About · Press · Contact · Write For Us · Top Personal Finance Blogs
Featured In:

Congress Finally Notices that Credit Card Companies Are a Bunch of Crooks

By Erik Folgate

It took a while, but Congress is finally starting to take interest in the unbelievable practices of the cut-throat credit card industry. Senator Carl Levin will be heading up a committee to investigate the practices of credit card companies and come up with legislation that would further regulate the financial practices of credit card companies. I work in the insurance industry, so I definitely understand that it is our responsibility to read the credit card terms and conditions. But let’s be honest, unless you work in the credit card industry, it’s impossible to figure out how they calculate your daily, weekly, monthly, and even your yearly interest rate.

You may already know how much I dislike credit cards and the entire industry itself, s0 hopefully this investigation will expose some of their “legal”, yet devious practices. One man from Ohio gave testimony to the Senate about how he was charged 47 over-the-limit charges on his credit card, but he actually only went over the limit three times. My guess is that every month he was still over the limit so they continued to charge him the over-the-limit rate. My favorite is when credit card companies will raise your interest rate based on the activity of OTHER credit card accounts. The $39 dollar late fees are always nice, too. Reputable lenders like mortgage companies actually allow 15 days before they impose a fee that high. It’s not that I think there should be no penalty for paying late, but I’ve been literally one day late before and charged the $39 dollar fee. Let’s not even get into the collection agent practices of credit card companies. They break every rule from the Fair Debt Collecting Practices Act.

I want to start a discussion about why you think credit cards are beneficial to society. I’m bracing myself for the articles that will talk about how cutting out some of the credit card company’s profits will discourage spending and therefore hurt the economy. If there is anyone who truly believes that, then they are extremely naive and ignorant about macroeconomics. If our society waged war agaainst credit card companies and stopped kissing their butt, then we might be able to cut into the massive 850 billion dollars of debt that we’re in. We carry one of the largest consumer debt loads in the world, and our spending is out of control. Congress recognizing the problem is a start, but it will be up to us to stop letting Chase and Citigroup take advantage of us. Answer this question: Would our world be better off without credit cards? I truly believe that it would, but many of you would disagree with me. “Credit cards offer rewards programs” and “Credit cards help people get out of a jam”. Those are excuses that people might use to support the notion that credit cards are a good financial tool.

So what do you think? Do you think that I am some kind of “I hate debt” freak, or are you with me that credit card companies nee d to go down! Leave me a comment with your thoughts.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

Related Articles

Comments

  • Steven

    I tend to agree with you that credit card companies are the devil. It’s easy to fall on hard times or to simply be ignorant about how difficult credit card debt is to get out of.
    Steven

  • http://www.erikfolgate.com erik.folgate

    yeah, I was a little extreme with this article, but i just wanted to prove my point about my hatred towards credit card companies that the government is starting to figure this out as well. So many prominent finance people condone the regular use of credit cards as a way of life. To think that we NEED credit cards to prosper financially is just ludicrous.

  • jessica royals

    I think the world would be better off with out credit cards, I have not got a credit card and I never will.

  • Armen T.

    Credit Card Companies only care about one thing. $$$ I’m in the industry, helping people get rid of their debts. Working with an average family that carries 30k in credit card debt, it is amazing to what extent the creditors will take full advantage of the customer. So, if you know someone that is looking for help… Be happy to take a look at their situation. :)

Links monetized by VigLink
Close