My APR just got increased by 270 percent

What an amazing amount of bullshit. You've just blamed Congress for a company screwing over a customer who honored every agreement he made with that company.

And why? Well, because Congress passed all these pesky laws preventing these companies from taking advantage of people and ruining their lives. And that's exactly what they were doing. They would jack up rates arbitrarily or impose ridiculous fines -- often after the company intentionally failed to put an on-time payment through -- and the customers had no recourse. Their credit was slowly ruined and they were left with two options: Pay or watch it get worse.

So, yeah, the credit card industry became the "boogy man" because it routinely done that shit AND had companies issuing cards to kids and several other people without explaining to those people about rate hikes, numerous penalties and several other scams that were hidden in print so small you needed a magnifying glass to see it.

So, to stop these practices our government passed laws -- laws that essentially protect citizens from predatory companies. Those are worse than loan sharks, because at least with the loan shark, you know the terms going in.

And stop with the sob story about how these companies are just trying to stay in business. There are still plenty of profits to be made by well-run, respectable credit card companies. They're still going to charge interest rates -- albeit much less exorbitant rates -- and they can still penalize people for missing payments or paying late. But unfortunately, someone had to step in and remind these companies that they're destroying people's lives.

 

Agree with this whole-heartedly.

What is going on now is nothing but gouging for the sake of gouging. We should be past calling it anything else.

 

The people running credit card companies are parasites and should be treated as such.

 

Problem is, without any legislation, the credit card companies would do this anyways.

Rather than learn their lesson and utilize sound business practices in which they make a profit and treat their customers right, credit card companies have chosen to screw over their customers even more. And if and when they're near collapse, they'll be crying out to the government to bail them out.

 

Agreed. I'm fortunate that I haven't used a credit card in a good long while. I have no intentions of ever getting back on that wagon.

 

Or you could become a leader of men. Developing them through a series of underground exhibits of machosim. Once they're finely honed fighting machines, start Project Mayhem. Also, make lots of soap. You'll need it for later.

 

I've been a credit card holder for about 7 years and I have never had a problem. I get cash back so I make money of them.

 

Of course, now that I say that, I'm sure I'm going to get screwed.

 

I spoke to my bank about this problem about a month ago. Several companies sent notices out letting customers know of this crazy hike. And sadly your options are simple: 1. Cancel the card and pay off the balance over time with the percentage rate you had before the hike or 2. Keep the card and pay it off at the increased rate.
Talking to my banker, he even said he cut up two credit cards instead of paying the high interest rates.

 

At least with Citi, it wasn't cancel the card, per se. You could decline the changes, but once your current card expires, you won't get a replacement. I can't remember if you had to pay off the balance at the new rate or the old one; I think it was the old one.

 

What am I missing here? Do the laws of supply and demand do not exist with regard to credit card companies?

Interest rates in this country right now for savings and bonds are hovering around zero. Mortgage rates are historically low.

And yet NO credit card company can step forward, promise a long-term rate substantially lower than the 30%+ these other companies are doing, and take away their business?

Fortunately, "paying interest on a credit card" ranks right below "slit my wrists with a chainsaw" on the list of things I plan never to do.