Credit card abuse
Posted on 06. Jun, 2008 by admin in General
Credit card companies are getting away with incredible abuse of consumers. Consider this business : Issue credit cards are 0% interest for 6 months, then raise the interest to 16%, allow 20 days for the consumer to pay the invoice each month and sit back and wait until the consumer inevitably misses a payment due date. Then SLAM them with a $35.00 late fee and RAISE the interest rate to 32%.
In the approximately 10 – 12 months that they have had the card, they have charged an average of $3,000.00 on the card. Since the consumer is now being charged 32% interest, it’s difficult for the consumer to stay current on the credit card. Each month they are late, SLAM them with another $50. It should be against the law to offer low interest rate credit cards, entice consumers to charge and create balances and then raise the interest rate to 32%.
It’s a license to steal money from consumers. There is evidence that the banks are making extraordinary amounts of money off this scheme. If they weren’t, consumer wouldn’t receive on average 20 credit card offers per week in the mail. The number of credit card offers is unreal, but it’s profitable. Very profitable.
Another very good indicator is the number of banks that are being constructed. On some busy intersections, there is a bank on every corner. There are more banks than gas stations.
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