Credit Card Company's Responsibility

[Pinktiger]

I want to add this, because I'm feeling a bit mean today: Lightning, you wondered what credit cards could do? They can

BITE ME!!!!!!!!!!!

There. Now I feel better, LOL.

[copper2]

Citi Strategy

I tuned in to Citibank two years ago with all the ads I saw in magazines for 0% interest - while people like me, cardholders for 19 years, were suddenly paying 30% for reasons never disclosed! I also find it rather shady that the new 3-4% minimum payment to be initiated in January 2006 (letters being sent now) is coincidentally late after the Bankruptcy Reform in October. No accident there. I think our current leadership made a deal: They need the dollars tied up in consumer debt to fund the war and the National Debt, and so guaranteed a Never-Ending-Story for credit card companies by forcing everyone in the future through the cattle shute of DMPs and red tape. The money has to come from somewhere! I am beginning to think my BK, at this time, will be the smartest decision I ever made, along with completely changing how I spend and save money.

[sunshine08]

I personally think that credit card companies should have the responsibility of being held accountable for their practices. 30% interest is a ridiculous amount. I have seen this mentioned several times, there should be a system for the consumer to know about. If/when I miss a payment this will happen. If I make x # of payments, then the interest rate will drop. Why should cc companies be allowed to check your credit report without your knowledge or approval. I have a large problem with this. Each cc company should charge you based on "your" payment, charging history etc. How in the HECK can anyone think that you can pay 30% interest until your balance is paid. Suspend charging ability for a period of time for repeated missed payments or until the balance is paid. We have yet to discuss late payments, late is better than nothing.... Seems strange to me that all these "NEW" options floating out there for credit card companies with only PROFIT, PROFIT, PROFIT on the horizon. Then there is the little manner of the changes in the bankruptcy laws. Again look at the oil companies BOASTING record PROFITS this quarter, BUT claim it has nothing to do with the RISING GAS PRICES? DUH, I was born about 2 minutes ago!!!
It only goes to show the more money that you have the more you can get. It also goes back to the old adage that if you Have enough money you can get about what you want.
If you are already having financial problems, such as unexpected unemployment, medical problems, other loss of income, how does the credit card company think they will get all their money? So you call the company, say look I have a problem, what can we do???? Their answer is AND why is it our problem? Numbers don't pay bills, people do. We are human we make mistakes. What happens when big companies do the same thing, spend way more than they can pay back, they look at bankruptcy protection & loan restructering, GUESS WHAT? THEY BORROW MO MONEY. If the truth be known, they are getting better interest rates, etc. to keep the companies in business. If "I" were to approach the courts & the banks with this scenerio, first after they quit laughing, they would say, GO to credit counseling, who pays for that? You do. The possibility of getting more loans, YEA right!
Lightening, you should run a credit counseling agency, run a big CC card company, Whatever.
WATCH THE WIZARD OF OZ, GET A HEART!!!
Better yet, GET A LIFE!!!!!!!!!!!!!!!!

[BassBoy]

What do you believe credit card companies should do to encourage the financial success of their card holders?

Here are my thoughts based on comments I've read here and other bankruptcy forums.

Credit Limits
People have suggested credit limits are set too high. I've read several posts by people who lied on their applications and overstated their income. Should credit card companies perform an actual income check at your employer? If so, how often should such a check be performed?

Well, I like to think I'm an honest person......so......I tell them my actual income. As far as verification of income, I would think a check 2 to 3 (maybe 4) times a year.

Credit While Unemployed
If a credit card company checks your income regularly and discovers you're either unemployed or earning much less than the amount stated on your income, should they lower your limit or cancel the card entirely to prevent you from charging more than you can afford to repay?

My opinion is the CC company should suspend your privledges (if they continually check to verify income) until you return to work, however, if your income is lower, then a lower credit limit should be established.

Minimum Payments
If minimum payments are low, you'll pay much more interest and may never actually pay the balance before exceeding your limit. If minimum payments are raised, you can't afford to make them. How should minimum payments be calculated?

First, the compounded interest is what kills you. If you only make the minimum payments, the compounded interest that is added will eventually add more to the balance (i.e.: you make a $50 payment, but your next bill shows that more than that is compounded interest.....especially if the interest is high and the monthly payment is only 1/64th of the unpaid bablance).

If you could own and operate a credit card company or dictate the terms of a card, what exactly would you do or demand? Keep in mind that if you own a company, you probably want to make money.

Hmmmm. This is a tough one. On one hand, I would want to make money, but how much is considered excessive? My opinion is that more of the principle should be paid and less towards interest. Most people never kept an account (or car or house) for the full term, so I would be more inclined to have the customer get a better return. I guess that's why I don't own or operate a business......because I feel I'm a moral and ethical person and I would feel guilty about making out from someone else's miss fortunes.

If you think credit cards should be eliminated completely, what would you use in case of emergency?

Good discussion......good discussion indeed.

[deepindebt]

I think ccc freely give out credit and give its consumer to much credit. I am not going to make excuses for me filing for bk, I am to blame and so is the ccc's because of this statement "We give you twice as much as you can handle" that is what a cardholder said to me, wow I wish I had that on tape!!

I agree with lightning!! There needs to be stronger rules to get a cc. There should be a background check on income and expenses. I also will have to add that if a person is married, the spouse should know about any credit given to the other spouse.

But CCC have to play fair, with interest rates and credit. If a person falls on hard times, that person should get a break in interest, late fees and all those other fees.

What did the old timers do when there were no ccc to help them out when they were disabled or unemployed?? That is something I would like to find out. I know that happened but how did they cope with living expenses? I feel there should be funds available for people who fall on hard times and they should not live off there ccc's.

I think our society teaches us we have to "keep up with the jones" and have everything our neighbor has. It all boils down to greed, old fashion greed!! I believe that money is evil and it is the root of our problems. I know we all need it to survive but some of us use it the wrong way!!! These are my feelings and please do not condem me for them. It is my opinion!!

[BassBoy]

......But CCC have to play fair, with interest rates and credit. If a person falls on hard times, that person should get a break in interest, late fees and all those other fees......

Good point. My experience is they are willing to work with you. And why not? They'll just keep adding up the interest, making it impossible to ever pay-off. One of my CCC's allowed me to make whatever payment I could w/o a late fee, but when I got my next statement, the amount of interest added made my balance more than it was the month before. It's just ridiculous.

For those of us who are getting a fresh start, we need to be smater next time around. Although, going through BK is enough of a wake-up call. Nuff said.

I agree that frequent checks should be required. Some of the CCC will give credit to just about anyone. It's easy for anyone can get a CC these days. It's big business. If you have a SSN and are 18 yrs. old, you can get a CC. I had my first CC at 18.

[Genenco]

What did the old timers do when there were no ccc to help them out when they were disabled or unemployed?? That is something I would like to find out. I know that happened but how did they cope with living expenses? I feel there should be funds available for people who fall on hard times and they should not live off there ccc's.

Deep, I can tell you that. I spoke to my mother about wanting to do something, but the price was $12 or such. "Oh well" they'd say. "Maybe in a few months we can afford it"

They made do with what they had. Instead of drving into town every day, the saved the shopping trip(s) into one major trip and even then, it took 4 hours as they had to hit several areas. But then it was over for a month.

Work was walking distance (If you call 5 miles walking distance) clothes were not the "Latest fashion" they served a purpose. And they were patched and repatched.

You spoke with "RESPECT" to all elders (Even if they weren't your parents) I remember during a vacation, one of my cousins called a city rep (Who was 30 and my cousin was 40) and he "Yes Sir'ed" that guy totally!

If a neighbor was "Hurt/Sick/Diasabled" and know as a decent worker, people would come by with food, work their fields and then work their own. If they weren't..Well, there was "Relief" then too, but not much! And did they give you the LOOK when you got it, even if you were lazy

In other cases, some moved in with relatives until they could get back on their feet.

This was in 1929-1960 New Mexico (My mother was born in 1923)

I think in talking with my mother, I got some sense of what is what like then, but I sure didn't catch hold of it for myself..:P

[FoolAndHisMoney]

After reading all this I think some of us feel hurt that we were "sucker punched" or "taken" from the big credit card companies and it's a blow to our pride. The fact is they have the right to do what they are and always have been doing and that's to make money for their shareholders. They do employ people and it trickles down throughout the economy which is good for us all, especially if your retirement plan invests in these profitable companies.

On the otherhand they (credit card companies) must realize that they are taking a risk and when some of us exercise OUR RIGHTS they should respect OUR RIGHTS and move on just as we should respect their rights to make profit for the stake holders.

Credit card companies as with debtors should all understand that business is business. Nothing personal.

[AAAArt]

After reading all this I think some of us feel hurt that we were "sucker punched" or "taken" from the big credit card companies and it's a blow to our pride. The fact is they have the right to do what they are and always have been doing and that's to make money for their shareholders. <SNIP>
Credit card companies as with debtors should all understand that business is business. Nothing personal.

Agreed.
A sucker punch can only come when you let your guard down. I think that we have "sucker punched" ourselves as a society, and that the cc companies have only been the "fist" which we used.
When I was growing up, if you wanted something, there was credit for major purchases like refrigerators, cars and homes, but only if you made a substantial down payment (like 1/3).
Now we want it all now, and don't have the discipline to wait for it. We've all seen the young couple 1 or 2 years out of college with decent jobs. 2 vehicles (Often $60,000 to $80,000 new price) a new house ($150,000 to $250,000) a houseful of new furniture (another $25,000...no payments due for a year), but it's not complete without a large screen plasma TV and home theater system, etc, etc, etc. Along comes baby one and then baby 2 and all childcare costs which are astronomical and then where are they financially when there is a cutback at work or there job is outsourced or whatever?
It's easiest to look at young couples, because my guess is that many of us on this Forum are slightly past that age, but the same goes for all of us.
We simply don't keep our guard up and we sucker punch ourselves.
I'm living totally on cash now and believe me, it doesn't go as far as cash and credit coimbined. This month I had some discretionary income. I wanted to renew a magazine subscriptions for which I have all of the issues for the 9 years that they have been in existence. I also wanted to buy a couple CD's for children for Xmas presents and we took my wife;s cousin out to eat and my wife's mother's B-Day is today and I'm picking up the tab for dinner tomorrow. In the old days, no prob. Just whip out the cc's and still have the cash reserve. Today, I get paid once a month and I realize that mag. subscription is just going to have to wait.
One of the mods, (I think HHM) suggested that we all live strictly on cash for at least 1 year after our Bk so that we can re-train ourselves. My plan and hope for the future is to only use credit that I can pay off each month or for substantial purchases for which I/we have already saved a substantial down payment. I don't ever again want to drive a car off of a lot where I have to pay for 2 years, to reach the break-even period.
Yes, cc's and expanding credit limits and ease of obtaining are tempting, but so are many other things in life and most of us have learned that consequences are not worth the temporary enjoyment.
I seldom drink any longer, but a few weeks ago I was at a B-day party for one of my wife;s friends. My wife had already told me that she intended to drink, so I was the designated driver, I knew we were going to be there for at least 4 hours, so I had a sociable drink, then another one. Started to get a nice buzz. Wanted more, but stopped there. Wasn't willing to risk a DUI or killing someone. I knew my limits. 2 drinks in 30 minutes, then 3 1/2 hours of eating and waiting and I would be fine to drive home.
Same, same with cc's. The free bar wasn't limiting me to 2 drinks. I had to do it myself.
Many of us have gone through problems beyond our control. This was also my situation, however what made it unbearable was that I had not disciplined my spending and saving enough for all of the previous years. Art

[Genenco]

Not sucked punched, but RAPED!!!!

After reading all this I think some of us feel hurt that we were "sucker punched" or "taken" from the big credit card companies and it's a blow to our pride. The fact is they have the right to do what they are and always have been doing and that's to make money for their shareholders. They do employ people and it trickles down throughout the economy which is good for us all, especially if your retirement plan invests in these profitable companies.

Credit card companies as with debtors should all understand that business is business. Nothing personal.

I'll amdit, I never got a notice form my credit cards stating "Due to your late payment on the other card, we're raising your rate"

I did get a letter from GM saying "Due to your recent usage, we're rasing the rate" and so (As I previously posted) I wrote them and threatend to close the account, which they apologized for this, but later when I was late, they happily yanked it up..But I didn't complain.

As for not being "Personal" that's funny as I've stated before on how they let machines time things, approve or disapprove and such, but danged if they can get it to help a creditor in some cases.

I don't have a problem with them making the money, it's the "Way they make it" I have the disagreement with.

[sunshine08]

I think that cc companies should only check your credit report once a year. If you are doing as expected, on time payments etc., either lower the rate or whatever. If you are late with them, going over the limit etc. charge the over the limit fees, late fees etc. But not raise the rate. I think that is the first step for the debtor to look for a way out. If you are having a hard time @ 18% how do they think you are going to pay @ 25% or more???
I also think that cc companies need a certain percentage of people not paying. Good tax write off.