Have a credit card? Use it? Pay off the balance every month or do you carry a balance as most Americans do? Checked the interest rate you're being charged lately? You're probably in for a big surprise. Seems without much notice credit card companies are raising rates across the board due to the 'ongoing financial crisis'. Not just .5%, not just 1% or even 2-3% but 6-9%. Think I'm kidding? Follow below....
Know those 'notices' you get from the banks that issue credit cards? The font is small, the type is crammed onto the page and they are boring. They're not environmentalists, these notices are designed not to be read. And hey, I'm like everyone else, I don't read them. I'm lucky if I even open the notices (usually they go straight to the recycle bin) but this time I did and glanced thru it. I read they were raising my interest rate (and this is the one card I actually use) so I set it aside with the intention of calling them and asking Why.
Today I called and found out, not only were the raising the rate 7%...7%???!!!!! but it had nothing to do with me or my payment habits. I was informed that due to the financial situation and the national downturn rates were being raised across the board. I actually asked: 'So due to the poor decisions of the banking community, the gutting of regulations and the resultant lack of oversight, those of us who have been responsible consumers will pick up the bill?' The person at the other end said, 'I cannot comment'.
The notice included an 'opt out' provision and I asked about that. I was told I could opt out and my interest rate would remain at its current lower rate until the expiration date on the card and then the card could no longer be used. So I chose to 'opt out'. I have other cards without any balance so if you do carry a balance suggest you check with your credit company to see if they have raised your rate for no reason. Just sayin...
Here are some news article links: USA Today Noticed
Everyone pays again and again
and you can compare rates here
As the new Congress reviews banking regulations and so forth this is one area that could use a review. I'm sure the opt out provision was created by those few remaining pesky regulations. It's up to us to be informed consumers but it's up to the government to protect its citizens from, what's that word? usury so I hope some Congressional staffer whose boss is on the Banking Committee gets the word.