Friday, July 3, 2009

No Mercy From Predatory Credit Card Companies

The ink has barely dried on the credit card bill which President Obama signed in May and credit card companies are running amok with their predatory actions again.

It seems like they are going all out to squeeze water out of a rock, lest their profits are diminished from the changes which go into effect in the middle of 2010. And they have yet to devise ways or loopholes to circumvent the new rules or shift the goalposts. Thus, the anxiety of credit card companies is understandable.

Suze Orman pointed out correctly that credit card companies have an entire year to have their way with you. And nobody will hear you scream.

Ya right, we can't really expect Obama to amend the bill again especially when he already has so much on his platter, from taxes, financial reforms, war, health care, economy, etc.

The USA Today reports that "Most issuers have raised rates or fees for certain borrowers. In the latest round, Bank of America and Chase have increased, or are increasing, their maximum balance-transfer fees, from 3% to 4% and 5%, respectively."

"Chase is also expanding the definition of who could get hit with a penalty interest rate. Meanwhile, InfiBank is establishing a higher minimum APR -- the greater of 15.99% or 11.99% plus the prime rate -- on many cards. And Capital One and Citigroup continue to raise card rates for certain borrowers."

If you continue to roll over your credit card debts, it is time to exercise discipline and get your finances in order by whittling down the debts. The credit card companies are not known for being charitable and will pile on your misery at the moment when you need them most.

But in fairness, the blame cannot be placed soley at the doorstep of credit card companies. They're just doing their job, which happens to be screwing us for maximum profit so that they can take home fat bonuses.

We have to take some responsiblity for falling prey to their temptations. Our elected officials are also to blame. Instead of working towards the good of American voters, they are protecting these for-profit organizations every step of the way.

What do you guys think?