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Monday, November 2, 2009

Credit Card Companies Evil Deeds


"5 evil things credit card companies can (still) do". This is the title of an article on Yahoo.com that speaks about the credit card companies abusive practices. Though this article was originally posted in CNN Money, it is still very relevant to us and reveals better understanding of the credit card company abuse.

Here's the brief 5 point summary:
  1. Rate Hikes
Interest rates of credit cards are out of this world. They can charge as high as 36% p.a. And take note No current laws cap credit card interest rates. I hope our leaders are seeing this area to help people get out from abusive credit card companies charging interest rates to the neck.
  1. New Fees
Not only are the rates high but fees are injected. If you are a card holder take notice of the fees, finance charges and annual fees previously offered free. What is this annual fee by the way? are they issuing card on an annual basis? or people are just charge for convenience of using it? it's not really fine it is rather not justified.
  1. Higher Minimum Monthly Payments
Observe it. Credit card companies demand higher monthly payments to consumers. This has been acted upon by US for their people. I just pray our congressmen act on this too to protect consumers.
  1. Fewer Rewards
Beach vacation, laptop, and ipod? well its no more. Companies only reward you for swiping the card and not for paying cash on your purchase. So what about the "rebates" well forget it, it will not happen.
  1. Slashed Credit Limits and Cancelled Accounts
Notice the slashed of credit limits for those who have the cards. You'll be surprise it'll be up to 75% reduction. well what shocks consumer more is knowing their credit cards have been cancelled, and that happens without any calls from companies.

What's a Cardholder to Do?

Consumers must pay close attention to the terms of their contracts, staying alert to any changes.

"It's boring reading, and it can be hard to understand, but that's where everything is spelled out,".

Of course, while there are laws aimed at helping consumers, legislation can't do it all.

And if you don't like your credit card's new terms? "Shop around.

And hope for the best in Cooperatives they're actually our hope.

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