I have seen many articles about how the new credit card bill helps consumers. As a former credit card company victim, I don't agree. There's a basic major component missing from this bill; it doesn't limit maximum interest rates that can be charged.
My experience with abusive credit card practices incolved Citibank and American Express Blue. Both began charging me 31%+ interest rates after I failed to meet their hair trigger payment schedules. A common republican talking point is that people that can't afford to pay their bills shouldn't borrow. This wasn't my case. I always had sufficient funds to pay my cards. But when you only have a few days to pay to keep from being dinged as being "late", its easy to be classified as being late.
Its easy to be late. Ever get sick for a week with the flu? How about going away for a short vacation and have the bill arrive the day you left? Or how about taking a time out for the Christmas to New Years break? Or the more basic case of just working like a dog, both at work and then bringing your work home, to try to get thru a major problem at your work? A combination of these factors put me on the "late" list, and resulted in interest rates of 31%+. I, like most Americans, have led a busy life. I don't wait at my mailbox for a bill that I will only have a few days to pay.
In my case, Citibank's and American express Blue's attempt to screw me had no effect; I totally paid off both cards.
I also don't use credit cards anymore, I just use my debit card. While I still keep a credit cards for use in emergencies, I don't use them otherwise. This is actually sad for the credit card industry. I have never shied away from using credit cards before, I didn't mind the reasonable interest rates that I was being charged; for me it was worth the utility. But now I have permanently stopped using these cards, and won't go back. The credit card industry has permanently lost me as a customer. Their greedy practices have led to the loss of me as a customer.
But I realize that most Americans may not have the option I had; to pay off the bill.
This is why I feel that Americans and especially Democrats have been let down by the new bill; It doesn't limit maximum credit card rates. In my view, the bill is a sham, and as far as I am concerned, it should be vetoed by President Obama. True the bill does give forewarning that your rates will be raised, and it does somewhat limit the reasons for which you rates will be raised.
But is that really the problem? Isn't it the 30%+ interrest rates that are the problem? Why aren't we hearing any discussion on this? I can only assume that the credit card shaped the present bill. To me its a token bill that gives Democrats cover while not even addressing the basic issue. Does anyone else feel the same way?