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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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related to the mortgage crisis: the credit crisis
exposee on bank of america (formerly MBNA) predatory credit practices....
cnn link
I'll make the disclaimer that I carry no balances and therefore always pay in full every month and on time... but this irks me none the less....
I once had an account with MBNA... which then turned into BoA... yeah man, TOTALLY predatory practices. they mysteriously kept raising my interest rates despite me having VERY good credit... it was NUTS. and they DID constantly encourage me to make cash advances and get into debt (I always politely declined  )
Actually, chase is also pretty bad in that regard. I just noticed last month that one of my accts with them has an interest rate of something like 19%  I have no idea when that happened... it's not like they're making a dime off of me, but I'm CERTAIN it was no higher than 12% a year ago or so.....
I'm still stunned how contract conditions can legally change w/o customer approval and without a change in customer credit rating. just send us a slip of paper in the mail and voila, they can double their fees w/o reason.
credit cards are like dancing with the devil. that industry needs a total overhaul  hopefully congress will attack that industry with legislation before it also requires a bailout.....
Message edited 9/25/2008 3:42:52 PM.
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Posted 9/25/08 3:40 PM  |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: related to the mortgage crisis: the credit crisis
yeah this is the EXACT reason why I always pay my credit cards in full... (The ones I use daily)
when I need a little extra one month, I'll do a balance transfer to one of my *other* credit cards with a fixed rate. (They always send me checks with special offers such as 1.99% until May 09 or something
then I DON'T USE that card until that balance is paid in full.
Its been working for me. and aside from the small interest rate and the 5% balance transfer fee, I'm not gettng killed with interest or fees.
Just got to be CAREFUL when you do that and make sure you pay the balances off by the right time.
Message edited 9/25/2008 3:50:43 PM.
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| Posted 9/25/08 3:50 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: related to the mortgage crisis: the credit crisis
Posted by wannabemom
I'm still stunned how contract conditions can legally change w/o customer approval and without a change in customer credit rating. just send us a slip of paper in the mail and voila, they can double their fees w/o reason.
credit cards are like dancing with the devil. that industry needs a total overhaul hopefully congress will attack that industry with legislation before it also requires a bailout.....
Actually you have a choice in the matter if they raise your rates or make contract changes.
If you read the fine print of your long credit card agreement, you can opt out of any changes they send you by mail. If you opt out you can close the account and continue to pay off the balance under your old terms that you agree to.
If you do nothing, that means you are accepting the changes in terms as per your agreement with them.
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| Posted 9/25/08 3:53 PM |
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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Re: related to the mortgage crisis: the credit crisis
Posted by ave1024
Posted by wannabemom
I'm still stunned how contract conditions can legally change w/o customer approval and without a change in customer credit rating. just send us a slip of paper in the mail and voila, they can double their fees w/o reason.
credit cards are like dancing with the devil. that industry needs a total overhaul hopefully congress will attack that industry with legislation before it also requires a bailout.....
Actually you have a choice in the matter if they raise your rates or make contract changes.
If you read the fine print of your long credit card agreement, you can opt out of any changes they send you by mail. If you opt out you can close the account and continue to pay off the balance under your old terms that you agree to.
If you do nothing, that means you are accepting the changes in terms as per your agreement with them.
Well, this is what I inevitably end up doing when I feel like it.
I guess my point REALLY is:
do you know of any other legally binding contract that works like that??? How is 'not actively objecting' a legally binding 'acceptance of terms'.
What if the letter doesn't arrive at the household? Not like it's ever certified mail!
I'm CERTAIN this is why they want people to load up on debt... so they no longer have the credit rating to escape their bank, and no longer have the luxury to close the acct and move elsewhere once their interest rates and fees skyrocket.
IMO, these rates and fees should be FIXED unless the customer's credit rating changes for the worse, or develops a pattern of late payments...
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| Posted 9/25/08 4:20 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: related to the mortgage crisis: the credit crisis
We always pay everyting off--in full. But every once in a while, I get a glimpse of the interest rate on a statement (well, what it WOULD be if we ever carried a balance, and I'm 
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| Posted 9/25/08 6:28 PM |
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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Re: related to the mortgage crisis: the credit crisis
Posted by seaside
We always pay everyting off--in full. But every once in a while, I get a glimpse of the interest rate on a statement (well, what it WOULD be if we ever carried a balance, and I'm
yeah, me too!
Even though I never pay interest, I feel like I should stick up for myself and call the bank on this BS! What is there excuse for it
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| Posted 9/25/08 6:39 PM |
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