They have begun....

[Genenco]

Recently, MBNA, Citibank, and Bank of America have announced they are doubling minimum monthly payments on credit card balances from 2 percent to 4 percent. Others are expected to follow by hiking the percentage of their minimums in the near future." See the full story at:

http://www.bankrate.com/nltrack/news...20050503a1.asp.

[sunshine08]

Good thing I filed bk, I have none of the cards and probably won't I filed on
2 out 0f 3 of them.
They should lower it to 1% because of the new law it will be harder to file especially for some, so if it is 1% they will make more money.

[Minnymouth]

Yep, and a lot of people will be in "shock" when they discover it and can't pay it.......

Minny

[SleeplessInMI]

So basically they are taking advantage of the new BK laws and sticking it to everyone...

[jennga]

I thank my lucky stars that I went when I did, even though, as I have said, when I went to the lawyer it was not with the intent of filing bk. but thank God. I would be in a world of even greater hurt than I was... whew

[deepindebt]

I heard this hike in mim payments was made about 2 years ago (from a previous post), why did it take this so long to be enforced??? In my opionion it is big business that runs our country. It makes me sick what big business is doing to our society. The rich keep getting richer and the poor are getting poorer!!

[down @ out]

Have to say this was one of the main reasons I filed recently. When I did the math I knew once they raised the minimums I was sunk.

Yep they are going to stick everyone now they know that filing is just that much harder.

[Genenco]

Well, this will hurt alot of people, but it also will help in that people will "Focus" on how they pay for thier fun and games and even lifestyles and will "Encourage" the "Do I REALLY need this purchase?" Thoughts.

Of course, as with most changes, the debtor can close the acocunt, keep the payments low and not incurr anymore charges, other then those against the account as is.

[Lightning]

Why would you borrow money on these terms where the interest rate and/or minimum payment could be raised at any time?

[FoolAndHisMoney]

I heard this hike in mim payments was made about 2 years ago (from a previous post), why did it take this so long to be enforced??? In my opionion it is big business that runs our country. It makes me sick what big business is doing to our society. The rich keep getting richer and the poor are getting poorer!!

Credit card companies were fighting this for obvious reasons . The OCC got the last word. Next year bankruptcy filings may top this year.

[BassBoy]

Last year, I got a great MBNA CC with a fixed rate of 5.9%, and yes, locked in for the life of the card. I had an auto loan with Lorain National Bank and that's what the card said, but MBNA was the creditor. Oh yeah, my credit was awesome then (about 700--give or take a few points).

Some time this year, I got a letter stating that the interest rate were going up to 17.75%. Damn. Well, I called and said that this interest rate was incomprehensible and that I disagreed. MBNA said I could keep the interest rate as it is, but my privileges would be suspended.

[Lightning]

MBNA said I could keep the interest rate as it is, but my privileges would be suspended.

Sounds like a best-case scenario. You get to pay off your debt under current terms but you don't get to borrow any more.

[sunshine08]

Decent reply.
Credit card companies, banks, pay day loan companies etc. need to be regulated more than they are. Yes, we debtors should have to be more responsible to.
CC companies have too much fine print. THe system is set up to reward the rich and to penalize the working class, except lightening.
Just heard on the news, they want to stop letting you have tax breaks like mortgage interest, etc.

[Genenco]

Decent reply.
Credit card companies, banks, pay day loan companies etc. need to be regulated more than they are. Yes, we debtors should have to be more responsible to.
CC companies have too much fine print. THe system is set up to reward the rich and to penalize the working class, except lightening.
Just heard on the news, they want to stop letting you have tax breaks like mortgage interest, etc.

I agree...I have no probs if they say "If you're late, we hike it" BUT if you say make 3 on time payments, they should return it to the same previous level..Carrot and stick routine...Which would work.

[InDebtInMD]

I don't have a problem with the idea of credit card companies having higher minimum payments. The minimum payment should be something that will actually pay off the balance in time.

However, I think these increases should have come BEFORE the BK reform went into effect.