UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of one quarter of America's presidencies and edited alternative journals since 1964. The Review has been on the web since 1995. See main page for full contents

September 13, 2009

CREDIT CARD USURERS COME UP WITH NEW WAYS TO HIS CLIENTS

Business Week - New credit-card rules, designed to curb the industry's abusive practices, went into effect a few weeks ago. But already lenders have found ways to get around the regulatory roadblocks-moves that may cost consumers in the end. . . Under the new law, issuers can't raise them without 45 days' notice. But there's a loophole: The rules don't apply to variable-rate cards, with rates that float up and down. That's why companies are moving more consumers into such cards, whose rates are likely to soar from their record lows. Researcher Bankrate.com estimates variable-rate cards will account for 75% of all cards this year, up from 65% in 2008.. . . Starting in February, lenders won't be able to charge consumers a penalty when they go over their credit limit. To make up for the lost revenue, issuers are coming up with a host of other penalties. Fifth Third Bank started levying a $19 tariff if a borrower doesn't use the card for 12 months. . . Citigroup and JPMorgan Chase added annual fees to some products, targeting customers who pay off their balances. . .

3 Comments:

Anonymous Anonymous said...

High credit card interest rates are not counted as usury because, technically speaking, the money is not loaned; but, rather owed. That is how companies and banks got away with high rates initially. The Fed is no longer in control of the money supply due to the fractional reserve lending and overlending practices of banks. We were all slaves before and we will be slaves again, be it credit card slaves or, better yet, credit card coolies. A credit card coolie is any unskilled or low-skilled worker laboring to pay of huge credit card debts. Workers of the world, you will never be free if you cast off your chains and trade them for plastic.

September 14, 2009 5:11 AM  
Blogger m said...

There was a time not so long ago when credit card rates were limited to 12, 18 and 24% depending upon the state.

September 14, 2009 4:44 PM  
Anonymous Anonymous said...

Here's a useful tip to avoid being ripped off: Don't spend more than you earn!

September 15, 2009 2:35 PM  

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