Some Credit Card Companies Rush to Act Before New Law

[charredswife]

http://www.cnn.com/2009/POLITICS/10/09/credit.card.outrage/

[anuta]

I never stop being amazed at the way the CC industry conducts itself. Instead of having people who will pay them a monthy payment with ample interest for the next 30 years, they push for quick profits to the great distress of consumers. Doesn't seem like a great business model to me. Which is better--thirty years of payments with the bulk being paid to you being interest or people going bankrupt? Just don't get it.

[AMISLANDER]

Just got the "we're raising your interest rate" letter from HSBC. I've never missed a payment & never been late...and always pay more than minimum.

[wantout]

Bunch of lying venomous vipers.

I paid on time and as agreed, never once missed or was late, never. Paid off balances and charged more, always paying back..until this year...

Go ahead raise my rate and change from a fixed low rate to a high variable with the minimum being anywhere from 20% to 30%, MINIMUM....

Guess what, cant make those payments, I tried but I cant. I called and asked you to please set my rates back to where the were, your people laughed at me over the phone, told me I owe it, pay it...... so I now I file and you get nothing.

Go ahead trash my "credit rating", I no longer care.

[2manybills]

BofA was the one that tipped me over the edge. They raised my rate to 29.99. Then Citi went from 10 to 14%. I'm sure Chase would have followed. BTW, BofA was the first to send a letter offering to settle for 50% of the balance.

[leena]

My attorney said today after our 341 "never trust anyone who loans you money". Exactly. These people will go to any depths. truly.

[banca rotta]

October 9, 2009


"I've had this card since the early '90s, and I've never missed a payment. I have excellent credit," she said.

http://www.cnn.com/2009/POLITICS/10/....card.outrage/

And let this be a lesson to all the newbies here who post your credit scores as if it really matters.

As we can see it really doesn't matter.

[banca rotta]

Bunch of lying venomous vipers.

I paid on time and as agreed, never once missed or was late, never. Paid off balances and charged more, always paying back..until this year...

Go ahead raise my rate and change from a fixed low rate to a high variable with the minimum being anywhere from 20% to 30%, MINIMUM....

Guess what, cant make those payments, I tried but I cant. I called and asked you to please set my rates back to where the were, your people laughed at me over the phone, told me I owe it, pay it...... so I now I file and you get nothing.

Go ahead trash my "credit rating", I no longer care.

Exactly! Smart people no longer do care after a while. It doesn't seem to matter anymore.

We become brainwashed to keep a high score for what? Lower payments, NO, a GOOD JOB? NO!!!!! They don't exist!

Walmart has it right, "Save money, live better"

[Amy26]

Chase was one of the reasons I declared. I had a fixed business card at 8.99% with a 12,000 balance. Was my favorite card. Payment on it was like 190 or so... was never late good customer...then when I lost my job just by making a phone call to them BEFORE I was late and telling them that I was laid off and had some difficulty to see if they could work with me....they raised the fricken rate to 30% and the payment sky rocketed.... gee... I tell you I just got laid off and asking you to help me....and what do you do? You make me required to pay more???

To me they were asking me to go bankrupt. I do not feel guilty or ashamed of myself for having to do this. Sure, I relied too heavily on cards and spent more than I should have....but I did not ask to get laid off nor did I forsee the economy crashing down to where I wouldn't find another job and have to move back to my home country with nothing but my clothing.

[leena]

Exactly! Smart people no longer do care after a while. It doesn't seem to matter anymore.

We become brainwashed to keep a high score for what? Lower payments, NO, a GOOD JOB? NO!!!!! They don't exist!

Walmart has it right, "Save money, live better"

"Good" credit scores mostly serve the purpose of getting you into bad debt... You need a good credit score to buy a house. If you have a house already, or buying one is not a goal for you then pretty much yes the "benefits" of a good credit score are a big, fat trap to get you into more debt.

Oh, and once you have that house ferheavenssakes do NOT get an equity loan against it with your "good" credit score, also do not refinance to get cash out of it, only refi for a lower interest rate and keep your equity in the house, not your pocket!

In ten years I am going to have perfect credit barring a disaster (and with no debt except student loans I can weather a lot of disasters) because my SL payments will be very timely and I will have no other debt. But really, the only good it will do me is if me and my soon to be husband decide to sell our place and move elsewhere. I can get a mortgage at a good rate.

But credit cards? Nope, never, ever again.

[lovebirds]

Credit scores do not matter if you are debt free. A mortgage company will underwrite the loan when they see a good job history and no debt.

After my BK, I'll have student loans left to pay. I'm fast-tracking that and no more debt for me.

[leena]

Credit scores do not matter if you are debt free. A mortgage company will underwrite the loan when they see a good job history and no debt.

After my BK, I'll have student loans left to pay. I'm fast-tracking that and no more debt for me.

I recall from my Mortgage dealing days that they actually regarded federal student loans differently than consumer debt in the mortgage equation anyway. A person could have many tens of thousands in student loans and get a decent mortgage, party because they federal loans have forbearance and such available for lifes little disasters like unemployment, etc.

But yes, if you have no debt and a solid work history, most mortgage lenders will also offer you something resonable. However, there are those who are very adverse to the whole "no credit score" situation. Timely mortgage/rent payments in your background help for sure if you have no other credit, but again some of them get into a complex formula that involves "three trade lines" (such a a loan, a credit card, a car payment or mortgage) to "prove" who is the best risk for a mortgage.

OF course, post crash it is a whole other world, and nothing I know may apply these days.

[sansdollar]

I am a follower of frugaldad.com and wealthpilgrim.com

Frugal dad is particularly common sense. He just lost his mom so he is not on his game, but, he is a joy to read and relate to.

I just filed last night...I have been sick for a month and a half. Have taken THREE differenct runs of antibiotics and two steriods...I just can't fight this any longer. When they got greed - ier, that was the last straw.

So, in my deep dispair over not paying my debts, I am starting to realize that I can catch up my health insurance premiums which will save my life and sustain me for a while longer. AND, I will have life insurance premium money so that my son has something when I go...having said that. I was worried that I would not be able to get married after 14 years...but, alas, that doesn't matter either. It is as about as relavent as a good credit score.

They say, start rebuilding as soon as possible...how's that? I will have to continue to read this forum. I only need to 'rebuild' to be able to work my on-line business...I can use my debit card as a credit card so that really helps, but, I can't leverage a large order that would allow me to make a decent profit and grow my business...as the stomach turns...