I am with you all the way...the banks and cc companies can jack me up with more fees at their own peril; they do it and they lose my business.

the best way is not to have one i don't have one and don't want one it screws with your fica score any ways.

not necessarily...if you manage it right, it won't hurt your fico, and in fact can help it a lot. Of course, let it manage you and you have more problems than a low fico score...

well you know what my sister has a fico score of 720 when she had her credit card open she closed it and by all means in four weeks when she checked it was 760 hum

FICO is payment history and debt to credit ratio.

"......And to make up for lost income, the card companies are going after those people with sterling credit.  Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups."

It was necessary to draft legislation to curtail credit card companies from increasing interest rates with no reason.  With that said, it is despicable that the credit card companies are going to increase my credit card rate when I do not pay late, I  pay on time, and I usually pay in full.  They can stick the other perks they give, but leave my interest rate alone.

It is ridiculous to continue this mind set of punishing the responsible to help the irresponsible. When is it going to stop????

Credit card meet desk drawer.

ok my mistake i was unaware their was a diffrence .

Something has to be done before credit cards become the next financial bubble to burst. And as always it will be off the backs of the responsible. I guess it is the squeaky wheel getting the grease. The government solution will probably hurt the CC industry more than it helps. Some people cannot manage their money and we end up paying for it.

DBurger, it is the credit card companies who are to blame, really. They took advantage of people, made a mint, and now that they're not allowed to, the companies are taking advantage of a new group in order to recoup their ill-gotten profits.

Don't you think it's good that not everybody will quality for a credit card? The non-credit worthy who got fleeced wouldn't be mired down in the first place if they were denied credit. Or take someone like my parents. they had excellent credit, so were offered limits that equaled thier combined income. Wow! No one should have that much available credit on cards. It's just silly.

Absolutely right...the more they jack up fees, the less likely I will keep their card!! Let them go bust, I won't be paying for it!! They've been as bad as the home loan situation anyway; it comes down to only one thing......GREED!!

Paragraph from the story:

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

There is no way I would continue using my CC. If you cut out those that pay you will have those that don't. Will this help the CC industry? I don't think so. I foresee a industry that will soon be cutting jobs. Does Washington ever look at the long term effect from their knee-jerk reactions?

This is not a knee-jerk reaction. CC companies have been pulling the bait and switch routine with customers for far too long. It is time they are reigned in. To those of you out here who are claiming to "cut up the credit card" I say go ahead. Just don't attempt to make any hotel reservations, lease a rental car, or many of the umpteen other activities that most people who work and travel have to do. I only have one card and it has a balance equal to 40% of the limit. I use it for travel and emergency needs but most of all I need it to secure reservations when I travel.

The responsible have always paid for the irresponsible. This is not a new phenomena and so it will be until the end of time. Don't blame Washington, blame the public who refuses to become engaged in the important debates and issues of today. Blame the apathetic who do not vote, and therefore allow themselves to be ruled by the incompetent.

The banks simply wish to keep the gravey train going. I seriously doubt whether they will raise rates and institue fees on the responsible card users, but if they do let us hope that we, the public, protest with our wallets in addition to our mouths. Affecting their bottom line will always be the way to get their attention.

And blame the irresponsible consumers, who use credit incorrectly. I've had credit cards for 30 years and have never been victim to bait and switch or raised rates. Of course I always understood going in what the fees and interest rates were and never carried a balance. That way when I lost a job (three times), I didn't have to worry about paying on a balance. Using credit responsibility can be a powerful tool. So can savings and investments. This is just one more example of the government looking out for the foolish at the expense of the responsible.

Exactly - any company that attempts to create fees on consumers who are careful/responsible will find themselves suffering even more when those people jump elsewhere.

There are a LOT of credit card companies out there - so finding some that'll happily keep fees down to screw over the big guys won't be hard.

I'm not sure exactly what world the author of this article has been living on, but it ain't Earth.

1) In the good old days, banks did not save credit cards for their very best customers at 20% plus an annual fee. In those days every state had usury laws that capped interest at 6% and most banks charged an additional $12 annual fee in those states that allowed it. Credit cards were not widely accepted and banks had a hard time getting anyone to take them. What good was a card that no one would accept? That's what happened to the first big credit card - Diners' Club.

2) Banks spent literally billions of dollars to get the usury laws "relaxed" in one state after another (there is no federal usury law.) 6% had been defined as a rair return for around 3000 years, but the banks knew so much better that all of mankind which preceeded them.

3) People who charge things and then pay off the bill in full each month do not get a "free ride". That is a bunch of ill-informed crap. Even if they get "cash-back rewards" and "airline miles" and other perks" it is still a bunch of ill-informed bunch of crap. The retailers pay the credit card companies a percentage of every transaction. If you think the author of this story has any idea what he is talking about, ask any retailer what percentage he pays to the credit card company. And how much he pays in "exchange fees". And how much he pays for the little terminals that authorize the transaction. "Free ride" ---- I think not, Bozo!

4) The credit card rates are not only usuurous, but the billions in lobbying money bought the banks the right to amend your loan agreement retroactively without neither advance notification or your approval. Try writing to the company that financed your car and telling them that you have decided that you will be paying half the interest you have been paying because you decided to change the terms of the contract. Think they'll buy it?

5) The credit card companies make millions just by selling your name to everyone who will buy it. Those little inserts with yout bill each month trying to sell you life insurance or fake diamond necklaces ---- they net the bank 50 cents per enclosure and some get as high as $200 back if you actually buy that fake diamond necklace. Where do you think those telemarketers get your phone number from? Your credit card company. And why are they immune to the federal no-call list? The credit card companies bought enough congressmen to allow them to claim a "business relationship" with the telemarketers suifficient to ignore the list.

6) I have even had a First Union (they renamed themselves Wachovia because their reputation sunk so low) executive who started a company which posted charges of $4 to $8 against credit and debit cards issued by First Union. The bank loved it because they made millions off the scam because they charged returned item fees over $50 dollars (and collected it in scammed funds) every time a customer reported the fraud. The federal government (a fully owned subsidiarty of the credit card companies) prevented several states, including Florida from prosecuting the fraud. The CEO of Wachovia continued to sleep with the executive who was running the scam even though he told reporters she had been fired (though she still remained listed in the bank directory.)

7) Credit card companies work with the "big three" credit reporting agencies to report incorrect and known false data on your credit reports. Experian is especially good at doing this and especially bad at ever removing it. The credit card companies then use this same false data as an excuse to raise your interest rates even though you always pay on time and never exceed your credit limit. Both the banks and credit reporting agencies have had their employees, the U.S. Congress give them "tort reform" that allows them to do this without fear of being sued for ruining your credit for their own gain.

The people are crooks. The usury laws should be restored. Any lawmaker in any state that took money from BankPAC or any other bank representative and then voted to repeal or "relax" usury laws should go to prison. If any irregulatity is found in any customer's account, including unauthorized charges or fees or changes in interest rates without prior authorization, the entire debt to the credit card company should be erased.

Guess what industry I worked in for 30 years?

This article was the credit card companies' way of putting out a warning and trying to lobby against credit card reform. None of it makes any sense whatsoever. They will still compete for our business. They just won't be able to line their pockets with deceptive practices and, hopefully, will provide clearer terms and conditions.

Think about it. So they were able to provide credit cards at unrealistic rates and fees (0% with no fees, plus rewards) to some clients then counted on a "slip" by consumers to back bill and shoot rates up into the 20%s. One day late could cost you hundreds.

Ditto. I will get rid of all my cards if I need to. They can only punish me if I have the cards!!

D Burger #1.7,

As soon as we get rid of our socialist ( least offense descriptor ) leaders in the Federal Government and get back to the basics established by our forefathers.

Chris-537131:

Git 'm....Well done!

Folks:

Get on a cash basis as soon as you can....this is gonna get ugly, soon....teach your kids about money and credit, if you do not know yourself, then ask someone who does and includes the kids, I mean it, this is crucial....rent or get a Netflix copy of "Maxxed Out", great expose of the credit industry....these guys are like vampires, they drink your blood, but never kill you off for good....this is like being a slave to plastic....bad scene!

Good Luck!

Meso-575799:

Credit card meet desk drawer.

Credit card meet shredder!

I hope Fellowes company can keep up with the demand for shredders....in fact I probably should buy a little stock in their company!

Good Luck!

DWF #1.13,

Our leaders in the Federal government are totally oblivious to what is needed. They only look to see what they need to do so the "sheep" will keep them in office. If you play by the rules, you are in the minority, so our leaders don't care about us. It's all about counting votes. (so they can keep their cushy jobs)

Just another example of how when the weasels are let loose the chickens pay or only the government can take a bad situation and fix it by making it worse.

I don't know who did it but sometimes it is hard to do business without a credit card (rent a car, hotel or whatever).

The credit card companies make money even if you pay on time because they get a discount from the retailers.

Obama did not go far enough in demanding a common sense approach to the credit card racket.

Well said Chris and LMarcT.

I dare the CC companies to start charing fees and hiking rates again cause they aren't making millions of dollars for their CEO anymore...

I dare them!

They'll lose money and customers so fast they won't know what hit them...

sumthin fishy- I see nothing wrong with credit cards, but I do see something wrong with the way people use them. I have used credit cards for 30 years and have never carried a balance. I get to play the float for 30 days and get flier miles. Yes most retailers pass the 2-4% cost from the credit card companies onto the price of their products but they will not take it off if you offer to pay cash, at least very few do. So now because credit card companies can not get a higher return for greater risk to those that have bad credit those fees will now be passed on to me. Just another example of trickle up poverty.

treet007, thanks for your first post and for saving me some typing -- I was going to make the same comment.

The issue here is that the government is protecting the irresponsible. Let's be honest - most of us have used credit cards for a long time with little complaint, many with no complaints. They have spelled out the rules, told you when rate changes would occur or were coming, etc. The problem is that, once again, responsible Americans are punished at the benefit of those who cannot manage their lives properly, And I realize that there are exceptions when people default, but we all know that those situations are a small piece of the greater problem.
If you are a responsible credit card user your anger should be at the government, not the banks.

So according to this article, people pay high interest fees and late fees because the credit card companies don't make money off "responsible" borrowers, people who pay off their balance every month.

I support the reform too. I think it is painfully obvious that NYT has their grubby fingers all into the financial sectors pot. I cannot believe they are even suggesting that 'good' customers are going to suffer for this legislation is. The fact of the matter is that c/c companies have already raised interest rates for absolutely no reason on a lot of people including myself. I have never ever been late on any payments for anything at all much less my c/c and they just raised my rate from 6.5 percent to over 26 percent. The c/c companies had zero regulation. They were basically able to lure people in for years making them feel safe with rotating balances thinking that it was okay to pay little by little and then presto that balance has a super high interest rate now. So, this is the last straw for me and the NYT, its too bad such a reputable news source has gone down the toilet.

:laughs: @ somethingnewsmellsold.

You mean you ACTUALLY BELIEVE that CC companies must charge their best customers higher rates to stay in business? I guess a sucker is born every minute...

If you think the author of this story has any idea what he is talking about,

I don't. This article is a scare tactic by the CC companies to turn people against credit card reform by scaring them that their fees, etc. MIGHT go up!

and besides I AM one of my banks best customers and my card has never been more than 9% and is down to 3.25 as I stated

lucky you, hopefully you never miss a payment. And your anecdotal evidence totally disproves all the stats...

when you finally get your act together and start to earn a living (if your master Obooba lets you)..you will find ignorant rants like yours and Chris' to be quite amusing and pointless

when I get my act together? Was that before or after I earned my PhD?

Is that the best you got?

and start using my ATM card or even write checks.

Hardly think you'll get off that easy.

Once people shred their credit cards, ATM fees will go up, debit card transactions will have a fee, international transactions, which already cost 1-2%, will go up. If you revert to checks, the fees for those will return, with a vengance. And remember, there are places that no longer accept cash (internet shopping being the most obvious). Oh, and have I mentioned merchant fees increasing, and with it the cost of goods and fine dinners?

Think of it as a sausage casing, we are the filling, the banks do the squeezing (and Congress deals in pork). Welcome to the commencement of inflation.

With the new bill before Obama it's clear that the credit card companies are going to escalate their abuses before the bill becomes law in nine months. Plenty of time to screw as many as they can as long as they can. And the silliest part, the bill doesn't address the real problems.

I can't believe all of you saying you will cut up your credit cards or go on a cash basis only. Have you ever tried to book a flight online or purchase goods online? And saying it's the CC companies fault for extending credit to people who shouldn't have them - give me a break! What's happened to responsibility? Exactly like the housing market - people just shouldn't buy what they can't afford. Nobody is forcing people to buy things on credit. I'll tell you where the greed is - it's in the consumer who wants it all.

I've got really good credit, I manage my debt wisely. Why do I have to subsidize those slackers who don't follow the rules? I'll cancel all of my cards before I'll pay for someone else's lack of responsibility. This attitude of punishing those of us who play by the rules seems to be the hallmark of this presidential administration. What is he doing to my country? Will we be able to recover after he's done?

Why do I have to subsidize those slackers who don't follow the rules?

you don't. Don't take this article at face value. They're just trying to scare you into opposing any meaningful credit agency and credit card reform...

What is he doing to my country? Will we be able to recover after he's done?

if we made it through Bush (and we just barely did) we can make it through anything.

I doubt that this is a scare tactic. Credit card companies have made nice profit on the same mix of customers for a long time; even those that get the lowest rates because they actually pay their bills on time are still a source of profit (the rates they pay are greater than the rates at which the banks pay for the money). As much as a lot of people want to believe it, the evil banks make money off of the evil wealthy, too.

In addition, ANYONE needs compensated for taking on riskier investments, even individuals. So yes, if you are a credit risk or have a history of late payments, you should pay a little more as you are more risky.

If the government tells the banks that they cannot get the same return from risky customers than they did in the past, of course they are going to get it somewhere. They are in business to make money. And the responsible have been carrying the riff raff for a while - ever wonder why you still pay 8 - 12% when you always pay on time, have a great credit score, and have a lot of money in accounts at the bank? That's right - you are helping the banks make profit. And this higher rate is thanks to those who are irresponsible; we have been doing this for years.

The bottom line is that now the government is getting overly involved in business and now those who manage their lives like adults are going to be punished more than usual.

I'm stoked over these changes.

The banks are going to refine their customer base down to exactly those people they don't want. Fantastic. :)

If you can get debt free and start using cash, do it. **** these banks. Its not that inconvenient to use cash, especially if these banks start charging me for the privilege of being a card-holder. They make about 4% off every transaction, that should be adequate. If it isn't they can cram their cards up their ***.

Ah yes, more Obama wealth redistribution. All you good credit card users will now pay more of your hard earned money to subsidize the deadbeats with poor credit and poor payment histories.

PhD...hahaha...you sure as hell talk like KnOb...

read your own statement again and tell me I talk like a "KnOb" (whatever that is...)

and that is the point young PhD wanna be...pay your bills and take responsibility for your actions and the rewards are there without being mandated by you or your liberal dem-wit manifesto

who's mandating rewards? What are you talking about? We're talking about Credit card reform...

I doubt that this is a scare tactic

yes, yes it is.

The bottom line is that now the government is getting overly involved in business and now those who manage their lives like adults are going to be punished more than usual.

yes, cause if the current economic climate is any indication, business interests CAN DO NO WRONG and always make money for everyone! They need no regulation and no oversight, what we've done over the last 15 years has worked wonders so far...

CC companies are just pissed that their gravy train is coming to an end (and it's not because of government oversight, it's because the economy has tanked!). They cannot fathom getting by without the HUGE profits they have made over the last 20 years and as such they will screw their own customers to maintain those profits (long term viability be damned!)

This is, in fact, the impetus for the Credit card reform. They started screwing with their poorest and lower customers to keep their profits up, and people started calling their congressman/senator! Why else are we talking CC reform?!?

All you good credit card users will now pay more of your hard earned money to subsidize the deadbeats with poor credit and poor payment histories.

no you aren't. You're paying to subsidize CEO salaries/bonuses and millions in profit.

I know this is off topic, but, I just had to respond to "Gordon90N"

Gordon90N said:

"D Burger #1.7,

As soon as we get rid of our socialist ( least offense descriptor ) leaders in the Federal Government and get back to the basics established by our forefathers. "

And Gordon90N let's not forget to make sure we get rid of our warmonger (least offensive descriptor) leaders in the Federal Government and get back to basics established by our forefathers. War has run us in as much debt if not more (if you want to count our fallen soldiers) than anything "socialist" in this country. I would take "socialist" any day over war.

Remember, how we take care of and provide for those who are less fortunate than us is how we will be judged.

The credit card companies have had this gravy train because the consumers enabled it. They broke no laws and earned profits, which is the responsibility of any public companies. And yes, the rules say that they have to send you the rules of the game in writing, so save the anger over the magically changing rates. Be pissed at yourselves for not reading the fine print.

Oh, and the credit card companies would not have this issue if all consumers were responsible. Now they are to blame entirely for irresponsible cusomters?

Calling this a scare tactic is a low-brow, knee-jerk assumption. Businesses have lobbyists that do their heavy lifting, not to mention that public outrage, these days, changes with the wind and it not the tool it once was.

Frankly the cc companies are just doing what was done by the speculators in the real estate industry, spinning that crap about the housing crash was caused by a poor people buying more house than they could afford imo. LOL

The cc companies are now trying to get those who pay on time worked up, hoping these folks will turn on those who are perceived as being the deadbeats, blaming them for what they the cc companies now have to do by raising rates on those who are so called responsible, just like many so called responsible homeowners did until they started losing their jobs, bear increased healthcare cost or having no healthcare etc and then also started to lose their homes to forclosure. LOL

I have retired most of my credit cards, and still had my rates raised for no reason. So I took it out of my wallet and have no intention of using it, and will be closing it when I have completely paid off the balance. This was the card I used to pay for major home repairs. I will just have to go cash or let the repair go by the wayside until I can pay the cost in full to the contractor. I have no intention of paying debt until I die.

I am so tired of this whole credit score crap. It is just a way of keeping people in debt until they die. Like is said the money is not in diagnosing the disease, it is in the costly treatment as there is also no money in the cure either. LOL Isn't that the reason that pharmaceutical companies make billions of dollars peddling their drugs, yet never the cure? LOL

The credit card companies and other financial institutions want people hooked on fica scores. They want people to be hooked on credit. They want people to work hard to maintain their credit ratings, living a life on credit rather than on cash.

The housing/realestate industry want people to keep on moving around or trading up as it keeps them in business building costly mansions on less than 1/8 of an acre. LOL These folks will never pay off their mortgage, so the financial institutions will always be making money for the next forever, while the homeowner keep on paying for a property they will never fully own within their lifetime, yet have maintained the property, paid the taxes, pay for the repairs, utilities etc on a property that they can never own. It is like the financial institutions will be your landlord forever, only with you paying for evey cost of the property and when you can't they forclose and toss you out of the property. LOL Wow talk about the American dream gone nightmare. LOL

Why is there so few affordable homes, ie homes you can actually pay off for? LOL Why were so many apartment building turned into condos the past several years? Why was it important that people were able to borrow money for other thing except buying a big purchase like a house or a car? Why was it important to have good credit but not a good savings balance? LOL

i do not support the reform because i do not think it my american duty to pay for other peoples mistakes whether it be overborrowing for a home loan, credit card debt. remember the chickens come home to roost, what that means if you borrow something you return same. in simple terms if you make a bad debt you are liable to repay don't ask me to pay for your lack of control... thanks to dictator obama everyone will share in dead beat debtors, but then again that is how socialist government works, next will see if you work or to lazy to work you will be paid the same..

They will only be hurting themselves. i will not use my credit card if I will be penalized, I will use my debit card or pay cash. When enough folks start doing that, then see what happens. it seems as if we are starting to reward irresponsibility.

It is crazy and just plain wrong, that the responsible people are the ones who get the shaft and have to pay for the irresponsible people. I have a credit card that I use for pretty much every purchase I make, whether it be clothes, gas, food. I pay the balance in full every month and get the perks of flying miles. If they start charging an annual fee or charging interest fees on every purchase, I will not be using the card at all. Just have to start using my ATM card!!! I do agree that the CC companies are a bit of a rip off when they start raising interest rates sky high because of late fees, but as a consumer you should be more responsible and pay your bills on time, or do not have a credit card. Capital One credit card is easy to use to redeem miles. Just buy your ticket with your CC and after it applies to your card (in about 7 days), call Capital One and tell them the date and amount of the ticket you purchased and they deduct your miles and credit your bill the amount you paid for the ticket. Nothing hard about that!!! You can also do it online if you don't want to make a phone call.

BZe1: first, you sure do LOL alot (I don't know why). Second, you sound like everyone else is to blame except the person who is at fault. The CC companies want the responsible to turn on the irresponsible, the credit score wants to keep you in debt, the CC companies and banks want you hooked on credit, the housing industry want people to move around or get bigger houses. You sure are full of conspiracy theories. Nobody forces one to buy. As you say you may have to go to cash or wait until you can pay for things in full. Sounds threatening (wow), but good, that's the way it should be.

This will all come down to the responsible paying for the irresponsible.  There are sev eral states where insurance is high for all because of the behavior of the few.  The trend of socialism in the USA - the change they wanted.   Remember the deregulation during the arter years - higher rates as a result of derequlation - well hold onto your wallets and your pants.

I think they are just trying to BS people with 0 ballances so they start complaining that the government is trying to take our benefits away and "spread the wealth". It is nonsence! It is not the government who says "charge good cardholders" but BANKS who aim at us. Well perhaps they need to listen before they say silly things.

"Good cardholders" are exactly people who DOESN'T like paying fees, this is why I always have my bills paid off in full. I refuse to have American Express card because they do charge annual fee. If any of my current credit cards will go the same path I will simply DUMP them in a heart beat!

Here is my emergency plan in this case:

1. Cancel all credit cards that charge annual fee or even take my cash back bonuses

2. Debit card is still alive, so I can use it as long as they don't charge fees

3. Go back to checks

4. Online purchases can be paid by paypal even where paypal is not accepted (paypal plugin)

5. Never keep my money in any of rip off banks. Yes credit unions still exist and they will be happy to see more customers.

They are terribly wrong that we have no choice, in fact we do! Retailers want to pass fees on consumer huh? oh well, I can survive without Wal Mart(already do), I guess I will minimize my spending which I have not done yet but definately will if I have to pay extra. They don't get it, but it is what "0 ballance" people are WE DO NOT PAY EXTRA FEES, that is main reason why we live within our means.

Personally, I think the main point of what the CC company spokesmen in this article were trying to do was to get those who are good at handling their CC's to complain to congress about how unfair this is all going to be to them. In my opinion, if we did this we would be unwittingly working for these banks in order to perpetuate economic slavery for those who are in CC trouble.

There are those who think that people who "abuse" credit deserve what they get. Undoubtedly this is correct for some portion of them. However, not for many or even most of them. Young people with little practical experience often can run afoul of this totally usurous system. I don't mind reasonable penalties but when you have a system seemingly designed to ensure that troubled people quickly become so mired in debt it becomes impossible to escape it no longer is penalty but design. In my opinion, the purpose is not to encourage responsibility but establish financial slavery by creating situations where it is nearly impossible to pay off the debt.

Of course, some are irresponisible. But if we want to fully discuss irresponsibility, lets go all the way and include all who are irresponsible. Like the issuing banks. It would be interesting to know how much money banks spend on statisical analysis of customer demographics. I don't know myself but I'm sure the study of such a topic is very thorough. I feel quite sure they know to a fair degree of accuracy just what the risk is when they make an offer or accept an application from an individual. If that is true (and I wonder if there are many who would say it isn't) you have to wonder why issuing banks issue credit to those they presumably know to be high risk?

I suppose one answer could be that it is only fair that everyone should have access to credit. Another could be it is not the bank's responsibility to make such decisions about a persons character, shuch as are they responsible enough to have a CC. I'm sure readers could come up with more, but we're looking at the customer here. Let's look at the bank.

Banks exist to make money, yes? They are not a charitable institution. That isn't to say they don't make charitable contributions. They do. However, their existence is centered around profit. That being said, what is their motivation in extending credit to known credit risks? It certainly isn't charity. So why? Fairness? Perhaps, but if that were so, why would they then hit someone with so many fees it makes it difficult ( or impossible in some cases) to get right again? We have all heard the horror stories, seen the news clips, read the news articles.

I can't help but to draw the conclusion that CC banks are extatic to extend credit to the credit risky simply because, thanks to our governments efforts, such individuals basically become indentured servants of such banks. There is a huge amount of profit in such people. If there were not, banks would not extend them credit. It really is that simple.

Banks say it is only fair. They didn't have to take the credit. True, but let's look at fair. I have a credit card. It has zero balance and no annual fee. I never use it. The only reason I have it is because of an emergency. The reason I don't use it is because it scares the crap out of me. Who knows, if I were to use it, what part of the contract they would change without my consent? I have absolutely no say, beyond cancelling it, about the issue. Furthermore, they charge 18% while my savings account pays less than 1%. How fair is that? They lend my money as credit, collect 18% to over 30% and I get less than 1% for that.

No, in my opinion, the CC industry is a virulent disease preying upon us all. I am all for this legislation and if they try to give me an annual fee or raise my APR I'll simply cancel. I don't need it and if ever I get to the point where I do, I'll do without because it won't help. It will only make things worse by putting me in a hole I can't climb out of.

Thank you Obama, great job there Congress, appreciate it-those in the Senate.

...Life just keeps spitting out lemons with this administration.

i do not support the reform because i do not think it my american duty to pay for other peoples mistakes whether it be overborrowing for a home loan, credit card debt. remember the chickens come home to roost, what that means if you borrow something you return same. in simple terms if you make a bad debt you are liable to repay don't ask me to pay for your lack of control... thanks to dictator obama everyone will share in dead beat debtors, but then again that is how socialist government works, next will see if you work or to lazy to work you will be paid the same..

The problem with this opinion is this writer assumes the CC banks should gouge the "deadbeats" and that if they can't they shoud make up the loss of profits from those of us who handle credit correctly. I think this is a false assumption. First, it assumes CC banks should make X a year. Why? They should make only as much as the market provides. Raising rates on responsible CC holders is theivery, not the actual cost of credit. Who says they should make X a year? What I hope happens is that if they do carry through with this, most people cancel their cards. Lets see how much X is at the end of that year.

Why are the ones who are responsible with their credit, pay bills on time, etc., always the ones that are required to bail everyone else out. The government is going to start taxing each household about $3000 per year for electricity use. They are also going to raise gasoline tax. Our income taxes are going to go up to start paying for the stimulus bill (which hasn't stimulated a darn thing). They keep handing money out to failing corporations, etc. So much for the "Change" we were promised. Obama failed to mention it was change for the worse.

Greed and self preservation are humans nature.

The credit industry threatening to take it's revenge out on good customers, is like bank robbing crooks warning that if the police chase them they will drive faster thus endangering innocent lives. I say go ahead and try it, the customers are not powerless they have options!

Ah yes, where else but modern America can you borrow 3 grand , pay back 5 grand and be considered a deadbeat. Does anyone have an answer to the question "what would you have done for a living the last 25 years in an economy where consumption is 70% of GDP if people did not spend on things they did not need?"

Chris -

Before I get totally lost in the firestorm of comments you ignited with your original post above, I just want to say...

EXCELLENT and EYE-OPENING post. Ignore your critics...they obviously prefer their eyes tightly shut.

Some folks on the 'Vine who enjoy excellent credit seem to think it's not a big deal if banking parasites suck dry those hapless souls who for whatever reason (and there are a whole host of them) find themselves unable to keep up with timely card payments.

To you folks...I don't think you see the whole picture. Greed knows no bounds, and predators will be predators to the end. Right now they're not able to get at your jugular because you've been on top of your game. Trust me, were they ever to figure out a way to put you in the same powerless situation as those they are victimizing right now, you would be next in line.

Besides that, it's detrimental to any society to allow its "little people" to be victimized and crushed, because the ripples of that pain will inevitably be felt throughout the land.

go somewhere on vacation and try to stay at a hotel without a credit card...hahaha...your ass will be sleeping with the liberal street urchins...hahaha..

you do know that you can make the reservation with a CC (which is NOT charged) and then pay the hotel bill in cash, debit, personal check, or traveler's checks. Same with a rental car.

You do know this, right?!?

Oh, and you gave up on picking on me? What ha-ha-happened?

:crickets chirping:

That is: Until they start charging fees on your debit card. Maybe we'll just go back to using "Cash"!

go somewhere on vacation and try to stay at a hotel without a credit card...hahaha...your ass will be sleeping with the liberal street urchins...hahaha..

try to rent a car when your piece of shyte electric turd car breaks down without a credit card...hahaha...you will be using your Shoedabakers with the rest of the liberal sandal wearing dirt farmers

Perhaps this would happen at first, but do you think these types of places wouldn't be forced to change how they do business? Are you suggesting our only choice is to be victims? If the public demands, the businesses will follow.

Every time I read discussions open to the public I am disgusted by the lack of education and the superfluous amount of pride everyone carries, ready to murder any opposition at any second. If you cannot spell, use correct terminology, form sentences properly or have trouble understanding what I'm saying, at least in my eyes you’re making a fool of yourself by claiming you have a wonderful opinion since you haven’t even mastered your communicative education. Also there are so many people are jumping on the "blame-this-person-wagon" that I actually almost can't take anything constructive from this conversation. I hope that other people will be more aware of how dangerous it is to take what people say seriously. I can't trust anything anyone claims as “fact” without doing extensive research of it on my own, and perhaps that's the only way things have to be.

As for an opinion on the actual article, I have observed through experience that credit card companies are businesses (like Drakkonis reminded me in 1.56) and those that deal with them are consumers (granted they are very complicated ones that are tied up in the present state of our very economy and survival of the government). Credit card companies enter into a contract with you, so they should not be able to change the terms of that contract until it is terminated or agreed upon by you; unless there is a part of the contract that allows them to do so, which in a lot of situations is the exact circumstance. If it so happens that your credit card company slighted you despite the contract, take it to the court. My general advice aside from that however: be knowledgeable. Stop accusing people without having the experience, research or mental capacity to do so; you are responsible for yourself and saying "it's not my fault it's yours" is a part of the adolescent stage of life cancels out all hope of you being responsible. Be knowledgeable by not signing a contract that you don't know all the terms to, and accept responsibility for the mistakes you do make (i.e. buying things you cannot afford or not fully knowing everything you should).

Personally, I would like to be covered for emergencies. But just because I'm an American doesn't mean society should have to help me when I have an emergency, regardless of what America tries to claim. That's why I sign contracts with insurance companies and credit card companies - I'm paying for the opportunity to use their services if something horrible were to come up. If that means I have to pay a fee to be safe, I will pay it. If you are using a credit card to buy things that you cannot afford, you are at fault. Period. Neither Obama nor Bush are to blame for this, though both had a tremendous impact of course, but so does the education system of America that possibly could be blamed for not teaching us sooner about the traps of the governmental system, but then our forefathers also have an equal share in the blame, as well as every single parent who has taught financial responsibility (or irresponsibility in most cases).

After being in a third-world country I have a hard time believing or trusting anyone that really thinks we in general are jobless, homeless, impoverished or suffering due to the economy right now. If you are in debt because you needed to buy a house, maybe you should have bought less other expensive things, or a less expensive house, or watched more carefully how much money you spent on entertainment for yourself, or the kind of food you buy, that way you might be in less debt. I am in debt because I felt like I needed to have a car. I didn't have to have a car, but because I wanted one, and I knew what I was doing, I now have one and am paying off loans and using my credit card to pay for things I cannot cover otherwise. The point of my opinion is that I wish people were more educated, and more responsible for their actions in life, including putting yet another post in discussions like this simply saying that they blame so-and-so and it's not their fault.

The problem here with this bill is that it allows the companies to gouge those people that have managed their finaces in a proper way. If the credit card companies want to take away all the perks from these "deadbeats" that's fine but I draw the line at charging interest from the moment of purchase especially since it takes the credit card companies 40-72 hours to post the charge to your account and, if you are like me, you pay your card off by phone entirely each month as soon as it has posted. Now, I am considered a deadbeat by the democrats and republicans because I have used my credit wisely. I guess ACORN needs more money to defend itself against corruption charges in the last election.

Once again, whether on foreign or domestic policy, we, the American people, get screwed and both parties are to blame.

mrsgtobe:

Yours is a well-thought out post and very eloquently worded, so it was a pleasure to read.

I agree with you on a lot of points, most especially that people should be more educated and more responsible for their actions in life. If they were, probably a lot of unwise credit decisions on their part would never have been made.

However, and sadly, a well-educated and wise buying public was never the plan.

Instead, the advertising industry and the business world (often with the support of the government) have worked very hard for decades shaping and molding the consciousness and attitudes of the general public in this country so as to turn them into the mega-consumers and credit-chargers they have become. This has all worked very well for those profiting from this system (NOT the consumers, of course) up until now, as large numbers of consumers, having been sucked just about as dry as they could possibly be sucked, now find the state of their prosperity in a perilous freefall due to the economic meltdown.

Surprise...the buying, credit-charging frenzy is now ending, and as a result moneymakers everywere are a very unhappy bunch.

They should not be surprised...if you bleed a cash cow to death, that's the end of any further blood for you.

The system is rotten through and through and needs serious reform. Or maybe an entirely new system.

Seems like the article is doing what it was intended to do: Anger people and get them to oppose credit card reform.

I think the point should be made however, that the same exact thing could be said for any number of activities. I could borrow money from a loan shark and he would have his set of fine print that I had better pay attention to...however the very act of this transaction has been deemed a felony in every state in the union except two.

I could go on an on with your logic, but it will all come down to the same thing...the practice of usury requires major oversight in America, a place which has proved itself incapable of integrity and very capable of eating our own.

Like the tale of Dorian Gray and the Fall of the house of Usher, our country has an uncanny parallel. Almost everyone of our Financial institutions are in the same state as our national civil infrastructure. Their Health is a marketing campaign and not reality. And both are in need of the same massive repair and oversight. We have had our focus on the affairs of others for far too long. And in doing so we have allowed the things that actually made this country great to fall apart.

Our Credit Card system has been very flawed for a long time. Obama is finally doing something about it.

Fun Fact: Fair Issacs will not tell anyone the "secret" forumula for how your credit score is calculated. Not even the credit companies really know the calculation.

The government has decided that those people who pay their mortgages on time have to subsidize those who don't. Now, those people who pay their credit cards on time will have to subsidize those who don't.

And let's not forget that those who work have long had to subsidize (through welfare, etc.) those who don't.

This "change" we are getting from the new administration is getting very very scary.

And as for credit cards, it is true that many people use them only to float themselves a loan for a few weeks. That's called using someone else's money for free. So I guess we will all just stop doing that. No big deal, really.

Several comments have been made about not being able travel without a credit card. When big changes occur the industries will adapt to continue their business. I would anticipate other forms of credit being extended for these circumstances. Instead of creating an equal level credit reform the “have and have not’s” will grow further apart. I will probably go back to my American Express card. They have some benefits but not as good as I enjoyed with the CC.

Fine time too! Many people are struggling just to put food on the table! Now they expect us to be able to pay higher interest rate's?

Credit card companies are in the bussiness of making money, those of us that carry balances subsidise those who pay off their balances every month, those customers the CC companies don't make any money off of. Now that we have been bled dry to pay for peoples free loans every month they are coming after the "deadbeats" they never make any money on, the free ride is over and now you will get a taste of the screwing that most of us endure to keep our credit ratings and integrity intact. Oh, and good luck finding work as I am in the "payback " mode right now and probably will be for a couple years and won't be purchasing any unneeded things. This rant is somewhat "tounge in cheek" but I feel a need to stand up for those of us who are paying back, even if we are a day or hour late sometimes.

ya Drakkonis...Im saying that your answer of "going back to cash" as I gleen from your post , has the inherent risk of raising insurance costs for businesses to have cash around all the time and then that cost passed onto consumers ...your idea of what public demand will force these companies to do?...

No, my post was about abusing credit. Putting yourself in a situation where you might not be able to pay it back. I'll use myself as an example. I make about $52,000 a year from my job. I make about another $24,000 from my Army pension. I have $20,000 in cash in the bank. I recently took out a loan for $20,000 to rebuild my garage which collapsed from the weight of snow this winter. Where I work is laying off people and I don't know if the layoffs will reach me or not. Knowing this, why did I sign for the loan? Because I have my life structured in a way that if I get layed off my Army retirement will cover all my bills and I still have $20,000 in the bank to cover emergencies should I get layed off. I can afford the loan, barring truly catastrophic circumstances. If I didn't have the $20,000 emergency fund in the bank I'd never have taken that loan because things would have been to tight. I wouldn't have taken out the loan because it would have taken me too close to the brink.

My point is too many people use credit when they are already on the brink. If you have to live like a church mouse then that's what you do. I'm not saying credit is bad, just that I think a lot of people use it incorrectly.

As for your comment about orgainzations like ACORN, I couldn't agree more. Poor people shouldn't be able to buy big homes they can't afford because of some stupid idealistic notion of equality. It ruins their future and ours. I don't consider myself rich, but I'm not poor either. I bought the worst house on my block and I'm improving it all the time. I do the work myself to save money. It won't be long before it's the best house on the block because I'm working and planning prudently to make it that way. I grew up poor but I did what it took to get what I have and God has blessed me more than I deserve.

Once again our great politicians have shafted us. By initiating this bill, they have put a burden on those who are good credit card users, those who use their credit cards wisely.

This bill will be counter productive as it will cause many card users to stop using their credit cards and either use cash or CHECKS which businesses hate.

Sorry folks but in my opinion BO is an idiot and needs to be impeached.

So true..... if they think I am going to subsidize the less credit worthy card holders,they are DUMB DUMB DUMB!

I'll start using checks and cash instead of charging thousands each month. The banks will lose out on all the merchant fees that they earn from the retailers. Talk about cutting off your nose to spite your face!

My husband and I both work for companies that don't supply us with 'company' credit cards. When we have to travel, we must use our own credit card (American Express) and submit expense reports each month.

This presents a financial hardship on us because we always pay our credit card bill in full because we don't want to incur interest charges, and more often than not, the expense check does not come in until a couple of months later - because it seems they are always one month behind!

I suppose if this does come to pass, where the credit card companies go after "sterling" customers to pay for their "bad" customers, we might have to "eat" the difference. I wonder if it will be tax deductible? Not!

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

Let's say I am out shopping and make a purchase at 10:00AM. I return to my home at 5:00PM and then proceed to make an online payment. According to the bank's proposal, I would incurr interest during those 7 hours. So rather than the current method of a daily percentage rate, I am now incurring interest at an hourly percentage rate. If that is the case, I will cease to use credit cards of any kind. Enough is enough!!

Credit card companies are ALREADY doing this. I got a notice on one of my cards (CapitalOne) that they are raising rates, etc.

I am ditching that card. And fully intend to let them know why.

Credit cards are a convenience for the consumer but also for business. Business pays to accept them - I would not mind a nominal annual fee to use one, but not what the companies charge now.

I will keep one for emergencies and holding reservations, etc. Otherwise, I hope the credit card companies learn a much-needed lesson in supply and demand.

Have you seen how much is charged for your use of a debit card? The retailer also pays an additional fee for your use of the ATM. Credit cards are a convenience for both the retailer and the customer, but come with a price attached.

The credit card companies are simply following the governments lead. They've handed out credit to people who've never earned an ounce of credit in their lives and couldn't possibly pay off the balances. Now they are going to pass the bill onto anyone who they think still has a dime to their name. They try to make it sound like you have been getting a great deal for a long time(you haven't, they've always made money off of you) so that when they raise rates you'll just accept it.

"People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks."

See look at this "free ride" you have enjoyed; You should starting paying these new fees because you owe it to them. Ha.

I'm back - Bravo! Well Said!

I'm back - Bravo! Well Said!

Thanks for your post.

It amazes me that the libs think this is good business.

I guess that't cause they never had to run a business at a profit.....

Now, now, don't go blaming President Obama for the sins of the past!

That is a definite cop-out!

Shame on you!

Auzziegirl- He, Obama is the one pushing this. If you tell banks that they can not charge more to people who are a greater risk then they must get the money from those that are not a risk. Think of it as you paying more for auto insurance because the government tells insurance companies they can not raise rates on bad drivers

I see your point, and I agree with you, but the other two guys above you are just anti-anything Obama or Democratic!

Mind you, I'm a registered Republican, but EVERYTHING can't be all Obama's, or all the Democrats fault!

It's good business to curtail these runaway credit card companies with all those unnecessary fees. This should have been handled by the previous administration but as long as the rich got richer and the poor poorer no body except the middle class and the poor cared. Obama is not destoying this country, Hell, he's trying to help it. This country needs to give all Americans an ever break. The Republican party didn't even acknowledge the poor and middle class until Obama did. We are a part of this country too and damn we deserve to be recognize for more than paying taxes and fightning wars. I've done both and was proud to do it, but this is the first time in a long time that I feel I'm getting the same service as everyone else. Obama is a people president , it does not defile his soul to think of the little people. It's easy to bad mouth a man who is trying,no one spoke up when we had a puppet and his henchman Chenney. We did not get in this mess over night, but I guess most of the were sleeping , huh!!!!!!!!!

Butterfly: you obviously are mathematics impaired. The President has not been in office for six months. These problems with the CC occurred long before he became the POTUS. Where have you been? Start paying attention and manage your debt! You sound like you are anti-Obama on anything he does despite the fact that many of his efforts to stem this recession are directed at uneducated Republicans living in the south and midwest.

commonsensedude, your name is an oxymoron...

Auzziegirl -

There are no absolutes, but generally Republicans are good for business and Democrats are good for the irresponsible.

Mary -

What rock do YOU live under? First of all, the credit card companies are RAISING their fees, not curtailing them!!!

Secondly, the Republican administrations have done more for the worthy poor and middle class than the Democrats. They don't support worthless causes and organizations that only drain money from the haves with NO real help to anyone. Creating a dependent class, like the Democrats have always done, is fair to neither the rich, middle class, nor the poor.

Obama, Pelosi, Frank. Reid, Dodd, etc., think ONLY about themselves and gaining and keeping their power. Same applies to politicians of both parties.

There are no absolutes, but generally Republicans are good for business and Democrats are good for the irresponsible.

absolute conjecture and pure BS...

Drowning Groveler , your name is very discriptive

i see you're not intelligent enough to understand my name.

:laughs: @ somethingnew...

your posts through out newsvine do all the talking...your tag is certainly irrelevent

well, it's irrelevant to rightwing retards who refuse to think outside the box. I could care less what they, and you, think. If even one independent reader clicks on the links I provide or reads my post and THINKS, i'm happy.

I never expect you to do any of that...

I hope everyone asks themselves, did I use my vote last election to change the congress or did I vote for the incumbent, self-serving politician, be it a Republican or Democrat , who has become entrenched in office. How is it that congress had a 12% approval rating yet 96% were reelected? The "my congressman is ok, it's all the others that are the problem" syndrome was, as always, in play. These politicians need to loose there job! They are responsible for the state of this country. The American people have gotten the Government that they deserve. Next election, vote against all incumbents, or look in the mirror to see the real problem.

I would just cut them up and not use them. It would be less likely to impact your credit score.

I had a Sears credit card but it was charging me too much interest rate and I did not need it. I was told by a refinance officer to NOT close the account, just don't use the card, but I did not want it anymore, so I closed it out instead. My score did not suffer that I can see - I still have so much equity in my house, it is still worth double my current mortgage. B of A bought all the companies that owned my other cards and just announce they are raising my interest to 18% in July, though I have always paid on time. I hope to pay off the cards with an inheritance coming shortly and then just close those cards, too. I keep one with my credit union, no perks but no annual fees, and I'll just use that for emergencies and my ATM for day to day purchases. If they start charging fees, you know some smart people will start a no-fee credit card to capture the disgruntled business left over by people dropping credit cards that suddenly have fees now. The CC companies are simply greedy. Let them go under. Others will take their place or push them to make changes again, once the bottom line is hurt again by their own stupidity. $$$'s the only thing to change them - legislation won't do it.

DWF- not using them will not work since you will be charged the annual fee

Surprisesurprise I believe the vendor fee is closer to 3% of purchase at least that's what they gave me for NOT using a CC on a large purchase.

3% is correct. When we went to buy new car the dealer was happy to accept 10K personal check as down payment instead of CC. In fact they said with CC we will have to pay additional 3%.

And they say "0 ballance" people get a free ride? Yeah right...

no kidding...

There isn't much of an incentive for banks to force their way in with debit cards. I say charge a fixed $0.25 / transaction, which is less than that charged by credit card companies. Prices will drop when the middleman's cut is lower. PayPal may just reduce their ridiculously high rates for an electronic transaction.

Van, absolutely, this will have a "chilling effect on retail sales." I do use a credit card for minor purchases, maybe a bday gift here and there, and I always pay off the balance immediately. And, I'm sure I'm like many people, as I might buy a gday gift and then maybe a card to go with it, or maybe a 2nd small gift.

That's going to stop, certainly! Cash only, and really I don't mind. I'll keep one card for emergencies and for making hotel reservations and such, but won't really use it.

I agree. I guess they realize that the people who actually pay their balances (you and me) are the ones with good credit. Seems like the old adage is true. You can't get blood from a turnip. So, let's go get the money from the people who can afford it, right?

Either learn to spell or how to use your spell check....responsible.

G-Man, it is not stupid, Banks have had a certain revenue level for years from CC cards. If the Govt regulates what they can and cant do they will elect to no longer offer credit to high risk people which is where they made alot of fees from. So now they have to maintain the same revenue with less people, it is the only logical thing they can do. It seems to me that the Govt wants to completely kill the entire credit card industry with this.

Yep! Stupid bankers got us into this mess and they did not fire or hang them. Remember the Peter Principal-----the bankers have all risen to where they can be the most incompetent.

Jake, if the government is trying to kill credit cards, you have to wonder what they're thinking. Reduced use of credit cards will not be good for the economy, because it means fewer sales and bookings, followed by more companies going broke and more people laid off. The unemployed can't help Obama rebuild America.

Reduced use of credit cards will not be good for the economy,

Short term maybe, getting people off of cerdit cards is best for everyone in the long term.

I used a low-limit card for internet purchases. That card had a HUGE annual fee. I refuse to pay that and cancelled it. They did NOT want me to cancel that card and went to town to get me to stay as a customer. They even offered to waive the fee. (You can haggle those things.) I said no. I was mad that I had to pay the fee year after year and got a card with a low interest rate and no annual fee. I'll never pay one again. Even if I have to go with no cards. Why should I pay to use my own money???

G-man said:

Somehow I think the banks and cc companies are just blowing smoke...if they start charging annual fees, higher interest and interest on purchases immediately, they will lose...period.

They are ALREADY raising rates and fees. AMHIK.

It makes total sense, actually. Although it is COMPLETE nonsense. They want the money from the people that actually have it. (That makes sense.) But, it makes no sense to be used because the cc card company was foollish enough to give away free money to people who either can't pay now due to job loss or never really intended to pay. Or just don't care. They don't care. That's the problem.

Or maybe they thought the magic money fairy would continue to give them money.

True. But if it were to happen in terms of the changes to credit cards, just start using cash and checks (like in the old days) and we won't be subsidizing uncreditworthy card holders.

I won't pay!

Steve: this is definitely not "socialism". The credit card companies are definitely not socialist either! They could be defined as greedy capitalists but definitely not socialists. Where did you receive your education where you think this is socialism?

Hitobito -

Government over-regulation is a hallmark of socialism. "Spreading the wealth (or misery) is another hallmark of socialism. Remember hearing that phrase "spreading the wealth" during the campaign?? I do. Obama probably wishes he had kept his philosophy better hidden.

Credit card companies are capitalist indeed, but this administration is socialist.

Where did YOU get an education (if any) ?

One thing I didn't see you mention but has become a seriously growing problem: college graduates with maxed out cards. It's not just us older folk with a credit card problem. The younger generation is already deeply in debt - and they're just starting out.

Yeah... why not get rid of the government completely? You will not get rid of greed if you get rid of regulations. Who said that banks must make certain amount of money? In free market they make as much as they can. There can be good year and bad year, but that just free market, it doesn't mean that they should rip everybody off to meet their goal. You can not get rid of regulations when it comes to your food, health etc. You can not get rid of government because it will turn into nightmare. It is not the government who is making banks go after responsible cardholders but BANKS who act like crybabies. They do not HAVE to make as much as they desire, they already screwed up their business for a while, so now is payback time for them. They want to go after me and charge annual fee (I don't care about rates because never carry ballance) oh well, I got cash too. I can use paypal plugin for online purchases and ckecks, so even though it might be slightly worse than CC I will not pay any fees because I refuse. So they can kiss it if they want to be like that, they will have to forget about 3% they get from merchants when I use my CC, so let's see how it works for them.

Try making an online airline resrvation. And if you go to the airport to buy your ticket in person (cash) there is a $15-$25 dollar fee for assistance. It's not "they" screwing the good people, it's the irresponsible consumers who have.

Don't worry about airline reservation, there is way around it too! Paypal plugin for example will generate single use credit card number but money will be taken out of your bank account. I have separate bank acct linked to Paypal to prevent hacking and additional electronic key for my Paypal account. And I bet smart people will create payment processing service for people who refuses to use CC. CC companies do not own anybody.

Yes they do... BUT they DON'T charge BUYER, they charge MERCHANT, just like any CC.

Just pay your freakin' bill on time!!! They give you 30 days to pay your bill, without interest. If you can't pay for it, just don't buy it. Jeesh.

I DEMAND dinner and a movie first.

great idea! i am there with you!

I'm with you, Fed Up. But don't cut up the cards. Round off the corners and send them back with a note of where to shove them, and demand a letter affirming you are cancelling the cards at your request. And as to the FICA score, who gives a sh*t. My home value has decreased so much I can't afford to sell in order to buy another, so why sweat credit scores. Especially when they can be manipulated so easily.

You LITERALLY took the words right out of my mouth!! Finally, a comrade who I can relate to on these posts!! Hello old friend!!

"... my snack food & Coca-Cola is going to be hit with extra taxes in order to pay for healthcare..."

LOL!!! I don't know if you meant to be funny or not, but if you keep ingesting your snack food and Coca-Cola you're going to be one of the people that raise my health insurance premiums with your unhealthy eating habits, just like the slacker you speak of. Kudos to your witty humor! You're a funny (wo)man!

How exactly is it that the credit card company is screwing the little guy by imposing a late fee when he doesn't pay on time or an over-the-limit fee when he charges more than was previously agreed to? Or charging higher rates for unsecured, high risk credit?? I am the little guy and as long as I pay as agreed and only borrow the amount that was agreed, I don't have to worry about these fees. I agree that there are a few practices that need to be addressed such as raising interest rates without cause and applying those rates to previous balances, but the new regulations are going too far and will ultimately hurt all of us. You seem to forget that banking and credit are businesses. They are businesses that employ people and provide credit so that other businesses can sell their goods and employ even more people. If you cut off the revenue sources of banks and other lending institutions, this economy will get worse. Congress needs to stop with the knee jerk reactions and just address truly legitimate issues and move on; stop trying to rebuild an engine that just needs a new spark plug.

People blama Obama because what he is trying to do is re-balance the scales in favor of the "underprivileged" (but really the lazy, irresponsible and incompetent) - and in the process he has managed to stick his clever little hand into almost every aspect of our lives! He's doing it in the banking sector, in the auto sector, now in the credit cards sector and soon he'll do it in the health care sector. Every day there's another headline of the grand "changes" that he's implementing, and they are all about having the people who have the means to subsidize those who do not - this is called REDISTRIBUTION OF WEALTH people, wake up!!! This is the cornerstone of socialism- and Obama is cleverly, skillfully and very elequemtly maskarading it as the great changes that we supposedly all wanted!!! No we do not want another Europe, thank you, we'll see you on your way out in 3.5 years!

Don't forget that credit card companies charge transaction fees, though I don't know what they are. $1? per VISA transaction ? The people that are able to pay their monthly balance probably have more money to spend more often and provide a greater volume of transaction fees.

J -

If you borrow money (from the credit card company), YOU pay the interest and fees.

If I don't borrow money, I should NOT pay interest and fees.

Got it?

No, in most cases cancelling a credit card will not negatively affect your credit rating. It can if you close one that is your longest credit history or if you close one that you appear to be having a problem paying off. However, in most cases it will better your debt ratio (if you paid it off without taking other debt to do it and they know if you did) and that can actually help your rating. I make money from my credit cards since they have reward programs and the one that carries a balance is 0%. Credit is a tool. If you use it wisely it is to your benefit. if you do not use it wisely it is YOUR problem. I am sick of paying for the idiots out there.....

There is no easy answer to this, especially when the software program that sets your credit scores is a national secret. My understanding is if you cancel a card with a zero or small balance and it has a $10,000 credit line, for example, that is $10,000 less on your credit line which would lower your debt to credit ratio. Would that cause another creditor to raise your rates? My guess would be yes.

What would happen if you canceled all your credit cards? I suspect you could be charged higher interest rates on any new fixed loans. At least any current fixed loans would not change.

You'd also pay higher prices for insurance, suffer when potential employers do reference checks and be charged more security to rent a home. You need to play their game...keep your credit score up or pay the price in areas unrelated to loans.

The banks frankly own the place.(Congress). Sen Dick Durbin

Alice,

You brought up a few more of my 'hot buttons'. Yes, we have to play the game but I would hope that while we seem to have the ear of the administration, that we can get some game rules changed.

Why, in most cases, does someone need to base anything on my credit score if I don't owe them money? Things like auto insurance which is paid monthly, utility bills, etc. If you don't pay it you lose it. They say they can better determine your risk by your score. Insurance companies said the same thing about zip codes before this practice was banned. In this case insurance cost is based on how many cards I have or don't have and what the balances are? So this must automatically make me a higher risk driver?

So in the example above, I cancel a credit card by my own choice (or the company cancels a card I am not using) , my FICO score drops, and my car insurance goes up and maybe other credit cards.

Its time they are forced to better explain exactly how this self serving software works and why we can be charged more money by just closing a card which has nothing to do with our credit history or our bill paying habits. Are they afraid someone can cheat if they know how to "beat" it? If you don't pay your bills, it ends up in your credit report, period. How to you cheat that?

Well, enough soap box for now.

Thanks

AMEN! Think anyone who can fix this is listening? I hope so.

Flash1 I find it a travesty to always pray on the compulsive or as you say the irresponsible who probably pay more for everything in life.

um, in Canada, we call this socialism. Doesn't work here either :( Good luck to y'all. A true tragedy.

Exactly.

You don't get it... CC can raises rates on people who has ballances (which I don't). I know a person with 18K in CC ballance, raise their rate and they might just slide in bankrupcy instead of paying their bills on time(which they do). This will mean that they will lose house which will be sold as foreclosure, they will NOT pay off CC ballance at all and so on. Now isn't it better to make bank keep their current rate so these people can pay their bill instead of losing everything? Then you, as a good cardholder will be paying as well. WHY banks have to make set amount of money and can not have losses or bad year as everybody else can? They screwed up, so they need to get used to fact that their business will not be as good as used to be for next few years. Their greed has price and it should cost THEM, not their customers.

As for me, CC will not own me anyway. I do not care about credit score, I do not have to have credit cards and if they try to make me pay for BANK'S losses then I will cancell ALL of them if I have to and will move ALL of my money to credit union. It will not last for too long even if they try this. I think they are using scare tactics, nothing else. I dubt they want to lose 3% from my purchases when I use their cards.

If you can only make a payment of $15 or $20 then you shouldn't charge "several hundred dollars on your card". It's called living within your budget. Credit should just not be given to them. I'm 52 and grew up without credit cards, my parents didn't have credit cards, but just lived by what we could afford. Why should I be penalized for others' irresponsibility.