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Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 09:17 AM   #1
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Universal Default Credit Card Rates.....Again!!

I have a hard time believing that the public isn't up in arms about this........

As part of settling my sister's estate, I have reviewed her Chase credit cards. She used them a lot to put her expenses for traveling world-wide, so they were pretty high balances at times. She would pay the minimum payments on auto-deduct, then submit large expense reports, and pay off big chunks 3 months later. However, her card rate had risen from 11.99 to 18.99 in the past 5 months.

The universal credit card default rate apparently struck again........Chase didn't care that she had been paying them BEFORE the due date.........they were concerned because of the balances she carried.........which is BS.........

Bottom line, God help you if you have credit card debt.....................
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 09:33 AM   #2
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Re: Universal Default Credit Card Rates.....Again!!

Y'know, now that you mention it, I checked the rate on my Chase credit card. It's crept up to 18.89% or something like that. I remember when it had been something like 11.9%. It doesn't affect me since I pay it in full every month, but they are sneaky bastards, aren't they?
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 09:51 AM   #3
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by Andre1969
Y'know, now that you mention it, I checked the rate on my Chase credit card.* It's crept up to 18.89% or something like that.* I remember when it had been something like 11.9%.* It doesn't affect me since I pay it in full every month, but they are sneaky bastards, aren't they?
Great post.................couldn't have said it better myself. I wish I knew when they started these universal rates..............something else to complain to my useless Senators from Wisconsin about (Feingold and Kohl)................with guys like that in Washington, it's no wonder Wisconsin is the laughing stock of all states in Washington...................
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 10:00 AM   #4
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by FinanceDude
Great post.................couldn't have said it better myself.* I wish I knew when they started these universal rates..............something else to complain to my useless Senators from Wisconsin about (Feingold and Kohl)................with guys like that in Washington, it's no wonder Wisconsin is the laughing stock of all states in Washington...................
Yep, those guys are "useless" all right, but Wisconsin was a
"laughing stock" before. Still, Wisconsin looks pretty good from where I sit (the land of Blago, Ryan and Daley).

On the subject of credit cards/payday loans/title loans and Vito the
loan shark. I think they all should be left alone. They all perform a service
in free enterprise and if you get your kneecaps broken (financially
or literally).well.................. you knew the risks going in.

JG
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 10:39 AM   #5
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Re: Universal Default Credit Card Rates.....Again!!

I agree with JG .....Justin had some nice posts on the payday lending industry awhile back too. He did some research for a law school paper, I believe...
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 10:42 AM   #6
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Re: Universal Default Credit Card Rates.....Again!!

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Originally Posted by Maddy the Turbo Beagle
I agree with JG .....Justin had some nice posts on the payday lending industry awhile back too. He did some research for a law school paper, I believe...
A surprising industry with lots of misconceptions.

Here's the thread where I posted my research (it's broken into 2 parts):

http://early-retirement.org/forums/i...2802#msg132802

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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 10:53 AM   #7
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by FinanceDude
Bottom line, God help you if you have credit card debt.....................
Oh crap FinanceDude, of all the things this world needs God's help with, credit card debt has gotta be way down the list.

Unsecured lines of credit, like credit cards, have historically been an expensive way to borrow.* Due to competition, we got some fairly attractive rates for awhile, but I'm not surprised that that situation is changing.

I'm satisfied that I get a couple of weeks float from them before I pay in full each month.* Oh yeah, a free airline ticket or some other trinket from redeeming points is ok too........
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 10:56 AM   #8
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by youbet
Oh crap FinanceDude, of all the things this world needs God's help with, credit card debt has gotta be way down the list.

Unsecured lines of credit, like credit cards, have historically been an expensive way to borrow.* Due to competition, we got some fairly attractive rates for awhile, but I'm not surprised that that situation is changing.

I'm satisfied that I get a couple of weeks float from them before I pay in full each month.* Oh yeah, a free airline ticket or some other trinket from redeeming points is ok too........
Well..............I guess for me it's more of an emotional issue, from trying to settle the estate of my sister, who died long before her time..........

Bottom line, the US economy NEEDS people to keep the credit card industry going strong by being stupid, so they can AFFORD to give away free "perks" to guys like you and me................

Wonder how credit cards work in Kazakhstan
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 11:02 AM   #9
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Re: Universal Default Credit Card Rates.....Again!!

Yesterday I got a fine print Change in Terms Update on my Sears credt card.* I never use the card except if there is something I need at Sears that using their card gives me a big advantage. Doesn't seem to happen since K-Mart took over Sears.

Anyway, the default rate is now Prime plus up to 22.15%. And as of Sept. 1, the default APR is 30.4 %!

I think that is the highest "legal" rate I've ever heard of!
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 11:03 AM   #10
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by FinanceDude
Well..............I guess for me it's more of an emotional issue, from trying to settle the estate of my sister, who died long before her time..........
Understood. *
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 11:06 AM   #11
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by Telly
Yesterday I got a fine print Change in Terms Update on my Sears credt card.* I never use the card except if there is something I need at Sears that using their card gives me a big advantage. Doesn't seem to happen since K-Mart took over Sears.

Anyway, the default rate is now Prime plus up to 22.15%. And as of Sept. 1, the default APR is 30.4 %!

I think that is the highest "legal" rate I've ever heard of!
Hope justin keeps ahead of Vito and his bat..............(I mean Chase, Citi, AMEX, etc)
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 11:11 AM   #12
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by FinanceDude
Hope justin keeps ahead of Vito and his bat..............(I mean Chase, Citi, AMEX, etc)
Thanks for the concern

I keep all of my 0% CC debt in money market instruments which hold primarily US treasury obligations. If/when I default, I transfer the $$ immediately. None of my cards have universal default clauses (I read the fine print - you have to when you've got six figures in "the game" ). I'm screwing the CC companies back for what they did to your sister and friend

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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 12:05 PM   #13
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Re: Universal Default Credit Card Rates.....Again!!

Or people could pay off their balances every month.. I know difficult concept to grasp living within your means.
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Re: Universal Default Credit Card Rates.....Again!!
Old 09-26-2006, 01:06 PM   #14
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Re: Universal Default Credit Card Rates.....Again!!

FinanceDude, I am sorry about your sister. If interest has accrued on her accounts, I would ask the credit card companies to forgive it. I have seen them do this when someone dies.

I see no good reason for the cross default provisions that are becoming quite common--where if you are behind on one card, another credit card company can charge you higher interest even if you timely pay them. I see it as punitive only. It may even increase the likelihood of tipping the person over so they can't pay any of the debt.

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Re: Universal Default Credit Card Rates.....Again!!
Old 09-29-2006, 11:12 AM   #15
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Re: Universal Default Credit Card Rates.....Again!!

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Originally Posted by Martha
FinanceDude, I am sorry about your sister. If interest has accrued on her accounts, I would ask the credit card companies to forgive it. I have seen them do this when someone dies.

I see no good reason for the cross default provisions that are becoming quite common--where if you are behind on one card, another credit card company can charge you higher interest even if you timely pay them. I see it as punitive only. It may even increase the likelihood of tipping the person over so they can't pay any of the debt.

FD, my condolences as well.

As far as universal default goes, I wonder if it is connected to the bankruptcy law passed last October that made it harder to declare bankruptcy? How do I invest in Visa/MC/AMEX? They may begin to do very well by being able to charge 30% and get away with it.

On a related note, my bank recently sent me information that they were getting into the "paycheck advance" market -- I could set up a line with them and borrow any time at something like 12% *monthly* -- it was crazy. The fine print said that such loans were subject to the laws of Ohio, I think, which apparently has no usury laws. Interesting because I neither live in, nor is the bank I am referring to headquartered in, Ohio.

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Re: Universal Default Credit Card Rates.....Again!!
Old 09-29-2006, 11:25 AM   #16
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Re: Universal Default Credit Card Rates.....Again!!

Quote:
Originally Posted by SecondCor521
FD, my condolences as well.

As far as universal default goes, I wonder if it is connected to the bankruptcy law passed last October that made it harder to declare bankruptcy?* How do I invest in Visa/MC/AMEX?* They may begin to do very well by being able to charge 30% and get away with it.
I doubt it.............the CC companies got a big lobbyist coup already when they got the govt to make it harder to go BK..........why do they need to do this? Because they're greedy SOB's.................if you're paying THEM, who cares if you're paying Indiana Electric? That's bunk...........

Heck the variable rates are high enough to figure in charge-off rates, etc. It seems to me like when the oil companies were big whiners in the 80's when they were "losing billions a year" due to low oil prices.................somehow I thikn they made due.........

If BP is making $25 billion a year, could they take some of that and make sure their pipelines don't leak??
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Re: Universal Default Credit Card Rates.....Again!!
Old 10-11-2006, 10:08 PM   #17
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Re: Universal Default Credit Card Rates.....Again!!

Okay, first I want to come to the defense of the CC companies. I think they should be able to charge 50% interest per week as long as they let you know the rules in advance. Secondly, I am now (and have been for some time) receiving 100% of my personal income from reinvested promo rate
(mostly -0-%) CC money. Thirdly, if I ever did screw up (like be late with a payment or pay the wrong amount), betcha I could negotiate my way out of it (hasn't happened so far). For the life of me I don't understand why people beat up on CC companies/title lenders/payday lenders/buy here-pay
here car dealers. It looks like good old free enterprise to me.

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Re: Universal Default Credit Card Rates.....Again!!
Old 10-12-2006, 09:04 AM   #18
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Re: Universal Default Credit Card Rates.....Again!!

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Okay, first I want to come to the defense of the CC companies. I think they should be able to charge 50% interest per week as long as they let you know the rules in advance. Secondly, I am now (and have been for some time) receiving 100% of my personal income from reinvested promo rate
(mostly -0-%) CC money. Thirdly, if I ever did screw up (like be late with a payment or pay the wrong amount), betcha I could negotiate my way out of it (hasn't happened so far). For the life of me I don't understand why people beat up on CC companies/title lenders/payday lenders/buy here-pay
here car dealers. It looks like good old free enterprise to me.
JG
I understand your points, and you are taking "advantage" of them, as you say. However, they already "got their way" with the new legislation that makes it harder to file bankruptcy,etc. And it was probably legislation long overdue...........

BTW, you can't negotiate with the CC companies.........that "helpful" customer service has no more ability to help you than a paper bag............

I have NO ISSUE with deadbeat customers getting whacked for 50% plus.............what I DO have a problem with is raising customer's rates 10% for NO REASON other than some "utilization ratio" BS. It's all BS............. The ONLY REASON to raise a customer who is never late on their payments and carries a pretty big balance (which they make LOADS of money on, is because they hold all the cards..........

Do you REALLY THINK the CC companies were "suffering" when they had to offer low interest rates? Yeah, much like the oil companies "suffered" when oil was $15 a barrel...................
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Re: Universal Default Credit Card Rates.....Again!!
Old 10-12-2006, 10:07 AM   #19
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Re: Universal Default Credit Card Rates.....Again!!

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they hold all the cards..........
Not at my house......... How you play the game with credit card companies is up to you. We pay for almost everything via credit card, enjoy a free airplane ticket or some trinket from time to time and pay in full every month. Boring............ but just the way I like it!

It is slightly annoying that certain transactions, such as internet purchases, telephone purchases or car rentals, are difficult without a credit card so I feel I'll always need a couple. But actually using the credit......... nah!
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Re: Universal Default Credit Card Rates.....Again!!
Old 10-12-2006, 10:15 AM   #20
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Re: Universal Default Credit Card Rates.....Again!!

In my experience with fleecing credit card companies for thousands of dollars per year, they are generally willing to bend over backwards to accomodate you and retain you as a customer. This includes waiving late fees, over the limit fees, finance charges, etc. as long as you are a "good customer" (ie - good credit in general, no history of repeat late payments, etc.). They usually phrase this as "as a one time courtesy, we are refunding you...". But they'll do it more than once, just ask.

If they don't do what you want, switch card companies. There are 999 other CC companies that like new customers.

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