month and are so high and mighty to
say " well you are not living within your means" Have you ever had to choose between paying for medicine or food?? Goodie for you that you still have your job, your health, unlimited resources and have the time to judge. The rest of us living in the real world have bills, and most of us are not buying junk..we are paying for medicine, car up keep, and everything esle that goes along with trying to survive. NO PS3s!!! NO dumb purchases!!! Just life.. I would love to pay every balance in full. There was a time where I was able to do that and did. But that time has past. So I have been paying on time more than the minium balances and not buying anything that is not absolutly necesssary..and of course Chase raised my intrest rate to 29 percent!!! Unless you win the lottery where are you going find the money to pay off the debt?? And if you cannot find a job to pay the debt off what happens..so we put everyone in debtors prison?? Come on..open a newspaper and take a look at the real face of the economy. Your fear tells you its someone charging up a storm on shoes etc..but the truth is it is families trying to survive.What we need is action now. I agree with the poeple who are saying forget your credit score. I am closing any account that is gouging me. And I keeping the one card that I have had no problems with.

my credit rating is 781 and never missed a payment/never paid a minimum due amount. so chase and bank america just doubled my interest rate on my credit card. they say they need the money to offset delinquecies and bankruptcies but that doesn't hold up. the obvious result will be more filings for bankruptcy: if you couln't make the payment on your old interest rate, how can you make it on the new one? it's an attempt to get as much as they can while they can as they plan on more of us failing to pay our bills and lose our jobs. state gov's should be complaining too since we've stopped using credit cards to make purchase-cash only- so sales tax revenues are nil. i thought the idea behind TARP was to get the system going again, not bring it to a sreeching halt!

To Bobby Z of Staten Island, NY – Your point is irrelevant. Delaware is a tax friendly state in general. Firms setting up shop in those states do not affect the company's responsibility to the public. It is a free market and the decision to set up shop in Delaware is a business decision based on state mandated business incentives. Any state can do the same thing and attract business into their state.

Fiscal common sense is a level up from the general financial recklessness which seem to be the norm today.

What most people don't realize is that if you use the card the rate will increase, but if you cancel the card your credit score will go down. *(By canceling the card, your available credit and the credit history with that card are gone.)
I would suggest just to transfer the balance to another card and put the bad bank card in the freezer so you don't use it again.

Don’t worry, there will always be plenty of people for them to make money off of, just don’t be one of them

Easier said than done my man. It takes money to make money and I have used my credit cards to help finance personal ventures, I'm not buying plasma screens and frivolous objects. As an ind. contractor I'm using credit to finance my inventory, education and expenses until I get paid off on a job. And by doing so I've been able to greatly enhance my collateral and position.

Now I've never been delinquent, only twice a couple days late due to a simple oversight. Typically pay the day I get the bill and more often than not I pay much more than is due. Have anywhere from 40-80% of credit line used at any one time depending on what's going on.

Of the 7 cards I had ALL but one has raised their interest rates on me or tried to. This is the thanks I get for being a good customer and paying my bill on time. You're right the rewards are nice and offset some of the interest I incur. But I also wouldn't have been able to achieve the level I have without having credit to balance things. But now I have closed 3 of my accounts due to this gouging and don't have as much wiggle room to to invest or parlay my funds into bigger things.

I'm sure this has happened thousands of times over in the US. …and Boom there goes the economy.

Spock in Miami, FL… Well said…

Common Sense Guy – You have got to be kidding. The fees charged by CC companies would be illegal in most states, can you say usury? But, they are protected by guys like Biden to set up shop in states like Deleware and they get away with it. What people are complaining about is that they clearly are charging those who pay to make up for THIER irresponsibility. And that is criminal. You just prove what I've always said…If common sense truly were common, more people would have it, and clearly you don't.

There should be a Financial Products Safety Commission! This legislation has been written and introduced on the Hill, and it's exactly what we need. The legislation proposes an independent regulatory body that will oversee all consumer financial products — credit cards, mortgages, etc — to make sure that we, the consumers, don't lose our homes because we were sold bad mortgages, or get forced into bankruptcy because we don't understand our credit card contracts.

Yes the credit card companies are gouging their customers but there is one key point to remember in this situation: If you don't carry a balance, it doesn't matter what your APR is. Chase and Capital One can raise my rates to 200% for all I care, because I pay the cards off every month. Once you have paid the balances off, you can switch to reward credit cards and then make money off the thieves that used to rob you blind with their fees and exorbitant interest rates. I make between $300 and $400 dollars per year, plus a couple of free airline tickets as well, and I never pay the banks a dime. I MAKE money on my credit cards and it doesn't cost me a dime. Would you rather pay these banks or have them pay YOU for the courtesy of using their cards? Pay the balances off, and then sit back and take their rewards dollars and smile. Don't worry, there will always be plenty of people for them to make money off of, just don't be one of them

I would like to charge the banks 30% interest on the TARP money they are getting fromm the taxpayers. It only seems fair. Afterall the banks are the real deadbeats.

I've read a lot of the comments here and it seems that many who side with the CC companies use the argument that the CC compnaies should gouge the irresponsible borrowers (ie those who do not pay off their balances every month). Of course, those who do pay off their balances every month are about to know what it feels like to have your rates arbitrarily raised to what can only be described as usury rates and which should not even be legal. These rate increases are occurring after the loans have been taken out (loan sharks can't even do that). I have cancelled all of my credit cards to prevent the higher rates taking affect, but the banks, particularly Bank Amercia have been very deceptive about how they notify users of the impending rate change. They embedded my rate increase in the monthly statement rather than a separate letter of notification as they had done previously as as all other CC companies do. Also, the account which they raised my rates on and which I managed to get reversed was a closed account which I had previously closed because they had attempted to raise my rates. So, at least with Bank America, it becomes a cat and mouse game where you have to try to figure out how they are going to deceive you. I think all of the bankers have become a bunch of crooks and I no longer deal with the banks as I have put all of my money in a Credit Union. Amazingly, the crdit union actully treats their customers fairly. They don't charge you double fees for overdraft like the banks do (only one fee per overdraft) and they process the checks in such a way to minimize the fees, unlike the banks which try to maximize the fees. I have had only one overdraft in the 10 years I have had my money in the credit union. I really think all of the CC legislation currently being considered in Congress misses the primary point: CC companies should not be allowed to charge interest rates of 32% and higher which they currently charge.

Have a little faith in the free market.

Yes, the credit card agreement says the bank may change the terms as long as they give you adequate notice. Ok, they did.

Their business decision is their business decision. What you can do is two things.

First, pay off that debt. That ends their ability to hurt you by charging higher interest rates. End of story.

Borrowing to spend was always foolish. The only time borrowing makes any sense is when what you buy will cover the interest — in other words, when you invest. My rule of thumb is that my average expected return on the asset has to be twice the interest cost — i have to personally guarantee the payments but I sure don't get a guarantee of the income.

Now, if you have faith in the free market, if the banks raise rates and fees beyond a reasonable point, given the circumstances, one or more new banks will be formed that will offer lower prices [rates] and end up taking significant market share away from the offending banks.

If you like, you might even be able to participate in starting this competitive bank that offers lower rates. At the very least, you can be a part owner of it — almost everyone is eligible these days to join some credit union. Credit unions typically offer lower loan rates than banks anyway and you're a part owner if your deposits are also there.

***
As for the bank bailout and TARP program — their purpose isn't to make just any loans to anyone. Any fool bureaucrat can do that.

America bailed out the banks so that your paycheck would be good. That's the whole reason.

Why your paycheck? Employers, including yours, have to have cash in the bank to cover paychecks when payday comes. Because of their size, even employers of a few hundred will have payroll deposits in the hundreds of thousands or millions. And, due to their size, those deposits aren't covered by FDIC insurance.

So every employer's treasurer in America was pretty darn afraid last September than his bank might not open one day — with your paycheck money still in it.

If the employers lost that kind of money in bank failures — some of the employers would fail as well. And their employees [that's YOU] would then not only have a useless pay check, but would be out of a job as well.

And it wouldn't even be your employer's fault. Or yours.

But you sure would have been hurt.

So that's why the banks were bailed out. To save your paycheck.

***
TARP and all the other programs are about making good loans to people who are capable of repaying and will do so.

Unfortunately, with the economic downturn caused by the imploding housing bubble, a pretty fair number of people and firms just aren't good lending risks any more.

Back in the bubble days of 2007, something like half the money that went into loans came from hedge funds, investment partnerships, and foreigners — banks were less than half the total lending in the economy.

well, now that they've lost so much, the non-bank lenders have virtually stopped lending. That means that the lower half or so, in terms of credit quality, of loan requests will be denied. The banks haven't reduced their lending much at all and some have increased it [see FDIC reports on this].

But if you were a marginal credit, you now get turned down. If you work in a now damaged industry, or are unemployed, you get turned down.

And if you want to do something silly — like borrow too much for your ability to pay — you get turned down.

This is as it should be. Banks do not lend their own funds — the funds come from their depositors [that's your employer, among others] and the depositors absolutely want all of their money back on time and in full as promised.

What this means is that when the risk of loss looks like 9% [as it does now on credit card loans] and the cost of collecting on late payments is another 5% [as ti probably is], that no bank can afford to lend to this class of borrower for less than something like 20% — that vital 6 percent profit margin is required — depositors expect to receive services that cost money to deliver for free [plus some interest perhaps] and taxes, etc. must be paid.

Is there anyone out there who is still a good risk at 8% interest?

Probably yes — but those people are good risks precisely because they always pay their entire balance in full every month. That's because they never, ever charge more than they can pay next month. They have credit scores over 820 — and they deserve them.

For everyone else — the new terms of credit cards start at 15% and go up from there. [6 percent profit, 5 percent collection costs, and at least 4 percent probable losses -- you, too, could lose your job.]

As the economy improves, rates will come down. Or else new banks will arise who charge lower rates and take most of the business away from the present banks.

There should be regulations on credit cards based on a person's income. Just like an unsecured loan at a bank. But that has not been the case. Credit has been too easy for too long and now everyone is paying the price. No such thing as a free lunch!

You can always go to a loan shark to get some quick cash to pay off the credit cards. The rates are probably even lower than the usury rates banks and credit cards charge, anyway.

Banks are in a position to take advantage of people, and for the most part, they're absolutely doing it. They are not interested in credit scored, just how much blood they can get from their stones.

Funny how people refer to the TARP money as if they own it and are involuntarily giving it up to fund these banks. First off, the TARP money is not the taxpayer's money, its the government's money. Once your pay your taxes, it goes into a pool of money that does not belong to the individual tax payer anymore. The government is there to moderate and make sure that the US economy does not flounder. The TARP is a way for the government to provide liquidity where where it had dried up. If the banks are not doing well, nobody does well… since the majority of small/medium sized businesses rely on loans for working capital and payroll costs.

That's dead wrong Teresa
I pay all my bills on time, have a credit score in the low 700's and BofA just sent me a leter jacking one of my cards up from 13% to 18%

Get your facts right

I received my notice from Bank of America as well. I had been a customer for 23 years. Always paid on time and only carried a balance of about 1,000.00. I imidiatly called to reject the rate hike per my letter then read the fine print that if I reject the rate increase and use the card again that my rate would then go to 14.74% needless to say I do not need this card in my wallet with the chance of using the card and the rate going to 14.74%. I then called customer service and cancelled the card. I was not even asked why I was closing my card. Terrible customer service.

To the companies who were discussing the credit card companies charging a percentage to take the cards – I can't just pay cash to stay at hotels anymore. I want to travel for a week at Christmas and am happy to send a check for the entire balance for that week at the hotel, but everyone wants a credit card to secure the reservation and then a credit card to cover "incedentals" when I get there. Give me a break.

Bank of America this month has raised my credit card rate by 6%. I have never been late with a payment.
B of A by this increase is trying to get back the balance I have been carrying recently every month to fix their own books. Funny, we taxpayers have loaned this bank money to keep them afloat and they turn around and take our loans (credit balances)away…..I say, asap, pay off your cc balances and refuse to borrow from this bad bank….

From a business standpoint, these are tough times for everyone. As such, a bank/creditcard company making an unsecured loan to anyone require higher fees to cover the higher risk of people not paying them back. Anyone taking a risk like that should be duely compensated.

This is for Chris in Huntley, Il – You are a rare exception and I apologize.

This is for Teresa in Dallas, Tx – Responsibility is not simply paying the CC on time, but paying it in full.

5 years and 6 months ago I was $92,339 in debt. I lost my job at a mortgage company, was eviced from my apartment, almost had my car reposessed, and was denied unemployment. NO ONE, NOT EVEN THE GOVERNMENT, MY FAMILY, OR THE BANKS would help me. In desperation I enlisted in the US Army and here I am on my 24th month in Iraq and debt free, and having $35,000 in assets. Anyone having similar struggles as my own should consider military service as an option. I did not file bankruptcy, and every debt has been paid in full–includng my car.

I KNOW TARP would have been far more effective had the government given the money to the citizens instead of to the banks. I despise the banks and also wish they would have been punished for the cruel things they did to me. Thats ok, I now live by cash and I invest 60% of my income now; so when I need a new car or need to go on vacation I spend MY money and not the banks. They got me once and I sacrificed 6 years of my life to pay it off, I'll be d@mned if I will ever let them do me that way again.

I absolutely agree that banks and credit card companies should NOT be allowed to get away with this! They make a ton of money on these unfair fees. I beleive that some of the ways they trick/mislead/bait customers to go into more debt or stay buried in debt is pre-meditated and criminal.

"The people that are complaining are the same people that are paying their bills late and being irresponsible…

Posted By Common Sense Guy, Houston, TX: April 14, 2009 1:16 pm "

That is completely incorrect, "Common Sense Guy". People who are complaining disagree with CC companies changing the price after the deal has been sealed. This does not mean we are paying late or being irresponsible.

I've had a Citibank card for practically 20 years with never a late payment and a credit score of 799. I carried a balance but not much of one and I used the card a few times a year, only for online purchases. I had a FIXED 7.9% rate.

They decided to change it to a variable rate that amounts to currently 14.9%. That's with the Fed rate being rediculously low! Just wait until the Fed rate increases. Called them and they said they'd give me a slightly lower rate but it absolutely is not a fixed rate any longer.

I explained that I would not be closing the account due to the effect it would have on my credit score but that they would be losing all future income from me since I will be paying it off and won't be using until they lower my rate back down.

They don't care so neither do I. All my banking business is going to be with my LOCAL bank from now on.

"If you pay your bills on time, then the interest rates and the finance charges don’t apply. The people that are complaining are the same people that are paying their bills late and being irresponsible…"
Umm…."Common Sense Guy", if you read through the majority of the comments in here, you'll see that most people have been paying their bills on time and are responsible. Just because they carry a balance does not make them irresponsible with their money. Now if they paid late or went over their limit, that's another story. However, the banks are penalizing everybody with a credit card, not just those that do not pay their bills. People like you stand on a mountain preaching to the rest of us how responsible you are…and therefore you think that people that pay their bills on time deserve this because they use a credit card.

I received notices from Bank of America and AAA that my interest rates will be raised even though I have never been delinquent. I am canceling both cards immediately.

I have been a responsible credit user since I have had the opportunity to get a credit card. Bank of America has seen to it that they have destroyed by credit score by lowering my credit card credit limit to just shy of $200 more than the current outstanding balance. This, on top of raising the rate to 27.99% and having no lates, whatsoever, on the account or any of my other accounts. Aren't these lenders suppose to stimulate cash flow as part of accepting TARP money? How is what they did to me or doing to other consumers, helping? Yet, if you have read any of the papers lately, Ken Lewis – BofA CEO – got paid $10.4 million last year…so you and I have footed that salary – maybe not directly but in some indirect way.

I have always paid my bills on time. My rates were increased along with the payment so I can no longer make the payment and keep food on the table or a roof over my head. I hope ALL THE BANKS GO BELLY UP!! I dont care what happens to my credit score all I care about is my family that is what is important. These banks are crooks! I tried to work something out with them but they refused to work with me so the HELL with them!! They are leaving me no choice but to file bankruptcy. I smile knowing that they wont get one cent kindof a stick it to them. Am I the only one who gets this the money should have been divided among all us taxpayers. We would have paid off our debt, been able to keep our homes and bought more crap. We would already be on the road to recovery instead it is gonna get ALOT WORSE with these banks forcing families to file bankruptcy. WE ALL NEED TO QUIT PAYING OUR PAYMENTS TO MAKE THE GOVERNMENT WAKE AND REALIZE THEY WORK FOR US NOT THESE CROOKS!!

This is for Common Sense Guy in Houston Texas – Yes, in a perfect world – cash is king. Get off your high horse. I have credit card debt but I assure you, these bills ARE PAID on time and I am responsible. Sometimes things in life happens and you just do not have the cash. My husband and I drive cars that are both ten years old so we do not shop just for the sake of shopping. I am paying higher rates. Lucky you that life has not send you some sour grapes!

We all made an "honest" mistake we elected a president with no Experience becaus ehe can say the word change real well–LOL the world is laughing at us join them.

Only one credit card company has raised my interest rate, and it did so by more than 10%!! My credit score is over 800. Result: I cancelled the card.

It is a valid arguement to say if you don't like it don't use the cards. But in the same arguement; is it fair just because someone did us a credit card (carelessly or not) for the credit card companies to implement their current practices – raising rates, cutting limits and closing accounts. I don't think so! The same arguement could be said to the credit card companies as to us consumers! If they are not willing to help us out, why did we bail them out! ENOUGH SAID!!!

Let's also not forget take the CC COMPAINIES also charge the business 2-3% for each dollar spent at our business(I run a Hotel)We at the hotel pay anywhere fron 10k to 30k a month in fees just to accept the Credit Cards–AMEX is the worst and charges the highest fees ,which is why some business will not accept them —How many Billions are they getting paid on the back end

To those who see no problem with the banks raising rates (including Ed in St. Louis) on customers who pay on time (good customers). Regardless of whether you pay your debt off every month, regardless of whether you even use your card(s) at all, if you see nothing inherently wrong with the banks doing what they are doing while they are receiving tax payer dollars to stay alive, then people you are part of the problem and not part of the solution.

I've been a Capital One cardholder for years and they've never given me a reason to pack up and leave until now…my variable rate used to hover between 8% and 10% and now it's going up to 17.9% on April 17th…because they screwed up and gave credit to people who can't use credit responsibly. My balance is going down, I never pay late and I always pay twice the minimum if not more. They can kiss this loyal customer goodbye! I'll be transferring my balance.

I lost my job with a home builder and was out of work for 8 weeks. My husband had major surgery and has not worked for 14 weeks. We still managed to pay our bills on time. The bank rewarded us with raising the interest rate by 10%. When I called them, the answer I received was "we have to do this to survive". We are being penalized for paying our bills on time and not ignoring them or filing for bankruptcy. It is very frustrating that we took whatever measures necessary to stay current and then are penalized.

This market correction will make the US healthier in the long run… It will also teach the American public not to spend more than they have.

It's amazing how negative the responses are toward credit card issuers. This is America, and you have the right to not have a credit card or choose the best deal. Although changing rates seems a bit unfair, you can opt to change banks, refinance, etc. Unless you are truly in over your head from too many years of excessive consumption.

I personally use credit cards for almost every purchase and have never paid a dime to a credit card issuer in terms of interest or fees. As a matter of fact, they pay me in with rebates and cash kick backs as part of the rewards programs. I don't even know what my FICO score is, but my terms haven't changed and I have more than ample credit lines. No, I am not rich and do not earn a six figure salary.

It seems that most of the complaints come from those who can't afford the lifestyle they were leading, so we need to blame someone else. Similar to those who purchased too expensive of a home on terms they couldn't afford. I'm aware that those foreclosures and bankrupcies will hurt America in the short term, but it will ultimately separate those credit worthy individuals from the rest and be better for those of us who manage our finances.

We have two BofA debit cards. One we use for online purchases, and keep a low balance. The other is used for in-person purchases and payments and has a higher balance. Everything is pay as we go. If we do get our account information stolen, the goal is to use the small balance card online, which is the riskier environment, so damage is as minimal as possible.

Don't like the rate the banks are charging? Then pay off what you owe.

What's that? You borrowed more than you could afford to? You've always run a balance on your credit card?

Oh, well surely that's the fault of the evil, money-grubbing bank…

Of course they are using our own money to gouge us, what do you expect when you allow the government the power to decide who you lend your money to? The only thing worse that could happen to us would be if the government stepped in to protect us from the credit card companies. When is everyone going to get it? To paraphrase Reagan, some of the scariest words are "I'm from the government and I'm here to help you".

This is the same old "American Way"! Those of us who are responsible must pay for the poor actions of others. Dates back to potty training. When you reward your child for things they are suppose to do and give them no consequences for bad behavior. So here we are rewarding the greedy American who purchased a house that they knew they couldn't afford by means of a bailout! A way to stay in their house that they can ill afford to keep, by way of money from the responsible taxpaying American! Use their money – they don't need it. Why we are at it – let's give those irresponsible banks more money from these hardworking law abiding Americans because afterall, it's not the banks fault they were giving loans to people that couldn't afford the house they were purchasing. No consequences for bad actions but rewards abound. Let's give them a gold star! Higher credit card rates – you betchya! The dead beats don't care – they're not paying their bills anyway so let's make sure the good ones who pay the bills get the increase punishment. They are responsible – they will always pay their bills! Cause and Effect / Actions and Consequences? What is it that America promotes? Wait… what is the new American Motto? I made an "honest" mistake!

Again, if you don't have the money to buy it. Using a credit card to pay for it does not mean that you can afford the things you are buying.

In response to Coray of Carrollton you are obviously a business owner. Without CC usage your business sales would drops a good 40%. Most shoppers wander through a store and on impulse might buy something if as you suggest add $10 Many would walk away w/o buying–Yeah thats smart. You want to create a Deflationary environment eliminate CC usage make people pay cash for everything. Businesses will be forced to drop prices or not make sales. Coray of Carrollton quite obviously didn't think this out.

I have done nothing but pay my bills on time, but every card I have has raised their rates. The clampdown law on this abuse gave the credit card companies the right to do this for almost a year. This window of opportunity should never have been given. The end result is they are geting us coming and going; they take our tax payer bailout money, and screw us anyway!

Am I the only one here who pays off my credit card balance, in full, every month? If I lend someone money, unsecured, I expect to get a healthy return. I don't think the banks should have any different expectations for return. They actually don't want you to have that extra playstation for upstairs out of the kindness of their hearts. They're lending you money and they should expect to get a return. If you don't like the terms, don't spend money that you don't have.

Are the banks to blame for this mess? Of course they are. But so are most of you consumers. I'm sure very few of you who are complaining here had special circumstances (medical bills, etc) and instead ran up those balances on keeping up with the Jonses, entertainment, and convenience.

As for me, I work the system in my favor. I never borrow money that I don't have for needless purchases, I pay off my credit card balance in full every month whicn ensures that I never pay interest. Also, at the end of the year, I usually get a healthy rebate check from my credit card company for having accumulated so many "points."

People should really look in the mirror and stop whining about how the man is out to get you. You really didn't need that $200 purse or that Wii, and it should be expected that the banks would want their money back for buying those items for you.

There have been a few pieces of very good advice in the replies here. I'm glad to see that at least a few people "get it."

I have three credit cards and don't carry balances on any of them. I keep each one because they each have different benefits for different kinds of purchases. I use them to get those benefits (and the purchase protection) and pay them all in full at the end of the month. My FICO score is 760 and I've never paid a bill late in my life, but both Capital One and Discover have raised my interest rate from 7.99% and 9.99% to 17.99% and 19.99%, respectively. It doesn't make a bit of difference to me because I never carry a balance.

If everyone would use their credit cards like this, interest rate/fee hikes wouldn't cause any problems. Don't complain to Uncle Sam when the credit card companies raise rates on your cards (like they say they can do in the contracts YOU signed). If you don't put yourself in the position to be vulnerable to the credit card companies, then you don't have to care what they do.

This is flat out criminal!

Like others, BOA and Chase have jacked my rates and I have canceled all cards (business and personal), and, I am closing my bank accounts with them as well. Screw my FICO score! It's time that we all go back to a cash based society! We as Americans (in general) really have few needs but a multitude of wants! So if you really want it, you save and pay cash for it. The problem with this is that our entire economy has been bottle fed for so many years with "cheap" loans from banks and credit card companies that going back to cash is going to hurt the economy in the short run. But, in the long run it will create a stronger economy, destroy the banking industries control over our lives and create much more financially responsible individuals with fewer worries. You want CHANGE then close them and cut them up people! And, next election lets clean out the House and Senate across the board and insist upon term limits for these publicly held positions!

As I read through the article and comments the real reason for these changes is being missed. The real reason for all of these changes is in preparation for the CC policy changes going into effect in 2010.

If they make the changes now they can use the excuse of increased risk due to the economy. If they waited till next year to implement the changes they would get the direct accusation of simply offsetting the changes forced by congress.

Bottom line, they are just protecting their revenue stream. I hate it you hate it, but its the truth.

If you don't like the fees that credit cards use, use a debit card. Otherwise, the only issue I have is that as a perfect borrower, I have to pay higher rates for people that they shouldn't have lent to in the first place.

If you pay your bills on time, then the interest rates and the finance charges don't apply. The people that are complaining are the same people that are paying their bills late and being irresponsible…

I also have a high FICO score in the 800's and have been a customer of Bank of America's since 1994 and have never had a late payment. Bank of America repeatedly sent low percentage balance transfer checks to me on a regular basis, as well as other offers to consolidate debt as high as a $30k limit. Last week I had a 20K limit on my credit card. When I transferred 12,000 from another higher interest card on to the account, they immediately, within hours I guess, lowered my so-called credit limit to 12,500. There is no recourse or understandable reason they did this, but it means no vacation this year for us as we don't have enough of a balance left to charge our plane tickets now. Customer Service says they want to limit their "exposure." So don't count on having access to a credit line. We were already going to pay off the debt more quickly — just trying to find the best rate. So much for that strategy, and time to join the credit union.

Same thing happen to me with Citibank as with Mini Rivera, but I had excellent credit (high 700's) one day they inform me they raise the APR to 15%. So I did what most people do, pay down and switch to other credit card company. I used to have 3 credit cards now I only have one and spending less. Plus this one credit card is a very low limit card. All my other credit cards were high limit (20K+) but I never ran them up and have always paid on time. I think they should only hike up rates on people who fall behind not on people like me who never ran up credit cards and have always made payments. But I do understand they need to make money, but if they receive TARP they should give good people with good credit a chance. Not screw with them. This is why our economy is not in good shape unless things change I don’t really see a strong recovery since people will now go back to what we used to do before credit, save and save and save then purchase. That is my 2 cents.

If you don't like what the banks are charging you, then pay your balance off. No one is forcing you to use credit cards.

I think you know the answer to this!
Yes, the very ones who are receiving
the TARP money are gigging the American
public who are providing the tax money to begin with. And why do we the American public put up with this?

Considering that credits cards have become mandatory for most lifestyles and almost any form of travel (try renting a car without one) there needs to be a law to control and limit the bank's conduct regarding fees, rates and penalties. Otherwise they can and will spiral upwards out of control since they have a captive audience.

These credit card companies have been hosing the American People for years now. They will use any excuse to rob abd cheat you their customer. The helped cause this financial nightmare out of their greed and now they expect honest hardworking and responsible people to give them more money.
There is going to be one too many bankruptcies, foreclousures and families breaking apart because of these greedy banks and boom we are going to have anarchy in this country.

I too just received my rate hike on balance transfer transactions that were quoted at a rate of either 3.99 or 8.99 for the life of the repayment. It seems that we as consumers should have some rights – this is why so many people do file bankruptcy and instead of settling their debits creditors wind up with 10 cents on the dollar. At this point since I cannot refinance my house anyway since it is about 30% less in value than I pay taxes on, bankruptcy seems like a good option.

I don't have a card with any of these so I guess I am thankful for now. My husband and I each have one with Chase. We have had these for 4-5 years and so far have been unaffected by these changes. Initially each were 0% and then 9.99% fixed. And so far they have stayed there. Just the other day someone from the CC company called to let me know I was not taking advantage of the benefits of my card by using it to get the cash back on gas purchases, etc. And wanted to know if I was happy. I did let them know that yes I was happy because they had not messed with my card. We have been solid customers. Have always paid more than the minimum. Due to unforeseen circumstances there was a time that we had to put more on them then we wanted but we paid them off when we had the money. As I told the rep I try to keep my purchases to a minimum. I have tried to do what the CNN articles have said I try to make purchases on each of the cards monthly and keep something on the card and keep the card in use. In these economic times I don't want to lose these cards. So I guess I can count myself lucky. We have solid credit. What these companies are doing after receiving money is nothing more than deceptive and outright malicious. I have received multiple offers from Capitol One. My husband also. They come weekly. I would not ever dream of giving them my business after hearing these stories. The one I got the other day was 9.99% after the 0% introduction until January 2010. But it is variable so what do you think they will do, I bet they will jack it up there almost immediately. I can see them enforcing pentalties on those that have been late on payments multiple times, or had not made payments, etc. Those that have abused the card. But for those that have been on time and using the card within the parameters that it was issued, there is no excuse for them to do this. My question would be are they raising the rates on their own cards and their families???? If we are the ones providing them our tax dollars why are we the ones suffering the effects and they receive the rewards. Makes no sense. Again I am just thankful I have been lucky so far, I know others have not. I hope Chase continues to be the company it has been for us through these tough economic times.

I am enraged by what the credit card companies are doing now. As many of you, we have never paid any bill late…not one, and all 3 of our credit cards have raised our interest rates and lowered our credit limit, thereby lowering our credit score. Their reason?…"the economy"…how convenient for them. And the interest rates are unbelievable!!!…the highest we were raised was on a Chase Bank card (we were formerly WAMU and as soon as Chase took over, they raised rates). They raised our rate to 27%!!! I would hate to think what they're charging anyone who has late pays! I have written the Attorney General of Texas and two of our State Senators so far. I urge each and every one of you to make yourselves heard! Write the Attorney General of your state and your representatives! All of them have contact pages that encourage email submissions, but you can snail mail them as well.

me, too! I just got a notice of increased interest rate that quoted certain issues with my credit. Funny thing is, my fico score is higher today than when I opened the account. I'm just adding them to the list of companies I won't do biz with anymore and switching to another intro rate. It's their loss.

Donna

I have never been late on any debt credit card or any other. Chase, B of A and Citi have all raised rates, raised spread over prime, changed terms, decreased credit lines. All this will worsen monthly obligations. Lower FICO and other credit card issuers will do same as you are placed on hit list due to adverse changes from credit card issuer/banks. I called all banks to appeal and they all said that is the way it is and doing to everyone top lower their liability

Please help Congress know about. This is the very thing new law in 2010 will not allow

What do we do for next year fikle BK?

Help!!!!!!!!!

DHooper

Hang on a minute. Someone has to pay the cc companies the fees and interest so I keep getting my rewards. I hope they keep raising their fees and rates so I can have my reward rate increase from 2% to 3%. I love other consumers paying for my rewards. Thanks to all who do not understand pay as you go.

Here is a novel concept. Don’t carry a balance and the interest rate does not matter.

Cut up your credit card and use only debit cards. The banks will get the massage soon enough.

If you pay your statement in full each month, the interest rate doesn't mean anything. Live within your means and you won't have a problem.

I was reading these comments and seeing that all these "responsible people" were dutifully paying their credit card bills every month and were irate that their rates were being increased. I assumed this meant they were paying off their cards each month, so why would an increased interest rate matter? Then it dawned on me — these people aren't "responsible", they bought things they couldn't afford on their credit cards, and are now irritated that they don't get something for nothing. I'm sorry, but that is no more "responsible" than the people who took out mortgages they couldn't afford, or the banks who loaned that money to them. You, too, take out loans you can't afford to repay every time you use your credit card, if you're running a balance and not paying it off every month. Your bank probably shouldn't have given you the credit limit you got in the first place, since you clearly can't afford it. I think a lot of people misunderstand what credit cards are for — they are NOT to buy things you can't afford to pay for, they are a convenient alternative to cash. Good luck paying those cards off — you have only your own "responsibility" to blame.

The solution is to shop and bank locally. The best choice is a credit union. There is an alternative — stop doing business with them. Then vote their lobbied partners out of office.

If I weren't so angry, it would be funny. First B of A – for absolutely no reason whatsoever – lowered my credit limit and increased my percentage rate. Then, I got a letter from Am Ex – where I have been a customer for 30 years – telling me they are lowering the credit limit on my platinum Optima card because they discovered one of my creditors lowered my credit limit.
Are they nuts? Do they think we're stupid? I'm not one to think there's a conspiracy behind every corner – but this is collusion.
So, yes – I am quickly paying these off and will no longer do business with them. I hope that only the companies with integrity and intelligence survive.

In 1966 I was in the Air Force basic training, The old Sarge gave us a one hour lecture on credit cards titled "Master or Slave". He did is colorful DI approach to the credit cards issuers painting them as really "Evil" and "The Enemy". He said they are "Not your Friends" try not to use them because they will enslave you as that is their goal. The old Sarge is still correct 40 some years later.

I use credit cards to MY advantage not theirs. Pay off balances and I tell myself each month "I am the Master" as I write off the entire balance due.

The best hour in my entire life as I owe the old Sarge a debt of gratitude for saving me untold thousands of dollars, by not allowing those evil ones to enslave me.

Remember who your friends are and the credit card folks are not your friends.

People tend to point fingers and blame everybody else, but don't consider what they may have done to fuel the situation. True it is that greed, pride, and selfishness have ran our financial systems for a long time, but what about the American people that have continued to live beyond their means? Principles of living conservatively and saving for a rainy day tend to have been long forgotten. There is not just one group of people that are to blame for our current economic situation. Instead of pointing fingers, we need to start focusing on what we can do on an individual basis to help out our country as a whole.

I don't for a moment think that the banks excuse that they need the increased rates to cover other faults. They have become pirahanna and need controlled through legislation. My 88 year ols mother has a credit limit of $6000, nevr been late ,AND A BALANCE OF $216. She was told they are increasing her rate, so we decided to take her CD's away from the bank that issued her card and put her money in a Credit Union. That way her funds will be used in OUR community and no big bank conglomerate will use it to feed wallstreet millionaires. These big banking conglomerates need to be broken up and stop the abuse of our anti trust laws. The deregulation of the banking and insurance companies have raped the common person way too long. Does it make sense that our insurance companies are going broke when they are owned by the banking industry? Why even carry insurance if that company can't ASSURE that which you are protecting?

Number one, the TARP money is NOT free. It carries a 5% annual interest rate.

For all of those complaining about getting their 7.99% fixed APRs taken away, think about it like this:

Cost to fund your loan: 5% (TARP money APR)
Percentage of borrowers defaulting (chargeoffs): 5%-10% (depending on bank and borrower profile)
Operating Cost ~1% (no idea, but just a ballpark)

Total Cost: 11% to 16%

Total Revenue: 8% + 2-3% (estimate of annual and late fees + transaction fees)

Does this seem like a business model that works right now? What is the variable that's changing? Its the number of defaults. With more people not paying back their cards, in order for credit card companies to not lose money, they need to charge more to other customers. Banks are a business, offering a service, not a charity.

That said, no I wouldn't like it if I carried a balance and for no apparent reason had my APR increased. How do you solve that? Don't buy anything you can't pay off right away!

Rich from Mt. Olive – As long as you pay off your credit card in full at the end of each billing statement, you are not charged interest. So for those of us who never carry a balance, any increase in the APR of the card really doesn't matter.

"quit worshipping at the Altar of the Great FICO" I love this and agree. Time to stop making these credit scores more important then they really are! Let companies know asking for your credit info will COST THEM BUSINESS.

Also I am sure these banks would charge RETROACTIVE interest if they could get away with it.

Bring back usury laws again – it well be better for the consumer AND the banks !!

Bank of America, among others, has been jamming it to goodpaying customers in an effort to raise rates before the credit card laws change in July 2010. See "Debt by Credit Cards" posted a few days ago at http://www.bobgreenfest.wordpress.com for more insight on this issue.

As one enlightened college student put it; "if I pay cash instead of putting it on my credit card, I can buty 20% more stuff." Bigno! You got it. Erase you credit card debt and start a pay-as-you-go-plan. The credit card issuers are the financial equivalent of crack dealers.

I have always paid all credit cards bills on time or early. Now my rate went from 9.99% to 14.99%. Rather an paying my debt down, I am now paying to keep up with their finance charges. This from Citibank, a bank that my tax dollars helped. It's ridiculous and I don't see it will change or it would have already. Taxpayers are always last. The only time we are considered is when they want money. Forget helping us! That's the ole US of A!

I just got the notice my terms were being changed despite an 800 FICO score and perfect payment history. I am paying off the account today, and I sent their customer service a letter thanking them for providing the motivation for me to be more fiscally responsible. I will continue to use the card for discounts but will pay it off each month. They are throwing the baby out with the bath water, but I guess it does not matter because the tax payers will end up bailing them out again anyway.

Legalized loan sharking. Unfettered capitalism at its worst. Banks are begging to have socialism imposed on them via regulation of cc interest rates by the fed. Let's give it to them. Write your representatives and senators – state and local.
Never, ever use a credit card to borrow money by not paying your balance. If you have to borrow, do so at a fixed rate from your local bank, credit union, your retirement funds – if you have any left – your uncle Joe, anybody but your credit card usurer. If you still have a job, but are underwater on your cc, declare bankruptcy, but never borrow from a credit card – ever.

Credit cards cost everyone money everyday. Every time some idiot swipes a credit card, we have to pay another 50 cents (or dollar plus 1 to 2 percent)on any item that customers buy. The US Mint prints cash everyday, and we already pay for it! There should be an extra 10 dollar fee on all credit card transactions, and then maybe be people will use some common sense and pay cash! While the paying every month works out good for some people, don't get mad when a store charges you more for driving up the cost of those who still use a legal tender for all debts public or private, (AKA) cash! How do you think these executives make millions of dollars in bonuses and pay? Glorified middlemen that all of us pay everytime a transaction is made. Remind you of another group that the justice department went after with the Rico act doesn't it?

It's the same old song from Bankers. They try to make themselves as the victim when they are really the ones responsible. Again, bleeding the public is what they do best. When is enough, enough. Lets face it, the banking industry will never be able to regulate itself without becoming criminal, we have already seen that. Clamp down now and clamp down hard. Make sure the industry understands that they MUST be Accountable to the nation for their actions.

i've got, among others, a 7.9% and an 8.9% for a couple of years and the rates have not been hiked.

i guess they like my numbers!! ~

there is actually a method to their madness.

enjoy finding it….but once you do, you're set!

anyone that does raise rates or insists i pay a annual fee, it did happen once with WAMU insisting i pay an annual fee, i just close those accounts ASAP….of course, i open new ones with the same limit or more to offset the DebtUsed-to-AvailableDept difference.

last year I got calls from both my credit card companies offering me great rates if i would start using some of that 40k in limits each had. i had these limits because of prior balances that I starved to hammer down a few years ago. I said "thanks" to the new rates, but never used my credit since they went into effect. 3 months after the new low rates kicked in, I got the letters jacking the rates up to like 18%. I called up and opted out of the new rates on principal though they didn't really impact me as I ensure I never carry a balance.

My advice as a guy formerly with 42k in credit card debt that took 5 years to pay off, Drop bank cards.. Go with a credit Union for your accounts and cards. They don't have the same profit motive so I have had zero issues with them.

I agree with David in Vienna…at some point consumers will wake up and quit worshipping at the Altar of the Great FICO. It just doesn't scare me anymore. I paid off all my debt and only do business with a credit union that treats me fairly.

I still have one balance to pay off, but it is at least manageable. I no longer use the card. I recently paid my Capital One card off and closed it after receiving a letter that was bordering on insanity. Now when I get paid I go to the bank and pull out cash. They look at me funny, but what's the difference between doing that and slowly doing it with a check card. I can't believe how many places won't take 100 dollar bills. 100 dollars cash is a ridiculous amount to have, but $100 is chump change if you put it on a credit card. A #1 at fast food places is edging up to $6. A gallon of milk is $4-6 depending on regular/organic. Carrying cash puts things into perspective, and when you run out you're just out until the next pay check.

BOA did the exact same thing to me. Raised my rate 3% and changed to variable even though the account is never delinquent and I never pay the minimum. They said they couldn't change the rate back. -Mark

why can't the credit card companies set a fixed interest rate for credit cards , what do they have to change as the wish to 25% or more?. It is cheating in my opinion.

If you were a bank, you would do it, too, wouldn't you? The banks are facing the largest credit card write-off ever and are desperate to not loose too much on their credit card operations. The banks shouldn't have given out credit cards left and right after the last bankcruptcy reform, but they have, and now their numbers will be ugly. Congress should return to the old bankcruptcy law and set an upper limit to credit interest: Fewer people will be able to borrow, which seems to be a GOOD thing to me.

I (like so many others) have seen an unjustified increase in my credit card terms. Just another example of responsible people paying for the greedy exploits of others. As if driving my 401k down 50% wasn't enough.

I just receive my rate hike notice from BANK OF AMERICA. I have not been late or over my limit. Not only are the rates going up, the benefits on the card are either being discontinued or reduced. They said it was based on my credit rating, but I have a watch on my credit ratings and they DID NOT inquire. IT'S A SCAM TO GET MORE MONEY. They received my tax payer money so I'm paying 2 times for their incompetence.
Funny on this same CNN article's page, there is an add by BoA to get more customers. STAY AWAY from this company. Try a credit union, low interest rates and guaranteed by NCUA.

Credit card issuers are lower than whale feces in my opinion. I carry a $0.00 balance on Bank of America and Capital One cards. BOA recently raised my interest rate from 14% to 29% even though I pay the card off the day after I charge something. Exact same scenario with Capital one, only they went from 15% to 22%. Even though the cards are paid off as charges are incurred, they still charge me interest on purchases ?!?!?!?! I called both of them and got more doubletalk BS nonsense than you could possibly imagine. Simply solution, I only use a debit card for purchases. I can not imagine what they are doing to people who carry balances, go over the limit, are late with payments etc.

Isn't it great these companies can change terms whenever they like but you can't. So glad I have no credit cards.

If enough folks start closing their accounts maybe the banks will get the message – because it sure IS NOT coming from our "representative" government.

I have 2 cards one with Bank of America and another with Capitalone. I don't like either of them but I have to have these cards to show that I have "Credit". I used to use them a lot because I don't like counting bills and coins. Now I stop using them and use cash.

It's really a double -edged sword. I do not support the practice by cc companies of raising interest rates and imposing higher fees on people who have never missed a payment. That practice is purely opportunistic and should be prevented.

Conversely, CC companies are not charitable institutions and if a cardholder misses a payment or is chronically late, what should be the expected response? It is a dilemma to be sure, however to a large extent the incurrance of and the management of debt rests with the individual. I read on CNN about a couple who had $46K in cc debt and faced a choice of bankruptcy or a severe constraint in lifestyle. The chose the latter and in three years, they became free of the debt. Each individual case seems to be different but I maintain my general view that credit is not an inherent RIGHT, but rather an earned PRIVILEGE. No one can deny that there have been abuses based on excessive consumption.

YES!!! Banks that received TARP are gouging the taxpayers that let them borrow they money.

I too, have good/excellent credit, never miss a payment, pay MORE than the minimum when using a balance transfer offer, and often times payoff my card every month. Still, good ole BoA is jacking my fixed 7.99 to some crazy number simply because "they are changing the way they do business." I could understand this if I were late making payments or misused my available credit. The rep I spoke to even mentioned I utilized my credit card responsibly. Still, I am getting the short end of the stick. Too bad BoA has to offset its losses by abusing it's responsible customers.

I had a credit card company who up my intrest rates from 9.9% to 22%. The only time i used it was when we booked a trip trying to accumulate Sea Miles. I have never been late but recently we were late only 20 days only because of an over site and they jump the rate. When I called they said sorry, it's the way it is. I was going to cancel but I got about 25,000 miles and can't cash them in till 30,000.

Watch out people as the banks have a new credit card fee scam. After Wachoivia raised my rate I decided to pay it off. When I sent in the exact payoff amount I thought I was finished with them…wrong answer. On the next months bill there was an interest charge for $1.63. When I called them and asked the customer service lady about this she said that the interest is now accrued from the start of the new period (month) until the payment is applied regardless if the payment pays off the balance. So even though I thought I paid it off I was hit with this interest charge. I immediately went down to a local branch, asked what the payoff amount was (figuring they'd be trying to charge interest against this $1.63) and paid off the card and then told them to cancel it. I know my FICO score will take a hit but my other (USAA) card is also paid off so it won't hurt me too bad.

and the republicans say we dont have socializm. ha! its everywhere but in direct. bank cant make the profit cause of dead beats they sent thier cards to and begged them to use. so when they default, the bank has the good guys pay the difference. same with the hospital, people show up with out insurance, hostipal helps them and then charge the good guys to make up the difference.
either way the good guys end up paying!!

sooooo!!!!

Banks shouldn't be able to raise the interest rate on existing balances. But I have to say that there is way too much reliance on credit cards by American consumers. If you don't like the rate, one should get serious about not using your credit card. Or are people so tapped out because they "invested" in there homes and real estate that they don't have any liquid assets to pay off their bills?

As I understand it, some of the banks didn't even want the TARP money, but the governement "forced" (?) them to take it so that Citigroup would not look bad. Let the banks that can pay the TARP money back and then they can run their business any way they want as long as they are in accordance with the law.

I think it is time for an economic revolution!P.S.- To be nice and help the banks out please do your part and send back theier postage paid envlopes back…empty!That way you are helping the postal service and screwing the credit card companies.

Why has TARP become an battle cry for the American people? I am against the government investing (key word) in any companies, but they did and now we have to move on. This money is an investment that is going to be paid back by these companies with interest. It wasn't a gift from Uncle Sam. To say that "these companies can't raise fees/rates because they received TARP money" is not a valid argument. There are 2 parties to blame for the current credit mess. 1) The banks who just continued to give out credit to anyone that asked and are now trying to recoup that lost money 2) We the consumers. For too long WE kept on taking all of this credit that had been available to us. So why is it that when the banks were willing give credit so you could keep up with the Jones you loved them, and now that they are normalizing standards and trying to get back THEIR money by raising fees and rates your mad?? Sounds like everyone wanted to have their cake and eat it too!!!

Smoke and mirrors people!

This is small potatoes compared to the biggest fraud in history – the Federal Reserve.

Imagine, they get to print all the money they want out of thin air and then charge us (and the govt) interest on it. Yet there is no uproar over this scam.

How much crummier does it get than this. We pay them to nail us. What sense is this. I have no idea where we go next. We bail them out so they can put it to the average american consumer who helped them out. Where does it end and when does it start over again like it is supposed to.

Not only is real estate bank-owned, our entire society is bank-owned. Including our legislators.

We need our legislators to cap credit card interest rates and fees and put an end to bait-and-switch banking that lets them change rates on a whim. No other business is allowed to operate this way. No other merchant would be allowed to tag items with one price, then jack up the price at the cash register.

It's time to take over the AIG, ailing banks and those that are too big to fail, break them up, sell them off and create some sensible regulations on MBSs, CDOs, CDSs and hedge funds. Go back to a system that separates commercial banks from investment banks.

The economy won't turn around until the banks have to suck it up and clean up their balance sheets. They created the illusion of wealth and they should have to deal with it now that the fraud is exposed.

Msking consumers pay for it twice with TARP and usurious credit card fees is just unacceptable.

I have a credit score above 770 and have never missed a payment. Yet, the credit card companies I have done business with are raising rates and fees by two thirds what they were. How is it that we the public are allowing this and why is nothing happening prior to 2010 to stop these greedy banks?

UNCONSCIONABLE!

UNCONSTITUIONAL!

UNETHICAL!

ILLEGAL!

And they think they can get away with it!

I too have had

CHASE J.P. MORGAN credit card company quintuple my monthly payback and ADD ON a monthly fee, effectively raising the agreed upon rate (4 yrs ago balance transfer).

I've been paying responsibly by auto debit. In these economic times they cannont GOUGE their GOOD customers by INCREASING the payback amount or CHANGING the TERMS of a contract.

VERY BAD BUSINESS PRACTICE – VILLAINS continue to ABOUND!

These UNSCRUPULOUS businesses should NOT receive taxpayer assistance!

Increased interest rates and fees can only result in negative cash flows and resulting in greater consumer debt and seeking debt relief.

Credit cards are meant to be revolving debt, not permanent. Because there is no requirement to pay them off, people have come to treat them as long-term debt. That is a recipe for disaster. It opens the borrower up to any outrageous terms the creditor wants to impose. Never put more on a credit card than you can pay back in a month or two. If you need longer-term debt go get a bank loan with fixed terms and payments.

Of course the banks are bringing it in both ways (government hand-outs of your money) and higher fees for consumers. I have come to conclude the laws are influened by – and written almost exclusively for – the benefit of the big banks.

I belive all (financial) hell will break loose this fall as unsustainable debt loads (both public and private) intersect with falling demand and rising unemployment. The spectacular greed inherent in the current banking model will be front-and-center to this drama.

Bank of American recently raised my credit card interest rate from 7 to 14%. Luckily I had just paid it off. I think congress should raise the tax rate for on interest increases and late fees to 100%.

The banks never have, and never will, under their current business model, put the customer first, as much as they would like us to believe otherwise. In this case, they are no different than most other publicly traded companies where increasing shareholder wealth is priority #1. However, the bailout changes the paradigm to quite an extent. Recently, Chase agreed to refund the millions in extra fees that it had arbitrarily imposed on outstanding balances (not late fees or increased rates).

Banks are just thinking of themselves, like any corporation trying to make their quarterly "numbers". The societal costs of people going under don't show up in those numbers.

This is why banks need regulation, especially TARP banks. They don't mind getting a handout but don't see the point in giving one. I hope Elizabeth Warren has a clear eye to balance all of our interests and is ready to enforce decisions on the banks.

you must be kidding me. anyone who pays interest on credit cards in the first place is an idiot. Fees and enhanced interest rates are charged to cover other deadbeats, just like the current "mortgage relief" plans.

if people lived within their means, they shouldn't be paying late fees and 22% interest on their cards.

Enough of the nanny state. If you don't like the card's terms, then cancel it and pay cash.

I think that it is very hard on everyday citizens to live through this type of change. However, it is necessary. We've seen that the financial decisions made by people and businesses in our society have not been working. Banks are failing because of bad debt and consumers are losing their homes and can't pay their debts. This shows us that we need to take on less debt and live within our means. The credit card companies will raise fees and interest rates, and hopefully that will make consumers think twice before racking up balances. If consumers choose to learn from these changes and in turn change their lifestyles, they'll be financially healthier in the long term.

The banks remain those institutions that have no concern for their clients. I've personally been gouged by both my credit card holders (USB and Chase) and I've never been late on a payment in my entire credit history (which is a long history). Nonetheless they presented me with huge increases in interest rates, with the only option to 'opt out.' I opt'ed out and will pay the balances based on the pre-existing (low) interest rates and will never use those institutions again. In order to opt-out I had to accepted a monthly fee for continuing to 'process' my billings. Had I not opt'ed out, my monthly payment would have tripled and I would not have been able to pay it and would have ruined my pristine credit history. I'm now without a usable bank credit card and will try to stay that way. Note that Chase Bank received billions in TARP money.

banks are living the moment. They know how bad their books are and it's a big question mark even within themselves whether they can survive the commercial real estate collapse that will happen anytime. So in the mean time, the primary objective is to rake in as much dough as possible to stuff the golden parachutes. And where is the public outcry? Banks can borrow money from the fed at what? 1%? and the cc rates are anywhere between 10% and 24% for the majority of the cardholders? Where is the public outcry?

The bankers, especially Citi, should be in jail right next to Madoff.

As far as Longview is concerned, if you want crooked government this is the place.

The credit card companies are investing in their future. Once the economy is back and people start getting jobs again, they will be working for years to pay off their debt. They are, in a sense, hiring.

There should be limits to how credit card issuers should approach this issue and regulation should be used to ensure compliance. I don't know if new laws are needed, but someone in Washington should work on this, specifically the Whitehouse and our Congress not to overburden the American populace! No partisan politics, make something happen, make it work and have it benefit the electorate and be fair to business..

It is a shame that taxpayers' money helped these financial institutions survive this tough economy and here they are raising rates and fees. Almost every struggling business that survives off of taxpayers has done something to help out in these tough times except for Banks and creditors, who I feel are responsible for this mess to begin with. I think it is a big slap in the face to all taxpayers when these organizations use our money against us. I guess they feel they havent done enough to bring down the economy. Why not send the remaining taxpayers who still have homes to the poor house too?

I do not think this is getting enough publicity. I have debt but have never missed a payment and I had a solid 700 plus credit score. Now they have either raised my rates as much as 6 fold and have lowered my available credit. My credit score is down the crapper as my % available has dropped significantly. How can a company on the verge of failing, like Citi, take my 5.9% rate and jack it up to 27%! And now they want to talk about being profitable again!!!

Yep, by raising rates and fees they are going to drive away some good customers. Force them to go more to a cash basis and they will wonder why (when it's probably too late) business is down. Some businesses are already charging more when you use a credit card due to the fee they have to pay on each purchase. I do understand that though…when you have had to lower your profit margin to get consumers to spend money, it is hard to absorb the higher fees. By the way…what do I get for loaning them money???

Banks should do what banks do – make money. If the govt wants to put restrictions on banks it "lends" money to, then the restrictions should be upfront and not at the public whim.

YES I DO BELIEVE THAT BANKS ARE COMING UP WITH ALL KINDS OF FEES JUST TO MAKE MORE MONEY. THEY SHOULD NOT BE ABLE TO ADD ANY FEES OF AND KIND TO PEOPLE THAT ARE UP TO DATE AND HAVE NOT MISSED A PAYMENT. WE SHOULD NOT HAVE BAILED THE BANKS AND WALL STREET OUT, THEIR THE ONES THAT MADE THIS MESS LET THEM FAIL JUST LIKE THE PEOPLE WHO RECIEVED LOANS THE THEY DID NOT QUALIFY FOR, BETWEEN THE TWO OF THEM, WE THE PEOPLE WHO PAID OUR BILLS NOW HAVE TO PAY FOR THIS CRAP, AND SO WILL OUR KIDS, AND THEIR KIDS.

Yup. They are gouging us. Capital One received $3.5 BILLION of Tarp fees. They then sent out a mass mail to their customers that they will have to raise APR upwards of 25% on credit cards because of the "unprecedended economic downturn'.

I WAS one of their customers. I cancelled my card immediately and will probably take a hit on my credit score – but there is no way I will pay these thieves. "Capital One – Not in My Wallet!"

TARP should have fees or penalties attached to it if the banks dont use the money correctly. Hard working people who are doing the right thing paying their bills on time are getting punished with fees and higher interest rates. All because the banks gave people who shouldn't have gotten credit to begin with. TARP needs more oversight as to where all the TAX payers money is going.

Why do you want to borrow/spend from your credit card if you know you can't afford to pay it off at the end of the month? Are these people just asked to be exploited?

Our small business has an Advanta Bank Card. The interest rate was a "fixed" 7.99. We've had the card for 4 years and NEVER missed a payment. They raised the rate to 37.99% When we called to ask why they said we were an "at risk" account. The card is in my name. I have NEVER missed a payment or been delinquent in any way, my credit score is well over 700 and my debt to income ratio is excellent. The company has been cash flow positive for 4 years, as long as we've had the card. Their customer service made it quite clear that the rate would not be reduced and that they couldn't care less about retaining our business. I have no idea who their preferred customers could possibly be, but this bank is out of control.

And they wonder why people don't want to bail those uncaring jerks out. They're a business, they don't care about you, yet we rescue them and they still keep whacking the people who paid for their rescue.

When will our elected officials start looking out for the average American credit card holder and NOT the credit card issuing Bank?

Well, I have and will continue to consider canceling credit cards that behave badly, e.g. outrageous fees, particularly since I pay off my cards every month.

Now if the banks want to call me "freeloader" for actually acting -responsibly- and not running any balance to pay them interest, that's just fine with me. I have one card with a bank (that will remain nameless) whose solvency is not based on credit cards and their fees, and if worse comes to worse, that will end up as my -only- credit card.

And if that makes the credit rating agencies (e.g. FICO) unhappy, well I'll just move all my accounts, etc to that one bank and basically "sign off" from the rest of the credit industry. I'd rather pay extra interest to an institution I trust and have a relationship with, than to be subject to 'consumer abuse' just to get the lowest rate.

As a side note, I'm quite frustrated since I've been following all that good advice for the last few years on saving, eliminating consumer debt, etc, etc, and it doesn't seem to have gained me anything. I'm just as hosed by the markets as the next guy, and those that over-borrowed, etc, are getting bailed out by my taxes (which inevitably are going up…)

This is crazy ..got a Letter yesterady from BoA saying they are going to raise rates on my credit cards .. I had never missed a payment and had been using it for last 3 years .The letter says they will raise rates and if i object to this i need to respond this . Also said if i object then i need to pay off the remaining balance and pay it off fully .. If i can pay it off they why do i do credit card transactions , can as well pay it off my debit cards ..

Nowhere else but in the United States would the very people whose taxes saved an institution from insolvency be subjected to interest rates and penalty charges that would have qualified as criminal usury but a few years ago while its elected representatives allow this to not only continue but increase.

Just about everyone with whom I've spoken has indicated that they will cast their next vote against any and every incumbent legislator when they run for re-election…No matter what their part affiliation!

I've been hit really hard this past month by the credit card companies – they lowered my credit line and more than doubled my interest rates – these banks are disgusting – I won't be buying on credit anymore and I won't be making any major purchases – I will be paying off my credit cards – I have never been late on a payment and I only started carrying a balance on these two banks in the past few months – previously I paid in full every month – these banks have no scruples – once my cards are paid I'm done with them and I will be done using credit cards!

Timing is everything! Just opened my BOA "changes" letter last night to find my rate will more than double. Same story as countless others: Never been late, great credit, etc. Funny, ironic, sad…. pick a description as I am about to pay off the balance with this year's tax refund from Uncle Sam. How much more "free" money do they need??? Fortunatley, I won't be needing to use the card in the immediate future and have other options if I do.

Most of the credit cards that I hold are raising rates to extraordinary levels. I always pay double or more than double the minimum payment each month. Basically, they are saying that this is how it is and if you don't like it, close your account. Capital One was the first one that I received. So, at this point, I figure that I am going to pay them all off and not use them since they prefer to treat responsible credit card users in this manner. I hope that many other people do as well, then they will see the disadvantages of sticking it to their good paying customers.

it is a shame that these banks do not care about their customers that have struggled to keep their accounts current and have done without alot by not charging excess amounts on their cards. Now these people are rewarded with higher interest rates.

yep…just another case of banks sticking it to the middle class while they get richer from both ends. Perhaps they took note of the IRS. You get taxed and taxed again…Capitalism at its finest!!!

I'm doing my best to keep up with all my payments and manage each month around an estimated credit card payments. But when the credit card companies just decide to suddenly raise rates and push the minimum up, it becomes 10x harder to manage. It does place a lot of pressure on good paying individuals. I know, I should have stayed away from having credit cards in the first place. The credit card companies should think twice about pushing people as I would be more inclined to default on my credit cards, then I would be on my mortgage. If they're receiving money on time, then they shouldn't be allowed to just raise rates and minimum amounts at their leisure. How is that person suddenly riskier.

I've been the perfect customer with Bank of America. My credit card had a very solid rate of about 7.5% but I was notified last week that my rate was jumping to 17.5%! When I called customer service to see what was going on her reply was that they "hoped" I would decline the "offer" and in doing so I could keep the lower rate but in exchange I could no longer use the card. With a balance over $3,800 what was I supposed to do? I declined…

Maybe we should have the Fed control card rates and fees.

Oh, they're getting all right. From US and to us

What do you mean? Of course they get it. They get to rob the average man and the treasury at the same time. They understand they have this power because our government has abdicated its responsibilities. They will charge exactly what they think they can get away with (politically) and not a penny less.

Hey Obomite….stop stealing from the credit card companies and pay your bills, you deadbeat!

Well, it seems as if the Banks who took TARP money are practicing business as usual. I have a decent credit rating, have never been late on any payment in years. I recently received notice that one of my cards, was being raised to 18%, and was given the option to "opt out". That was a no brainer. The excuse of it taking one year to put in effect the new laws on credit cards recently passed is a lie. Miss one payment, and see how fast they raise your interest rates. The banks are using that as an excuse to just raise everyones rates, so in the longrun, we the taxpayers who loaned them the TARP money, by being charged higher interest rates are paying back the very same TARP money we loaned to those banks. Wish I could run my business like that..

The TARP comment is ridiculous. They were forced to take the money to buy other banks that were failing. Wells Fargo didn't want the money but was forced to anyways! For the people using credit cards don't use them if you don't like the banks or issuers policies. If enough people do that maybe the banks will have a reason to change them. Lets quit our whining and use some common sense.

it's just legalized unarmed robbery ok'd by congress!

Chase converted my rate from 9.99% fixed to 13.99% variable. I've never missed a payment. It was my 2nd lowest interest rate and fixed (I really liked the fixed part) but became my highest rate. They refused to return it to my previous rate, so I paid the card off – I was carrying an $800 balance and paying the minimum while I paid off other cards – and closed the account. They went from an income stream to no income stream from me – see if I ever buy any financial services from that bank EVER again.

Why doesn't the TARP over site committee require banks that received funds REDUCE interest rates to say 4.9%. They can borrow from the govt for free. If I ran my business this way I would not have any customers.

Banks want your sympathy, but have no compassion. A thoroughly bloodless bunch of louts!

are these people still focused on the short term outcome ?? thats what got them into this mess to start with … a quick buck. Seems to me they should be looking at the mid-term outcome .. at the very least … this is a consumer driven economy, not so ? the banks SHOULD realise this … i'm a layman, but this should seem pretty obvious

This is just getting funnier and funnier. We give money to the banks banks raise their fees on us to make more money. I do not ever carry a credit card balance I buy what I can afford on my Discover card then pay off the entire balance when the bill arrives-No interest costs no penalties no fees and to boot I get a money back bonus. Some companies are now refusing to take certain cards like Amex and Discover fine walk away leave the purchase at the register and walk away. Same thing with the gas stations now offering a "discount" price for cash gas. Simple solution they get hit per swipe, put in a dollar or 2 at a time and restart the process. There is no discount its a fee for card users. Its just manipulative word play. Here is a way to level the field.

If you have to have a credit card, go and get one from a community bank or credit union. The intial rate is higher, you'll need a higher credit score to qualify but you won't get jerked around and stuck with crazy fees. The rates aren't usually the lowest but are generally fixed. If you use a large company there is a reason it seems like they don't care, they don't care, and once you're on the hook they will put you over a barrel.

I'm fed up with the recent rate hikes by the credit card companies also. I have great credit scores, have never missed a payment, made a late payment, yet American Express doubled my interest rate to 14.99% on a card I barely use….and this is in spite of the fact I have been a card-holder for 40 years. I canceled the account, as I did my Citibank card, because they did the same.

The fact of the matter is that the banks have politicians in their pockets. There will be a dog and pony show about it and it will then get swept under the rug.

Maybe we should all just quit paying our credit card bills and let the second foot fall on the economic house of cards. That would be MUCH worse than the mortgage collapse.

All the banks are doing is pushing the consumer into greater debt,resulting in bankruptcies and less consumer spending.They are cutting off there own feet.

This is outrageous. Big banks being
bailed out and trying to recoup some
of their ill gotten gains at the expense of taxpapers who use their
credit cards.

Just refuse to pay. Stop being a sheep to 'FICO'. There are no debtors prisons and it is a scam & sham that these funds were given without any stipulation on interest rates and that banks are allowed to charge 25% or lose the 'opt out' letter you send in.

I'm one of those consumers who has never been late or missed a payment on any of my bills and my credit card went from 8.99% to 27.74% citing "economic conditions" as the cause. It is absolutely ridiculous! Thanks goodness I'm on board with Dave Ramsey's plan and had just paid that card off the month before I got the notice. The timing couldn't have been better to switch to cash!

Credit card rate hikes is legal extortion. Credit card companies know that people are afraid to cancel out their accounts because their FICO scores will get lowered they are using this fear to extort the acceptance of higher interest rates on existing balances on peoples credit cards. They are using fear tactic's and in a lot of cases it is working. I opted out which automaticlly cancelled my capitol one, and chase cards. While B of A was sneakier and allows you to keep the account open they also know that a lot of people have set accounts that automaticlly bill their credit card even yearly. once you use the credit card after opting out you are now stuck with the highest interest rate. I've never missed a payment, bee late on anything, and 99 percent of the time have payed way more than the minimum amount due. Still all three of these companies raised my interest rate or tried to.
Because I don't have to worry about the FICO score I could opt out, cut their cards up and send the pieces to them. I also sent their phamplets on to my congressman. Its legal extortion. the use of fear or necessity to raise rate hikes on everyday people and small businesses. they think we can't fight back. we shouldn't have to pay for their mismanagement. Congress really needs to get this done, as by 2010 the credit card companies will have already increased everyone's rates so that usuary law will be null. The money that ordinary people could spend to buy stuff with will have to go to pay for the increased and unjust interest rate hikes, it will undo the stimulus package and hurt the economy. so why should these bailout money takers now get their grubby, greedy hands on extra interest. Only with pressure from the press will something get done. and it has to be relentless pressure so it makes congress legislate the laws that can stop this legal extortion.

just another case of banks just not getting it.