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Anyone see NBC Nightly News with Brian Williams tonight?

Interesting story about a guy who has always paid his credit card on time and always more than the minimum, who has good credit. He got a letter from Bank of America saying they were raising his interest rate--almost double. He contacted them and was told that the increase was necessary because "times are hard". Now the Gov. is investigating as many people are complaining about predatory and usary practices against customers by the same banks that received bail out funds. What was said is not only did these banks receive taxpayer money, but now they also want the taxpayer to help them pay it back by increasing interest rates and other bank fees. A representative of one of the banks said that they can't pay back the bail out money if they can't make a profit and that is why they are raising interest rates on credit cards. Talking about double-dipping!

Answer Question
 
Msaural

Asked by Msaural at 6:52 PM on Apr. 14, 2009 in Politics & Current Events

Level 2 (6 Credits)
Answers (21)
  • No, I didn't watch it. That's terrible! One of our credit card companies raised the interest rate on our card too. It's freakin ridiculous!
    mamaada

    Answer by mamaada at 6:55 PM on Apr. 14, 2009

  • This happens all the time- that guy was lucky they actually told him they were raising his interest rates. Usually they dont bother.
    Anonymous

    Answer by Anonymous at 6:56 PM on Apr. 14, 2009

  • Yeah, they didn't tell us at all. We noticed it on our bill. I've been threatening to call them, but my husband won't let me. He thinks they might just take our credit away.
    mamaada

    Answer by mamaada at 6:58 PM on Apr. 14, 2009

  • Its a long standing trend of abuse of consumers by credit companies...

    I don't own credit cards (but I do want to break down and get at least one for emergencies...)

    ~sigh~ what to do? Its a tough situation.
    ozarkgirl3

    Answer by ozarkgirl3 at 7:08 PM on Apr. 14, 2009

  • Ive never owned a credit cared ozark. And im dreading the day I might just have to get one.. Credit Cards scare the living poo out of me.

    BEXi

    Answer by BEXi at 7:16 PM on Apr. 14, 2009

  • What did people think would happen? just wait until corporate taxes go up too - then see what your fees fly up to!
    Anonymous

    Answer by Anonymous at 7:18 PM on Apr. 14, 2009

  • One of my spouse's credit cards raised the rate to 29.99%. How is that legal? The credit card companies are legal mobsters charging whatever they want.
    Anonymous

    Answer by Anonymous at 7:30 PM on Apr. 14, 2009

  • There is supposed to be a cap on interest rates, but many many many banks go over the cap, and it IS illegal. I do not know the cap, but if you feel your rates are too high, find out and see if theyre taking advantage of you. Also keep a close eye on fees that are put on your cards. Banks will charge little fees like .25 cents for things that they shouldnt even charge for. Its so little, barely no one notices.. but imagine charging 5 million people 25 cents... thats A LOT of money.
    Anonymous

    Answer by Anonymous at 7:35 PM on Apr. 14, 2009

  • The credit card companies are having to raise interest rates because they're going bankrupt. American Express became a bank so they could get bailout money. They have around 11% default rate right now on their credit cards. If they don't raise interest rates, they will go out of business.
    smalltowngal

    Answer by smalltowngal at 7:40 PM on Apr. 14, 2009

  • The credit card companies are having to raise interest rates because they're going bankrupt. American Express became a bank so they could get bailout money. They have around 11% default rate right now on their credit cards. If they don't raise interest rates, they will go out of business

    I think that is an excuse to rape the American public financial and make record profits.
    Anonymous

    Answer by Anonymous at 7:43 PM on Apr. 14, 2009

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