Anyone else see what snuck through with the Credit Card bill?

Doe Dumper · 05-20-2009, 04:10 PM

http://www.politico.com/news/stories/0509/22769.html

Its a small victory.. but in these days even small victories are few and far between. Kudos to Tom Coburn for amending it to get this in the bill.

Canuck_Buck · 05-20-2009, 04:33 PM

Is Tom related to this guy ?

DougMD · 05-20-2009, 05:25 PM

Very nice to add that. On the credit card issue, I agree there shouldn't be predatory lending in terms of credit card companies jacking up rates immediately without notice. At the same time, they should be able to charge high rates for high risk borrowers. Frankly, consumers need to know how stupid it is to live beyond their means and have to pay such high rates, period. As it stands, people who pay on time might have an annual fee, as well as fees for paying on time. I might lose by BassPro card points as well. In all, it shifts the cost of high risk cardholders from those with bad or shaky credit, to those with stellar credit. Another cross-subsidization, Obama style!

Doe Dumper · 05-20-2009, 06:13 PM

I have a boatload of Cabelas points. I charge everything business related on that card and keep it paid in full. I wonder what the deal is on that? Have you read something about the points? I need to call them and check or get ready to make a huge order.

Champlain Islander · 05-21-2009, 04:32 AM

There is good and bad associated with this credit card bill. The good is that there will be restrictions on billing cycle and rate increases. This will cost the companies billions. The bad is that the cost will be transferred to the people who pay off the card every month. They are talking about allowing interest from the moment of the swipe to when the bill is paid, plus allowing yearly fees again. You charge something for $100 and pay before the end of the billing cycle. Historically no interest was charged and that is the way the cards are supposed to be used. Now that person will be getting charged the customary 12% to 15% interest that is on most cards. There was an economist on one of the cable news shows today that said this will put the credit card companies under and will exacerbate the current economic downturn. I was listening to another news show that dealt with credit card companies a while back. The company term for someone that pays the entire balance when due is a deadbeat. They called them that because they didn"™t make any money off the charger. You can see where they have their head.

Steve863 · 05-21-2009, 05:12 AM

Quote:

The company term for someone that pays the entire balance when due is a deadbeat. They called them that because they didn"™t make any money off the charger. You can see where they have their head.

I always knew that the credit card companies would prefer someone like me who has never paid them a red cent in interest to be DEAD! If they will be tacking on fees to people like myself I will cut the cards up and be paying with cash only. It really wouldn't be a big deal to do this. Yes, credit cards can be convenient, but I'll be d-a-mn-ed if I will be paying them extra just because I pay my bills on time. Anyways, I have always felt that most people would benefit and not get into a financial mess if they had to use cash only. If you don't have the green stuff in your hand you simply wouldn't spend it unnecessarily, which is not the case with credit cards and that is when people get themselves into the holes they really never should have gotten themselves into.

hillbillyhunter1 · 05-21-2009, 05:20 AM

Quote:

The company term for someone that pays the entire balance when due is a deadbeat. They called them that because they didn"™t make any money off the charger. You can see where they have their head.

Of course they make money off of the "charger" whether the charger pays their bill in full evey month or not, just more if not. They make money by charging the vendors every time that a card is swiped to purchase one of their products. The charge is anywhere from 1.9 to 3 or 4 percent per transaction. Which is no small potatoes when it comes to the grand schem of things, probably one of the main reason some of the big retailers have come out with their own cards.Some retailers also get charged a flat rate per swipe in addition to the percentage...called a "transaction fee"...usually about 10 to 20 cents per transaction.

So the CC companies are making money on both sides of the fence. It's not a problem, just the way it is. Anyway, these card iisuers are some of the same banks that accepted all this porkulus money and yet what have they done with it besides improve their balance sheet. Granted, I don't think that concientuous card users should have any new fees to subsidize those who aren't, but the card companies need to a control lending practices that are now bordering on predatory.

etothepii · 05-21-2009, 05:49 AM

I quit using a credit card 3 years ago. Next month, my last balance will be cleared. Then, I'm calling and canceling the card. No more credit cards for me, hallelujah!!!!

BTW, paid off our vehicle two months ago. No more auto loans either!!

ipscshooter · 05-21-2009, 06:45 AM

Quote:

ORIGINAL: etothepii

I quit using a credit card 3 years ago. Next month, my last balance will be cleared. Then, I'm calling and canceling the card. No more credit cards for me, hallelujah!!!!

BTW, paid off our vehicle two months ago. No more auto loans either!!

You can kiss your "FICO score" good-bye, cuz it's gonna be droppin like a rock.

bitterroot21 · 05-21-2009, 06:47 AM

Why not use a debit card issued by your bank? It's more or less the same as writing a check. You don't get your points and you have to keep an eye on your balance in your account but the vendors don't get charged and you aren't paying any interest. If they don't take a debit card write a check or whip out the green backs.