Credit Card's Dirty Little Secrets
What do you know about credit cards and their dirty little secrets? I deserve to know my money on it, and I was not able to answer any questions on a quiz from the major PBS program Frontline Response secret history of credit card at Credit Card Quiz. Take the quiz and see how much you do or do not know about universal default, credit card and other issues. Then read this article for more dirty little secret of this great PBS special offer.Here are a few starters:
UNIVERSAL DEFAULT - You know the credit card company can raise your interest if you are at all late payments? I will not be too late, only to the credit card, but EVERYONE! Too late on your phone bill, car, house ... NOTHING. Or if in the eyes of the creditor simply have too much outstanding credit, all bets are off, and regardless of the interest rate for which you have registered.
The logic is simple. Industryconsiders it his right to his share of unsecured loans involve greater risk venture to protect. Therefore, it is not unreasonable to raise interest rates if it has reason to risk being repaid opinion has changed. And as a creditor, the creditor has every right to want to see your credit file every time ... all your files and not just their own bills.
Minimum Notice CHANGES - If this were not bad enough, consider the consumer with time payments every month oneverything. No problem, right? WRONG! Buried in the Treaty to admit (the law of contract attorneys, they have great difficulty in interpreting), is a clause that the company change to interest rates "at any time allowed for any reason as long as the owner receives 15 days." That's right. You can change your mind after you make a purchase, at 6.5% (for example) and all previous agreements are null and void. Like a purchase price can be changed after the sale? No other industry can dobut these credit card companies.
USURY or not - after Frontline: "There is no limit to the Federal Government interest rate a credit-card companies may require." In fact, at a rate of 35% is not uncommon. This is because in the 1980s, South Dakota and Delaware eliminated the cap on usury laws is that which provides the maximum interest rates charged. Have you ever noticed the return address on your credit card statement?Chances are, or Delaware, South Dakota. Gee, I wonder why.
Deadbeats and gun use - Deadbeat to my person is not accountable to an action. This does not apply in the head banking industry. In credit card lingo, "Deadbeats" pay their balances off in full each month. They are parasites, because the industry receives very little profit from that responsible consumers. On the other side, "Revolver" roll credit card balances overMonth to month and never pay in full. This is the ideal customer because of the profit generated. Then there's "rate surfers" or "gamers", the use of credit cards at interest added.
FEES - again quoting Frontline: "repealed in 1996, the U.S. Supreme Court in Smiley vs. Citibank existing restrictions on penalty fees. This simply means there is no limit to the amount a credit card company can a cardholder as well as for charge one hoursLate with a payment. "But it has opened a Pandora's box not only for late fees, but over the limit fees and bad check charges, as well. A lawyer who worked the case say the smiley, he believes penalty fees, the use of $ 5 or $ 10 could become $ 50 in another year. Now the consumer has to contend not only with a higher rate, but late fees as well. Moreover, what if the charges laid them across the border or a fee. It is a never-ending spiral towards bankruptcy.
MINIMUMPAYMENT - use consumers, to require 5% of the outstanding balance. But smooth credit card marketers suggested that the implementation of a 2% minimum payment is required. This is advertised as a consumer with "Easy Low Payments." The truth is, however, that increasing the tactics of the consumers, their debt due to the reduced charge, which in turn generates more profit due to higher debt over a longer period of timePeriod.
Elected senators and congressmen in favor, and other consumer loans have tried in vain to pass legislation to overcome some of these deficiencies. Unfortunately, college-campus credits is simple and prompt disclosure of the settlement will ban with a defeat, because the very strong credit lobby groups. Let yourCongress know how you will have a simple explanation below the level of minimum payment, stating something like the feeling, "With a minimum payment, pay off your current debt to take over xxx years and the cost of the interest you will $ xxx. "
The reader will certainly be interested to know Mike, the author of this article, also offers a free debt elimination mini-course via e-mail. You can register for Debt Free In 7.5 years.