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What do you think of a credit card company doing this?

http://www.msnbc.msn.com/id/30111663/

 
joinforcash1

Asked by joinforcash1 at 6:25 PM on Apr. 11, 2009 in Money & Work

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This question is closed.
Answers (6)
  • That was not actually a breach of contract- assuming that the article gave all the information of course. They can raise your minimum payment, and they can charge a monthly service charge. There is actually no set law on minimum payments. Most companies charge about 2.5 percent of the balance, but that doesn't mean they have to. Some American Express cards require you to pay off the balance in full every month.

    I believe that one of my credit cards just bumped the minimum payment up to 3%. (I didn't really look or care since we don't use credit cards anymore.) It's funny- but just a few years ago the minimum payment was 5% and even a few years before that it was closer to 8%. We're so used to these ridiculously low minimum payments, it's not hard to believe that so many of us are drowning in debt. It's easy to charge up $1000 when you only have to pay $30 a month... we forget that we'll be paying on it for years!!
    Erica_Smerica

    Answer by Erica_Smerica at 7:21 PM on Apr. 11, 2009

  • I don't get why anyone is suprised. If the banks can make 10%+ on their money saving it why would they lend it for 4%? It's because there plan is for you to pay late so they can bump up the fee or find another way to charge you fees. Credit cards are snakes and if you play with them they will bite. He tried to play the game and he got burned. Not feeling sorry for him pay off his CC bill and he won't have to worry about it anymore. Glad we are done with CC forever. There is no item in this world that will ever make me think a CC is necessary. Just wish I knew that years ago.
    Anonymous

    Answer by Anonymous at 8:42 PM on Apr. 11, 2009

  • credit cards are the DEVIL!!!...nuff' said
    ShortMommytobe

    Answer by ShortMommytobe at 9:22 PM on Apr. 11, 2009

  • I work in the collections department at a major credit card company not this one but I know our policy in the contracts is if you miss or are late on a payment your APR goes up and we only a 10 fee if you talk to a rep on the phone to make a payment but if all the details are correct in the article then yes it might be a breach of contract it all depends on what it says. I know some of them state your interest rate can go up at any point in time. But like I said it all depends on that contract but if the article is correct then its been breeched. there are to many factors to place a judgement.
    Anonymous

    Answer by Anonymous at 9:26 PM on Apr. 11, 2009

  • oh and PS credit cards are the devil I agree I only owrk fo rmine because the beneifts are super cheap and they work with my hours with my DH in the military and my DS. But dont get one unless you pay it off every month otherwise youll get raped in the bum by them!
    Anonymous

    Answer by Anonymous at 9:28 PM on Apr. 11, 2009

  • anon, if you work for a credit card company and you're saying that you'll get 'raped in the bum' by a cc (under ANY circumstances....) I think it's safe to say.....

    CREDIT CARDS SUCK and I'm glad I only have one.
    averillholistix

    Answer by averillholistix at 9:48 AM on Apr. 12, 2009