Jamesb101.com

commentary on Politics and a little bit of everything else

The Banks are squeezing and cuting credit card holders…..

As Congress continues to look into the credit card business, and signals that it will be ready to fast track a new bill that that was supposed to take a few years to come into effect, the banks are cutting people out of their cards, raising interest rates and cutting credit availability….…

Since the economic down turn banks have been making deals for repayment and slashing the number of cards out in circulation….when the Fed asked banks..they replied that at least 50% of the banks where increasing interest rates and reducing credit lines….in addition, 40 percent reported they where imposing higher fee’s……

…..’A study by the Pew Charitable Trusts, released late last month, concluded that the 12 largest banks, issuing more than 80 percent of the credit cards, were continuing to use practices that the Fed concluded were “unfair or deceptive” and that in many instances had been outlawed by Congress.’

The bill in Congress will give consumers more protection against interest rate increases, and more  timely notification on those changes…..

The banks are now sharply cutting back on their old habit of loose credit reeling in customers and then increasing credit lines and then charging fee’s when the customers stretch out repayments…..

Already in the lsat 12 months there has been a 72 million drop in Visa, Mastercard, American Express and Discover card accounts ( there are still a staggering 555 million credit card accounts out there! )….

One could say it’s about time the banks only offer cards to those who can pay the money back…..And that’s good….

But man there is still a half  BILLION cards out there…that sure is a lot of fee’s owed…..

November 9, 2009 - Posted by | Law, Media, Politics, The Economy | , , , , , , , ,

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