Here's a great idea to stimulate the economy....Credit card interest limits

[TnDem]

Have Pelosi and Reid draft a bill that CC companies can charge no more than 1% above the prime rate for ANYONE holding and paying on a credit card effective immediately.

Can you imagine what a "simulus" that would be to the economy when millions struggling to pay their 17-24% cards every month could actually make the payments?

[EFerrari]

1. TWENTY FOUR PER CENT?!

:wow:

[annabanana]

2. yeah.. And if you're late once it can go up even higher...

This is what Edwards was talking about when he said "so now there's NO limits" during the debate..

[EFerrari]

9. Unbelievable. When I was a single mom and a grad student

there were a couple of years where I had to use credit cards to pay for groceries and shoes. It was awful but nowhere near THIS kind of awful. My heart goes out to anyone with kids in this predatory economy.

[meegbear]

6. That ain't shit sunshine ...

when the law went into effect, my cards went to 28% (Chase) to 31% (Bank of America). Went into debt consolidation to get then down and to help pay them off (paid off in another year).

When they agreed on the plan, they both sent letters. Chase said they understood and allowed me in. BOA said they understood, allowed me in and said I should really learn to handle money better(!). Like THIRTY-ONE FUCKING PERCENT INTEREST had no bearing on this.

[EFerrari]

7. Omigod. I paid mine off a long time ago and cut the mofos up.

I thought things were bad back then at 18%. THIRTY ONE PER CENT?! I'd be reduced to eating my statements. :wow:

[TnDem]

11. Welcome to many thousands of people in the country...

Sure, they got the cards and used them, but goodness gracious..

That's why legislation like this would TRULY stimulate the economy.

This is the hidden multi-billion dollar story in the US right now.

The $300-$1200 "stimulus" will barely pay a couple of months interest payments for many people.

[meegbear]

12. Yep ...

and I will NEVER do business with BOA for the rest of my life.

[EFerrari]

16. They cook their books. I have an account there and am looking to switch.

They shuffle your account activity so they can impose bank charges -- which I read recently, is their biggest source of revenue.

If I had done that when moonlighting as a bookkeeper, I could have been charged with a felony.

[meegbear]

18. I was actually gonna drop them a few years ago ...

I changed jobs and was getting paid once a month (ick). The pay date was around the time they do my monthly statements, and I would have enough money there to waive the nickel and dime fees. So, they moved my statement date, and viola!, monthly fees.

I am now with a credit union and haven't looked back.

[Cant trust em]

3. How does the prime rate get established?

When the Fed. Reserve Bank talks about cutting interest rates I think that CC rates are included. Could someone confirm this for me?

[TnDem]

8. Prime is established by the FED and Central banks

However, that has ZILCH to do with the rate that is charged on credit cards. If you get a card on a variable rate, it is tied to prime plus X dollars. If you are EVER late one day with a payment, your entire balance ca go to 17%, 24%, 35% or whatever the Hell they want to charge.

I'm telling you guys, this idea is a winner with voters and except for Chase Manhattan.

And they wonder why there is no "liquidity" in our economy? I can tell them why...When you are paying 25% interest on a loan, basic math tells you that any "liquid" cash that you have would be gone that month just to keep up with the interest on the loan.

Friggin legalized loan sharks.

[Lydia Leftcoast]

17. It used to be ILLEGAL to charge above a certain level of interest

It was considered loan sharking and would land you in prison.

And despite their sky-high interest levels, the banks are still having trouble keeping afloat. Gee, do you think that if maybe their interest rates were lower and so many people weren't defaulting that their balance sheets might look better?

[annabanana]

22. There WOULD have been a cap..

But Congress couldn't agree on what the cap should be, so.... there's NO cap!

[harun]

4. They should do that for a year and then cap them at 15% as

the highest rate they could charge.

One of the presidential candidates should bring this up, they would get tons of support from people. The financial industry would work to destroy them though.

[annabanana]

5. Now THERE'S a good idea. With the Fed cutting and cutting-

When's some of that cutting going to "trickle down" anyway?

[EFerrari]

10. But they'd never do it because it's not as sexy as promising a check.

Our government is homicidal.

[Freddie Stubbs]

13. A lot of banks would likely stop issuing credid cards to those with less than perfect credit

We can argue all day whether or not that would be a good thing.

[TnDem]

14. What would be bad about that?

I'd rather work two jobs to pay as I go than to pay $175 interest on a $25 loan...That TRULY is financial slavery and there are thousands that are in this predicament and are totally at the mercy of Chase as to whether they pay $300 that month or $400.

By raising the rate on the card 5%, you can make a monthly bill go hundreds of dollars higher.

[Kansas Wyatt]

15. And everyone thought Loan Sharks were illegal.

What Representatives are in the pocket of Credit Card Companies?

Seriously, there needs to be an official government website that clearly lists who is owned by what Corporations, and how those Representatives vote on issues relating to those Corporate interests against 'We The People.'

[annabanana]

21. Not for a long time...

Now, you'll probably get a better deal from Cousin Vinnie

[Oilwellian]

19. I totally agree

We co-signed a loan for my son to get a car and he was late on one of his payments. (Kids! !@##%$^$^!@@) The next month we found our interest rate on most of our credit cards went from 8-9% to 21-28%. So not only are you subjected to an interest hike because you're late on one payment...ALL of them can raise their interest rate on you because you were late on that one payment.

Needless to say, we chose to take a hit on our credit for a while and sought the help of a credit counseling service that talked the companies down to a 9% interest rate. We would much rather take the hit and pay down our debt in a short amount of time than paying for YEARS on this overblown and downright thieving interest rate. We'll be finished with this debt in 6 months and we will NEVER play the credit card game again. All of you young adults being wooed and cooed by these jackals, consider yourselves warned!

[EFerrari]

20. Good God! They ARE jackals!

My finances have been so simple, I just never realized how horrible this situation has gotten.

Young people are such a natural target for these creeps, too. :grr:

[pitohui]

23. high risk people would lose their credit cards -- they'd be canceled forthwith

some stimulus