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Thanks Obama for the credit card interest rate hike.

Forums - General Discussion - Thanks Obama for the credit card interest rate hike.

 

1. Credit card companies are predatory but do not use illegal business practices. Many other businesses prey on the shortcomings of people (such as cigarette companies) to make money. But also there is (obviously) a big market for credit cards, and the companies have to make a profit somehow, otherwise what would be the point?

2. Obama does act to limit their "abuses." However his actions will have unintended consequences. His noble intentions will actually make things worse.

3. When the rules change the credit card companies have to also change their policies to continue being profitable. How can you blame a company for wanting to make as big of a profit as they can?

4. So yes, this is Obama's fault. If he seriously didn't foresee this cause-and-effect situation then it's worrying for what other unintended consequences there will be in his future legislation.

 

1.  While their tactics are not “illegal” their business methods are becoming ever more disturbing. If you’ve ever signed up for a credit card, you’ve undoubtedly seen the massive stack of papers written in a legal language that could make even the most tempered lawyer cringe. The card companies hide the right that they can raise percentages to ungodly amounts for a single late payment or some outside infringement. They are also sending their debt collecting mails at later dates and asking the customers to mail in their payments to facilities at destinations that take days to reach by snail mail. These methods- not illegal of course- are an ever growing problem and have run rampant for quite a period of time.

2.  In the middle of a recession when homes and jobs are being lost at a rate of 10% in some places, people are in desperate need for some sort of protection. While I would fault no company for wanting to make a profit, the credit card companies are going over the line and hiking interest rates by double digits during this economic crisis. If the government doesn’t get involved, who’s to say that credit card companies won’t start drafting legislation that would call for hikes of over 50%? Once a customer is locked in, they’re locked in for years.

3.  Again, nobody can fault a company for wanting a profit. But this shows a level of greed that has devastating effects. These card companies can only milk the consumer so much. This action also shows just how powerful the card companies are. They hiked the rates in an instant, to the dismay of the average american. What’s stopping them from going even further with this sort of tactic?

4.  This is in no way Obama’s fault. The credit card companies are the ones pushing their weight with their lobbyists and power. The companies obviously know there is a recession going on; rather than helping their client base out, they’re only further contributing to the problem. People want change and fairness- companies want money regardless of how many homes they have to destroy. To favor the companies in this situation is both illogical and absurd- unless you work for one of the credit card companies.



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TheRealMafoo said:

So Obama is trying to pass a law that says credit cards will not be able to hike rates on current balances.

So what does this do? It causes the Credit Card companies to go ahead and hike them now, while they still can. I am planing a wedding in a few months, and have a couple thousand on a card. I expect to pay it off in a few months, but I got a notice in the mail today that the rate on that card is going up on future and current balances.

Anything else you want to fuck up Mr. President?

Sucks to be you.  Maybe next time you'll just pay for things with actual money instead of credit. 

It's a good life lesson to learn.  Some just need to learn it the hard way I guess.


In the meantime, any law which restricts or prohibits unethical business practices is a good one.



Seriously, Bronco, you're not getting it. There is no cause-and-effect here. The rates were going to go up with or without Obama's actions. How did he cause it?

It takes incredible bad faith and/or lack of critical thinking to blame someone for something that was not only inevitable, but would have been much worse if not for his actions.



Alright, they hiked rates earlier. But isn't it better they do it once now instead of a million times in the future? Rates would inevitably go up soon anyway, so it's far better to suffer a little bit now for the greater good of society.




Desroko said:
Seriously, Bronco, you're not getting it. There is no cause-and-effect here. The rates were going to go up with or without Obama's actions. How did he cause it?

It takes incredible bad faith and/or lack of critical thinking to blame someone for something that was not only inevitable, but would have been much worse if not for his actions.

 

Cause: Obama is putting restrictions on the market

Effect: The market will not be as efficient as it was without those restrictions



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TheRealMafoo said:

So Obama is trying to pass a law that says credit cards will not be able to hike rates on current balances.

So what does this do? It causes the Credit Card companies to go ahead and hike them now, while they still can. I am planing a wedding in a few months, and have a couple thousand on a card. I expect to pay it off in a few months, but I got a notice in the mail today that the rate on that card is going up on future and current balances.

Anything else you want to fuck up Mr. President?

Amusingly this is why Obama is passing this law.  So they can't raise rates on stuff you already owe.

Eh it'll be better in the long run... and for people like me with no outstanding debt.

Well then again maybe not since my rates probably would of stayed the same anwayay.  Eh we'll see.

Credit Cards shouldn't exist anyway.



ikilledkenny said:
Alright, they hiked rates earlier. But isn't it better they do it once now instead of a million times in the future? Rates would inevitably go up soon anyway, so it's far better to suffer a little bit now for the greater good of society.

They can stille hike rates.

All they can't do is hike rates and make you pay those rates on your current debt.

Basically this protects people who run up huge debts they can't pay back... at the expense of people who run up debts they plan to pay back in the short term.

It's really something that should of always been a law anyway... but if you want to take a "realism" approach it does really suck.



Desroko said:

TheRealMafoo said:
Desroko said:

Wait, Obama runs the credit card companies? Are you returning to reality anytime soon?

If the govt didn't limit rate hikes, what, do you think they wouldn't have gone up?

And seriously, your OP is there for all to see. Let's get a timeline.

1. You spend money you don't have.

2. Obama limits future rate interest hikes to protect people who spend money they don't have, i.e., you.

3. Credit card companies get once last predatory swipe at you in under the wire.

But your (remember, a guy who "takes more responsibility for there (sic) actions" than anybody) response was to blame Obama? Out of the three actors in this little play, he deserves the least blame. The majority of it falls squarely on you. And derspite your self-aggradizing paeans to your own responsibility, you've yet to acknowledge that. Instead, you bizarrely posted your finances. What, are we supposed to be impressed? Are you one of those guys who announcees the bill when he picks up the check in a restaurant, so everybody can see what big dicks wallets they have?

This is a seriously sad little thread. And what's even sadder are that there are millions more like you in America, full of blind, incoherent rage for everyone and everything but themselves.

 

So let me see if I get this straight. You come into this thread, call me irresponsible, to the point of forcing me to explain why a few thousand dollars is not a huge deal in my finance bracket, and then call me a dick for explaining it.

Go away little man.

 

Umm, when did I call you a dick? Point it out and I'll cover your credit-card bill.

"Are you one of those guys who announcees the bill when he picks up the check in a restaurant, so everybody can see what big dicks wallets they have?"

That's not calling me a dick, but it's as insulting.



How about you blame the people who hiked your rates...the credit card companies. Obama is asking for legislation that will reduce their authority to do so. Simply because you get screwed in the short run does not mean he is doing the best thing. Its like people buying up the last of a product before it gets discontinued. It just happens. Credit card companies are going to try and abuse their power while they still have it.



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

Words Of Wisdom said:
TheRealMafoo said:

So Obama is trying to pass a law that says credit cards will not be able to hike rates on current balances.

So what does this do? It causes the Credit Card companies to go ahead and hike them now, while they still can. I am planing a wedding in a few months, and have a couple thousand on a card. I expect to pay it off in a few months, but I got a notice in the mail today that the rate on that card is going up on future and current balances.

Anything else you want to fuck up Mr. President?

Sucks to be you.  Maybe next time you'll just pay for things with actual money instead of credit. 

It's a good life lesson to learn.  Some just need to learn it the hard way I guess.


In the meantime, any law which restricts or prohibits unethical business practices is a good one.

 

Sign... no one reads threads anymore. It does not suck to be me. It's not a lesson I am learning. I will just pay it off before the end of the month. I always had the money, I just like to keep enough in my savings for 3-4 months of income in case something happens to my job. I can go down to 3 months. Not a big deal.