Was listening to the news this morning and heard what I think sounds like good news. Who knows what the repercussions will be of the actions the fed have put into motion. More inventive ways to stick it to unsuspecting credit seekers? Opinions? Discuss. http://www.cbsnews.com/stories/2008/12/18/ap/business/main4675050.shtml My take is that the predatory lending tactics I've seen practiced are finally being taken dealt with. Such as: Raising interest rates up to 29% by default for being one day late. Across the board hikes for other cards if the above happens. Credit not being trashed if a day late. I've personally had a card go to the default rate before. I had been having a problem with this card company anyway charging me late fees when I damn well knew I wasn't late. I even went so far as to write a check and send off the bill the same day as I received it in the mail...and it still posted late! Called the company and was told they sometimes held checks "in house." Here is what I see as potential positives: More stringent guidelines for creditworthiness. (Some people shouldn't go anywhere near credit IMO. If you have to pay bills, or other credit with credit, you are in trouble.) Checks and balances for the people against powerful credit card companies. Honest reporting on credit reports. Moderating of high, unreasonable fees. Any comments? Stories? I think this is a long time coming folks.
agreed Better protection for consumers can only be a good thing as there are so many unscrupulous firms out there all to willing to exploit people. I'd be a little concerned about restrictions on sub-prime lending at the moment though. There are so many individuals on the brink of financial disaster that cutting off supplies of credit could lead to a wave of personal bankruptcies (sp?) with wide spread knock on effects. That said these are people who probably shouldn't have been qualified for credit in the first place. So long as provision is made for supporting them in the short/medium term while a transition takes place it should be ok.
Well, I hope that there is some sort of stand taken on these practices. Many calls that I take during the day are about these very subjects.
In the USA, any payment is legally considered "received" by the adressee on the date the envelope was received by the USPS (mail). If you think you're dealing with a company that is not acting in good faith, simply send youR payment by certified mail and you will have a receipt the proves your date of payment. You may still have to "prove" it to the customer service representative when you call to complain about their late charge, but that receipt will force their hand...especially when you threaten a class action lawsuit.
At the time in question I was dealing with Direct Merchants Bank. They are crooks. I was sending double the minimum payment on a card I had cut up 3months prior, and my balance was going UP every month. At first, I tried what you suggested Salty. But my check would still post late. When I confronted the service rep and told her I had proof that it was there on time--trying to get the late charge for that period removed--she said she couldn't help me. I asked her what we could do about this. Guess what her response was? Just quit paying on it... WTF!!! So here is what tricky me did. I sat down and figured up what I actually owed, then opened an account with another credit company that offered an introductory rate of 0%. I transferred that amount and followed the service reps advice on the portion I felt I didn't owe; meanwhile getting my ducks in a row by making a complaint with the better business bureau and hiring a lawyer.
It's experiences like yours that take me back to 'Nam...it would be sooo much simpler to just pull the pin and roll it...alas, fantasy is such a temporary pleasure! LOL
Absolutely! I've been doing that for several years now--except for my home mortgage of course. Everything else gets paid in cash and I have a bank card that can be used as a credit card for online purchases. I have zero CC or automobile debt. Marina, you are wise!
And keep your money in a fire proof safe in your house, but don't give Cogito the combination (a remembered joke). That's all the wisdom I got.
