Credit Cards Are Unfair to American Consumers

Credit card holders who previously paying say 9% on their credit card balance have been hit with rate increases raising their rates perhaps to’%, 29%, 39%,or even more. Such rate increases have been initiated by some credit card issuers for most all of their customers, even those with excellent pay records. Credit card companies are raising rates knowing that new rules take effect in February of 2010 that will restrict their ability to raise rates on existing balances.

Credit card companies have long been able to arbitrarily and unilaterally change a consumer’s interest rate. In other words, at any time and for any reason (or no reason), credit card companies can change the amount of interest they’re charging on a credit card, even on existing balances. Under the Credit Card Accountability Responsibility and Disclosure Act of 2009, their ability to raise interest rates on existing balances becomes limited, a provision that takes effect in February 2010. However, rates can still be raised on future purchases with a 45 day notice.

Credit card companies are not covered by state usury laws. Usury laws are laws that limit the rate of interest that a consumer can be charged in financial transactions. Since usury laws don’t apply to credit card companies, credit card companies can literally charge the consumer whatever they want. Some consumers are currently being hit with credit card interest rates over 40%.

Credit card problems are causing American consumers financial headaches. Minimum payments are rising as interest rates rise and credit limits are cut. The already recession squeezed consumer now finds sometimes finds himself or herself having to choose between paying the credit card or the mortgage or perhaps even putting food on the table.

One would think that credit card companies would find it in their best interests to work with consumers having credit card problems. Historically, however, that has not been the case. When a consumer begins to have financial difficulties, that’s when he or she finds credit card interest rates and minimum payments rising dramatically causing greater financial problems!

Even though the banking industry received billions of dollars in taxpayer assistance to be able to free up lending, instead lending is being cut back and credit lines cut. Even customers who have always paid their credit cards on time are finding their credit lines drastically cut and available credit disappearing. The taxpayers who paid for the banking bailout are being squeezed by the very banks they helped with reduced credit lines and higher interest rates.

While the banks have been bailed out, there is no one to bail out the consumer. Consumers are expected to default on ONE BILLION dollars in credit card payments in 2009 with the defaults continuing at a high rate into 2010. Credit card problems are going to continue to be a way of life for United States consumers into the near future.

Bank profits have not really been affected by consumer credit card problems. Thanks to taxpayer assistance, the big banks are again profitable. Credit card defaults were never a big factor in the banks troubles. American consumers pay more than 90 billion dollars a year in interest and fee payments to the banks issuing credit cards.

Credit card companies collect more than 90 billion dollars annually in interest and fee payments from consumers in the United States. Consumer credit card problems were not really a factor in the banking industry troubles. And thanks to the taxpayers, the banks are again profitable.

Are you among the millions of Americans burdened with unmanageable credit card debt?! According to recent Credit Card Debt Statistics, American families are spending more than 92% of their disposable income on debt payments! Get real help with a one of a kind program that delivers real results! This is NOT bankruptcy or debt settlement.