Credit Card Reform

[Tom]

While I am a firm believer in personal responsibility, many practices by the CC companies are just plain predatory and should absolutely be illegal.
Handing out free cards by sending in the mail, tempting desperate people, issuing cards to dogs, preying on college students and younger.......arbitrary rate hikes, penalties for paying off your balance.....sorry, part of being responsible is being fair and honest. The banks exist to serve our economy, make whatever profits they can squeeze out. When they stop facilitating the economy, we need to reign them in.

And that is far left as I go. Just because someone can't handle all of being accountable is not excuse to target him and harvest his life. Part of the accountability must be shared by the institutions that should never have allowed him to get in so deep. But many automatically increase credit lines every time some one would hit their limits.

You ask an alcoholic to deliver a case of scotch to your brother out of town. He drinks it on the way. You telling me you aren't part of the problem?

[delayjf]

Some practices by the C companies were outright unacceptable and needed to be regulated.

I'm not sure exacty were I stand with this issue, both sides have valid points. But I agree with Tom about some companies in particular, companies like Cash Call amount to loan sharks. They will bump up the interests rates as high as 40-50 percent.

[jballscalls]

Originally Posted by delayjf

I'm not sure exacty were I stand with this issue, both sides have valid points. But I agree with Tom about some companies in particular, companies like Cash Call amount to loan sharks. They will bump up the interests rates as high as 40-50 percent.

if you look at the cash call commercials, the small print says something like 99%!!

[boxcar]

Originally Posted by acorn54

a week or so ago i read a little bit in a new book about human nature and how human's handle money. basically it said that human's think short term by nature and don't fully realize the consequences of their financial actions. so it seems the experiment of giving people credit was a bad idea assuming the author is correct.

No, it's not a bad idea! You might as well postulate that the invention of the automobile was a bad idea, too, because irresponsible drivers kill a lot of people every year. The "bad idea", sir, is irresponsible behavior by irresponsible people!

Good grief, man! A typical liberal. You never want to assign blame where it ultimately and truly belongs. It's always someone else's fault. In this case -- the credit card companies because someone invented something that can be abused or misused by others. It's no wonder at all you're such a big fan of the Nanny State!

Boxcar

[acorn54]

Originally Posted by boxcar

No, it's not a bad idea! You might as well postulate that the invention of the automobile was a bad idea, too, because irresponsible drivers kill a lot of people every year. The "bad idea", sir, is irresponsible behavior by irresponsible people!

Good grief, man! A typical liberal. You never want to assign blame where it ultimately and truly belongs. It's always someone else's fault. In this case -- the credit card companies because someone invented something that can be abused or misused by others. It's no wonder at all you're such a big fan of the Nanny State!

Boxcar

well i agree with you that the government has no part in regulation of human behavior. i was just posting what i read from someone else and their viewpoint not that it is mine.

[The Judge]

have interest rates set they range from 6% - 12% (some may be a little higher depending on the amount owed) this is true of most states conservative as well as liberal. You cannot legally charge more or it will be "usury" and therefore illegal. Usury being a bad thing goes back to biblical times.

Credit Cards companies get around the usury laws by having their companies issue cards from states that have loose usury laws such as South Dakota.http://www.lectlaw.com/files/ban02.htm http://www.sfgate.com/cgi-bin/articl...&type=business

[lsbets]

The credit card companies opened lines for people who should not have had credit. The blame lies with the supposedly responsible card companies who made bad decisions by extending credit to people who should not have had credit. Since their lobbyists rewrote the laws regarding credit card debt and bankruptcy, they knew they would be able to collect more than they lost on defaults, so they were willing to extend those lines. Put simply, they bought off the government and had free reign. There is one simple fix to the credit problems - rewrite the laws so that unsecured cards are exactly that - unsecured. Once they think they will lose a fortune on defaults, they'll stop opening cards they shouldn't.

When companies buy off the government to get laws written in their favor it has nothing to do with capitalism. They are simply looters, and we should take away all the special protections they have bought for themselves over the years and let them take the losses they deserve. Of course, their friends in DC won't do that - they'll announce a smoke and mirrors bill designed to make the fools who vote for them think they are doing something to hurt the credit card companies, when in reality they are doing very little, just taking the cash and doing as they are told.

[Tom]

ls, I was thinking that today, what is the snake in the woodpile in this bill?
I haven't found it, but know it is in there.

Sad, the first thing you think of when your government passes a bill is what is the REAL purpose of this? It can't be to help people.

[Warren Henry]

Originally Posted by Tom

ls, I was thinking that today, what is the snake in the woodpile in this bill?
I haven't found it, but know it is in there.

Sad, the first thing you think of when your government passes a bill is what is the REAL purpose of this? It can't be to help people.

I think that this is another feel good bill. A lot of show and very little substance. They make it look like they reined in the evil lenders and took up the cause of the poor victims.

What will it really accomplish? The lenders will still make the same amount of money. But the folks who follow the rules will pay more. In actual practice, it may cause some of the folks at the bottom of the economic pile to have a harder time getting credit (regardless of whether or not they could handle it responsibly).

[BlueShoe]

According to studies,the average American family has around $10,000 in outstanding cc debt.This figure absolutely staggers me.I have no empathy for such persons whatsoever,it is wildly irresponsible in my opinion.I have cards that are used carefully,but at the end of the month the balance is always the same-zero.They are payed off and no interest is ever payed.If and when the banks charge me interest from date of purchase and/or an annual fee,the answer will be simple and direct;first the scissors and then the shredder.Just for fun,actually looked at the interest rate on my cards had I carried a balance.Again,was staggered.Double digits in this extremely low interst rate environment?So the banks are thieves with usurious rates and the consumers are fools for their "me me me gotta have it" spending mindset.

[chickenhead]

But the folks who follow the rules will pay more.

Any folks who follow the rules aren't paying anything right now. If they have any sense,and are responsible, they are getting paid for using their CC.

In the future, they may get paid a little bit less (tho I doubt much, they rebate for a reason -- because it makes them more money than not rebating would. It's not charity currently, and it won't be charity in the future.)

[Tom]

When a family is out of money, and they have a card, do you decide to be fiscally responsible or feed the kids? I agree, it is not responsible, but some people find themselves in a matter of eat or not eat. Or their kids is hurt and they need to take him to the hospitable. Or a parent is old and in poor health, and the have take car of them. The CC companies have been preying on people and while we should all be accountable for our own actions, the reality of it is that not all of us can. REAL control of CCs is in the best interest of the people and the economy.

[BlueShoe]

Am not critical of cc's in emergencys,medical or otherwise.However,the typical American family will spend $4000 for the newest type TV for the kids bedroom,subscibe to every costly cable package they can,every family member has a cell phone and always goes over their minutes each month,a two week vacation thousands of miles away each year an absolute must,dinner out at least two or three times a week,Mom and Pop just have to have at least one or two of those yummy lattes each day and a couple of bottled waters,and so on,ad nauseum.Then they wonder why their debt is so high and why they cant save.I know families like this,several,and so do you.Just your average middle class American family.

[mostpost]

Originally Posted by Tom

Some practices by the C companies were outright unacceptable and needed to be regulated. As long were are nationalizing everything, though, let's just declare all CC balances to be zero and see how that stimulates the economy! Woo Hoo!

EXcellent idea!! If they do that this month, it would save me $4.00

[mostpost]

Originally Posted by Tom

While I am a firm believer in personal responsibility, many practices by the CC companies are just plain predatory and should absolutely be illegal.
Handing out free cards by sending in the mail, tempting desperate people, issuing cards to dogs, preying on college students and younger.......arbitrary rate hikes, penalties for paying off your balance.....sorry, part of being responsible is being fair and honest. The banks exist to serve our economy, make whatever profits they can squeeze out. When they stop facilitating the economy, we need to reign them in.

And that is far left as I go. Just because someone can't handle all of being accountable is not excuse to target him and harvest his life. Part of the accountability must be shared by the institutions that should never have allowed him to get in so deep. But many automatically increase credit lines every time some one would hit their limit

You ask an alcoholic to deliver a case of scotch to your brother out of town. He drinks it on the way. You telling me you aren't part of the problem?

WOW! Tom and I agree 100% .