Comments on CreditMattersBlog.com: Billions For Banking Giants, 31.99% Interest For T...

Rebekah, glad to hear it! A good story for once. h...

2009-01-30T16:04:01.348-05:00

Rebekah, glad to hear it! A good story for once. haha. Too much doom and gloom around my blog, eh?

Congrats on the rate cut.

I had to come back and post on this story. I remem...

2009-01-30T13:19:20.800-05:00

I had to come back and post on this story. I remember reading it in December and wondering what was going to happen to my rates. I have a credit card through USBANK. It is a store branded visa card that I got to earn rewards for a particular store I shop, but it is a visa, not an instore only card.

Anyways. I got this card about 2 years ago and was hit with the default 31.99% rate right

So what is the alternative? Usury laws you say? Ut...

2008-12-09T19:29:20.945-05:00

So what is the alternative? Usury laws you say? Utter BS. Banks can afford to lend to me from 0%-4.99% (losing money) and yet rake in billions in profits because of people like this.

If we protect every cardholder from high interest at their most desperate hour, then the cost gets burdened on super prime non revolving customers. Is this fair in a free market economy?

A better

Oh, and no worries on the hijack. I posted that in...

2008-12-04T22:27:03.057-05:00

Oh, and no worries on the hijack. I posted that information in this thread, thus it is somewhat related.

Ahh! Not sure if they are one and the same, Clutch...

2008-12-04T22:25:08.025-05:00

Ahh! Not sure if they are one and the same, Clutch. Not sure if First National Bank of Omaha is the same as First of Omaha. My guess is that they are not. But you never know with name changes and what not. Could be.

Or is FNBO not the same as First of Omaha Svc. Cor...

2008-12-04T22:18:24.140-05:00

Or is FNBO not the same as First of Omaha Svc. Corp you speak of?

Didn't mean to hijack this thread

Aren't these the people who just issued me a CC?"M...

2008-12-04T22:06:04.924-05:00

Aren't these the people who just issued me a CC?

"Marquette Nat. Bank v. First of Omaha Svc. Corp., 439 U.S. 299 (1978). "

I remembered this after you quoted it.

Clutch, when did I reinform you of the lawsuit?

2008-12-04T22:01:46.430-05:00

Clutch, when did I reinform you of the lawsuit?

How's this for multitasking, I just applied and g...

2008-12-04T21:56:05.279-05:00

How's this for multitasking, I just applied and got approved for a $10k FNBO CC at the same time you re-informed me of a groundbreaking lawsuit involving them.

Well, at least the rewards look ok.

The bank expects him to default, so they want him ...

2008-12-04T21:23:08.683-05:00

The bank expects him to default, so they want him to default sooner rather than later, so they can write his account off and use government bailout funds to offset the loss, while those funds are still available.

Just another reason why I will never carry a balan...

2008-12-04T20:02:49.751-05:00

Just another reason why I will never carry a balance again. Glad I got off that treadmill. I love my credit cards but I dislike these card companies.

Oh of course it is just crazy. Hell 20% is crazy.

2008-12-04T20:01:42.213-05:00

Oh of course it is just crazy. Hell 20% is crazy.

Even though this guy is nearly maxed out, 31.99% i...

2008-12-04T19:54:06.627-05:00

Even though this guy is nearly maxed out, 31.99% is outrageous. GREED pure and simple. Wamu could make plenty of money on this guy at 20%. When you are in the 30% range, you're just a pig.

Let no one say you don't multitask well, CMBut let...

2008-12-04T19:40:05.473-05:00

Let no one say you don't multitask well, CM

But let me tell you something. (shocked that I have an opinion on this?)

I think it is bullshit that card companies are pulling this. In this case, sure, he is nearly maxed out. Bad move. But what about in the millions (I'm sure) of cases with Citi where the customer did nothing wrong and is still seeing rate increases?

It is

Haha. Not bad CM, not bad at all.

2008-12-04T17:45:00.280-05:00

Haha. Not bad CM, not bad at all.

How was that for multitasking? I just wrote anothe...

2008-12-04T17:38:23.248-05:00

How was that for multitasking? I just wrote another story.

HSBC is exiting the affiliate marketing channel now. It joins Chase and Citibank.

http://www.creditmattersblog.com/2008/12/hsbc-joins-party-to-exit-affiliate.html

Yeah, CM excellent indeed. It belongs on the "mus...

2008-12-04T17:36:23.168-05:00

Yeah, CM excellent indeed. It belongs on the "must-watch" list for your readers.

And I have highlighted that PBS video before as we...

2008-12-04T17:21:36.615-05:00

And I have highlighted that PBS video before as well. It's really excellent.

http://www.creditmattersblog.com/2008/09/weekend-roundup-sept-6-2008.html

From a story I wrote in September:Marquette Nat. B...

2008-12-04T17:19:59.887-05:00

From a story I wrote in September:

Marquette Nat. Bank v. First of Omaha Svc. Corp., 439 U.S. 299 (1978). This landmark decision, published in 1978, held that Omaha Bank could charge customers in Minnesota the highest interest rate allowable by Nebraska law. What this meant is that a credit card company located in South Dakota, for example, could export the highest permissible interest

Frontline ran a good piece a while back called "Se...

2008-12-04T17:17:43.010-05:00

Frontline ran a good piece a while back called "Secret History of the Credit Card."

CM, The program addresses your point.

"There is no federal limit on the interest rate a credit card company can charge.

If you've ever looked at the return address on your statement, you may notice your credit card issuer is located in a state such as South Dakota or Delaware. That's

No. Not saying that. Just saying that the rapidity...

2008-12-04T16:51:32.084-05:00

No. Not saying that. Just saying that the rapidity at which some of this stuff takes place would not occur.

Make no mistake about it, usury laws are dead in the states where the card companies reside.

Usury laws are coming back?

2008-12-04T16:48:21.499-05:00

Usury laws are coming back?

And let's not forget that there will be legislatio...

2008-12-04T15:53:06.656-05:00

And let's not forget that there will be legislation coming that will rein in these business practices by credit-card companies. These companies are ratcheting up rates now ahead of that legislation.

That can't be discounted here.

Just the bank's way of playing the "Heads, I win! ...

2008-12-04T15:52:58.691-05:00

Just the bank's way of playing the "Heads, I win! Tails, you lose!" gambit to those playing close to the sidelines.

I just hope that the banks realize in time that this particular gambit comes back to bite them in the a$$ at the most inopportune time, just like the subprime lending gambit... Oh! Wait a second!

I agree with Scott and CM that banks seem to be op...

2008-12-04T15:48:54.127-05:00

I agree with Scott and CM that banks seem to be opting for the win-win situation: roll in the bailout while nabbing as much short-term money as they can with huge rates AND getting to write off any long term defaults.

I do not think Americans will give us credit cards any time soon, so if all the banks stay in cahoots rate-wise, they basically have the consumer by the jewels.