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IPFS News Link • Economy - Economics USA

Bend Over Boys and Girls: Credit Card Rules Make Mafia Look Quaint

The bank can immediately close your account without notice AND DEMAND YOU PAY THE ENTIRE BALANCE ON THE ACCOUNT IMMEDIATELY. Oh, and when you can\'t (because you thought you had time to pay) you are then in default again for not paying "on time" and they can sue and add attorneys fees and costs. I thought this crap was going away?

2 Comments in Response to

Comment by Ross Wolf
Entered on:

According to this provided credit card, it appears Obama’s bill to stop bank predatory credit card practices was a scam. Bank predatory credit card practices are thwarting U.S. Economic recovery at the expense of U.S. Taxpayers.

Is it any wonder Consumers are hesitant to spend money on goods and services when they are under constant attack by credit card issuers to make higher and higher interest payments on credit card debt? Banks largely by raising Credit Card Interests are forcing Americans to default on their credit cards, mortgage and rent making the economy worse. Now U.S. banks are duplicating through credit card lending, some of the same problems that caused the sub-prime mortgage collapse. Banks are selling credit card holders’ debt at a specific interest rate, sometimes for less than what a cardholder is paying to keep the spread. After a bank sells a cardholder’s debt the bank can still profit by raising the cardholders’ interest rate—keeping part or all the increased charged interests; because a bank has little risk after selling a cardholder’s debt, there is no incentive to lower the credit cardholder’s interest rate. At least Sub-Prime loan investors had real estate to secure mortgages they bought. Unfortunately “Credit Card Debt” generally provides debt-investors with only the debtors to look to for repayment. Defaults on credit card debts can exponentially increase when banks raise cardholders’ interest rates, causing cardholders to default on both their old credit debt sold and new credit card debt not sold: that has the potential of creating a global economic crisis greater than the sub prime mortgage crisis. U.S. Taxpayers may not be able to bailout banks should that happen.

Comment by Lola Flores
Entered on:

 I hope y'all didn't think or expect the credit card "reform" to actually do something good for the people.