Washington Post: Credit Card Issuers ( Gangsters) Raising Rates, Fees Ahead of New Law - by Nancy Trejos
Credit Card Issuers ( Gangsters) Raising Rates, Fees Ahead of New Law - by Nancy Trejos
After being bailed out by tax payers money credit card companies are raising interest rates and fees seven months before new rules go into effect that will limit their ability to do so, much to the irritation of Congress and consumer advocates. Chase, for instance, will raise the minimum payment required of some of its customers from 2 percent to 5 percent of the statement balance starting in August. Chase and Discover have increased the maximum fee charged for transferring a balance to the card to 5 percent of the amount, up from 3 and 4 percent, respectively. Bank of America last month raised the transaction fee for balance transfers and cash advances from 3 to 4 percent. Card issuers including Bank of America and Citi also continue to cut limits and hike up rates, which they have been doing with more frequency since January.
Charles Chichester Jr., a 65-year-old retired U.S. Postal Service employee who lives in Fairfax County, was trying to pay off his credit card soon but now fears he will be unable to do so at all. He received a letter from Chase, he said, notifying him that his $373 minimum monthly payment would increase to more than $900. When he called to say he could not afford that, a Chase representative told him to consult with a credit counselor, he said. That's exactly what he plans to do. Note EU-Digest: This is scandalous behavior by the Banks and credit card companies.
Labels: Credit Card Companies
