Legal Loan Sharks?

I was talking to a friend the other day and we some how got on the subject of credit cards and how these company's have no scruples or most importantly, government regulation, they seem to pretty much do whatever they want.



My friend said that just one of his credit cards which he has had for 13 years, has never been late, is not near or over his limit and his credit is excellent received a letter stating that they are cutting his limit. They cut his limit right down to what his balance was which leaves him no room to use the card. They also raised his interest rate from 9.99% to 23.39% - now his minimum payment is 2 1/2 times higher than the month before - this is on just one card!



This is only one story on one card, there are millions of us out there with the same story including myself. The lobbyists for these Company's lobbied hard in Congress in early 2000's and by 2003/4 the credit card company's got what they wanted and started back then with raising interest rates on people. One of my clients back then called me so irate that her interest rates were raised (18 to 27% on all her cards and needed to know if this would affect their getting a mortgage loan? When she called the company's they were willing to reduce them but not back down to their 7.99 or 9.99 but to 14.99 to 18.99 - it was a legal hijack of consumer rights, their lobbying paid off.



Now, the credit card company's have added to their treachery, reducing credit limits, even higher interest rates (beyond the border of usury in my opinion) and closing consumer accounts over the last couple of years.



They have literally strangled the consumer and our economy at the worst possible time by doubling, tripling and in many cases quadrupling consumers interest rates, cutting credit limits to what a persons balance is and closing accounts right out from under them. Where consumers were able to make their payments before, now many can't. Most people know what they can afford spend and to pay every month on their credit cards based on what the interest was when they got the card/s, no way in this world could any credit user have foreseen this type of manipulation and consumer abuse.



You never, ever hear anything about this critical subject on any of the media outlets, at least I haven't and I have written to several (CNN, MSNBC etc.) asking why they haven't addressed this subject - I have never gotten a response. However, last night on CNN an Ireport came in that touched on this subject - the women said she was struggling to make ends meet partly because her interest rates were raised so high on her credit cards, she just didn't have that extra money to put out and the reporters response was...unfortunately there isn't much that can be done about that. Are you kidding me - that's your advice? Well, it was from a reporter who has no debt.



I say there is something we can do... we need to bombard Congress, President Obama, our State Representatives, State Senators relentlessly to reign these Credit Card Company's in and pass new legislation for strict regulations. There is a tiny revamp of the Credit Card Industry to take place in like 2010/11 and it's not nearly enough - it really doesn't address the loan sharking tactics or stricter regulation. And why on earth wait until 2010/2011 for this to take effect? Think about it - why wait????? Unless?



Something is really suspicious about that whole change - it certainly doesn't benefit the consumer!