Day 16 NaBloWriMo Trick or Treat

It's no trick and it sure isn't a treat.

There was all this talk about the Feds taking a swipe at the credit cards:

~~ The credit card companies can't raise the rates on existing account balances. They can only raise rates on new credit cards and future purchases or advances. It's supposed to be a "sweeping clampdown on the credit card industry in decades and aimed at protecting consumers." ~~


Oh what a treat you say?


Think again.


This takes affect when? July 1020. Time to give the credit card companies an "adjustment period" to make sure all the programs are corrected. Uh Huh... sell it to someone else. When I heard this on the news, I turned to Greg and said, "Just enough time for the credit cards to hurry up and put the screws to people."


What are the credit card companies doing RIGHT NOW?

Do NOT treat it as junk mail when you get stuff from your credit card. Read the fine print.

Greg and I have excellent credit. You know my line of business, so you know that I know what I'm talking about. Not only do we have excellent credit, the credit cards that we do have get paid out each month. Our credit card rates range from 4 percent up to 7 percent.


We'll use a credit card if the company gives an option of 0.0 APR for 18 months. Such offers by the credit card companies (zero interest) is all given in the hopes that the customer will be lulled into the safety of the "low monthly payment" and forget about the looming interest after 18 months. Heck, I don't mind borrowing their money for zero percent interest when I know we'll pay it off long before the 18 months is up.


So, let me share with you the "tricks" in the mailbox. The credit card companies are sending "changes in your account" statements. They are sky rocketing the rates. From 7 percent to 21 percent! Yep, you read that correctly. On excellent customers who aren't keeping a balance with them, BAM! Let's slam a 14 percent hike in rates down our throats.


Oh, but OH - they are giving an "Opt Out" option. Why yes they are! Look how grand these companies are to give an "Opt Out" option - if I don't want them to INCREASE MY RATE, all I have to do is send a written letter that I want to Opt Out of the Credit Card Rape and Then, THEN... all that happens is that they close the account and the balance is DUE IN FULL.

For me, no biggie. I don't carry a balance, but for other folks. I'm thinking I should be an attorney right now, because they are going to get filthy rich filing bankruptcies for people loaded to bear with credit card balances.

If you have a credit card, do yourself a favor - get out from under it. Halloween isn't the scariest part about it. The credit card companies are sneaking in the changes right before Christmas time, when people are known for spending more, using the credit card to buy online and shop all those great sales on credit. (Already the stores are putting out Christmas displays..)

Tighten the belt, lock the credit card in a safe, do whatever it takes. Let's get back to basics - if you can't afford it, don't buy it.

Comments

larkswing said…
Excellent! We have noticed the notices coming in with the wonderful "opt out" option. Right.
We did/do have one balance left from the shop. We will pay it off out of savings. The budget cc payments then will go back into savings. Ahhhh, no credit card card company to deal with after that!

I hope the majority of credit card debt gets knocked out quickly and the companys feel some pain for what they are pulling.
Thistledew Farm said…
I heard about some of this but you've opened my eyes on others....sneaky SOB's! I also heard about people who pay down their balances the credit card companies are reducing the available credit so the payoff won't improve their credit scores. Greed is a crazy thing isn't it?
Theresa said…
omg!!!! I have never been happier than right now that I don't have ANY credit cards. We made the "young and stupid" mistakes when we first got married and ended up having to file for bankruptcy and I have learned to live without a credit card. I don't know that I'll get another one.
Chris said…
An important heads up, and great advice. You have probably helped someone avoid a very unpleasant surprise.
Gayle said…
Hi Aleta! Thank you for visiting my blog! You are so right on this. Happily I carry no credit card balance. We live by the rule that if we can't afford it, we don't buy it. Great information here!
Not Hannah said…
Thanks for the heads up! We have a very low balance on our account and settle up every month, but I will definitely be sharing this with the hubs and making sure we stay on the same page in the future. Yikes.
Helen Ginger said…
Very important information. We're like you, we never carry a balance except for two occasions when there was no interest if we paid within a certain time period. We made sure we paid it.

Helen
Straight From Hel
Hart Johnson said…
Excellent advice. I hate fine print. I wish there was some way to just force businesses to do the right thing... When I rule the world they'll have to. Just keep that in mind, eh?
Grand Pooba said…
Really, this actually is happening? That is just crazy to me!
Carma Sez said…
Excellent and illuminating post.
The credit card companies view those of us who pay in full each month as "deadbeats" and are going to go out of their way to try to trip us up somehow!
Aleta said…
Reading these responses makes me happy ~ so many of ya'll either don't have credit cards or are paying them monthly, not keeping a balance. This is wonderful! It gives me hope that Americans aren't so far over their heads in debt as the media would make it. I know it's a small snippet of replies versus "America" - but it's a good sign!!!
Anonymous said…
Oh yeah, the junkmail thing I learned the hard way. Our loan was bought out by another bank and we were getting all these things from the this bank in the mail that I kept throwing out thinking it was junk mail, come to find out, it was our bill that was now completely past due!
septembermom said…
Excellent post. We all have to be on the lookout for the fine print on these notices. I needed this reminder. I'm going to pay closer attention now. Thanks Aleta!!
Unknown said…
We are the credit card companies and we are your friends. Just ignore the vicious little man in the corner. {8grin*}

I seem to remember the credit industry doing the same thing in the late 70s and early 80s when the gas shortage was upon us.
Holly said…
"Opt out" option?! I have an even better one for you. Just two days ago, hubs went to get gas, but his credit card was rejected. It's a gas company credit card, and we only use it for gas, paying it off each month. We get a 5% discount using that card at that company's stations.

So he returns to work, calls them, and all they will say is that a letter is in the mail cancelling the card. WTF?

Thinking there is some weird thing going on with his credit he doesn't know about, he researches it through the credit bureaus, and finds his credit score is almost 800, and that EVERY. SINGLE. ACCOUNT. has a "GOOD" and "CURRENT" rating for the past 24 months (history only goes back 24 months, not like it was bad before that - just sayin').

The only thing we can figure out is that the gas company is trying to do away with the 5% gas discount, so is cancelling all the cards that were issued with that offer. Pisses us off to the max. We'll never use that gas company again. Ever. We'll get a different credit card from a different gas company and THAT gas company can get all our gas money. Go suck ass Shell.