“Credit cards have turned into
“nothing less than wallet-sized predatory loans.”
Senator Christopher Dodd, (D-Conn.), during a 2005 Congressional hearing
The minimum payment on credit cards
doubled in the Fall 2005. Disturbing new business practices that
are becoming commonplace in the credit card industry. You have to watch
our video on this page to grasp the enormity of the recent adverse
changes in the credit card industry.
“Getting trapped in the jaws of credit card debt has become alarmingly
easy. Thanks to cozy relationships that have developed over the years
among lawmakers, federal regulators, and credit issuers few consumer
protections are left. There have been no limits on interest rates for
years, so a temptingly low 1.9 percent APR can morph into double-digit
territory at the whim of the credit-card company. Or it can climb beyond
30 percent when a consumer does nothing worse than sign up for a new
card, inquire about a car loan, or make a single late payment to any
creditor.”
"Credit cards: They Really Are Out To Get You", Consumer Reports,
November, 2005
The website Powerpoint® video
immediately below overviews alarming new changes concerning the credit
card industry. It takes 15 seconds for any video to start and it will
play for 5 minutes. You can pause or go forward or backwards from any
slide within the video.
Many credit cards have a clause
that allows them to increase the interest rate for any reason.
What can you as a consumer do?
Pay attention to
notices that you receive from your credit card issuer. If you use
your card after receiving them, you may by tacitly agreeing to new
terms, even if you claim you never saw the notice.
If you are hit with a
late fee or a rate hike, ask for a waiver, the better your credit
score the more negotiating leverage that you have.
Change credit card
companies and use either a credit union credit card or one of the
credit cards listed in the table below.
Pay on time:
Direct online payment is the best way to go. But be aware that even when
you pay online credit card companies may take up to 3 days to post
payment to your account.
If you have a complaint:
1. Register a complaint with your state attorney general go to
www.naag.org.
2. Lodge a complaint with Office of the Comptroller of the Currency at
www.occ.gov or call 800-613-6743.
3. Shop for a new and better credit card - according to Consumer Reports
the se are the best credit cards to get.
