Credit card shenanigans

Full story: Long Beach Press-Telegram

The banks and credit card companies continue to act in bad faith after Congress tightened up credit card rules, but gave the financial institutions time to adjust their computer systems and business operations to the reforms.
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1 - 8 of 8 Comments Last updated Oct 28, 2009
Brian J Donovan

Tampa, FL

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#1
Oct 26, 2009
 
The average interchange fee in the U.S. is seven times the interchange fee set by Visa and MasterCard in countries throughout the rest of the world. Using 2008 figures, if the interchange fee charged by credit card issuers was decreased (via comprehensive credit card reform legislation) from the current 2.10% to 0.60%, the result would be an annual savings of approximately $34.3 billion for U.S. merchants and consumers. Credit card issuers could retain 0.3% as a processing fee, the remaining 0.3% could be a "tax" used to fund a Natural Disaster Trust Fund (NDTF). In 2008, this would have generated $6.86 billion in funding for a NDTF.
Let's be clear. The interchange fee is a hidden tax, just not a tax subject to political control or for which there is any discernible social benefit. Decreasing, and imposing a transparent tax on, the interchange fee would have the same stimulus effect of a tax break, but without an impact on the federal budget.
The following article discusses how comprehensive, standardized, simplified, and transparent credit card reform legislation may fund a Natural Disaster Trust Fund.
http://www.csnews.com/csnews/images/pdf/credi...
Observer

Lake Elsinore, CA

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#2
Oct 26, 2009
 

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Does anyone in Congress have a brain? Me thinks not. Why would they not have expected that companies would act in their own self interest if something was allowed?
And let's ridicule the bailout companies for wanting to be more profitable? Isn't that in the public's best interest?
Once again the brilliant minds in Congress have screwed up and want to blame someone else!
And these people want to take over health care???
Robert J G Jackson Sr

Long Beach, CA

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#3
Oct 26, 2009
 

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Moving up the effective date of the credit card regulations to Dec 1st won't fix anything since the problem has already happened. The only answer, if there is one at all, is to create the roll back legislation which the article describes. This is one more example of our legislators not being fully informed about the results of their actions before they vote.
RAE

Costa Mesa, CA

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#5
Oct 26, 2009
 

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People shouldn't be in debt to those companies anyway. The only real way to get back at the credit card companies is to stop using the cards as a way of life. use them and then pay it off before the credit companies get any interest from you. They still gouge the people who accept cards for payment though.
Typical Consumer

Scottsdale, AZ

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#6
Oct 26, 2009
 
Isn't it typical that the banks would use the downtime they requested to re-structure their credit card practices to take advantage of the people that keep them in business, the consumers? I have perfect credit, have paid all of my bills ahead of schedule, and all the sudden my rates have increased. Rep. Maloney has done her part in granting the consumers the Credit Card Bill of Rights, and is now fighting to help us all out with the excessive overdraft fees we all face, but the banks won't stop stealing our money at every blind corner. I can only hope the banks will realize that if they continue to gouge us as much as they have been, we won't be able to be their customers. Do the right thing banks. Follow the lead of Rep. Maloney.
honu

Chino, CA

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#7
Oct 26, 2009
 

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Just a thought... perhaps the feds could raise interest rates on the bail-out money these banks received by, oh... the same amount these companies have raised the rates for their customers.

It only seems fair, I mean, after all, the bank's credit worthiness is obviously a little shakey, right?
Ronald

Long Beach, CA

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#8
Oct 28, 2009
 
Robert J G Jackson Sr wrote:
Moving up the effective date of the credit card regulations to Dec 1st won't fix anything since the problem has already happened. The only answer, if there is one at all, is to create the roll back legislation which the article describes. This is one more example of our legislators not being fully informed about the results of their actions before they vote.
Robert J G Jackson Sr.

I agree in part, but I also believe we err when we believe the consequences resulting from legislation enacted by our corrupt politicians are really unintended.

Ronald
onemansopinion

La Habra, CA

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#9
Oct 28, 2009
 
Banks will be banks, it is their business to make money with money.....your money!
So adjust your life style.
Can't afford it? Don't buy it!
Can't afford to pay your card in full at the end of the month? Don't use it!

And blame your government, both DEM/REP, for allowing these "legal" loan sharks to excist!
Last year I noticed a 24.99% rate on one of my cards; I called, neither the operator nor her supervisor "could do anything". i paid the card of the next month and put it in my desk drawer, will not use it again.

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