Wow just opened BofA statement and my interest went from 1.99% to 28.99%

[2Bshinyandnew]

People filing BK and in a bad financial way are in denial; I know, I have been there myself and so have most others on here. Reread the title to this thread and then reread the several postings stating how bad the banks are to those with credit. Being in denial and complaining are just excuses for the reality of the situation. The reality is banks just don't care about your personal situation and go by the written word in contracts so there should be no surprises as to what they do when you miss your first payment. This is just plain, real world reality - nothing perfect about it. We all allowed it to occur and then when the illness, job loss or lessened hours hit and we can't make the payment or pay the bill at all, we wonder why the interest rates rise and the phone calls start. People hate to say it's their fault; but every bill we have is our fault and if they are not paid, we are at the mercy of the creditor and what is in that agreement we signed. If large balances are carried and the job loss or illness hits, it should be no surprise to us that we are going to be stuck and if we did not have that high debt, we would not have to consider the possibility of filing BK. No one likes to face that fact but reality is a good teacher.

Maybe the problem, at least with this particular thread, is that many who read the title of this thread don't read it as someone complaining or blaming. I thought this was supposed to be a support forum and your posts often come off to me as preachy and condescending. Why did you read the title of this post as someone complaining and blaming, when I read it as someone explaining and looking for support? I also felt like you were inferring that the original poster was being irresponsible. Just because you say you have "been there, done that" doesn't mean your view or opinion is the only view or opinion, and folks may respond more favorably to your posting if you didn't come off as if you had a chip on your shoulder and are holier than thou.

As to the rest of your interpretation of what the banks are doing, just because it is in a contract doesn't make it right or legal. if you have access to some legal data bases like Lexis Nexis or Westlaw, you could look up some recent appellate caselaw that addresses these issues. A quick glance shows 4 cases in my district alone last month where Capital One had cases they had brought dismissed because they are charging CRIMINAL usury interest rates. Capital One knows this, they have a team of lawyers that carefully calculate the odds of how many times they can get away with breaking the law vs. getting caught, and clearly the odds favor them in continuing to break the law. It is a numbers game to them, and they will keep doing it as long as we let them, true, but to blindly accept that their written contracts and business practices are acceptable is not going to help the situation. They use tactics to get people to sign which are unethical and carefully thought out by experts who know how to play on peoples emotions and triggers. The average consumer doesn't stand a chance against this, and the banks have to take on their share of the responsibility for their predatory lending practices. It is NOT ALL THE CONSUMERS FAULT. Who is in denial here?

Of course hindsight is 20/20, but telling people they are complaining and blaming when they get here doesn't help. We can all clearly see in hindsight how we got here, but I can't say with any conviction that I saw it coming or would do it differently with the same knowledge and information I had back when I got these cards.

[Flamingo]

2beshineyandnew wrote: Maybe the problem, at least with this particular thread, is that many who read the title of this thread don't read it as someone complaining or blaming. I thought this was supposed to be a support forum and your posts often come off to me as preachy and condescending. Why did you read the title of this post as someone complaining and blaming, when I read it as someone explaining and looking for support? I also felt like you were inferring that the original poster was being irresponsible. Just because you say you have "been there, done that" doesn't mean your view or opinion is the only view or opinion, and folks may respond more favorably to your posting if you didn't come off as if you had a chip on your shoulder and are holier than thou.

You have been on this forum how long? If you were on here longer, you may think differently but I admire your input on this topic. During the period of time I have been on here, countless folks come on here so surprised that the banks raised their rates, cancelled their card or took some other action wondering why on earth that occurred, how could that happen and what did I do to make that occur? Everyone responds to a posting differently and not all of us feel the same about every issue on here. My posts on here are based on experience and what I, and many others, on here have been through and have seen and try to pass on to others. They don't have to listen. However, in the long run, they will find out what many of us try to say or do to help on here is correct. "Support" means more than holding one's hand - it is meant to help in more ways than one. I have no chip on my shoulder and my purpose as to this thread was to get across that one is responsible for their own actions when it comes to credit whether they like it or not. You get what you sign for; if you don't want to ask questions or read the info at that time, that is no one's fault but your own and if that posting will get one person to read the fine print, to me that is "support." I have never called anyone in this forum irresponsible - that is your own personal deduction and you are entitled to your opinion.

As to the rest of your interpretation of what the banks are doing, just because it is in a contract doesn't make it right or legal. if you have access to some legal data bases like Lexis Nexis or Westlaw, you could look up some recent appellate caselaw that addresses these issues. A quick glance shows 4 cases in my district alone last month where Capital One had cases they had brought dismissed because they are charging CRIMINAL usury interest rates. Capital One knows this, they have a team of lawyers that carefully calculate the odds of how many times they can get away with breaking the law vs. getting caught, and clearly the odds favor them in continuing to break the law. It is a numbers game to them, and they will keep doing it as long as we let them, true, but to blindly accept that their written contracts and business practices are acceptable is not going to help the situation. They use tactics to get people to sign which are unethical and carefully thought out by experts who know how to play on peoples emotions and triggers. The average consumer doesn't stand a chance against this, and the banks have to take on their share of the responsibility for their predatory lending practices. It is NOT ALL THE CONSUMERS FAULT. Who is in denial here?

While it may not be correct as to what banks are doing, and, as you admit, as long as we allow them to get away with those practices, rates, etc., they will. When any loan or credit agreement is signed, it is a legally binding contract as to those terms and conditions. People prior to filing may have numerous credit agreements for the credit cards they obtained, each agreement listing numerous clauses and terms. How many people are aware of those terms and conditions even with copies in their possession? Many times on this forum over the years people have come on to post about what can they do to get out of their car lease, will there be a penalty if I pay something off in advance, etc., etc. They are always informed to look at the paperwork they obtained at the time of signing as to what they would need to do or what their obligations are. If someone gets a big increase in their credit card rate, why that was done was stated right in their paperwork. It should not be a surprise and hopefully people will start reviewing what they are signing so they are aware of what they are allowing the banks to do as to their account. That is not calling someone irresponsible - we all make mistakes and learn from them and we all think twice after filing BK as to where the money is going and handle things differently.

Of course hindsight is 20/20, but telling people they are complaining and blaming when they get here doesn't help. We can all clearly see in hindsight how we got here, but I can't say with any conviction that I saw it coming or would do it differently with the same knowledge and information I had back when I got these cards.

People during certain points of financial/emotional situatoins just do not want to be responsible for their actions and try to put the blame on everything or everybody but themselves; debt causes bankruptcy. A plastic credit card by itself does not. The interest rate spiked from 0% to 32% for a reason. The debt just gets higher and higher until it spirals out of control. Is that fair? No. Is it legal? Yes. And it's all stated in the terms of the credit agreement. Hopefully this economic downfall will create some dramatic changes as to credit practices but you can bet obtaining credit will not be as easy as it was in the past but hopefully terms and conditions will be much more understandable and explanable to folks obtaining credit.

[cairncrazy]

Banks are doing it to themselves. People are already struggling, and jacking up interest rates and doubling payments are just hurrying the inevitable for a lot of people.

[ready2puke]

First off as I am the original poster...I am certainly not an idiot and I knew this was going to happen...Its just seeing it in print that is so startlling. I didnt get an 800 fico for being irresponsible. I actually enjoy paying my bills as silly as that may seem. It gave me a sense of taking care of business. But shit happens and my bus after 26 years fell off like it never exsisted and that wasnt and isnt my fault. Not paying my bills is tearing me up and I feel like a criminal and even driving down the street passing BofA or Citi...I want to wear a mask...Never in my wildest dreams did I ever think at my age I would have nothing and lose everything. Its embarrassing and humiliating. I wonder how did I get here, this wasnt supposed to happen...I know most of us feel the same way and thats why this forum has been my saving grace. Flamingo you do come off really harsh and maybe you need to look at that yourself. I dont take offense because thats who you are but when I read some of your posts ...I wince...
Anyway I just wanted to pipe in here since I started this thread and voice my opionion on me...Not feeling really good right now and have tears in my eyes...
Have a good night all.

[BigJohn]

ready2puke, I think we are in the same sinking bathtub being used as a boat.

I look at the unfairnesses that large businesses can take huge loses, party it up like nothing is happening because the Federal government will bail them out while the small businesses wait for their turn to go down the drain.

Maybe for Christmas somebody will come out with a program that will alert the consumer when their credit cards are approaching the 'red zones' so they can do appropiate action so as to keep the near zero interest rates.

[GPark]

Legalized scam. I don't know how much of my tax dollars went to bail out these A**HOLES but 1 cent was 1 cent too many. The gov't should have taken our taxes and paid down our credit cards instead of giving these clowns a blank check.

[Flamingo]

Flamingo you do come off really harsh and maybe you need to look at that yourself. I dont take offense because thats who you are but when I read some of your posts ...I wince...
Anyway I just wanted to pipe in here since I started this thread and voice my opionion on me...Not feeling really good right now and have tears in my eyes...
Have a good night all.

I am not known on here to sugarcoat what is reality and there are a few other posters that are the same way. Reality bites hard sometimes but many of us still stay in denial even if the facts are in hard print in front of us on the table (you mention in your posting that "seeing it in print is startling"). The credit/business world is emotionless and doesn't care how we feel or what our financial situation is when a rate skyrockets. After all, they protect themselves from the outset. Many of us on this forum never expected to file BK, as you, and were shocked back into the real world when that first statement came in with 30.99% interest. I remember opening a statement and crying when I saw that even though we managed to keep our payments current - the amount of debt on our credit reports, plus robbing Peter to pay Paul and making minimum payments eventually hit our credit reports and the banks started to up the interest. At that time I blamed my husband's job loss for our predicament but, in reality, it was us putting ourselves in the position to get an interest rate like that. But my husband and I signed the contract for that credit saying they could do that if certain circumstances occurred. That reality bug bit really hard.

Don't take things personally on this forum - most of us have been in the same place you are and support comes in many forms no matter who we are. Yes your failing business is not your fault but when you don't pay a bill as the result of that failure, or lost job, hours being cut, etc., the creditor falls back on the contract signed at obtaining the credit/loan and takes action. As several people on this forum state - "It's just business." Is it fair? Of course not...but we signed the paperwork and put ourselves in that position.

[fltoo]

ready2puke, I think we are in the same sinking bathtub being used as a boat.

I look at the unfairnesses that large businesses can take huge loses, party it up like nothing is happening because the Federal government will bail them out while the small businesses wait for their turn to go down the drain.

Maybe for Christmas somebody will come out with a program that will alert the consumer when their credit cards are approaching the 'red zones' so they can do appropiate action so as to keep the near zero interest rates.

Sounds good. Then maybe someone can originate some technology that alerts us when we eat too much so we don't become obese. Or, maybe a program that alerts us when we purchase an item we can't afford. Then, we wouldn't even need tons of credit cards.

We can call these programs the "red zone" of irresponsibility.

BTW, readytopuke, you can have a high credit score from taking out balance transfers to pay other debt. Doesn't mean you aren't in financial hell, just means you are somehow paying the minimum payments.

Flamingo is not harsh, just a realist as I am. We can't even fathom blaming our situations on anything but our own personal irresponsibility.

[ready2puke]

30 years of terrfic credit must count for something (at least it does for me). Its the last few years that I got myself in this mess. Honestly I remember being in debt for 4k about 4 years ago and hoped I'd be debt free by Jan..lol...
Alot can happen in 4 years and its been a blurr. Sad thing is there is nothing to show for it, no vacations, no luxury items (Oh I did buy a 32 in. flat screen on sale 2 years ago). I guess it was work and the stock market.. And yes the stock market got me bad and that was my choice..Work wasnt..
Were all alittle senstive at least I can be when things get crazy and life takes a U turn. Its scarey as hell to go thru this and I cant say enough good things about the folks on this forum...even when it bites me on the ass....lol