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Aug
24
DYD on the Rachel Maddow Show- Watch Here
Posted by Tim in Credit Cards
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Consumer beware: You may see pre-approved “business” credit cards arriving in your home mail.
Be WARNED: The provisions of the law apply ONLY to consumer credit cards — NOT business credit cards or charge cards. Small businesses, which have increasingly turned to credit cards as a source of financing in the economic downturn because bank loans have dried up, do not receive the law’s protection if they have business or corporate accounts.
Just where do you get the money to pay off your credit card when you have get rid of that particular card company after they have raised your interest rate? Where do I get that “magic wand”? Please give me an answer!
Thank You
Rachel Maddow is a citizen’s treasure. Her research and fearless reporting will be one of the things that keeps the corporate-owned public servants worried,
The credit card act let the companies hike rates on cards before the act took effect so I am paying 25% on purchases of $20,000 made at 8%. What help is there for people like me?
Regarding “fair application of payment,” I had two balance transfers with Citibank. At the time, 42% of the balance had a promotional interest rate that would continue until paid. The other 58% had the same promotional interest rate that would end after one year. Citibank did not apply any of my payments to the balance in which the promotional interest just ended. Now 69% of the balance is at the standard purchase rate, and that part of the balance is now $6 higher than the original transfer – maybe because they are adding interest AND not applying any of my payments (we’ll see what happens next month). Anyway, the other 31% stays at the lower interest rate. I thought, oh well, now the payment will get applied to the balance with the higher interest rate, but I was wrong. The payment is applied to the balance with the lower promotional interest rate. Only the amount above and beyond the minimum payment gets applied to the balance with the higher interest rate (if I can pay more than the minimum payment). They call it “fair application of payment.” I think the credit card reform act missed the mark on this one.
OK this might seem like a silly question, but words matter when it comes to talking about laws, how they are written, what do they mean and whom do they affect and/or protect. The term ” credit cards ” do they ALSO mean “Debit cards?” if so do we have the same protection(s) or are we out on a limb, and it doesn’t mean anything to us?
Thanks!
In 2008, when we had a downturn with the banks, the credit cards raised rates tremendously as they turned themselves into a bank. eg: american express went from 12% to 15.99%, Sears, Capital One is now at 17.9% and 24% for transferred balances. This happened as the banks were going down. Is there any way to reverse these high rates on balances owed at that time?
Once upon a time before the late 70′s (?) there were usury laws so that banks and credit card companies could not charge more than 7% interest rates. Maybe the Bible is right – Usury is a sin!
Be nice to see more on Credit Card Fraud. Seems like everyone
who has had a card for a while has had some kind of credit card fraud. I caught an obvious one on mine just this month!
Many may not be as clear on monthly statements and slip, slip by and thereby encouraging the practice.