President Obama to Convey to Credit Card Execs INSTANT DISAPPROVAL!

This will be entertaining. Obama wants lower interest rates so people will spend and default more.
Perfect.
The result will be less credit and more expensive credit.
When does Obama demand more responsibility from those who spend far more than they could afford?

“This will be entertaining. Obama wants lower interest rates so people will spend and default more.”
No he doesn’t… he wasn’t to stop credit card companies from picking peoples wallets. I think the article makes that clear.
Please tell me exactly how it helps to make it MORE difficult for people to pay their debt back by jacking the rate up to 30% and tacking on additional fees and penalties?

“Credit card companies, however, say many of these steps are necessary, given escalating losses due to consumers who default on their credit card loans.”
In other words – once again those who do pay their bills are stuck paying for the ones who don’t or can’t. Haven’t we been here before?

These guys are charging 35-45% on cards. A couple of decades ago, anybody caught charging that would be put in jail as a loan shark.
Thank you Republicans for making loan sharks legal!

Here’s an idea. Don’t give poor people credit cards. Sure, they’ll spend, but it won’t be a dime of their own.
Irresponsible choice making for an irresponsible nation.

Wonder if Obama’s card gets declined next time he’s out for dinner?

They need to stop charging for foreign currency exchange as well. They already make money on the differential value of the dollar. If I charge a meal at a foreign restaurant they charge a few dollars. When I charge the hotel bill they charge the same rate but now it is in the tens of dollars for the exact same process. This too, is an abusive charge which they do not tell you about until you get the bill a month later.

“Well isn’t what your saying is that would be a good thing if less people had credit.”
In a sense, yes. But credit will be worsened across the board. It’s way tight right now, and worst of all it’s tight for worthy borrowers.

About god damn time.
Hi. You’ve paid ontime and online, but we still charged you late fees again. Thanks to a new series of rules we posted online in the smallest possible font on a paper bill you elected not to receive as part of our “Less Paper/Less Landfill” drive. You wont know for at least 30 days that we then upped your interest rate due to the late pay on your monthly statement from 8% to 32.95%. What you have other credit cards? Those have now been readjusted from 7-11.95% to 32.95% interest rates.
All those bastards should die. FIGHT CLUB!

What about the high fees charged to customers already late? Isn’t that putting more gas on an existing fire? IF SOMEONE CANNOT AFFORD TO MAKE THEIR PAYMENT, HOW CAN THEY AFFORD THE EXTRA HUGE SLAP FOR THE LATE FEES? It’s just STUPID!

wonder how much of that 1.3 billion increase in default is due to unfair increase in interest rates? My husband was paying and doing well, but had limit reduced to $1 above his current balance for no reason and they mailed the statement 1week before payment due. Lucky for him he takes care of his business online and he was able to react quickly. Nice try Chase. We are done with you.

About time I am sick of these Credit card Compaines Rasing My Interest Rates I have never been Late and always pay them off. I dont use my credit cards anymore i went from 9 percent to 21 percent and was never late they must be stopped!

I agree the credit card company is nothing but organised crime.
I had a score in the high 700s last Aug. so me and my wife bought a new car. All seamed fine i even paid my only high credit card down to nothing, and what happened.
Bank of america said I had a high debt ratio so they droped my limit nearly 7 grand. This put me over the 50% ratio causeing my score to drop to 600 something. They Have a monopoly on the system and are able to keep people right were they want them.
They also get 3% of every credit card transaction even debit cards used as credit. Thats a lot of money for doing nothing. but they still charge 20% interest. NOTHING BUT CROOKS

Who will be first to say these new rules are racist?

DR. JOHN…wrong. I pay on time, every time. I pay more than the minimum. I owe less than 35% of the credit line available. My rate was scheduled to jump 5 percentage points.
I called B of A and, politely, had a fit. I was told it was “due to the economy.” I asked…how was it logical to raise interest rates, and therefore minimum payments, in a time when the economy is so bad. You have people who can barely pay now…they’ll stop paying in the future due to this. Because they won’t be able to pay. Then it’ll get shuttled off on those of us who still can pay. I asked him what he thought would happen if those of us who still could pay got so ticked that we just stopped paying, too?
Jacking interest rates over 20 and 30% on people who are not in default is going to put a percentage of them into default. If those people decide to just stop paying…rather than trying to absorb all the late fees and over the limit fees that companies will tack on every month…and go into bankruptcy, then the best the compnay is going to get is a third of what’s owed. AND that’s only if the personl doesn’t qualify for a bankfuptcy that totally wipes out all debt.
I’ll tell you something else…due to people losing jobs and either not being able to find a job at all or accepting ones for less than half pay just to have a job—the number of bankruptcies where all debt is wiped out are increasing.
My own brother just took one. B of A is sucking lemons on that one since my brother had both personal and business accts with them. His business tanked due to the economy and he got behind…but he still paid. He got caught up and the rates lowered for a few months. Then…even though he was current and didn’t charge any more, the rates bounded to over 30%. He just stopped trying. He closed the business, stopped paying, and took a job working for someone else. He qualified to have all debts wiped out. The banks lost tens of thousands, just on him.

I recently wrote this to B of A
To Whom It May Concern:
I have used my Montana State University Alumni Association credit card since 2005 as a proud reminder of my time spent at that University. In using the credit card, I have abided by every rule set forth in the credit card agreement, though I have built up a balance. I am very disappointed to see that Bank of America is now attempting to change this agreement. My fiancee also recieved a similar change in her credit card agreement. Regardless of current legal definition, I believe that this should be a predatory lending practice that should be covered under borrowers’ legal rights. Please let it be known that I will also be forwarding this letter to my state and federal representatives here in Orlando Florida, as well as local newspapers, tv stations, and radio stations.
Bank of America states on the notice of Amendment that “(It is) making this change to your Annual Percentage Rates due to a change in our business practices, and due to the pattern of payments and Annual Percentage Rates on the account.” The only changes to the pattern of payments I have made recently is to make more payments per month and in larger amounts. I do not believe that the decision to change my APR was based in any way upon my “pattern of payments.” I do believe that it is based upon the 7.99% rate that I have been paying for the last four years, and Bank of America’s recent risky business practices. Bank of America, as well as nearly every other bank, took on risks that it did not understand, and it is now attempting to penalize its customers for the cost of those mistakes. Shame on you. Apparently tax dollars are not enough, or Bank of America does not like the terms of those tax dollars. If you don’t like the terms of the tax dollars, you should have rejected them. Please do not pass the cost of those tax dollars on to me, I’m already paying for them. Once is enough.
With the projected change in APR, the amount of interest I would end up paying on this account will nearly double. From the perspective of risk measurement, I have not become a riskier client. To the contrary, my account balance has been decreasing. In understaning risk myself, I must make my decision based upon what I know about myself and Bank of America. Since I am in good financial health, and it is Bank of America that is on shaky ground, I plan on taking advantage of the current promotional 0.99% interest on balance transfers. I also reject the proposed change in our credit card agreement, understanding that I may no longer make charges to the card following the rejection. The current benefits of using the card under those conditions does not match the cost. Once my balance is paid off, within a year, I will likely resume using the credit card for my monthly expenses, paying the balance each month as all responsible consumers should do.
Sincerely,
Nathaniel ————

Go Obama! Credit Card companies have earnings that make our GNP look like pocket change. This industry is sitting pretty while the rest of us pay for the caviar for his dog. No question in my mind-they need the reigns pulled in.

What’s a credit card?

Here’s one that BofA tried to pull on me:
When my paper statement failed to show up in the mail, I paid online, two days before the due date shown on the website.
A week later, the paper statement arrived in the mail, showing a due date the day BEFORE I paid online. Of course there was a hefty late fee.
When I went online to check, the due date had been scrubbed from my account, and was not included on my payment confirmation.
I raised holy hell and they backed down.
Unbelievable scheming CROOKS. Obama needs to straighten out this mess. Give ‘em hell, Barry!

Because of their intimidating and threatening tone CC companies are always the ones to get paid first and on time whenever I have to make a choice. I would much rather pay my other bills / obligations first – doctors, utilities, etc. I NEVER have gotten a notice of term changes from ANYONE I owe money to except CC companies – and it is always in their favor. They are constantly offering to increase credit limits (never accepted of course) and then they turn around and raise the rates. It is as if they can’t make money one way, they try another.
It is about time the government put a stop to these usurious practices!

“The result will be less credit and more expensive credit.”
Good. The less consumer credit at this point, the better – particularly for low-income and/or poor credit clients. Bank executives have admitted that they make most of their money on people who have trouble paying on time; that’s why they had to make it harder for people to declare bankruptcy, so as to keep their “portfolios” viable.
American business has become a community of entreprenuers – entrepreneurs at screwing each other.

“Frankly he is what you get when a majority of Americans vote for someone out of hatred for a prior president”
Yes… we get a vast improvement over the previous President. Hatred for Bush
wasn’t the reason I voted… realizing we could do better was.
…and we have.

Collusion: an agreement, usually secretive, which occurs between two or more persons (Banks) to deceive, mislead, or defraud others, or to gain an unfair advantage. It is an agreement among firms (Banks) to divide the market, set prices, or limit production when rival companies (Banks) cooperate for their mutual benefit.
Prime Rate: underlying index for most credit cards over which Banks charge additional interest to make money – as of 22 April 2009 it is 3.25%
Fed Funds Rate: interest rate that Banks charge EACH OTHER for money loans – as of 22 April 2009 it is 0.25%
How can Banks justify a loss which such advantageous interest rates for themselves, and outrageous 21% to 35% interest rates for the Consumer??

If your card was issued by “FIA Card Services”, now owned by Bank of America, please remember that it’s just the renamed, flaky old MBNA who, in the 1970s, was enticing college students to get their credit cards, even though they had no regular job or means of paying the balance. Send a powerful message to BofA by refusing their FIA Card Services cards. Send a message to Obama to butt out and mind his own business: This isn’t Nazi Germany or Fascist Italy (yet).

I’m paying my credit card bill on time and most of the time I sent twice as much as the required minimum payment. I was never late but they Bank of America, sent me a letter that they will change the contract that I signed with them. Why should I be punished for their mismanagement of the company? They might as well change their name to “Bank of Deception for the Americas”. Although I didn’t vote for President Obama, I am very grateful for him for standing up against these crooks. I honestly can say now that I made a mistake for not voting him into office. God Bless you.

This is perfect.
You have a wealth bubble that has for the last 30 years or so been driven almost solely by debt, both public and private. So how do you get out of it? Encourage more debt!
America is going to have to face the facts, we’ve been fueled by foreign money and as a result we’re not nearly as rich as we think we are. There will be no recovery, our artificial standard of living is going to come way down. The debt must be liqiudated before we can start over. An ugly reality that has to be faced.
The problem is that our idiot king Obama is trying to encourage even more private debt while at the same time jacking up public spending to undreamed of levels. A recipe for apocalypse.

Angie,
You are given a notice 30 days prior to your rate changing. You have the right to close the account if you do not like the increase. So, why didn’t you do this?

The next logical step for these credit cards and mortgages in keeping with his “economic justice” “income redistribution” theme is to pay off the mortgages and credit cards, and let the taxpayers, at least the diminishing percentage of citizens that pay taxes, foot the bill.
This is where things are headed.
Posted by: MNM | Apr 23, 2009 10:24:58 AM
——————-
This is probably so. Obama is stoking the outrage in order to gain support when he makes the move and once again scr@ws the taxpayers to pay for those who bit off more than they could chew.
This is another Obama dog and pony show with another agenda beyond the obvious.

Obama is not going to do anything, his left wing facist regime needs their money to run again
The Culture Of Corruption in the democrat party will remain untouched, and unreported, The thugs and criminals sit in washington DC..How m any democrats involved in tax fraud, sex crimes, spying, pay2play, ethics violations, and campaign fraud? is it 26 now?

I deeply regret voting for Obama. I respect the presidency, but I strongly question what he is doing. The credit card anger, bonus anger, GM anger are all clever PR stunts, to make sure no in focusing on the real theft that is going on.
Why is he giving $3 trillion to the banks through the PPIP program without asking congress, or getting a second opinion ? Why is he forcing the media to not focus debate on PPIP? $3T is $60000 in taxes for EVERY family in US. $3T puts every 15million people back to work for 3 years AND solves healthcare AND rebuilds every school AND change to spare.
The banks are going to steal $3T with Obama/Summers/Geitner/Paulson/Bush’s help while you gloat over your “$40 late fees” victory. That is $60,000 from your family in taxes.

Here’s my recent email to BOA that fell on deaf ears….and FYI – I carry little if no balance – only used for large temporary purchases and scheduling hotel and airline reservations….”Please pass on my sincere regards to your CEO and board of directors as to their recent “business process change” decision as I’d like to be the one of the many 800+ FICO score holders that will be cancelling an account in the next week or two. I received a notification in the mail that my 8.99 fixed card was moving to a variable 14+ percent. Upon making contact with two BOA representatives I was not treated like the 20 year loyal on-time paying customer that I have been, but instead treated like some non-abiding, non-paying, idiot. I assure you sir that my word of mouth advertisement of BOA and its subsidiaries will not be kind due to this uncalled for snide disrespectful treatment. Oh – one more thing…..I’m sure you are aware that business decisions have consequences, some good, some bad. I am assuring you now that by making the decision you made to antagonize good credit worthy customers, a consequence of your decision is the inevitable down-turn in BOA stock ratings and the like. Good luck on your future bailout attempts as I am sure you will be facing that exact scenario in the not too distant future. I WILL NEVER, EVER, NEVER, EVER use any BOA related services or products for the remainder of my natural life. PS – just got back from my credit union – will be receiving my fixed 8.79 credit card in the mail….will be cancelling BOA….Regards….R Williams”. If you’re thinking about BOA stock forget it – unless you love losing money…!

Stdnt Driver
They did not give me a notice The Increase was Just in the Next Months Statement NO NOTICE Just a Little Memo on my Statement saying they have Increased my rate AFTER THEY INCREASED IT And I have closed my account!

The Republicans always claim to be the fiscally conservative & responsible ones, but when in power, led by George Bush, they sure screwed their Good Christian voters. Usury laws, (preventing excessive interest rates, etc) based on the Bible, (and good sense), that had been around a long time, had been dismantled over time. IF the Republicans cared about the people, they would have reinstated those laws. ALL the politicians are at fault. Some for doing the wrong thing, and the others for NOT standing up for what is best for ALL the people (not just the rich ones).

fedup29pct – you are incorrect. The cards are bank owned. The Visa/MC/Amex brand are associations. Very big difference. Prior to Visa’s IPO, it was owned by banks. The purpose of these associations is to ensure that their (the banks) standards are being met whether it be security, signing, etc. Visa/MC/Amex do not own the debt…nor do they issue any cards.

“This will be entertaining. Obama wants lower interest rates so people will spend and default more.”
Huh? That’s asinine. Unless he’s suggesting credit limits be increased what you’re saying makes no sense whatsoever.

“When does Obama demand more responsibility from those who spend far more than they could afford?” =====
You mean like the Federal Government (i.e. ‘us.’?) Good idea, but I’m still waiting. It seems neither party really wants to balance the books in D.C.

I paid finally paid my credit card our, and properly disposed of it.
Well, now I can’t get a rental because I don’t own a major credit card.
The banks has us my the strings…for lack of a better word!!!
Also, those of you whom are republican or whatever…will never agree on anything the President do or say, even if it actually benefits you.
You dear people are the real reason our country and policies are so screwed up.

I’m not about to defend every choice the credit card companies make. But I’m not sure why POTUS needs to bring in the CEOs. He won’t be writing the laws.
I’m guessing he wants credit for the public shaming of the greedy greedy companies.

Why are we claiming credit card companies? Most of Republicans in Congress are strongly supporting their practices. If you have enough money to pay off your cards every month, why do you need to worry about interest rates? Watch and see Republicans in Congress will unify to defeat any bill that is against these companies’ interests!

msrose…Cancel your cards or pay off your balances..If you own a debit card with an credit company logo, you CAN get a rental..That is if you have money in your account, your problem not the banks.
Actually as an Independent, who leans Republican on Economic matters, I see no future benefit to Obama’s plans whatsoever. He is spending beyond his/our means, 787 billion stimulus, 3.6 billion budget, and the bills will have to be paid for one way or another by higher taxes or lay-offs. One trillion more in deficit spending means higher inflation down the road…
As far as “screwed-up,” this mess has been in the making for years that truly began with the Clinton Administration who with Barney Frank insisted on softening Fannie Mae and Freddie Mac regulations on loaning to people who could never afford to pay back their huge mortgages..Once interest rates began going up in the Bush Administration,everyone wanted to jump on the band wagon and get unregulated loans thus demand went up for money, causing supply to go down, and caused the interest rates to increase the ARM’s went up thus monthly payments went up and foreclosures began to happen…
Yes, I am sure we will recover at some point, but at what point, I am not referring to time but at what standard of living…We Americans work hard but we are also spoiled for the comforts of life..No I don’t think Obama will get us back to where we were and I truly believe he is making a bad situation worse…It is not only the banks who are at fault here but irresponsible politicians and human nature….

Thank God something is being done, but will it be enough? Many people who have been responsible are now being affected. It is morally wrong!. Credit lines being cut, sorry this affects your credit score, interest rate hikes, etc.
If something is not done the deliquency rate is going to skyrocket and who is going to bail them out.
Most people who are in trouble need TIME, not harrasing phone calls, higher interest rates. If consumers are going to loose everything then do you think they are going to feel obligated to get this paid down?
However, if CC companies actively worked with people, most understand the importance of credit and would strive to keep it.

If you charged your credit card and can’t pay it off the next month, then you could not afford the purchase in the first place. You should have thought about that before saying CHARGE IT.

“I deeply regret voting for Obama. I respect the presidency, but I strongly question what he is doing”
Why weren’t you questioning Bush when he added 5 trillion to the debt? Thats unbelievable.

“The President’s own half brother was denied a visa.”
That made me laugh

Interest rates aren’t the real problem. Paying down the principal is. Credit card companies should be forced by law to allow at least some percentage of every payment made to go toward the principal. Otherwise they’ve got consumers where they want us — permanently indebted to them!

Why weren’t you questioning Bush when he added 5 trillion to the debt? Thats unbelievable.
Posted by: Patrick | Apr 23, 2009 2:13:49 PM
———–
We were complaining all the way.
Obama is scored by his own CBO as creating a deficit, this year alone, of 1.85 trillion.
That did not even include his handouts of 1 trillion to the IMF and 1 billion to Pakistan, or the Tarp run up to 3 trillion dollars.
Obama has made all the presidents combined that preceded him look like misers, He is on course to completely devastate the economy and our future.
Whatever trouble he inherited he has multiplied over and over again
Quite an accomplishment for just 100 days
All that assumes he just stops spending now for the rest of his 4 year presidency. We know that won’t happen

Cutting credit card interest rates retro actively and forward moving is the one thing Obama can do that will spur the economy forward. If people know they might be charged 29% on a credit card loan – there is absolutely no incentive to spend. And if you charged items and the credit card companies suddenly increase the interest then people are stuck with 29% interest vs. the original 6%. Discriminating credit cards more than housing have put the halt on spending. Banks would make more if the cash flow of spending and paying were free flowing.

The Credit Card Issuers have the same attorneys that the CIA Torture Guys used.

Since they foreclosed on your home and you won’t finance a new car.. just use your mortgage and car payment money to pay whatever the bank wants to charge you for your consumer credit interest and fees… and all the gas money differential that you have accumulated… oops.. forgot.. unemployment benefits don’t stretch that far.

“How m any democrats involved in tax fraud, sex crimes, spying, pay2play, ethics violations, and campaign fraud? is it 26 now?”
How many republicans been bribed my military contractors? How many have received massive donations from KBR and Halliburton? How many want to build bridges to nowhere? How many are nothing but shills for tobacco companies?
Et cetera…

“Just saying – even if you are very careful about payments, the CC companies are definitely still looking for ways to trip you up. And…I need to switch to a new company.”
Did you ever hear of automatic withdrawals? Works great. Also you can pay online the day you get the bill. That works great too.
The credit card companies don’t trip you up. You trip yourself up. If, for some reason, you can’t use the tools the Banks give you to pay the bill on time, DON’T USE THE CARDS. Your choice.

I’m faux Gibbs:
‘..why don’t we just enforce the ‘bill of rights’ that we already have..’

Forgot to add: good point on the auto withdraws. I prefer to write checks for all of my bills, but I realize I’m in the minority on that one (in an ever-widening gap). Switching to auto pay would probably make my life a lot easier, LOL.

You can always shop around and transfer your balance with a new credit card company. Al the major credit companies have 0% balance transfers for up to one year.

Uproot all credit card companies. We do not need any credit card companies. Let people leave within their own means meaning, let them use their own money from the debit cards.