Some regulations were approved against greedy banking malpractices. By simply "playing (more) fair" they give up $12 BILLION they were essentially stealing from their customers.
One such practice was looking at your credit report and seeing another bank lowered your credit limit OR you were one day late on another credit card ( lowering your "credit score" as much as 50 points!). They call it a general default even when they know late payment and especially lowered credit limit are NOT default. Not even incrementally, changing the rate from 7.99% to 28.99%.
The sad thing is they will keep stealing this money from you until early 2010 when the new regulations go into effect, giving them plenty of time to find new ways to steal from you.
They get 3-6% of every purchase even if you pay off the amount in full each month.
Another theft they will not be able to do anymore is double-cycle billing where the average daily balance is magically bloated to get them more interest and compound interest, ..., ... , and then interest an extra month after you pay it off.
~Channing Humphries (originally posted on my MySpace blog December 21, 2008)
Friday, August 21, 2009
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