Credit card industry aims to profit from best customers

@LegalCookie on twitter says "“Those that manage their credit well will in some degree subsidize those that have credit problems.” = Switching to cash"

And what exactly is this 'credit card' exactly?

I appologize. I missed the part about charging interest from date of purchase instead of due date of the card. If that happens, I really will be cutting them up. I don't see that happening though, they'd lose to much business, they do get merchant fees just for you using the card. And who doesn't have a debit card these days. But, you never know.

I knew the credit card people would find ways to make up for losses caused by regulation. These people are scum.

Great... I've had a credit card since I was 18, and I've only been late once. (I asked Dad to mail it out once and it didn't happen) I pay off the entire balance every month and don't spend more than my job will let me afford. Having a credit card means I don't have to carry a lot of cash on me in case I want to buy something and allows me to easily make online purchases. If they charged interest right away... well, what can we really do? Carry mace to protect our cash? Don't shop online? It's a crappy situation punishing the ones who were smart about their money.

I see it all.

I hear part of the reason why people in Germany hated jews, was because they loaned money while the Christians thought it was immoral and only borrowed. I hope history isn't repeatting its self.

On the other hand, nobody is forcing you to borrow money from the credit card companies. There are lots of other ways to get loans which have lower interest rates.

But, to say that someone doesn't need credit cards is laughable -Oh, unless you don't want to get car insurance, buy a house, rent an apartment, or any of the other necissary evils that require credit to get a decent rate.

But, at lease now they tell me when my rates are going up. If you have ever read your credit card agreement, it pretty much says they can do whatever they want, which is horrible. All of the perks, they can be retracted at anytime.

What I think is the funniest part about credit is that you start out with a score of 0. I thought in America it was innocent untill proven guilty. That and the fact that noby can tell you how your credit score is calculated, beside the generic "pay ontime" answers.

Johna, do NOT misrepresent my argument. In a nutshell, my whole point was that the credit card companies are going to change the bargain that was struck (one sided change) and there is nothing that you can do to prevent that change.

Now Capitalism requires a few elements. One of them is certainty of bargain. As I said, in no other market (that I can think of) do we permit an entire industry to change ALL of the bargains that they have struck for no other reason than profit.

By implication, this isn't capitalism (b/c the certainty of bargain - certainty of contract) has been voided. So as a consumer, you are without recourse of preventing this change in the bargain.

The only option a consumer will have is to not use of the credit cards, even though the consumer has lived up to his part of the bargain. This is NOT capitalism, this is exploitation.

Again (just to help Johna out), Capitalism requires (in general, there are special case exceptions) certainty of bargain (certainty of contract - otherwise you have non-rational markets b/c there is no way to predict risk on bargains). This voids that principle in that one side is unilaterally permitted to alter the bargain (contract). The consumer (other side) has no recourse to prevent this change in the bargain. The only option he (consumer) has is to not use the credit card (even though he has lived up to his side of the deal).

BTW Johna, brush up on your market theory b4 responding

Neocongo, making blanket accusations without answer is just being an asshole. Maybe u should cut down, manic depression IS real.

No recourse? Of course there is recourse. Cut up your card and stop using it. Call the company and tell them to either put the terms back like they were or cancel the the card, they're choice. And then go through with it. Enough people do that and they'll get the message. If you don't like what they're selling, don't buy it. It's called capitalism.

You are missing the point (btw, I've only carried a balance ONCE in my life. My credit score and my wife's credit score are very near perfect -- just to let you know that I am not some person crying b/c of debt). They are changing the deal. They are contemplating charging interest right away. --- So, they are going to mandate (one side dictating to the other side in a bargain) completely new terms and obligations on a pre-existing bargain.

Note, there is little you can do since all the credit institutions (or nearly) will do this at the same time. In NO other field (that I can think of) do we permit an entire industry change the obligations and responsibilities with respect to an existing bargain (freely struck) where there is virtually no recourse for the consumer.

Isn't that the truth? I always pay on time and yet they are jacking up my rates like crazy. Not fair, not fair at all.

my folks do not believe in credit, no loans, etc, which is probably one of their best lessons to me growing up. Paying on "credit" means you spend more for something even if it loses value when you actually pay it off, wow thats a genius idea...

The card companies have been notoriously targeting lower income earners, college students and actually expecting them to be late on their payments. The card companies are just parasites. So this proposed legislation is just a compromise between the government and the card companies that lobby them.

Another way to look at it is that those who pay on time are no longer getting a free ride while those who are unable to pay on time are getting thrown on the butthook.

My credit cards are paid off every month. And if my interest rates go up, so be it. The rest of you whiney, self righteous, assholes can suck it.

“Those that manage their credit well will in some degree subsidize those that have credit problems.” No shit, what else is new. Here is a little tip I've learned to keep from paying high interest rates and late fees. Pay your card off, on time, and don't keep a balance on it. Don't buy anything if you don't need it and put some money back for emergencies. And when your friends are wallowing in credit card debt, you won't be, and you can thank Johnny!

Chase increased my interest rate by 5 percentage points on my platinum card. I guess this is their way of rewarding customers who pay on time. I called chase and spoke with a supervisor, he in turn told me I could always pay off the card...Thank for nothing Chase!

It just irks me that they took my tax dollars to bail themselves out, and now they expect me to keep bailing them out by raising my interest rate.

I can't wait to get out of Credit Card debt. I hate those guys with a passion.

Me too uberdeft. I have three platinum cards, never been late in my life. Still they sent me rate increases. I guess they figure they do that to those they know will pay their bills. I called and complained, only one of the cards lowered it back, the other two basically said 'Don't like it, cut them up' .. ah the world of finance lol

Citi sent me a rate increase notice to 29.99%. My limit, about $45,000 and basically only card .. 200,000 airmiles waiting, I think I'm a 'goid' customer. Just like health care the lazy shitnuts average up the cost for healthy people. My balance will remain much closer to zero and I don't even want part of out health care ponzi scheme. See where this is going? Down in a ball of flames, but it will be a spectacle!

Banks used to give credit cards only to the best consumers and charge them a flat interest rate of about 20 percent and an annual fee. But with the relaxing of usury laws in some states, and the ready availability of credit scores in the late 1980s, banks began offering cards with a variety of different interest rates and fees, tying the pricing to the credit risk of the cardholder.