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Secrets the Credit Card Companies Don't Want You to Know
Where large sums of money are concerned, it is advisable to trust nobody. Agatha Christie (1890-1976) You notice I called credit cards by their real name. Make no mistake, the outcome of using a credit card is to create debt. It would be a lot more difficult to market a "Debt" card but that is what they are. In case you weren't aware of it, Federal regulators are pressuring banks into raising the minimum credit card payment from 2% to 4% to "help" consumers get out of debt quickly but somehow failed to address the usury interest rates charged by these companies. Here are a few things you might not know about the credit card industry. Credit Card Industry Facts: The credit card industry earned $1,200,000,000,000 last year. That is $1.2 TRILLION in profits. In 2004 consumers were charged $14.8 BILLION dollars in late fees. Here's a cute little tactic used often by our credit card brethren. Not posting your payment on the day it is received so that they can charge you the late fee. They made millions using this technique last year. Changing the due date or mailing the bill so that it is difficult at best to meet the deadline and there by charging another late fee. With two late charges on your 'record' your interest rate goes up as much as 10 points. This can be done without notifying you, by the way. These companies have even resorted to not mailing out statements so that you will pay late and therefore be charged at least $29 in late fees and sometimes more. Signing you up without your permission for credit insurance that virtually never pays out. Checking your credit reports to see if you are charging on other cards and if it is 'deemed excessive', raising your interest rate by as much as twice your current rate. Charging you a $25 fee for NOT USING your credit card. Capital One has been sued because their customers mailed in the checks a full two weeks before the due date but were deemed late, charged the late fee and the interest rate was hiked to double digits. Citibank paid a $45 million dollar settlement because they improperly assessed late fees and raised the interest rate up to 24% if the customer was late on any payments to other creditors, even if you are current on every payment to them. The largest settlement by far against a credit card provider was against Providian for $300 Million dollars! Why? For improperly assessing late fees and charging customers for things they never ordered like credit insurance. The amount of the fine was proportional to the amount of abuse. Sometimes because of the stress associated with these fees and abuses, people go out and try to borrow their way out of trouble with debt consolidation loans. This only adds to the problem if they don't tear up the cards. Credit card debt has gotten to the point that it is not like owing the general store and not paying off the bill at the end of the month or when you get your next pay check. This is loan sharking at its worst and some say the rights of individuals were taken away by the changes in the bankruptcy laws made recently due to the efforts of lobbyists from the credit card companies. I think the little guy needs help and that is why I wrote this book. There is a term used often in Real Estate: "Operating from a position of superior knowledge". One can get sued for taking advantage of another for just this reason. Seems to me, the credit card companies mentioned above along with many others, are operating from a position of superior knowledge. According to Robert Hinsley, a Houston attorney, "Being a good customer is not going to protect you," says Hinsley. "Nor will paying your bill on time each month protect you. Many of the major cards -- First USA, Chase, Capital One, Providian, Citibank, Penney's -- have been sued over practices regarding unfair billing practices and blatantly using tactics to cheat you out of your money. There is plenty of evidence that indicates most credit card companies think you are dumb and helpless and will not take any action. So they can easily use dirty tricks to cheat you out of your money." Now are you ready to fight back and negotiate a settlement with these people? Don't be discouraged because the good news is, you can fight back. You can negotiate and you can reach a settlement advantageous to you! Pull yourself up to your full height, take a deep breath, know you are not alone and let's get started! *This is an excerpt from "The Negotiate Your Way To Financial Freedom From Credit Card Debt Ebook" found on www.iwantafreecreditreport.com. Author Bio Single mothers looking for Single Mom Grants can get more information at: http://www.rs39.com/financialaid also check out credit repair debt consolidation Related Videos
Related Articles Bad Credit Consolidation Loan: At one time if you had a bad credit rating getting a new loan was nearly impossible. Today, more and more financial institutions are taking advantage of the debtors market, and the need for people to repair their credit ratings. Debt consolidation financing is a practical solution for many asking How can I consolidate my debt? Bad Credit Repair The most important step is to get a copy of your credit history from the credit reporting agencies. Consumers can get a free credit report from each of the credit agencies once a year. There are some websites that offer all three reports in one package. This is usually free as well. Consolidate My Debt Most lenders will rarely make an unsecured personal loan that exceeds $7500. There may be lenders who will go up to $10,000, but unless you have perfect credit and long term job stability and more than three years at your residence, an unsecured loan of this amount can be hard to achieve. Consolidating Credit card Debt Consolidating credit card debt is one of the best things cardholders can do. Consolidation is perfect for those who are looking to better their credit for the future. There are many advantages for cardholders that take advantage of credit card debt consolidation. If you are thinking about consolidation, then there are a few things you should consider before doing so. Use these tips as a guide to consolidating credit card debt. Credit Repair Companies Will using credit repair companies get rid of your financial problems or just add to them? After all, they will charge you a fee for their services. If you find yourself with a low credit score and unable to get a new loan or credit card, then perhaps you have considered using the services of credit repair companies. |