Capping Credit Card Interest
Michelle Malsbury, BSBM, MM
April 23, 2009
Four years ago I noticed a slowing down in housing sales, at least in the state of Florida, which is where I live. That was later confirmed by the tracking information provided by the web site www.Realtytracs.com . Florida was not the only state to notice a decrease in sales. More states would follow. Leadership in America ignored these signs until it was too late and a recession/depression was eminent.
Next came the staggering number of foreclosure and banking/Wall Street investment bust. This was nationwide. Banks, insurance, and investment organizations could no longer contain their losses from those foreclosures and other unscrupulous investment tools without going under. President Bush along with Ben Bernanke and Hank Paulson devised a plan to help them survive. Billions of dollars authorized by congress were funneled directly and immediately to them, but no guidelines were given as to how these funds might be spent. There was no oversight or accountability. The banks, insurance, and investment community went on a free-for-all!
Taxpaying Americans were on the hook for those abuses. Public outcry was loud and strong. President Obama and congress stepped in and added new guidelines for those institutions targeted at curtailing those excessive abuses and enforcing oversight and accountability. The banks, insurance, and investment houses did not like having to play by the rules. Some of them have sent back their TARP/TALF funds so they can operate as they see fit. Others may have to wait until their stress tests come about to see if they are healthy enough to pay back those funds.
The next crash will be interest on credit cards. Banks and lenders are taking gross and usury latitude with the American public by charging interest in excess of 30%, in some instances, for unpaid credit card balances. Credit card companies have been able to use teaser rates to entice people to apply or transfer unpaid balances from one card to another. Those interest rates usually begin quite low. However, with so many Americans unemployed and unable to pay some of their debts on time credit cards issuers are penalizing them by increasing their interest rates to levels that are usury and should be illegal.
At one time there was legislation on the books to prevent this type of interest rate escalation abuse. We need to re-implement those laws or write new ones that stop this abuse by banks and other unscrupulous lenders. Americans are already suffering enough and interest on credit cards should not be allowed to more than 2% above current interest rates provided on savings accounts, CD´s, or IRA´s.
Credit reporting agencies are not to be excluded from this unethical practice of upping interest rates as they are the ones who hold your credit scores captive and are the ones who shape how and who is credit worthy. Credit reporting agencies should work with the American public during this unprecedented and difficult time. Latitude should be given to people who can adequately explain their various situations and are willing to keep trying to pay down their debt. Banks and lenders should be forced to lower interest rates and/or adjust payment amounts on credit cards for people who are already having a hard time making ends meet. There should be no penalty for working together to achieve a fair and amicable end result in this process. The people should not bear the brunt of this mess by paying usury interest on credit cards!
Please do your part to stop this unscrupulous and fraudulent process by calling or writing your state and local representative´s telling them that we, the people, have had enough! The time to act is NOW!
Next came the staggering number of foreclosure and banking/Wall Street investment bust. This was nationwide. Banks, insurance, and investment organizations could no longer contain their losses from those foreclosures and other unscrupulous investment tools without going under. President Bush along with Ben Bernanke and Hank Paulson devised a plan to help them survive. Billions of dollars authorized by congress were funneled directly and immediately to them, but no guidelines were given as to how these funds might be spent. There was no oversight or accountability. The banks, insurance, and investment community went on a free-for-all!
Taxpaying Americans were on the hook for those abuses. Public outcry was loud and strong. President Obama and congress stepped in and added new guidelines for those institutions targeted at curtailing those excessive abuses and enforcing oversight and accountability. The banks, insurance, and investment houses did not like having to play by the rules. Some of them have sent back their TARP/TALF funds so they can operate as they see fit. Others may have to wait until their stress tests come about to see if they are healthy enough to pay back those funds.
The next crash will be interest on credit cards. Banks and lenders are taking gross and usury latitude with the American public by charging interest in excess of 30%, in some instances, for unpaid credit card balances. Credit card companies have been able to use teaser rates to entice people to apply or transfer unpaid balances from one card to another. Those interest rates usually begin quite low. However, with so many Americans unemployed and unable to pay some of their debts on time credit cards issuers are penalizing them by increasing their interest rates to levels that are usury and should be illegal.
At one time there was legislation on the books to prevent this type of interest rate escalation abuse. We need to re-implement those laws or write new ones that stop this abuse by banks and other unscrupulous lenders. Americans are already suffering enough and interest on credit cards should not be allowed to more than 2% above current interest rates provided on savings accounts, CD´s, or IRA´s.
Credit reporting agencies are not to be excluded from this unethical practice of upping interest rates as they are the ones who hold your credit scores captive and are the ones who shape how and who is credit worthy. Credit reporting agencies should work with the American public during this unprecedented and difficult time. Latitude should be given to people who can adequately explain their various situations and are willing to keep trying to pay down their debt. Banks and lenders should be forced to lower interest rates and/or adjust payment amounts on credit cards for people who are already having a hard time making ends meet. There should be no penalty for working together to achieve a fair and amicable end result in this process. The people should not bear the brunt of this mess by paying usury interest on credit cards!
Please do your part to stop this unscrupulous and fraudulent process by calling or writing your state and local representative´s telling them that we, the people, have had enough! The time to act is NOW!
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