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!

The News Media and Helpful Advice?

Living through this nightmare and the impact it has had on my life in just a short time has made me realize how different this recession is from the others I have endured. The old saying "Misery loves company" just doesn't apply here, there is no comfort in the thought that millions of us are all in the same boat and the unknown of whether that boat will hold us or sink.

Over the last 28 years our government has succeeded in destroying our manufacturing and export base that has eroded our job base, passed legislation that gave enormous power to Credit Card company's, Wall Street, changed our bankruptcy laws in favor of creditors and mortgage lenders and have literally choked off any avenue of survival in an economic disaster (through no fault of the American people) that would have helped many of us to ride this out.

Because of the self serving "everything to help the rich get richer" thinking of our government especially over the last 8 years, middle class people who had a good job, paid their bills and saved a little are out of work, can't find another job, can't pay the bills, can't sell their homes and are losing homes and to foreclosure.

Which brings me to the very topic of this blog... Advice from news outlets - like how to find a job? really? I have been watching some of this advice on CNN and MSNBC over the last few months and I have to tell you, it is soooooooooooo far off the mark that it borders on amateurism. Think about this - $200,000, $300,000 a year reporters telling us what we need to do to find a job in this recession such as:

1) Tweaking your resume so it stands out above the rest

Take it from one who has been there and has done it, you can tweak and tweak all you want, it doesn't work when millions of people are vying for every job available.

2) Writing a cover letter that has an impact

Yes, a cover letter is important, probably more important than the resume, but even those are just being scanned and not read in their entirety because of the onslaught of applicants.

3) Going back to school to learn another trade/career

Going back to school is a great idea, if you can afford it, but many of us can't, any money we do have needs to go to essentials.

4) Volunteer to get your foot in the door to a new career

Again, if you can financially do it most can't.

5) Job Fairs

Be prepared to stand in long lines for hours not to mention that most of the company's are now looking for young cheap labor - the chances of getting a job there if your between 30 and 60 are slight. Worth trying - maybe.

6) If you can't find full time work try for 2 part time jobs

I don't think any responsible out of work person needed to be told that! Those are even hard to find because we have thought of that.

7) Be willing to take lower pay to get your foot in the door - Again, most are willing to do that also and have tried and are still trying.

All of the above options that these news outlets offer are inane and actually an insult to us, the viewing audience - it's as if we the middle class are somehow so stupid that unless someone tells us what to do that we wouldn't know how to help ourselves and I for one take a huge issue with that type of so called help.

These News shows gather their advice from so called experts (who have a job I might add) and none of them can ever give real solid advice to ANYONE unless they have experienced this disaster themselves. Until you actually live this nightmare you can't possibly know what your talking about and to give useless advice to people who are living it is mean - SO PLEASE...SHUT UP!

I'm wondering who else feels the same way about our news media. Talk to you all later Thanks for reading!