Credit Card Execs Defend Rate Policies

Credit Card Execs Defend Rate Policies

There are 24 comments on the Orlando Sentinel story from Dec 4, 2007, titled Credit Card Execs Defend Rate Policies. In it, Orlando Sentinel reports that:

Check your holiday credit card bills closely. Some credit card companies are raising interest rates on good customers even if they pay down their balances, on time, every month.

Join the discussion below, or Read more at Orlando Sentinel.

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Leonard

Apopka, FL

#1 Dec 4, 2007
I have never understood the logic behind doing this. Why raise the rate higher when people can't make the payment they have now. It's like these credit card companies want people to fail and pay off thier accounts.

“Semper Fi...”

Since: Dec 07

Glenwood, FL -the last of many

#2 Dec 4, 2007
...Shylocks are Shylocks, predators and usurers. They have not learned from the mortgage disaster. They only want more-more-more. Because they are among our beady-eyed enemies within...:-(
...Tear up those malicious credit cards, and buy only what you need, only what you can afford. Then watch The Street Of Thieves weep and whine and gnash its crooked teeth...:-)
dawanna

Willis, TX

#3 Dec 4, 2007
I have recently experienced this very issue with Chevron. We have never been late and had almost paid the balance off until the recent hike in gas. where it now costs me $75 to fill up. and they have doubled my minimum payment and they had the nerve to say that they were helping me!!!
Pay Attention

Kissimmee, FL

#4 Dec 4, 2007
Leonard wrote:
I have never understood the logic behind doing this. Why raise the rate higher when people can't make the payment they have now. It's like these credit card companies want people to fail and pay off thier accounts.
They do this:

#1 Because they can. No one is regulating them against it.

#2 Because they make more money. Many people do not pay close attention to their credit card statements. Many do not notice when their rate increases. Many do not complain when they should.

Any company that raises your rates based on what you do with other companies is a bad company. They should base their rates on how you perform with that company and that company alone.
Maleficent

Menomonee Falls, WI

#6 Dec 4, 2007
Seems to me that if they raise your rate when your credit rating goes down, that they should lower your rate when your credit rating goes up! It's only logical!:)
LucyVio

United States

#7 Dec 4, 2007
Learned my lesson. Always paid on time and paid more than the minimum. Suddenly Capital One almost doubled my interest rate! I haven't touched their stinking card since. They want to be treated as a respectable industry but choose to act like loan sharks. I hope everyone who has one just shuts off the use. And don't forget to call and tell them why! Also call your representatives and encourage them to investigate the CC companies.
Third World Credit Card

West Palm Beach, FL

#8 Dec 4, 2007
Leonard wrote:
I have never understood the logic behind doing this. Why raise the rate higher when people can't make the payment they have now. It's like these credit card companies want people to fail and pay off thier accounts.
Did you know?

Credit Card Companies raise rates and fees to Pay off ALL THE FRAUD that occurs on their Cards?

True.

They Pool it amongst the current Card Holders.

Want more 3rd World Illegal Alien 50 fake Id's Credit Card Fraud immigrants in the Country Now?????

Think about that Tomorrow
Marco

United States

#9 Dec 4, 2007
Of course they are gloing to defend it....people making money off others always become saints in their own eyes.
Marco

United States

#10 Dec 4, 2007
Between 1968 and 2000 credit card debt roese 6,000 percent!...that is six-thousand percent.

Working people were able to live like doctors and lawyers..at least for a while. The real estate boom of the 2001-2006 era allowed people to borrow further.

Now many are upside down and debt is very tough to get rid of.
David H

Nashville, TN

#11 Dec 28, 2007
Leonard wrote:
I have never understood the logic behind doing this. Why raise the rate higher when people can't make the payment they have now. It's like these credit card companies want people to fail and pay off thier accounts.
I had my rates, without my knowledge, raised to 30% by Orchard Bank even though I have no late payments and Im not behind on any of my bills. I called to ask why and the custmer service said it was a business decision.
David H

Nashville, TN

#12 Dec 28, 2007
Third World Credit Card wrote:
<quoted text>
Did you know?
Credit Card Companies raise rates and fees to Pay off ALL THE FRAUD that occurs on their Cards?
True.
They Pool it amongst the current Card Holders.
Want more 3rd World Illegal Alien 50 fake Id's Credit Card Fraud immigrants in the Country Now?????
Think about that Tomorrow
Yeah its a mess and they know that if they get in trouble the federal government will bail them out like a bunch of crackhead welfare queens. I did email my representaives. I have several credit cards that have gone to 30% even though I've paid them on time The are Orchard Bank, Bank of America and GE. This is insane.
David H

Nashville, TN

#13 Dec 28, 2007
Email and call your representatives and tell them to do something now
Dept Free

AOL

#14 Dec 31, 2007
If they are going to raise the intrest rate on someone it should just be on new charges. You borrowed what's on the card at one rate, now they want to up the price(intrest rate), that's what you would expect from mobsters.
No Sympathy

United States

#15 Dec 31, 2007
Dept Free wrote:
If they are going to raise the intrest rate on someone it should just be on new charges. You borrowed what's on the card at one rate, now they want to up the price(intrest rate), that's what you would expect from mobsters.
Dept (department?) Free? is that your screen name? what does that mean? however, i can say that i am living DEBT free. its really not hard. only buy what you can afford. if you don't have the money in the bank - don't buy it!
No Sympathy

United States

#16 Dec 31, 2007
David H wrote:
Email and call your representatives and tell them to do something now
why not pay off your balance instead?
my name is Richard Roma

Satellite Beach, FL

#17 Dec 31, 2007
Don't spend money you do not have.

If you do borrow money, don't be surprised when you have to pay high interest.

You child.
No Sympathy

United States

#18 Dec 31, 2007
Marco wrote:
Of course they are gloing to defend it....people making money off others always become saints in their own eyes.
making money off others? i'm assuming you mean people. so what else are you going to make money off of? buffalo?
Bemused

Howey In The Hills, FL

#19 Dec 31, 2007
Living withing my means is always the right thing to do, but it is nice to know that if an unexpected contingency arises the company whose card I use charges only the prime interest rate (about 7% APR at this time). It is nice to do business with a company like USAA. If only more would follow its lead.......
Tim

San Jose, CA

#20 Dec 31, 2007
Recently, I sent a letter refusing to accept BoA's new credit card terms.

What did they do?? BoA increased my credit limit!!(Figures.. I guess it helps if you pay off the balance each month.)

But a few months later, they're back at it again, more changes, some of them I don't like. Soo, I'll be sending another letter, giving BoA another choice.
test

South Bend, IN

#21 Jan 3, 2008

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