CC companies basically restrict all the ways for you to earn credit to only giving them money in interest. If I pay off my debts, that should show I have good credit and am trustworthy. The market is not regulating itself beyond coming up with figures for maximum profit without completely shunning consumers. And there is no choice in the matter for consumers because all 3 companies run the same. Why should my credit suffer if I want to shop around for a credit card, even if I'm keeping the ones I have? Why should I be hurt for looking for a loan from several providers? There are ways around exposing yourself to credit backlash, but it's nearly impossible for the average person to stay on top of it all. I have excellent credit but just because I can play the game doesn't mean I like the rules.
There needs to be a single credit reporting agency controlled by government regulations and to add or remove information from the report there must be signed documents to prove the money owed or paid. The process should be simple and with one agency people will not have multiple credit scores and try to fight to repair credit issues.
They sell your information to a million people, which causes you to get a million spam E-mails and telemarketing calls. There ought to be consumer protections. I just got a letter about "sharing my personal information". It lists 7 things it shares my information for and only ONE that I can prevent. Then when I call the toll free number to say I want to prevent the one thing I can, that option is disguised among the choices of the number I should pick on the voice mail. When I finally figure out which one to pick after listening to the voice mail numerous times, the customer "service" rep says, "Oh, you can't do that on the phone. You have to mail a letter. . ." Then, I ask, "Why did you send me this GD letter with the toll free number on it which says TO LIMIT OUR SHARING Call toll-free 800-233-0557. The lender is American Education Services. I will be filing a complaint.
There should be consumer protections when it comes to credit cards. Credit card companies should not be able to raise rates without consent or sell your debt to another company. If I own a home, I can't tell my loan officer that I want to pay less than we agreed at closing. Credit card companies need to help out the consumer.
Predatory lenders spent multi-millions to lobby the government for changes to the bankruptcy code a few years back that made the practice more difficult for those who find themselves in over their heads. Those supposedly against government regulation seem quite happy to have the government regulate on their behalf. A truly democratic system would protect the weaker majority from the moneyed and powerful minority. Afflicting the comfortable and comforting the afflicted was once a stated goal of journalism (no longer... Mass media is controlled by the powerful) and would be a reasonable goal for a government of the people by the people and for the people (when "people" refers only to natural persons and NOT corporations)
When I signed up for my credit card, it was prime rate +1. That was not an introductory rate, it was the standard rate. That was in 1992. After the bank I opened the account with was acquired, the rate shot up. It averaged 4% - 7%, the first several years I had the card. The same card is now over 20%, even though the prime rates are still super low. I have not paid late on it and I have good credit. The bank is abusing its power to change the terms whenever it likes, with the caveat of, if you don't agree, then pay in full. This is not a good business practice and sadly all banks do this to consumers now, simply because they can. Consumers need protection from the banks.
The federal government should increase the regulation of credit card companies and how they charge their customers. The credit card companies are justified at charging a higher interest rate for higher risk customers, but there have been examples of credit card companies abusing that power by deliberately holding payments until past the due date to charge late fees and increase the interest rate.
Though loans and credit cards are virtually the same thing, they are not treated as such today. Many people who can't get personal or student loans are bombarded with credit card applications and instant approvals, leading to credit limits that they can't afford. Our "consumer attitude" that's created by the media/government/corporations lead us to believe that because these credit limits are allowed to us, we should use them. This is a tremendous problem for both individuals and the economy at large. In order to keep any sort of morality in the credit industry, the government needs to have control over what types of atrocities credit companies are allowed to commit. Even though it won't do much good for the average citizen, it could save our economy in the long run.
It is the responsibility of our government to protect the rights of its people. The recent past has brought to light that a lack of strong federal and state regulations allows credit card enterprises to gouge their consumers. Many of the people being taken advantage of have few options, other than to pay exorbitant interest rates offered by the credit card companies.
Yes, I agree that the U.S. Government should regulate the credit card industry to protect consumers from sudden rate increases, because it would make sure consumers are treated more fairly, and are not abused financially. When a credit company suddenly raises rates, regardless of a consumer's credit rating, it is not always warranted or fair. Some can raise rates to to get richer. That's unfair to the consumer, and regulating rate hikes would be an absolute improvement in the credit industries relationship with consumers.
Each time the government steps in to regulate, consumer prices quickly increase. Let the free market regulate industry. Any unethical company is shunned by consumers. At the same time, credit card issuers are in business to make a profit. High risk credit card holders reduce the issuer's profit. If high risk users want to use credit cards, it is fair that they be required to pay more. In the insurance industry, drivers convicted of drunk driving must pay higher premiums, while smokers pay higher life insurance premiums. Let the deadbeats pay higher credit card interest rates.
Economics show us that the more open and unregulated a market is, the more money will be spent on investment in it and the better it will thrive. History has also shown that unpopular products won't last so if consumers avoid using credit cards that use unethical rate plans, those cards will eventually leave the market.