Bank of America is getting into the "Default" game

Bank of America has been mailing new "amendments" which allow them to increase the default rate to "32.24%". In that same amendment they are restructuring the rates for Cash Advances to be significantly higher than those for purchases placing then on the average at 24.4%. Customers have until January 18, 2008 to reject the amendment in writing. I just sent mine in so I do not know yet of the shortfalls but then why would I agree to a 32.24% rate?

The credit card game is getting nusty as most of the US is drowning in consumer debt and credit cards are becoming "balls and chains". The news are talking about subprime loans and nobody is paying attention to the credit card games. Those with serious balance should brace themselves...

Students be ware

Second in the favorite customer list of credit card companies are students. For the cost of a five cent coffee mug or some other cheap chinese promotional gimmick, students are invited to sign up for credit card offers right on campus. Then work the rest of their lives to pay off their balances... These cards offer also special perks like a double-cycle billing, where interest is calculated over two months instead of the typical one, resulting in higher finance charges!!!

Guess the bank behind the "special offers" just for students...my favorite: Chase Bank

Read more...

Also don't miss the confessions of a credit card pusher

Newly Bankrupt Raking In Piles of Credit Offers

It is amazing that in a "civilized" country banks are allowed to do this... This was also a point made in the movie "Maxed Out". The banks are piling credit card offers on people that just declared bankruptcy... Why? Simply because they cannot file again and would have to work for the rest of their lives to pay the 29.99% interest rates that the banks impose on them

Simply beautiful. You got to love this system. It makes you wonder: banks can rob people but people go to jail for robbing banks???

"The people coming out of bankruptcy need an opportunity to get back on their feet," said Laura Fisher, a spokeswoman for the American Bankers Association.

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Picking the right credit card (or better not picking a card)

I am reading this and summarizing everything in one sentence: Get only credit union cards. Apparently all the big ones are ripping off people. Note that this article highlights the "triggers" to fees and higher rates which I mentioned in my other posts. Firts you get a 0% transfer everything to me offer, then they decide that you have too much credit, then apply the "default" interest of 29.99%...

Yet people still deal with these sharks and are expected to feel guilty about their usage of the card. I will not forget how "little" I felt at times when dealing with my Chase card and their fine 29.99% rate. They pretty much want you to feel like a loser and that they did you a favor for offering you credit at that rate...

Fees and then some more fees from Citibank

Chase is not alone in the fees and raising rates schemes. Apparently Citibank plays similar games with their clients even when they payoff their balance. Read and enjoy...