They now call it rate-jacking....(universal default 2.0)

And the beat goes on... After having to give them our tax dollars a big thank you from the banking industry: Credit card rate increases (when the Fed's lowered their rate to almost 0). Thank you very much!

What is interesting is that apparently there are regulations in the works but the bill has languished in the Senate since September. The chairman of the Senate Banking Committee Christopher Dodd received more than $4 million from the financial sector during the last campaign, according to campaign records. So I don't think he wants to bite the hands that feeds him...

Read all about it here

Overdraft protection the "new convenience"

"Automatic overdraft loans can look like a consumer's best friend, but they can come at a steep cost."

As individuals are squeezed to make "ends meet" banks are becoming even more creative in hitting their customers with fees. The new scheme, overdraft fees.

Read this interesting article from CNN Money

Card issuers use all sorts of tactics to wrestle every penny out of customers...

No comment... Read the article.

On suggestion. Give those thieves the finger and pay cash...

Credit card rewards are a real rip off...

Well what you know... Even those rewards are a rip-off. Note that you do not get rewards on your balance but only new charges. With everybody maxed out there is no room for new charges and therefore no rewards, yet they do charge you more in annual fees since you get "rewards"...

Now here is the funny part. The rewards that they give you are conveniently charged to the merchants who have to pay a different "discount" rate for "reward" cards. As a result more are raising prices to account for higher credit card fees. So that reward you get is really paid by you... That much about getting that free mile that you cannot use or the free toaster for which you do have to pay shipping...

A new trick with automatic payments...

So given that a missed payment can create havoc with interest rates one may opt to setup autopay offered by several banks. Then you can sit back and relax thinking that as long as you have money in your checking account all is set. WRONG!

Some banks change the due dates and the automatic payment kicks in the same day each month. So if you are off by 2-3 days you can easily be off your payment too thus making a late payment. That is when the party begins.. late fees and of course the dreaded default rate of 29.99%. Now this is not Chase but yours trully Bank of America!

The kicker is when you try to get an explanation and they throw you to some Gold Option sign up for a credit line application who is part of some new intelligent scheme to "save you money" because the goal of the banks is to "save you money" not make money...

CreditCards.com cancels proposed IPO

Finally someone gets it... Everyone is overborrowed and nobody needs any more debt. Who needs another website to "shop" for a card when everyone of them is going to rip you off down the line with an "updated" agreement! Maybe Chase should buy them and use them to lure potential "universal default" clients. Or better offer a teaser rate of 2.99% only to raise it to 29.99% a few months later because you have borrowed too much ;-)

-- More on credit card fees...

Nothing new but a confirmation that card companies are always creative in adding fees after adding fees. Did you know that you could be over the limit because of overdraft fees? If not check this out

BTW notice this comment: "Many card companies are willing to lower your interest rate, raise your limit or waive a fee as a one-time courtesy if you ask nicely. " I still have not figured out how to be nice to Chase who is still listing my rate at 29.99 % one year after paying off my balance and after asking twice (nicely) to review my rate.

Finally credit card companies get some heat...

It is about time. Congress is finally questionning credit card company practices. Of course that comes after a run of 3-4 years where banks pilled profits by charging 29.99% interest based on "universal default" under which you do not have to miss a payment but simply borrow a high percentage of your credit limit. Note that it does not mean exceeding your limit, but what a bank would think is more than what you should...

I think that a class action lawsuit would be more appropriate even if most of the payouts are eaten up by some sleezy attorneys...

Read the news here