What's going to happen is that the majority of us, the responsible ones, will close our accounts in response to this snarkiness. Those of us who are unfortunate enough to have to rely on credit cards to get by will be even more effectively screwed than we are now. Credit economy = debt slaves. No, thanks, America. I can think of about 50 other countries I'd rather live in at this point.

agree with person who suggested cancelling credit cards. Maybe banks will stop their greed if we all keep only one for emergency purposes, or negotiate for no annual fees and they can pay me something back for the interest they charge.

I have three major credit cards - Visa, MasterCard, and Discover - I only charge when I know I can pay off and nothing else. I typically try to pay the balance off in 1-2 months. I don't charge things I don't need and if I can't afford to pay it off at month's end, I wait until I can to buy it. Unfortunately too many people see credit as a fun way to get all the goodies you want now and pay for them later - they fail to realize they'll be paying for them for a LONG LONG time. My husband is currently digging himself out of about $35,000 in credit debt. With my help and my strict plan - I estimate it'll all be paid off in 2 years.

In 1960 I received two unrequested credit cards from new card companies. I looked them over, talked with my new wife about them and we decided that Fabian socialism was not for us. Fifty years later we are still using cash to pay for everything. I'll admit that it's quite inconvenient at times but we've never had to be concerned about interest rates or ridiculous balances. The credit card is gifted with the ability to provide you with money when you you shouldn't be using it. It's like a religion, designed for weak minds to accept and pay tithe as the banker lords demand. The side goodies you might accumulate is sucker bait for you to brag about so other weak sisters will participate in the scam. I have no sympathy for the masses that can't control their own cash flow.

I wonder what would happen if 1 MILLION people cancelled (at least) 1 of their credit cards tomorrow.

A credit card is a loan, so don't carry a balance and you will pay $0.00 in interest.

I'm glad I paid all mine off and now I pay cash for everything. I am happier and dont have to worry about the sorry credit card companies ripping me off.

testing

The banks view their credit products as something they are free to alter at will, through a contract change in the next statement mailing.
What they miss is that much of the value to the consumer of a banking relationship like credit is based on the reliability of the product. If I can't depend on your product, its availability and cost or other terms, then it is as defective as if my car breaks down unexpectedly and leaves me stranded. Your product might as well be similarly defective, regardless of what interest rate you are offering me this month.
I get stung a couple times, and I replace defective products with ones I can count on, from a different "manufacturer".

Checking into a hotel with a debit card is not recommended, as many hotels put a block on your checking account for a large enough amount to cover what you migth owe, which can cause checks to bounce or cause overdraft fees even though there is money in the account. The block could be higher than you actually expect the bill to be.

Similar blocks to simply pump gas (for a maximum amount you might pump and pay for) can also mess up your checking just to fill your tank.

It is safer to use credit cards with adequate lines of credit in both these cases, since you are not actually tying up your cash or risking overdrafts or bounced checks, for amounts you don't even spend.

Keep the little people occupied with shopping around, studying fine print, worrying about credit scores - so the Madoffs of this world can do what they like.

I use AMEX for a while not and pay my fees on time every month, i use this card for business and travel expenses primarly overseas, last time they suspended my charge limits after a long trip to China until i made my payment ahead of the cut date arrguing my expending habit has changed from the previous month... if this is a card that will do this when you are in business or abroad it is a card or business i wont give them anymore....

So many comments I'd like to respond to, so little time. I manage a small CU, so I would like to correct a few things. The CU earns 1.6% of each transaction charged on our credit card. We do not earn 4% - 6%. This 1.6% has to pay for monthly service charges from VISA, my staff that assists members with their cards and card issues, and fraud. When fraud hits your credit card, it's the issuer (credit union or bank) that has to eat the cost of fraud, not the merchant, who usually is responsible for the fraud because they didn't maintain the proper security to keep hackers and thieves out of their systems.

When you close a credit card you've had for along time, it will impact your credit score, but not significantly. If you were "A" or prime credit before you closed your card, you will almost always continue to be prime credit after you close your card. Many people leave consumers with the impression that their credit score will plummet if they close their cards. Not so.

You can live without credit cards. While I am in the business of keeping our CU profitable, I am also in the business of helping my members live better financial lives. My advice....You never need more than two credit cards. One should be a VISA, MC or AMEX with a line that doesn't exceed one month of income and the second a favorite store card with a very small line and only if you cannot live without it. And when your line is increased automatically, call the issuer and ask them to reduce your line.

You can order airline tickets and reserve hotels with a debit card. You don't have to have a credit card. I would advise that you use a credit card when ordering over the internet as it provides you with some chargeback rights if you have any issues with yoru purchase.

Gotta go. Need to attend a meeting. Have a nice evening. And sorry if I sounded "preachy." I give advice for a living, so it's something of a job hazard.

Don't know why anyone would say that the CARD legislation is hurting consumers. We only had the appearance of low rates from credit card companies but they had the right to indiscriminately raise rates. With the new legislation, at least you know what you're getting into right from the get-go and if the interest rate is no good, you can look for another offer or not use a credit card. It's better than making a large purchase thinking you're paying 7.99% and then two months later they jack it up to 28.99%.

credit cards are a tax on people who can't do math.

It's truly sad to see how thoroughly fooled Americans have let themselves become. The credit card companies have been telling people to "buy now, pay later" for years. Well, now it's become "buy now, pay never". People have been convinced to treat a credit card balance like a utility and expect to pay it forever. As long as they keep a balance, they are trapped by the credit card companies and they don't know it.

I'm not sure what to make of all this, but I use my AMEX for everything, including my 2 dental clinics. We charge over $35,000 per month for supplies, and take in over $85,000 in patient services. AMEX levys a 4% fee on these charges. We have been a very good customer of AMEX, yet, they dissallowed a $800 purchase on office furniture. All our bills were always paid on time never being late in 23 years. When this was brought up, they had no explaination except that they wanted their money 10 days after the close of the cycle. Another rep said that this was not true, that the regular cycle still applied... I don't think even the card companies know what they are doing....denying charges intermittantly has become the norm...rather unpredictable, even for their best customers. We still use the cards for the perks. for the amount of points we get, our whole staff can go on Hawaiian seminars yearly.

I woke up the other day with $20,000. in available credit, and by the afternoon, American Express had reduced it to $300. My wife said Geez,they could have at least left you a thousand in available credit! This whole credit game is beginning to turn my stomach.

Predictable reaction from banks. For services provided, fees will be charged. Same as any other enterprise in our great capitalist society. Banks are not charities.

"I'm a believer in the Powell Doctrine. Use overwhelming force when engaging the enemy. Hit them so hard that they quickly lose the will to fight. If the banks change the terms of the agreement, DON"T PAY. If the banks think enough people have the spine to do this, they'd stop behaving like low-class, cut-rate mafioso."
If you don't pay they will sue you for payment. It has happened to me.

There are some companies that accepts credit cards with a fee. These companies now are passing the burden to their customers because credit card companies charges so much to the buisness. So, what is the point of using a credit card if you are being charged an interest in using the card and then being charged in paying by credit card to a business. One example, is hair and nail salons are charging a fee to pay by credit card.

Keep one credit card (preferably credit union) for internet purchases only and pay cash for everything else. I am amazed at how people have been manipulated into charging for everything even a cup of coffee. You are a slave to corpratism without even realizing it. You see what the banksters and corporations are doing.....buying off our politicians by way of legalized bribery......lobbying. This system does not work for main street. We go to jail for bribery how can we allow lobbyists to bribe out politicians?
What's wrong with carrying cash around instead of a credit card that charges you for the use of your own money....what a scam. Back in the day we used lay-away and if we wanted something bad enough it would be paid off first and it was very gratifying once you did pay it off. Are you willing to remain a slave to the corporate masters??

Today you HAVE to a credit card if you want to buy airline tickets, rent a car, reserve a hotel room, etc. Keep it paid off, and shop for a good card. If a credit card company want me to use their card, then it better be free. i usually use my bank debit card as a credit card and guess what - what I buy is paid for and I have no fees, etc! Think about it!

Puff - You might want to seek some professional help.
Good luck.

I am glad I have never needed a Credit Card. I have been brought up to save for the things that I want and that is what I have been doing for the past 34 years of my life.

BluCollar makes some interesting points. It is right for the card company to charge for its service. And it does so. It charges the merchant somwhere in the neighborhood of 4% for the "convenience" of letting the consumer use the card, and then charges the customer an additional 9 - 22%. One company is currently marketing a card with a credit limit of some $300 to people with poor credit at an incredible 79% interest - and people are clamouring to get it! Vinny down on the corner used to charge those rates, and the cops called it extortion. The problem with CC companies is that their contracts are unilateral - that is, they set the terms and you take it or leave it. That's fine, but shouldn't a contract define the relationship between the parties - it doesn't with CC companies, because they can change the terms on existing contracts at will, and your only recourse is to dump them at the expense of your own credit rating. No, my friend, these are not scrupulous business persons providing a service for a fee. They are money merchants seeking to glean every cent they can achieve from an ignorant consumer and those not really in a position to pay. What most people don't realize when they lay their card on the table to pay for something beyond their current means is that they are laying their retirement on the table, and trading tomorrow for today. The only answer is to "pay it forward". Limit credit spending to only those things that are emergency in nature, or required by circumstance (such as internet sales) - pay off the balance in the same period with current cash, and put those extra dollars away for your retirement years (or the kids college, etc.) Play the game with the CC companies and make them compete for your business. If they raise rates, impose fees or change the terms of your contract without your consent, seek another card and dump the former. Its a nice dream, but they know, as do we, Americans will never make the sacrifice necessary to bring the big CC companies to their knees through the marketplace. We just can't do without our instant gratification - and they are there to provide it, and the buyer's remorse that follows!

"A lot of places don't like to accept cash or a check these days anyway."
I've never run into anyone who wouldn't accept cash :-)

Caveat emptor. Pay cash if you don't want to pay fees. However, it is unfair that you may be left with a choice of canceling a card which may damage your credit or pay a fee that you did not initially agree to when you applied for the card.

Some good rules of thumb.

Your credit card debt should be no more than 5% of your annual gross income.

Keep the minimum number of cards you can keep while keeping the balances on those cards at no more than 30% of availability and with a total dollar amount owed of not more than 5% of your gross annual income.

Example:

Your income is 60K

Your total credit card debt should be no more than $3,000 after you are done making your monthly payment.

As too keeping your credit score as high as possible the most important thing to remember is to pay your bills on time. When it comes to your credit score and managing your credit cards you are best off keeping 3 credit cards with $1,000 on each card if those cards have $3,300 hundred limits. That is of course rounding things off; you don’t have to figure it down to the penny of course.

If you have a dozen cards, each with a $10,000 availability and only $3,000 charged on them your credit score will suffer because significant potential for abuse exists. If you have one credit card with a $3,000 limit and $3,000 on it your credit score will suffer because you will be seen to be someone who pushes his credit to the limit.

I am NOT a fan of credit card companies. I worked for years as a financial consultant and I have seen first hand the damage that can be done by credit card debt. Credit card companies are very aggressive in encouraging consumers to over extend themselves, not to the extent that consumers default of course, but certainly to the extent that consumers spend most an inordinate amount of money servicing their debt instead of paying it off.

Ultimately consumers must be accountable for how we use our credit cards. It is hard to fault a consumer who is jobless and in fear of losing him home for using credit cards to stave off starvation and homelessness but in all honesty those are not the problems that got us here. What got us here is giving in to the, “I want it now.” mentality.

If we are to avoid becoming mere servants to credit card companies then we have no choice but to educate ourselves and to adjust our spending habits.

Congress understands that the economy requires it's large financial institutions to be healthy, and a second stimulus package wasn't in the cards, so the Card Act was put in place...Interestingly enough, it's effective date delayed sufficiently to allow the banks to "adjust" to the new regulations. This contributed to the the banks abilty to quickly turn a profit and attract new equity. That equity was used to pay off the Tarp loans... with interest. Net result, Congress looks good, and consumers wind up with legislation that forces us all to pay for those who probably should never have gotten a loan to begin with. A few of our legislators were probably bright enough to have done this on purpose. The rank and file likely never made the connection. Don't blame the banks folks. They're just adjusting to a new set of rules. The fix here is in the voting booth.

Credit card companies are just like cable companies - they will always find a way to get around any regulations designed to encourage a fair playing field. I used to get angry, now I no longer care. I've been paying off my Visa bill (7 years of illness & surgeries racked up a lot of debt) - thank goodness I'm in a position to pay it off now. I'm choosing library books, home-cooked meals, friends and park benches over flat-screen TV, digital cable, movies and stuff I don't need. In the coming years I fully expect to lose health benefits, pay higher taxes, and get charged for every convenience I enjoy. I'm drawing a line in the sand - some things I have no control over, but credit cards aren't worth this. Buh-bye, Visa.

DO NOT!!!!! Repeat: DO NOT!!!!!! Cancel credit cards. Pay them off but don't cancel them. Doing so will drop your credit score.

Two key points: 1) In the age of ecommerce and electronic transactions, not using a credit card severely restricts a consumer's options. Charging extra fees for not using a credit card, or requiring one should not be legal. If it is legal, then credit cards are defacto currency means, and should be heavily regulated. 2) Credit scoring forces a consumer to be subject to higher rates based on their past history. But it is proven that past record is not a good predictor of future behavior, for stocks, companies, countries, etc. What about the banks themselves -- why should we not judge them based on past behavior? This type of system is manifestly unfair, also because consumers have no voice in the credit scoring process.

My opinion on all the credit card charges is this- don't come down on me too hard or I simply won't pay them! Somethings are worth getting bad credit for and I refuse to be shafted any further. They have already made enough off Joe Consumer to be well paid for anyway. Sit on that Credit Card companies. Thank You

Couple of points:
1. If you have good credit and are given an unfavorable change of terms on your credit card, call the company up and ask for the old terms back. Be nice. It will not always work, but there is no downside to trying other than the time invested. It works better with cards branded to retailers, e.g. Target, Walmart because the retailer forces the finance company that runs the card to be nice to its customers, since if the card annoys the customer then the retailer - who does not own the card - could suffer lost sales. Banks, of course, have less incentive to be nice to you.

2. Credit unions are great, but be aware that having a good payment record on a major credit card (e.g. BofA, Chase) can help your credit score more than a good record on an "unknown" (local) card. This is because the score calculation may not be sure what your card is, so it registers as "generic revolving" rather than "bankcard". The effect is likely minor, so this is more for the "perfect score" people. And having an uncommon brand of card does not stop you from being marked down for non payment.

Say NO to credit cards. Period.

It's so funny to me that so few really get the point of all of this. There are some that do, and I applaud them.
The solution is simple, as those who do get it have pointed out. Quit using the cards & pay them off. Go back the the novel ideas of our parents & grandparents. Save the money until you have enough to buy even the big ticket items, then pay cash.
And, finally, take the suggestion to move accounts to a credit union. They are more community minded, and are actually owned by the depositors. That's why the money you put in your account is called a share. Your deposit is a share of the credit union.
Regulations are somewhat similar to the banking industry, but there are some huge differences that are almost all beneficial to consumers, especially when it comes to credit and loans.
I love my credit union, and actually know that even though my credit score isn't that great, that my account history with the credit union actually gives me a boost if I ask them for a loan, making me more apt to get one, even though any bank would say no.
But again, cash is the best way to go.

One thing the government CAN do, is simply put these companies out of business. Instead of giving the banks money at zero percent and have them charge some outlandish interest and take the bulk of that money and invest it overseas, creating jobs n India or China, inject money directly into the economy by granting direct 5% loans to consumers. They could do the same thing by establishing a fixed, say 8%, interest rate credit card, available to credit unions only. That would break up the banks, kill off the predatory credit card companies, and do more to get our economy rolling again than all of the "bailouts" to date. Most of these economic problems have simple solutions, the crooks try to make them appear more complex.

I just spoke with GE Money Bank, the issuer of my Brooks Brothers Platinum MasterCard. I received a notice that my rate was increasing from 9.99% to 14.99%. Eevn though I just received the notice in my December 2009 statement, it was dated September 2009 and effective Februry 10, 2010.

I was told this was an across-the-board business decision and my choices were to accept it or close the account. They did mention that closing my account could have an adverse impact on my credit score (which is 823).

I always pay the balance in full and have had a high credit of over $5,000.

I asked to speak with a manager and requested that my account be evaluated on its own merits because it didn't make any sense to me that payment history and credit scores weren't even considered. She declined stating there were no exceptions. I asked her if any consideration was giving to the number of card holders that will close their accounts based on this bizarre action. She replied with "this was an across-the-board business decision" and it was a take it or close the account situation.

I will keep this account open because of the points scheme Brooks Brothers has.I do hope that the number of card holders that have balances and pay as agreed close their accounts and take their business elsewhere.

This CARD act is a disaster and makes the good underwrite the bad credit decisions made by the card issuers.

I see alot of "Go to a Credit Union" statements in here. Great idea, but be sure to validate that it is truly a credit union. Got bit by that recently.

I have opted out and closed all but one of my accounts. I am fed up and disgusted that financially responsible decisions I make to close accounts that only cost ME money are used against me. I AM FED UP WITH BEING PENALIZED FOR BEING DEBT FREE AND PAYING WITH CASH. FIX OUR SYSTEM!!!! Reward me for being honest and financially responsible.

Big banks are showing their true colors here by continuing to try to "game" the system with the egregious practices. No one is forcing them to do any of the changes they'll do to try to preserve profits, and that's highlighted by the fact that NOT ALL BANKS and very few credit unions are doing this.

The most important thing you can do as as individual is FIRE THE BANK and MOVE YOUR MONEY. You will not be sending them a real message by doing anything less. Many credit unions can take members from entire geographic areas now, like urban counties. Mine has grown from about 100K members to about 146K in just 2 years, even though it has been around for 75+ years. Smaller banks and credit unions are generally not doing most of these practices, and the difference in fees can be like night and day. There's also an ATM network, Allpoint, that is up and running with ATMs in most Walgreens and Targets that gives surcharge-free access to member banks and now has more ATMs than the biggest bank.

But I know nothing more important to inculcate into the minds of young people than the wisdom, the honor, and the blessed comfort of living within their income, to calculate in good time how much less pain will cost them the plainest stile of living which keeps them out of debt, than after a few years of splendor above their income, to have their property taken away for debt when they have a family growing up to maintain and provide for.

You know if you really look at this situation and who is to blame. The borrowers (the ones that charge it) would be the ones at fault for their situation (as in being in a hole of endless debt).
Those good customers that followed the rules, paid their debts, stayed within their means are the ones that get punished (raised rates, fees ect) for no reason. I am no saint as I have made some really good financial fumbles in my time but they were my fault.

People love to blame the banks, and I will agree the banks are part of the blame but the majority of the blame rests on the credit card holder/borrower.
If you break this down and were to create an itemized list of charges from the time the credit card was opened to the current date, as well as a payment ledger of payments made.
Things would become pretty clear who is to really blame for the debt shackles.
What I wonder is would the person take ownership for their errors or continue to blame the banks that provided the credit card?
If that is the case then by that same reasoning a person could buy a gun, go out and kill someone with it and blame the gun manufacture (or the place where they bought it) because they made/sold the gun to them.
How logical is that, I mean this reasoning is in line with obese people suing fast food places for making them fat?

So where exactly does personal self control and responsibility come into play?

Paid off 3 credit cards 4 years ago. What a relief. Now we use CASH. what a sense of accomplishment. Not it did take time for this to all come together. But it was well worth it. I bank locally, and I am not very happy with there bonus program so we are going to check out a credit union. The amount of junk mail from credit card companies we recieve in a month is just amazing. All that waste of paper. I agree a bank should make money. The american way. An honest days work for an honest days pay. Especially with the electronics used in our society, it should be cheaper to do business today that even 5 years ago. If you really want to have fun. Clip the cards up and take that money you would use for a payment and buy stock in that bank. Eventually they will come back to profitability and you will reap the reward without breaking your back to do it. As you get older you notice that you require less credit to survive. Usually as your kids grow up and move out, most of the things you want you have and the things you want you just go and pay cash for. If most of Americans would slow down and really analize there spending the would see most of it is impulse buying. I am happy to drive 2 american vehicles that are 9 & 11 years old. Paid for. Beautiful shape and pretty decent on gas mileage. Each month I save a few dollars and when I have enough I will go out and buy another American vehicle. Not paying a cent to borrow money from anyone is GREAT. But, it does take time to get it set up. So Sit down with the spouse and get a piece of paper and a pencil and figure out a workable budget. Live with in your means and in a few years you too can feel a real sense of accomplishment. Support your fellow americans and we will make it thru this .

I cancelled all my cards and got a bank debit card from our LOCAL bank and a home equity credit line that I have yet to use though it is available for emergencies. The final straw for me was a customer service rep who explained that my rates were going up 31%-despite a clean payment history and good credit score-"because we need more money". At least she was honest.

"So basically the CARD act rewards deadbeats who don't pay their bills on time, at the expense and detriment of the rest of us who do. Nice....
Steve, Doylestown, PA (Sent Jan 12, 2010 12:22:39 PM)"

EXACTLY Steve! That's what "spreading the wealth" is all about! The irresponsible will be covered by the responsible middle class. We are being force-fed this idiology via the 13 Trillion dollars the gov't has spent to "save" the banks while the FED makes a record breaking, 46 Billion Dollars at our expense!!!

I'm absolutely disgusted with our government and how they help CEO's profit from a crisis, in which I am convinced, our government created (17 consecutive rate raises without a pause landed us here, believe it).

Let us make these banks compete for the business rather than make the consumers the victims. There should be a government run or some consumer organization who has a website with every credit card issued in this country with all the fees and interest rates. Also, there should be total cost of ownership of this card for different type of people...people who carry zero balance, typical persons monthly balance etc. With the ability to sort it by any field, consumers will be able to choose the credit card which suits them best and switch to that credit card. Then there should be a law which requires the credit card company to provide this complete data to this publishing organization and a law which bans the negative credit rating for closure of the account by the consumer.

Credit cards are a scheme to trap people into lifelong debt bondage. The easier it is to borrow money, the more people will do it without any thought of how they'll pay it back. Adding on every fee that the companies can possibly think of is just icing on the cake for them. The real money is in sucking a big percentage of the American public dry. Yes, it's our own fault, but that doesn't meen they aren't evil for preying on our weakness. Just like the cigarette companies. . .

Jonathon wrote:
"There is a agenda to destroy America from the inside and it has begone."

The agenda to destroy America is begone? So, it's gone? Hooray! By the way, you should have written "a[n] agenda." Please stay school. It gets better in the 4th grade.

You can "drop your cards and join a credit union," but don't expect to get a loan or credit card through them if you have a less then perfect credit score. Credit unions don't want your bad debt either. They are very scrupulous. You can open a checking and savings account at credit union, but don't assume that they are handing out credit cards like take-out menus; they most definitely are not.

So who do we talk to about "dings" on our credit scores when "WE" decide to voluntarily close a card? This is absolutely silly. If the bank or company closes our account because we didn't pay as promised, that's one thing. But it is astounding to me that THEY get to tamper with our credit scores because we are practicing our right of shopping around for a better card. CONGRESS,,,ARE YOU LISTENING???

Stop them!

We need 4 year term limits on all public offices.

We have forgotten the term "Public Servant" and have
inserted "Career Politician".

Each state should vote for limited terms at all levels.

It's funny how screwed in the head so many Americans are. I can't believe how many people defend the credit card issuers and the banks. Brainwashed sheep who faithfully defend a system that enslaves working Americans into a cycle of debt and wage slavery.

For those who speak of "responsibility" and one's obligation to pay one's debts, let me ask you this-- whatever happened to abiding by your word? Changing the terms of an agreement after that agreement has been made is the greatest sin of all. The penalty for breaking the agreement should be forfieture of all claims to repayment.

I'm a believer in the Powell Doctrine. Use overwhelming force when engaging the enemy. Hit them so hard that they quickly lose the will to fight. If the banks change the terms of the agreement, DON"T PAY. If the banks think enough people have the spine to do this, they'd stop behaving like low-class, cut-rate mafioso.

this mess was not just from bush . this has been brewing for years and just now we all realize card companies have us by the cahunas.like some have said if you cancel card your credit score takes a hit.get rid of cards use cash.

Why isn't it common knowledge that who pays for the rewards programs is the retailer, not the bank. The banks charge the retailer an extra percent in processing fees when you use your wonderful rewards card.... you didn't think the banks were giving you something for nothing , did you?

@BlueCollarNC If a college student age 18 isn't deemed to have the reasoning capacity to drink until age 21, then why would they be deemed to have the capacity to understand the "contract" and responsibility of owning a credit card.

Banks specifically target this market. It's akin to big tobacco making cartoon character mascots.

The government exists to protect those that cannot protect themselves. This included inexperience or inability to understand consequences.

The fact that many still carry a balance from when cards were 4% - 8% and are now 25-29% make them victims, not irresponsible users. Interest rates being jacked up 600-800% while they carry a balance is as close to mafia tactics as I can think of.

Pay off your cards, do not do business with that bank... ever. You are not considered a customer but a sub category of business rival.

Just keep track of the credit cards that try to use this to burn you and get rid of them. I have been reading the fine print ever since the credit card laws were in Congress. I thought they might try something like this. What the defenders of the cards forget (or not) is that the cards charge fees to the vendors for each transaction, plus high interest when the rates are historically low, and fees on top of that. Then they add on the "hidden" fees and make it so that you need a lawyer for reading the fine print. I plan to get rid of them soon as I can, but in the meanwhile I have an elephant’s memory: I never forget when a company burns me and I throw out their "offers" forever after that. They make good kindling.

"Are you for real? Here is some advice, Try reading the documents you sign before you sign them."

Sunni, you ignorant prick... BANKS CAN AND DO CHANGE TERMS AT WILL *WITHOUT* YOUR CONSENT.

If I have you sign a lovely little agreement with terms you approve of, then next month change the damn rules to say I can facerape you with nothing more than a "if you don't call us to deny these changes you've automatically approved of them" mailer (which conveniently gets lost in the mail half of the time...) you'll happily slurp on my Johnson, yes?

I have a friend who works in customer service at Citicard and he indicated that Citi is going to levee a service charge on card holders who pay off their credit card balance every month. He did not know the exact amount yet, but we have already begun to phase out our 2 Citicards as a result.

This sounds like a "bite the had that fees you" concept. We use our credit cards for erything and pay off the entire balance every month. Its a convenient way of keeping up with your purchases and you have only two or three bills to pay per month versus carying wads of cash with you or having the hassle of writing a check. A lot of places don't like to accept cash or a check these days anyway. But now we - who pay our balance every month - are the principle targets of new fees whenwe are not the root cause of the problem to begin with. How novel!! I suppose it will be back to cash because we will not pay fees.

I hear a lot of people saying to cut up your cards (good advice mostly), dont let them get you, your crazy to carry a card and balance etc...all good advice but I think the outrage and rants that people are having are ethically justified. We help save the big banks from failing and then they turn around and try and milk what they actually owe to us, from us. Maybe some generalization in this statement but certainly not off-base. As long as lobbying and campaign contributions are allowed from these large companies Congress will always make you "feel" like your being represented but in actuallity its about how to strategically make you feel good about legislation while simultaneously ensuring further contributions to one's fund. Let us not forget that the real measure of a companies success is the stock market in those companies eyes. Its the only # that matters anymore and that number has not only proven unethical at times but we cant even enforce the unethical practices usning the imcompetant SEC...seriously ridiculous, when a case is handed to you on a silver platter and the SEC still fails...what does this say of the entire system...is it really representative of what the people want?

I just changed my credit cards and my mortgage over to my local credit union. Reasonable interest rates, no hidden fees, customer service with real people who actually live in my country. Everyone should do it...the banks would have to change their tune to compete and stay alive.

YES,,,we all need to go back to a "CASH and CARRY" frame of mind,if we cannot afford to pay cash do without.If it is that important to us,we will save enough to get it.My credit suffered after a car accident that my car insurance paid for,but after it was settled,the Hospital came back with another charge and would not supply paperwork to prove it,this affected my FICO when i tried to re-fi last year.AGAIN good old B of A,raping the consumer.

Banks are service industries and make money solely because they provide a service. Fees are charges for services rendered. Whats the problem. If you don't like the fees...go elsewhere or forego the service. Stop your whining.

If you can't afford to pay off your credit card every month, you shouldn't use them.

Now , lets see, this is all pretty simple, we loaned those banks the billions of $ with the understanding that they would use that money to help the people with bankrupsies and keep the market stable, but without any limiting language in the contracts there was nothing to keep the banks from using the money like they did, IE buying stocks and bonds in foriegn countries and neglecting thier duties at home (thanks for the cheap loan suckers) who in thier right mind would make a loan like that, could any man working a normal job do something like that without being fired ?
could you get away with that ? only congress could do something so stupid, they should all be fired.

Sounds like breach of contract. If I signed a contract for fixed rate, "x" percent, whatever, then that is what I expect. You don't think think I would get away with calling them up and saying " I think my new rate will be 0.2%!" They should make money; some money. However going from 7.5% to 30% is crazy. Sounds like when people try to sale you a gallon of water for $10-20s after a natural disaster. Now this is what the goverment should be stopping.

And another thing, why should the goverment bail out the BIG guys and not Mom & Pop companies. Don't know any? My point!

Wrong. Bush did not introduce it. Carolyn Maloney (New York Dem) introduced it in 2007. It happened DURING Bush's presidency. Back then it passed the House and didn't get a vote in the Senate. She reintroduced it this past April, and that's what we have now.

hey, I have an idea, lets start war and put it on our credit cards.
The repugblicans will lie about WMD, the conservatives will thank God for "W", the ditto heads will go buy tea, and they will all vote for it .
Now if we can get the liberals to go to a corner and shut, we can enjoy the distruction of the banks as well as the obstructionest.

About a year ago Discover card sent me a letter that they were raising my interest rate, even though I pay off my balance monthly -- except when I buy a big ticket item like a big screen tv or a cruise. Then I pay it off in 2 or 3 months.

So I carefully read the letter and followed the details on how to cancel my card -- AND I DID IT.

I use my debit card almost all the time anyway. And, my bank had given me a credit card that I never used. I've since put some small recurring charges on it to generate a credit history with it and I pay it off every month.

Here is a web site that will help you find other banking instituition so you can move your money from a bank that is screwing you.

http://moveyourmoney.info/

Drop your credit cards and go to your credit union...we tax payers helped the banks as well as other companys...who is helping us...these laws are not for the people by the people...they are for big bonus for the very few...November is come many, many 'D' will lose jobs...It's ok if you are working however it is quite different if you are not...

This wasn't Dodd, or Obama, or Reid or Pelosi. It was BUSH and CHENEY, et al.

Keep repeating names of your targets in November just gives them more publicity - it will backfire.

You keep just repeating the same failed tactics.

The real villain here is being enslaved to the bankers. The Fed just had a record $45 Billion in PROFITS for 2009 !!! They made a mint off our misery last year!!!

Pay them off, but keep them open until you can transfer to a better card, especially if you want to buy a car or house soon.

I agree with the majority of you. If there are any bank/credit card company officials out there reading all of these posts, know this, the first "Southwest Airline" type credit card company that comes out with a similar product, I'll be ther first to get in line - no baggage fees, no hidden money dings to your wallet and it's a good fixed price for the service you get.

Now, Mr. Banker, try that option. 10% of 100 is better than 25% and hidden fees of nothing. Do the math bean counters!

JB

I had a Target card at 9.9%. I pay online via my credit union and didn't notice my rate had gone up to 16.99% even though I've never been late with a payment. I fought it and got nowhere. A few months later, I opened my paper statement and there was an announcement that they were going to raise it to something like 24%. I called immediately and told them to cancel the card. I was told would that would hurt my credit rating. I didn't care. She put me on hold, and then came back and said they'd keep it at 16.99%. What a game.

Yes, you should pay off your cards and stop using them. But until you can get to 0 balance, pay attention to anything and everything a credit card company sends you. And take action immediately.

"@ deceitful companies should be regulated"

are you joking, you are making a statement that people defending banks are ignorant because banks hide fees they charge in a legal document that you have to sign before you get the service you are applying for?
Are you for real? Here is some advice, Try reading the documents you sign before you sign them. And when I say read I mean read so you understand them. If you cant understand certain portions have someone from the bank explain them to you, or better yet (especially if you are buying a home) Hire an attny to go over it with you.
Deceit is defined as:1. Given to cheating or deceiving. 2. Deliberately misleading; deceptive.
So How exactly was Bank of America being deceitful when all the terms were in the 80 page book they sent you?
Please people we are all adults, if we just slow down and take charge of our lives and not expect people to hold our hands ( as in trust no ones word) we wont become victims. Laziness and lack(or ignoring) of common sense is when we bet boinked by life.

Pretty simple really - pay it off each month and quit moaning about the fees. Not the banks fault you feel you "had" to have that 55" lcd.

I haven't used a credit card in over 3 years and I don't miss them. I don't miss the bills-my thinking is if I don't have the money from my paycheck to buy what I need now then how on earth will I be able to use that same paycheck, pay my normal bills AND pay that credit card bill? My Suntrust bank just sent me a letter in the mail that said they will charge $5 if I don't keep at least $300 in my SAVINGS account. How can you charge me for my savings account!?! I am taking all my money out of that account and going to use my nearest credit union. It's time to show these banks that we won't put up with their mess!

Is this ethical business? Is this what bankers had in mind in the beginning? I'd rather bankers be paid out of higher taxes; it should NOT be a for-profit business, but a service. I can't wrap my head around some of their tactics, or how anyone could sleep at night after stealing from complete strangers all day long.

Those who are blaming Bush are flat out wrong. The bill wasn't even introduced until January and passed in May of 2009. The vote in the Senate was 90-5 so there was strong support for this on both sides of the aisle.

You know why we don't have "Loan Sharks" any longer? Because we have BANKS!

All great empires come to an end. History has shown us this. The time has come for the Great USA to fall and once a big empire falls it never, ever rises again. The end is coming to America and we should prepare for this. We became a decadent nation, abandoning all ethics, morals and conscience. We have turned our backs to God forgetting that the only one on our side is GOD! Fool is the man who trusts in man.

An people thought Jimmy Hoffa was a crook. These banks make him look like a saint.
For those that insist that we are unfair to these cards- esp blue collar- if I quoted you a job, then after I performed that job I charged you 400% more then I had originally told you? In ANY other industry it's called bait and switch. In banking it's called normal.
I guess Congress was the best investment the banks could have ever made. A few hundred thousand to a few key members netted them billions down the road.
The best gov't money can buy.

The interest rate needs to be capped as it was prior to the late 1980's...at 18% again. Also, get rid of any card issued from the mega banks and go to a local credit union or small community bank. YOU have no excuses and the interest rates are only 9% or so.

There is a agenda to destroy America from the inside and it has begone.

So basically the CARD act rewards deadbeats who don't pay their bills on time, at the expense and detriment of the rest of us who do. Nice....

Tom Dejoria, Houston, TX

You hit the nail on the head Tom. This is my sentiments exactly. These crooks are going to screw over MIDDLE CLASS AMERICANS until there are none left.
Doesn't matter whether you are black, white, brown, yellow or anything else. If your are (or were) considered MIDDLE CLASS AMERICAN, you are going to get screwed.
It irritates me even more that the damn Credit Bureaus are going along with this by dropping peoples credit scores when we try and fight back by telling the banks and credit card companies to stick their cards where the sun don't shine.
STAND UP MIDDLE CLASS AMERICANS BEFORE ITS TOO LATE!

+1 to Jager of Little Rock.
Also going back to the good old days of checks and cash, as well as scheduled payments by my bank. Keeping just ONE card for travel and emergencies, and hopefully I'll NEVER use it.
If I can't afford to pay cash, then I can't afford it - period.

I got so irritated w/ BofA at the new $39 annual fee, I gave up the card and canceled the account. I had it since 1979, through several mergers and purchases of credit card units. They also sent those crappy checks in the mail with every bill and other offers-anyone could have stolen them and used them as my expense w/ a fake ID. I now have a credit union credit card and enjoy talking with people who recognize me. Never again with the big bank cards. We all should be doing this. Be responsible, not a victim!

Decided I had enough of banks. High fees, and the executives salaries put me over the top. Just moved to a local credit union. They don't pay their CEO's 5 million a year to run the country into the dirt. They are quite healthy, and are more friendly. I like the fact that I am no longer supporting the banks, or their policies that I don't care for. Consider that move.

Keep in mind that the banks keep 6-8% of each purchase you make at the expense of the seller. With the 12-25% interest rates and new fees you can rest assured that the banks are not suffering. They will find ways around any new regulation when it comes to gouging the public.

Hey Bluecollar, you are so wrong, Banks get a percentage of sales from there credit cards from the merchants. Get real you are not blue collar or you might be a jackleg, thats a person who thinks he is a tech or builder but isnt even licenserd.

This is in response to the commenter that suggested that someone received a rate increase because they didn't pay their bill on time. All this decade and longer, I have a perfect payment record with 5 different credit cards. Admittedly, I do have a balance on all five of them that I am trying to pay down. Again, my payment record is perfect for over 10 years. Yet, just like with many, my interest rate has been hiked on all cards ranging from about 20% to about 25%, with the exception of one card, if I remember right, I think it is close to 18%, Wells Fargo did raise my rate, but not to the extent of the others. Because of various buyouts, 3 of my cards are Chase, and for a while, they were lowering my credit limit to about what the remaining balance was on each card, this was for much of the late summer/early fall, they seem to have stopped this around November. All for simply keeping a balance and being a perfect paying customer...

We were forced to file bankruptcy a couple of years ago because not only did major health issues result in debt and job loss, but no matter how much we paid on the cards we used when we had 2 major incomes instead of 1 minor one, fees and interest kept increasing the balances to the point where no matter how much we paid, the balances increased because the payments were going to interest and fees.

Now we pay cash for everything or use our debit card when we're not carrying cash. If we can't afford something, we do without or save until we can pay for it. Though we miss being able to 'just charge it' when we go on a trip (those have been eliminated, too), at least we own everything we have and no one can take it away from us. Our vehicle was reposessed during our bankruptcy, something I'd never, ever experienced. I refuse to let something that humiliating ever happen to me again. The next vehicle we buy will be cash only.

Fantastic! The government creates a bill to protect the irresponsible card users who can’t manage to pay their bill on time and have the nerve to complain about the penalties. So let’s tag on fees so now everyone looses! Blame the credit card companies all you want but the real blame belongs to the consumers, if you have enough greedy people in this country you can find politicians who will pander to them, just ask all those people who spent beyond their means to have that house they couldn’t afford. It’s a shame the government keeps throwing money around at the expense of the dwindling number of responsible people who are the pillars of this country.

Like most of you, I feel the large 5 banks are taking full advantage of the criminal situation that is our economy. They are raising our rates and giving bonuses to those who think up more ways to screw the pooch. Early on in 2007 I started to see changes and dumped my Wells Fargo acct like hot potato. I also closed out my Chase card- and moved all my money to a credit union- where the service is out of this world fantastic. People, find a credit union - it supports the local economy and local businesses- keep your money local. It is also easier to get loans via a credit union that it is a bank today!

I understand that there are people out there who are in rough situations through no fault of their own... if you are one of them, this message is not for you... if you are in a rough spot by your own hand... keep reading.

Seriously people!?! I'm no happier about the credit card mess than anyone else is. I had a card with 8.90% that is now going up to 20%. The thing is that credit companies and banks are BUSINESSES and yes, they want to make a profit. They SHOULD go about this honestly, but does anyone REALLY think that banks are going to put OUR needs above THEIRS?? I have been tempted to get rid of both of my credit cards once they are paid off and going to cash only, but the sad reality is that in today's America, credit cards are almost a necessity (think airline tickets... can't purchase them without a credit card logo).
I am so sick of hearing everyone blame all of this on Bush! He hasn't been in office for a long time now. Place the blame where it truly lies... with the current administration (and that is true of any problems that occur during any President's term).
It sickens me that people are hailing Obama saying he isn't to blame for any of America's problems... any RESPONSIBLE HOMEOWNER knows that is not true! WE are paying for those who were so stupid that they bought (a) more house than they could afford and/or (b) fell for ARMs...
Just be responsible... pay back what you borrow, borrow only when you HAVE to (you don't HAVE to have that big screen, flat screen tv if you don't have the cash for it!!!), and STOP BLAMING EVERYONE ELSE FOR YOUR IRRESPONSIBILITY.
I have made some pretty stupid financial choices, but I never once begged the government to bail me out or pass my bills on to other people. I took a good hard look at myself and my habits and I changed them... and I blame only myself! There is a light at the end of my tunnel now, and it has appeared DESPITE Obama-nomics, NOT because of it.

Stop expecting the government to save you every time you screw up.... GROW UP AND TAKE RESPONSIBILITY, AMERICA!

What we (and the banks) keep forgetting is that WE have the power to make this change. Even though thousands of financial reports remind us that consumers account for up to 70% of GDP, we always seem to be willing to surrender that power without a fight. I know that not everyone is in a position to do so, but if enough people ever decided to tell the banks where they can stick their fees and exorbitant interest rates, we would be facing a very different situation.

No matter who started this reform, Mr. Obama is taking the credit for it, "Yo help Americans move forward." I keep one credit card and use it for everything.....gas, groceries,miscellaneous, travel, etc. Then when we want to take a trip we use the mileage points. It has a fee, but is well worth it, since it comes with credit protection, notification, replacement value for a year if anything we buy is lost, stolen or broken. And.........most importantly, it gets paid off each month.

we are being hit all the time...not only banks and credit card issuers, but how about the utility companys. I now have to pay to have my gas and electric meter read each month...The local water company is charging me a fee to replace septic tanks, yet I don;t have a septic tank and the local county would not let me install one. All of our public officials from county to federal are basically crooks. This is why it takes so long to put into effect these so-called new protective bills. These officails need time to set-up their "under the table"deals....You ever wonder how a person can be elected to office as a regular guy and 2 or 4 years later leaves office with a High Net Worth and still can collect a big pension?