The Credit Card companies plan to go after the responsible payers now
By suspenseful
@suspenseful (40192)
Canada
May 19, 2009 11:15am CST
I use found this on the internet. http://www.nytimes.com/2009/05/19/business/19credit.html?_r=2&emc=eta1
What it says that because things have tightened up,some of the credit card companies are going after the responsible credit card holders who pay off their bills in time by charging interest from the day they borrow it. Now I have had trouble with one credit card company who charged me a fee because I signed up for credit protection (thanks to a girl who could not speak good English) and now I hear that because I do not want to carry too much cash around, do not want to use my debit card all the time, that the credit card or rather the bank is thinking of charging interest just as they do when someone takes a cash advance?
This is mainly for Americans, but it may become a rule in Canada. The reason i use a Credit card is not just for the points, and the cash backs, but because I do not want to write a check all the time, not all stores accept checks, I do not want to carry too much cash, and it gives me a grace period.
So they want us responsible payers to subsidize the deadbeats. Anyone else like me think it is unfair?
2 people like this
16 responses
@miamilady (4910)
• United States
19 May 09
I think the credit card companies are shooting themselves in the foot.
Instead of working with people who are having touble paying their bills and trying to at least recover SOME of their money by being reasonable, they are going to start charging their customers more.
It doesn't make sense to me. The way I see it, if you want customers you need to make your product MORE attractive, not LESS attractive. I got myself into credit card trouble and I hope I never get into it again. Their lack of "working with me" and then raising interest rates and going back to adding annual fees just makes me want to use credit less and less.
The credit card companies are just as responsible for these problems as the consumers are.
3 people like this
@suspenseful (40192)
• Canada
19 May 09
They should be rewarding those customers who pay it all off instead of driving them away. I do not want to use annual fees unless it was to get points quicker with a gold or platinum card, or to use a specific aeroplan card that is designed for rich people, but I am not in the wealthy category. I guess if I want to buy something that costs more then $100 I will have to go back to the 30/60/990 payment plan I used when I first started establishing credit. I sure do not want to carry a bunch of $100 bills in my pocket.
@suspenseful (40192)
• Canada
20 May 09
I mean a 30/60/90 day plan is what we had years ago when ordinary people could not get credit cards. And the only credit card was American Express. Then you went into a store to buy a big item and if you could not get a bank loan which most of us could not, the store would have forms saying that if we paid either on the 30 or 60 or 90 day plan there would be no interest charge. So we had to either pay it within a month, two month, or three months. It was also a way to start to establish credit, something that has now been taken over by the secured credit cards.
Now the stores have 1 yr, 2 yr, and 3 yr contacts and they charge a user fee, but if you pay it off in 3 month's time you do not need to pay the user fee.
@reinydawn (11643)
• United States
26 May 09
I have heard some things about this, but not really looked into it yet. If they start doing this with any of my cards, I'll just go back to using my debit card and writing checks all the time. I don't carry cash because it's too easy to spend!
2 people like this
@suspenseful (40192)
• Canada
29 Dec 09
Th trouble with using debit cards is that the money is taken immediately out of your checking account and if there is a dispute, you often have no proof other then the receipt you get, whereas with a credit card, you get a receipt but you also get a statement each month plus the one online of you get an online statement. I cannot understand paying utility bills with credit cards anyway although there is the benefit of getting points. My bank and our credit card allows us to pay our bills online,so I do not think we have anything to worry about.
@peavey (16936)
• United States
19 May 09
I hate it when they change the rules in the middle of the game, but I can understand why they're doing it. They're under a lot of pressure right now to balance their books so they're looking for ways to make a little more money. Actually, it make sense, because when we charge something on a credit card, let it stay for three or four weeks, then pay it off before being charged interest on it, they're losing money. It costs them to issue cards, keep track of them, send out statements and so on. If no one paid interest, they wouldn't stay in business very long - what would be the point?
Still... I understand your point!
1 person likes this
@peavey (16936)
• United States
20 May 09
I get my statements online, too, but not everyone does. The point was that they have overhead, just like any business. As I said, though, I understand your point! I certainly don't want to have to pay interest from the day I use the credit card. I suspect they'll lose a lot of business if they do that.
1 person likes this
@suspenseful (40192)
• Canada
20 May 09
Well you could, in some cases, get the statement online. I know I can get my bank statements on line, and I have requested that they do not send me paper statements, and we can get statements from E=Post. That will save money. But usually when I charge something, it is for convenience and I will pay it off in a couple of days anyway,. I just want to keep track of my statements. Also I want to take advantage of the points. So I will charge something and then go to the cashier and pay it off right then.
@suspenseful (40192)
• Canada
24 May 09
I also happen to be the type of person who does not want to give anyone else an excuse. I was not excused when I did something wrong. But I think that they will lose money and customers. Shooting themselves in the foot by doing this.
@suspenseful (40192)
• Canada
20 May 09
I just hope it does not happen in Canada. Our economy is quite secure, especially in Manitoba and Saskatchewan, but credit cards are country wide and if it is bad in British Columbia (many of our friends who moved there are coming back here) they might decide to charge us interest from the day we purchase stuff as well.
@suspenseful (40192)
• Canada
22 May 09
At least I am thankful it has not happened here. I just hope this is a baseless rumor.
@nangel78 (1454)
• United States
20 May 09
I do not like that responsible people are having to bail out ones who messed up. I pay my bills on time and if I have trouble one month, I make arrangements and still take care of it. I do not want to be responsible for those who do not make the effort to handle their end on things. It is not fair to the rest of us who work hard.
1 person likes this
@suspenseful (40192)
• Canada
29 Dec 09
That is true. I can understand some who have medical emergencies and being unable to pay their bills, but I suppose the responsible ones in that lot, do make an effort and can arrange to have money transferred at a short notice. It is the ones who think the world and us owes them a living that are getting a free ride if the banks decide to up the ante.
@Bethany1202 (3431)
• United States
24 Jul 09
Yes, I think it's totally unfair. Everyone can use a break, especially in these tough economic times, but, for some of us, it seems like we are being pounced on. I have just canceled two credit cards (both from Chase) because they keep raising my interest rate AND lowering my credit limit even though I pay each month MORE than the minimum required due. Not fair at all!
I still keep my Discover card and my Citi Forward Visa. They have remained good to me thus far, hopefully it will stay that way. Also, I use my debit card more often now as well.
1 person likes this
@suspenseful (40192)
• Canada
30 Dec 09
That is not fair. I think the reason many use credit cards is because they cannot get a bank loan or have to go to a money shop. And it also depends on your income and how much money you have in your checking account. Now if it depended on how much I had in my savings, that would be all right, but it does not. We have a joint credit card account that is in the bank that I deal with and where my husband used to pay his car payments and had his retirement plan. He switched and the credit card is in both our names. I have been advised here to take my name off, but since my husband has als and will not survive that long a year or two at the most, if I did it, and even though the bills will be paid in full, when I apply again, I would not get a high credit limit and my purchasing power will be limited as well.
I sort of think that the banks are doing this to lower our expectations, like if you need to get a new furnace instead of being able to buy a high efficiency one, you will be stuck with a cheaper low efficiency one instead.
@ErrollLeVant (4353)
• United States
19 May 09
If they make this move, I will definitely not use my credit card for routine purchases. It will be back to carrying cash for me!
1 person likes this
@suspenseful (40192)
• Canada
29 Dec 09
I use my credit card for everything but I pay it all off in a month, but I sure hope my husband pays his off and pays off the joint credit cards in January. He says he will transfer money over from his retirement fund but he is losing his voice so i guess we will have to go to the credit union for the okay sometime next week.
@Thoroughrob (11742)
• United States
19 May 09
I do think it is unfair. We already have gotten a hike in our credit card interest. I am glad we don't owe a whole lot. I hope that it does not happen.
1 person likes this
@suspenseful (40192)
• Canada
29 Dec 09
Because of my husband's als, we have had to put much of our expenses on credit card. and I have taken over buying the groceries. Right now, I can pay it off every month, but the other expenses we cannot. So we are waiting for money to come from my husband's retirement fund in January to pay everything off. But now we have to finish the basement so there will be a problem there.
@Trace86 (5030)
• United States
20 May 09
I suppose I will have to see what kind of interest rate they are talking about before I get too upset and worried. If it is only 1 or 2 percent, I can deal with that. If it is the 19 percent they are charging on carried balances, I can't accept that. I don't know if I can live without my credit card though. I use it for everything!
1 person likes this
@suspenseful (40192)
• Canada
29 Dec 09
Our credit interest here is 19 percent and I pay mine off all the time, but I am also married and we used the joint credit card now for charges when we got the van fixed. Before it was paid through my husband's only credit card. And we have a Sears balance as well. So even though I pay my cards off when the statement comes and before then, there is a danger that my credit rating will go down and i do not like that. I use the credit card for everything.
@Bd200789 (2994)
• United States
19 May 09
I don'think it is fair, either. I always pay the entire amount on my card each month. Why should I be charged more interest because someone else doesn't pay theirs? I don't use my card that often, but now I won't be able to use it at all.
@suspenseful (40192)
• Canada
19 May 09
I guess I will be using my BMO debit card if this happens. At least, I will be getting Airmiles, but I have to debit $40 for that to happen. And I do not like carrying cash for obvious reasons -bad guys trying to rob you. I suppose we will be going back to the cans of cash in the back yard and digging them up when you want to buy things.
@coffeebreak (17798)
• United States
20 May 09
I don't use mine verymuch, but just got notice that the interest is going to 22% on purchases and 24% on cash advances. Not sure what it was before as I didn't use them hardly at all, but 23/24 is to high. And my credit with them is perfect. I'd maybe charge $25 and then pay it off at the end of the month just to keep the account open.. but not if I have to pay that high interest. And if they start the annual fees again.. might just close the suckers out! Maybe cash can make a come back!
1 person likes this
@suspenseful (40192)
• Canada
29 Dec 09
I use my cards for everything. I do not like carrying cash around except for tithes and offerings for church and for when the company does not accept credit cards. I feel that 22 percent is a bit too high. I do not take cash advances which is a good thing because on one of my cards they charge a $2.50 fee each time you do, no matter how much.
@gitfiddleplayer (10362)
• United States
20 May 09
Of course its unfair, you can't punish a deadbeat, it won't matter. So, in turn they are going to make the people who pay, pay more. I don't have any credit cards anymore and I don't plan to use them ever again, I don't need "credit", I'd rather be debt free because one day the banks are going to call in all the debt and then the fit will hit the shan, just wait.
1 person likes this
@suspenseful (40192)
• Canada
29 Dec 09
I do have credit cards. I feel that if I had to move somewhere else, and I had no credit, I could not carry a whole suitcase of money to buy a house or to take out a metal suitcase of cash and start counting when I want to get an airplane ticket to prove that I am worthy or having to have to have to pay for a letter from the bank to prove that I have a good standing. I do not have any personal debt but we had to get our house fixed up and the van fixed and now my husband owes for the van. I pay for the groceries now, and I do not have any owing on my credit card, but now my husband just put a charge on our joint credit card . He says that he will phone the credit union but now he cannot speak that good over the phone and they will not accept my word so I hope they are open on Saturday because we will have to see them in person about getting the money out of his retirement fund into our checking account and we will all be paid up.
@thebeaddoodler (4262)
• Lubbock, Texas
20 May 09
I do think it's unfair, but not new! Last year my interest rate nearly doubled for no reason at all. No late payments, no underpayments, nothing. The banks have been doing this since the economy tanked, but they're just now making all these new policies public. What I can't understand is why they even allowed some of these people to get as much credit as they did in the first place. Giving large credit accounts to people with no credit or a bad credit history in the first place was when they shot themselves in the foot. It's just taken a decade or so for the wound to fester cause them a problem.
1 person likes this
@suspenseful (40192)
• Canada
24 May 09
Oh those are the people who are getting a break, I guess because lot of them are the 'right' color or ethnic group. It is those who are responsible who are getting scr*wd
@JOIEMARVIC (2335)
• Philippines
20 May 09
It is really unfair. Good payer or not, the banks should not let its customers burden something like that. Those banks may end up being bancrupt if they continue to abuse the authoruty they have with the people who they lend money to.
1 person likes this
@suspenseful (40192)
• Canada
19 May 09
I do not like debit cards. For one thing, I may need that item I paid for with my debit card, and for another thing, with credit cards, I do not need to pay that one day. I can wait for a week or so. I hope it does not happen in Canada.
@cynthiann (18602)
• Jamaica
19 May 09
Totally and completely unfair. I hate credit cards but have to use them. Actually, I have only one that can be used here or in the U.K. or the USA. do you know what ther ate of interest is? You had better sit dowen first before reading this - it is 47 percent interest. Isn't this criminal? I can never clear off my balnce as I have to use the credit card to pay aall of my utilitiy bills and now this month I have to pay Land Tax on my house and on the farm. I cannot afford to pay what is owed on the farm and just bits and pieces when I can. I know that they will take me to court if it is not paid and so I am going to have to ask the children to help me pay it off. I did not want to do this but I ma going to have to as the interest rate on the money owed on land is going to be fifty percent. Isn;'t it criminal and disgusting? I am a frugal annie but cannot manage without using it.
1 person likes this
@suspenseful (40192)
• Canada
22 May 09
I checked my store Mastercard and so far they have not added any fees, and I do have a bank credit card that I just use for my cell phone bill, and in the last update they did not say anything about charging interest fees. And I cannot use an international credit card. If we plan to go to the States for holidays, I have to use a Canadian US dollar account credit card or my regular Canadian Master or Visa cards and of course in the latter there is also the exchange rate. And I have not put any money in my US dollar account for the last couple of months because of the economy going belly up.
