Credit card companies are suddenly and drastically raising interest rates on people who have not had any credit problems, who are paying their balances on time, and who signed up for a card based on certain agreements which included a specific interest rate. How sucky is that?
Okay, we know that the “fine” print on a credit card application allows changes to the terms which includes interest rates. However, as indicated in this CNN article, Some Credit Card Companies Rush to Act Before New Law , some of these companies have doubled the payments for some cardholders. By the way, these cardholders have done nothing that would justify such an egregious increase in their monthly payment.
It would appear that this rate hike is in response to a new consumer protection law, which will prevent credit card companies from doing just what they are doing now – sudden and irrational rate increases on existing balances.
Do you suppose these company executives where sitting around the conference room table thinking of ways that they could “get even” with lawmakers for regulating their industry? What better way than to screw over their own cardholders. Sounds like the answer to me. Let’s mess with the cash flow of a few million consumers. Seems like a sure fire way to solve the country’s financial problems.
This business strategy is not about dealing with consumers who have been fiscally irresponsible – no indeed. It is about greed!
Well, I guess I should feel sorry for these executives. Why? Because they are sad little people who have implemented a business strategy to punish cardholders for a law that was a direct result of their inability to regulate themselves.
Obviously if these companies were not acting like credit vultures, then we would not be looking at new regulations. DUH