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The credit card companies suck, but in the same way as McDonald’s (really fast food in general). They give us what we want, then when we get fat (or broke) we blame it on them. Sure, they add lots of fat and salt (or interest and penalties), but it is us who shove the food down our gullets (or apply for more and more credit that we cannot afford).
The best solution would be self discipline and taking responsibility for our own actions. But hey, we are all just victims, with no choice but to do what the tube tells us to do. So i guess it is not our fault we are fat, stupid and broke - the fault lies with “society”.
I guess what we really need is big brother to keep us from making bad decisions. If we just give up our freedom then the state can take care of us all and our problems will all disappear! Yea socialism/communism!!!
Posted by wolf on Jan 28, 2008 at 9:56 AM
We, the public, can fight abusive credit card bank fees. Household Bank, now HBSC, held my payment checks until overdue. I caught them by sending payments “signature returned” and then stopped payments completely. They wrote off the $4000 plus balance. Providian charged an over limit fee resulting from their annual fee. I objected, and they settled for 1/2 the balance $900 balance. Later, I received a small check from the class action suit against this practice. Bank of America turned me down for credit card processing because I’m an astrologer. I stopped making payments on their credit card, with a $1500 balance.. Upon learning I’m a Vedic Astrologer, part of Hinduism, they stopped collection efforts on the card.
Most recently, both Wells Fargo Financial and Wells Fargo Bank set credit card payment dates on holidays—an obvious attempt to gain extra late fees. I objected and stopped making payments to both—balances of $2600 and $1000. Wells Fargo will “eat” these balances, just as the other banks have.
Posted by dmoon on Jan 28, 2008 at 3:20 PM
I’m managing to beat them at their own game… so far.
I put all my purchases on one card, I balance the credit card just like a checking account; keep track of all debits, and send in a full payment each payday (bi-weekly for me) I have never been charged any interest on this account, and sometimes the statement shows a credit balance.
I also transferred all my other outstanding balances to a card with a low interest “teaser” rate. When the teaser rate expires, someone else offers me another one. (I’m down to owing less than $1000)
I once lost the teaser rate because of a late payment. It was the old “four days to process an electronic payment” scam. If the CC bill is due on the 15th, the bank deducts the funds from my account on the 11th. If I don’t have funds available, I get charged an overdraft. If I wait until after I get paid, I am late on the CC payment. No one at the bank can explain why it takes 4 days to make an electronic transfer.
So, I have also put this card on a 2-week payment plan. I send them a check for half my monthly payment every payday. I have been paying $150/month, I send the $75 every two weeks. Problem solved.
I had a friend with the same problem, he couldn’t make a payment until after payday, which would have made him late. I told him to send the minimum payment immediately, then send the remainder after he gets paid.
Of course, these tricks work only because they bill on a monthly cycle. Let’s hope the don’t figure it out for a little while longer.
Posted by ohb0b on Jan 29, 2008 at 11:03 AM
“Member since 1991” is on my card.
We just got an overdue charge even though we always pay immediately
Posted by whattheheck on Jan 29, 2008 at 12:07 PM
There are some hidden aspects. I had a credit company person explain to me (in an unguarded moment), their system of deciding whether you were a “transactor” or a regular payer. If you pay your bill right away, the company shortens your billing period by sending the bill out later, in relation to the “closing date.” If you are the sort that carries a balance, they lengthen your period. In the first case, they realize they aren’t going to make interest and other fees off of you, so they push to get the payment ASAP. In the second case, they figure you will charge more, pay later, rack up fees, and so on, if you are given a longer period to do it in. This ought to be just plain illegal, but not in today’s laissez faire regulatory climate.
What we should also be looking at is that data mining is now a business of algorithms, etc. Remember that they are able to keep a perfect eye on your purchases, the timing and location of what you do, etc. All of this can help them form a better picture of how you can be milked as a cash cow. No law prevents them from analyzing all the data that you willingly give them by using the card.
Posted by sailmariner on Jan 30, 2008 at 9:46 PM
I don’t attend any more, but there’s something to the admonition to “resist temptation” that I recall from my earlier church-going days. At least when it comes to borrowing money.
Upon moving from the Philippines to California, my 18-year-old son was amazed to discover, while filling up the paperwork for a new checking account, that the bank had “pre-approved” him for a $10,000.00 line of credit. At that time, he had been in CA all of 3 weeks, was unemployed, had a temporary address, and had not even had time to finish driver training, therefore had no driver’s license. All of these facts were known to the New Accounts representative. It smilingly, temptingly, didn’t matter. “Welcome to California!”
Fortunately he understood that every single use of a Little Plastic Vampire is a borrowing of someone else’s money, and that they can legally charge an arm, leg, or testicle for the use of their money by way of interest rates, etc.
So far, he has not fallen into the credit card lifestyle, counts his pennies pretty strictly. Would that I had been so savvy, back in the day.
Posted by Kuya on Jan 31, 2008 at 12:33 AM
re: Late charge on credit card bill paid ASAP…
One phone call to one person and they dropped the $39.95 late fee without arguement.
Posted by whattheheck on Jan 31, 2008 at 1:14 PM
Thanks, Sailmariner. That explains a lot… like why I get my statement a few days before the payment is due!
Posted by ohb0b on Jan 31, 2008 at 5:56 PM
This comment has been removed by the In These Times staff.
Posted by logic on Mar 28, 2008 at 4:46 AM
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Reader Comments
The credit card companies suck, but in the same way as McDonald’s (really fast food in general). They give us what we want, then when we get fat (or broke) we blame it on them. Sure, they add lots of fat and salt (or interest and penalties), but it is us who shove the food down our gullets (or apply for more and more credit that we cannot afford).
The best solution would be self discipline and taking responsibility for our own actions. But hey, we are all just victims, with no choice but to do what the tube tells us to do. So i guess it is not our fault we are fat, stupid and broke - the fault lies with “society”.
I guess what we really need is big brother to keep us from making bad decisions. If we just give up our freedom then the state can take care of us all and our problems will all disappear! Yea socialism/communism!!!
We, the public, can fight abusive credit card bank fees. Household Bank, now HBSC, held my payment checks until overdue. I caught them by sending payments “signature returned” and then stopped payments completely. They wrote off the $4000 plus balance. Providian charged an over limit fee resulting from their annual fee. I objected, and they settled for 1/2 the balance $900 balance. Later, I received a small check from the class action suit against this practice. Bank of America turned me down for credit card processing because I’m an astrologer. I stopped making payments on their credit card, with a $1500 balance.. Upon learning I’m a Vedic Astrologer, part of Hinduism, they stopped collection efforts on the card.
Most recently, both Wells Fargo Financial and Wells Fargo Bank set credit card payment dates on holidays—an obvious attempt to gain extra late fees. I objected and stopped making payments to both—balances of $2600 and $1000. Wells Fargo will “eat” these balances, just as the other banks have.
I’m managing to beat them at their own game… so far.
I put all my purchases on one card, I balance the credit card just like a checking account; keep track of all debits, and send in a full payment each payday (bi-weekly for me) I have never been charged any interest on this account, and sometimes the statement shows a credit balance.
I also transferred all my other outstanding balances to a card with a low interest “teaser” rate. When the teaser rate expires, someone else offers me another one. (I’m down to owing less than $1000)
I once lost the teaser rate because of a late payment. It was the old “four days to process an electronic payment” scam. If the CC bill is due on the 15th, the bank deducts the funds from my account on the 11th. If I don’t have funds available, I get charged an overdraft. If I wait until after I get paid, I am late on the CC payment. No one at the bank can explain why it takes 4 days to make an electronic transfer.
So, I have also put this card on a 2-week payment plan. I send them a check for half my monthly payment every payday. I have been paying $150/month, I send the $75 every two weeks. Problem solved.
I had a friend with the same problem, he couldn’t make a payment until after payday, which would have made him late. I told him to send the minimum payment immediately, then send the remainder after he gets paid.
Of course, these tricks work only because they bill on a monthly cycle. Let’s hope the don’t figure it out for a little while longer.
“Member since 1991” is on my card.
We just got an overdue charge even though we always pay immediately
There are some hidden aspects. I had a credit company person explain to me (in an unguarded moment), their system of deciding whether you were a “transactor” or a regular payer. If you pay your bill right away, the company shortens your billing period by sending the bill out later, in relation to the “closing date.” If you are the sort that carries a balance, they lengthen your period. In the first case, they realize they aren’t going to make interest and other fees off of you, so they push to get the payment ASAP. In the second case, they figure you will charge more, pay later, rack up fees, and so on, if you are given a longer period to do it in. This ought to be just plain illegal, but not in today’s laissez faire regulatory climate.
What we should also be looking at is that data mining is now a business of algorithms, etc. Remember that they are able to keep a perfect eye on your purchases, the timing and location of what you do, etc. All of this can help them form a better picture of how you can be milked as a cash cow. No law prevents them from analyzing all the data that you willingly give them by using the card.
I don’t attend any more, but there’s something to the admonition to “resist temptation” that I recall from my earlier church-going days. At least when it comes to borrowing money.
Upon moving from the Philippines to California, my 18-year-old son was amazed to discover, while filling up the paperwork for a new checking account, that the bank had “pre-approved” him for a $10,000.00 line of credit. At that time, he had been in CA all of 3 weeks, was unemployed, had a temporary address, and had not even had time to finish driver training, therefore had no driver’s license. All of these facts were known to the New Accounts representative. It smilingly, temptingly, didn’t matter. “Welcome to California!”
Fortunately he understood that every single use of a Little Plastic Vampire is a borrowing of someone else’s money, and that they can legally charge an arm, leg, or testicle for the use of their money by way of interest rates, etc.
So far, he has not fallen into the credit card lifestyle, counts his pennies pretty strictly. Would that I had been so savvy, back in the day.
re: Late charge on credit card bill paid ASAP…
One phone call to one person and they dropped the $39.95 late fee without arguement.
Thanks, Sailmariner. That explains a lot… like why I get my statement a few days before the payment is due!
This comment has been removed by the In These Times staff.
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