Feds Put the Clamps on Credit Card Companies

Bluegrass · 05-02-2008, 12:05 PM

Quote:

NEW YORK (CNNMoney.com) -- Federal regulators are pushing ahead to stop abuses by credit card issuers at a time when the $2 trillion industry has come under increasing scrutiny.
On Thursday, the Office of Thrift Supervision, responsible for overseeing the nation's savings and loans, endorsed a seven-point plan to tackle "unfair" and "deceptive" practices by companies that issue credit cards.
The plan would allow consumers more time to pay their monthly bill. It would prevent companies from applying interest-rate increases retroactively to pre-existing balances. And it would ban "double cycle billing," a practice that computes finance charges based on previous billing cycles....

http://money.cnn.com/2008/05/02/news...ion=2008050208

It's about time. How these companies engaged in deceptive marketing for so long, who knows.

Libre · 05-02-2008, 12:38 PM

I disagree, if those items are outlined in the contract you sign with your CC company then let the buyer beware.

spitz9000 · 05-02-2008, 01:06 PM

Quote:

Originally Posted by Libre

I disagree, if those items are outlined in the contract you sign with your CC company then let the buyer beware.

i agree and not to say people are not taken advantage of, however to restrict what these private corporations cannot do is a very slippery solpe and may open up other avenues of restriction which would lead to alot of legitimate practices being considered "unfair". "caveat emptor" should remain the default practice and we should build clarification from that point.

william the wierd · 05-02-2008, 03:14 PM

given CC company privileges in bankruptcy proceedings the slippery slope was entered more than a decade ago.

2lane · 05-02-2008, 03:40 PM

Quote:

Originally Posted by Bluegrass

Regulators zero in on credit card reform - May. 2, 2008

It's about time. How these companies engaged in deceptive marketing for so long, who knows.

Good thread Blue. Those companies sign people up with one set of rules then mail out rule changes in 60 + page small print booklets with "one or two" critical changes usually within 6 months. Regulating credit card companies up the ass is needed along with usury laws. Hell I don't want to regulate credit card companies I want to punish them. For the record, I have a debit card and AmEx, that's it. I just don't like them.

Bluegrass · 05-02-2008, 03:47 PM

Quote:

Originally Posted by Libre

I disagree, if those items are outlined in the contract you sign with your CC company then let the buyer beware.

They were outlined, but the customer shouldn't need to sift through the smoke and mirrors to understand the policy.

It was intentionally misleading and a deceptive business practice. If a corporation intentially misleads the customer, then it is illegal.

william the wierd · 05-02-2008, 03:53 PM

Other than forbidding their issuance to those under 21 I tend to look at credit cards as evolution in action.

TheHegemon · 05-02-2008, 03:58 PM

There is a very fine line between the responsibility of the buyer to be informed and outrageous deception and unfair practices by any business. Credit Card companies actively and aggresivley pursue the goal of misleading and fleecing their customers in what amounts to fraud in many cases.

Not understanding the concept of interest and putting more on credit that you can afford and paying off interest is the consumers fault.

Getting caught in a pinch because you don't have a degree in contract law and don't catch an intentionally thought out and malicious loophole is deceptive business practice.

Common Sense Craig · 05-02-2008, 04:01 PM

This is just my opinion on one credit card company policy:

You have credit cards, you use those credit cards, you have balances that are more than half of your credit limit, as your card balances increase your credit score goes down.
As your credit score goes down, your APR goes up, thereby making it almost impossible to pay off your credit cards because the finance charges rise and rise and rise.
You call your credit card companies and they say that those charges are based on the national rates, (which is bullshit). Action Line (in the newspaper) and other well-meaning opiners say that you just have to call your credit card company and ask them to lower your APR and they more-than-likely wil happily do so. Hmmmmmm, another lie.
You call a credit card company and they say that they will lower your APR if you pay at least the minimum every month, are never late, and as an "extra" bonus to make this lowered APR happen, try not to use your credit cards for a few months.
Okay, so the credit card isn't used, more than the minimum is paid and there has never been a late payment EVER. What happens? You call them back in 3-4 months and they say the same thing. Funny thing, though, in those 4 months, your APR has actually increased, not decreased. You call once again and talk to some Indian person who can't speak clear English and they tell you that that is the going rate and there is nothing they can do about it, it is the government that controls the rates they charge. Bullshit!
It is called: give high, high APRs to those credit card holders that have higher balances and keep increasing their APR once or twice a year to make sure that the credit card is never paid off in the person's lifetime.

Just a rant. I know, I know. Don't use credit cards, blah, blah, blah, etc, etc, etc. Buyer beware. Just eat bread and water, live under a bridge, wash up in a gas station restroom or find a local water hole. I got it.....

Common Sense Craig · 05-02-2008, 04:04 PM

Quote:

Originally Posted by TheHegemon

Not understanding the concept of interest and putting more on credit that you can afford and paying off interest is the consumers fault.
.

I agree 100%.

But if you do understand that you can't afford to charge and you do anyway because you have to buy food for your family and pay bills and you do understand that it is your fault.............um, yeah, that's me!