Of you are late, the more you owe, the more you pay. Now that people are trying to get out of credit card debt, the credit card companies are sticking it to people who pay late. DEBT--------------------LATE FEE $0 ------ $100----------$15 $101 ---- $1,000-------$25 $1,001 - ?--------------$35 "Court support The first case occurred way back in 1978. In Marquette vs. First Omaha Service Corp., the Supreme Court ruled that a national bank could charge the highest interest rate allowed in their home state to customers living anywhere in the United States, including states with restrictive interest caps." Maybe its time to get congress to do something about the credit card companies! http://moneycentral.msn.com/articles/banking/basics/9446.asp
I just thought I would add that I got a notice of changes to my Providian gold card account agreement. Late fees are now $0 for a balance under $200 and $35 for a balance over $200. This notice is effective April 2002. Several credit card companies are mailing these change notices out. I just want people to be aware of this. If you don't like the changes, the only option is to close the account.
Does it seem as if you can trigger those penalties just by breathing these days? You aren't far off: Over the past few years, credit-card companies have become increasingly dependent on the fees they charge users. In 2001, fee income represented 28% of credit-card companies' total income, according to CardWeb.com. Over the past five years, this figure has increased by 172%. So while it used to be that fees were applied to keep you on the straight and narrow, credit-card companies are now financially dependent on your breaking their rules â?? and paying the price. "It's a fact that they are tacking on new fees and more expensive fees," says Travis Plunkett, legislative director for the Consumer Federation of America. "Income from fees has become much more important for profitability." Thanks to new disclosure rules that took effect in the fall of 2001, credit-card companies are required to disclose all their various penalties, including their penalty APR for late payments. They also need to state clearly (and in decent-sized print) the permanent rate on a card that comes with an introductory teaser rate. Most of this information is included in what's known as the "Schumer" box (named after New York Democratic Sen. Charles Schumer), typically located on the back of an application. But some consumer advocates say these rules don't go nearly far enough. "It's a bunch of baloney," says attorney Howard Strong, author of "What Every Credit Card User Needs to Know." "You can say in big letters, 'I'm going to rip you off!' or you can say it in small letters. It doesn't make a difference." Part of the problem, says Strong, is that credit-card companies are lightly regulated. Federal laws don't control things like over-the-limit fees and late charges, he says, and the majority of credit-card companies are located in Delaware or South Dakota â?? two states that have lenient usury laws. This is from smartmoney.com
How do you do that when they are padding their pockets.? The best and the only way is to cease doing business with them. I might sound radical but I'm right!
1*It's all a part of the plan.2* And your credit is trashed by them becuse they robbed you- ain't it swsweet
Unfortunately, Erik, the banking/credit industry is the largest lobbyist in Washington, and the biggest campaign contributor to most of our elected officials. It was under duress that Congress passed their flimsy campaign finance reform recently, and everyone's scurrying around now to pocket soft money before the new rules take effect.
This is why the only thing that will work is cease doing business with them. IF we don't - the only thing to expect is that things will only get worse.
Yea yea yea - we know lb. You've only posted it 4080 times. You are really going overboard lately. chill.
