Congress: Protect us from the predatory lending practices of the banks now!

Congress bailed out the credit card companies with our tax dollars and how do the companies repay us? They bend their customers over a barrel. Congress should step in with more regulation.

Join me on facebook: "The Credit Card Picket Line".

http://blog.lj4a.com

Category:

News & Politics

Tags:

• Congress
• Bank
• Bailout
• Credit
• Cards
• Predatory
• Lending
• Practices.

[lj4adotcomdan]

More and more businesses look at your credit score to see if you are "worthy" of the "risk" of doing business with. But the credit score is no longer a measure of responsibility, but a device used to justify rate hikes to usurious levels. And again, what is worse, is that the rating can be changed by actions done by the bank (like reducing available credit).

So when I try and buy other goods and services, my credit looks bad even though I followed all the terms. They are crooks.

[lj4adotcomdan]

BOA and Capital One should take that into consideration before entering into the credit card business and should not participate in it. That is NOT a justification for using bait and switch tactics.

If they want shorter term loans then they need to enter the fixed length financing business instead of the revolving credit line of business.

Of course I take it personally because their decisions have more of an impact than just my credit cards.

[andharvey8]

Well, I hate to tell you this, but statistically it does become riskier. Card companies like BOA and Capital One have a staff of statisticians that do all of this credit scoring, and they've shown that the older a loan is, the more likely it will never be re-paid.

Don't take it personally, its happening to everyone, including me (and I don't carry a balance and I've never been late on a payment.)

[lj4adotcomdan]

And my loan does not become "riskier" if it is older. If I am keeping up my end of the bargain by following the terms of my agreement, I should not be viewed as riskier.

The industry made up their own terms of what the credit scores are. They then make decisions (like decreasing my available credit) that lowers my credit score. And then they punish me for their own decisions.

That is bait and switch. Any other industry, that is fraud and it would be illegal.

[lj4adotcomdan]

"Despite the fact that a lot of card co's out there are attached to banks...."

There went your argument right there.

Actually it went out the window when you ignored the fact that if the fed rates are dropping then the market rates for any money obtained on the debt markets should be obtained for less, NOT more.

And if banks, like BOA, can obtain the money from the fed, are they charging themselves higher rates? Isn't that silly.

[andharvey8]

Card companies are not "banks", they don't have the ability to borrow at the fed window. They borrow money in the debt markets just like all other institutions (like IBM and other corporate names)

When your credit card loan ages, it becomes riskier, and refinancing that loan becomes more expensive.

Despite the fact that a lot of card co's out there are attached to banks (like BOA), the debt is segregated, and the card business can't borrow from the Fed.

[lj4adotcomdan]

Usually at a higher rate? Are you kidding me?

Banks can get loans from the fed at rates much lower than those we get.

The fed rate has been dropping for years. Yet my rates go up and up.

Then, the reason my credit "deteriorates" is because the credit card companies arbitrarily decrease my available credit, thus making my credit profile look worse (higher debt to credit ratios), dropping my credit score and using their actions against me.

Your explanation is flawed. Their actions are fraud

[andharvey8]

to answer your question:

When you borrow money from the card company, they have to turn around and borrow that cash from someone else (they are an intermediary)

The card co's term for the loan is set, but yours is not. Hence, when you don't payback in full at months end, they have to re-finance that balance at a (usually) higher rate.

The card co's is also exposed to the risk that rates jump or your credit deteriorates in that time.

This is why they set the terms they way they do.

[unabonger777]

congress and the fed and obama and his "advisors" are crooks and idiots. who would expect the banks to loan any of the bailout money to broke americans? they also repealed glass-steagall, so the banks will take that money and invest it in china. this is not a minor annoyance or a moral scandal. this is treason. this country is over. there will be no recovery. why? because the financial system is unfixable. they destroyed it. humpty dumpty cannot be put back together again. refresh your passport