Comments on: Credit cards gone wild: Shocking rate hikes http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/ Editors from FSB magazine answer your pressing small-business questions. Tue, 15 Dec 2009 12:52:55 +0000 http://wordpress.com/ hourly 1 By: Prescott Valley, Az http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2112 Prescott Valley, Az Wed, 02 Dec 2009 00:00:21 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2112 We are in complete agreement on this. We are Thinking towards Bankruptcy on this as we are both totaly disabled and we are both up in our years and we do not need to be stressed out as we are now. We are in complete agreement on this.
We are Thinking towards Bankruptcy on
this as we are both totaly disabled and
we are both up in our years and we do
not need to be stressed out as we are now.

]]> By: matt johnson http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2076 matt johnson Wed, 18 Nov 2009 19:48:09 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2076 This is capitalism at it's worst they pray on the weak to increase there bottom line at whatever cost, they are crooks.It is legal that is what is ridiculous.Had same thing happen.Going to school and using card in tight situations,bam interest rate increase that tripled the among going to principle.It is sad they can get away with is. I learned my lesson.Washington sucks,they are for the big guy's that have lobbyists,not the little guy's.Take back American values,not screw your neighbor attitude like they have. This is capitalism at it's worst they pray on the weak to increase there bottom line at whatever cost, they are crooks.It is legal that is what is ridiculous.Had same thing happen.Going to school and using card in tight situations,bam interest rate increase that tripled the among going to principle.It is sad they can get away with is. I learned my lesson.Washington sucks,they are for the big guy's that have lobbyists,not the little guy's.Take back American values,not screw your neighbor attitude like they have.

]]> By: Chris M., Atlanta GA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2072 Chris M., Atlanta GA Tue, 17 Nov 2009 06:14:29 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2072 Right on!!! We need to all join together and rise up against those greedy ********!!! We've all been conditioned to fear a decrease in our credit score. But, what if EVERYONE'S credit score gets decreased...because they couldn't keep up with the higher monthly payments, caused by higher interest rates. If 90% of the population have a credit score in the 500 range, they'll have to adjust the average accordingly. If that 90% stops using credit cards altogether, the banks will go under. Also, the greedy scumbags are all raising interest rates to "protect themselves" against future defaults, right? Well, what happens to all that extra money if the defaults don't happen...You think they're going to put it back in our accounts...They're going to pocket it and spend it on another yacht or another mansion or another trip to the Caribbean...or all of the above. I say we all band together and use our numbers to our advantage. Right on!!! We need to all join together and rise up against those greedy ********!!! We've all been conditioned to fear a decrease in our credit score. But, what if EVERYONE'S credit score gets decreased…because they couldn't keep up with the higher monthly payments, caused by higher interest rates. If 90% of the population have a credit score in the 500 range, they'll have to adjust the average accordingly. If that 90% stops using credit cards altogether, the banks will go under.
Also, the greedy scumbags are all raising interest rates to "protect themselves" against future defaults, right? Well, what happens to all that extra money if the defaults don't happen…You think they're going to put it back in our accounts…They're going to pocket it and spend it on another yacht or another mansion or another trip to the Caribbean…or all of the above. I say we all band together and use our numbers to our advantage.

]]> By: Jerry, Bullhead city, AZ http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2070 Jerry, Bullhead city, AZ Mon, 16 Nov 2009 15:13:16 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2070 Be careful with these debt relief companies and your credit cards! I have heard they get your debt reduced, then the bank will issue a 1099-A, forcing you to pay income taxes on the amount forgiven as income for the year. Is this true? Be careful with these debt relief companies and your credit cards! I have heard they get your debt reduced, then the bank will issue a 1099-A, forcing you to pay income taxes on the amount forgiven as income for the year. Is this true?

]]> By: Joe Martinez Irvine, CA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2032 Joe Martinez Irvine, CA Wed, 28 Oct 2009 22:45:34 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2032 Just to let you and your reader know, ADVANTA which was a major issuer of credit cards to business has now moved what's left of its operation to India, they are gouging long time customers with fees that violate usury laws and there absolutely nothing you can do about it. Numerous class action lawsuits are being filed against them, follow their NASDAQ listing - a trial lawyers dream and a credit card holders nightmare. (NasdaqGS: ADVNA) http://finance.yahoo.com/q?s=advna Just to let you and your reader know, ADVANTA which was a major issuer of credit cards to business has now moved what's left of its operation to India, they are gouging long time customers with fees that violate usury laws and there absolutely nothing you can do about it. Numerous class action lawsuits are being filed against them, follow their NASDAQ listing – a trial lawyers dream and a credit card holders nightmare. (NasdaqGS: ADVNA)

http://finance.yahoo.com/q?s=advna

]]> By: larry august elkton fl http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2026 larry august elkton fl Tue, 27 Oct 2009 15:52:53 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2026 we can thank mr Obama for this, just like everything else he said, it just opened a can of worms and made it worse, all these comments are right on,and theres not a damn thing people like us can do, hopefully, if we all keep makeing enough noise about these greedy co's, they will step in and correct this , we need to fight back ,pay up our cards, stop useing them, let them go under, they dont care about us, why should we care about them we can thank mr Obama for this, just like everything else he said, it just opened a can of worms and made it worse, all these comments are right on,and theres not a damn thing people like us can do, hopefully, if we all keep makeing enough noise about these greedy co's, they will step in and correct this , we need to fight back ,pay up our cards, stop useing them, let them go under, they dont care about us, why should we care about them

]]> By: larry august elkton fl http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-2025 larry august elkton fl Tue, 27 Oct 2009 15:40:39 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-2025 way to go Laura, i'm with you, when i finish my obligation, these credit card companies can go you know where, i hope they loose there shirts and go belly up way to go Laura, i'm with you, when i finish my obligation, these credit card companies can go you know where, i hope they loose there shirts and go belly up

]]> By: Laura chillicothe,ohio http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1900 Laura chillicothe,ohio Fri, 10 Jul 2009 14:11:41 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1900 These credits card copmanies have been out of control way too long and the government giving these companies the time to raise rates on people before employing the new laws is just krap my chase mastercard was raised on me from 15% to 22% for no reason whats so ever i had always payed it on time and well above the minimum payment and their reason in the flyer was to " recover rising costs" well i will make sure they get no more money from me as I have put that card up and will cancel it once its payed off . I had been a customer for over 15 years and this is the thanks they give me so my answer back to them is BITE ME!! and I hope all the rest of your customers declare bankruptcy and you get not a dime from them...I am done from now on if it can be bought with savings i don't need it These credits card copmanies have been out of control way too long and the government giving these companies the time to raise rates on people before employing the new laws is just krap my chase mastercard was raised on me from 15% to 22% for no reason whats so ever i had always payed it on time and well above the minimum payment and their reason in the flyer was to " recover rising costs" well i will make sure they get no more money from me as I have put that card up and will cancel it once its payed off . I had been a customer for over 15 years and this is the thanks they give me so my answer back to them is BITE ME!! and I hope all the rest of your customers declare bankruptcy and you get not a dime from them…I am done from now on if it can be bought with savings i don't need it

]]> By: et hartford Ct http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1883 et hartford Ct Wed, 01 Jul 2009 18:51:50 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1883 Here are the facts. Yes, President Obama and Congress did something to "control" the credit card industry, but allowed them enough time to raise interest rates sky high. They talk so much about corporate America being befriended by -Republicans, when all I am seeing is buddyship with the Democrats. They word it in a roundabout way to make it sound like they are cracking down, yet allowing them time to jack interest rates to the sky now. It won't matter in 2010 that they have control. All this has done is made people more in debt and will drive many to default. It will make some of us smart enough to stop using credit cards though. Wonder how the cc industry is going to feel about that. If Obama and the dems even want to try to fix the economy after giving these banks our tax money and in return they thank everyone with rate hikes.......FREEZE THE CREDIT CARD COMPANIES FROM RAISING RATES NOW!!!!! Here are the facts. Yes, President Obama and Congress did something to "control" the credit card industry, but allowed them enough time to raise interest rates sky high. They talk so much about corporate America being befriended by -Republicans, when all I am seeing is buddyship with the Democrats. They word it in a roundabout way to make it sound like they are cracking down, yet allowing them time to jack interest rates to the sky now. It won't matter in 2010 that they have control. All this has done is made people more in debt and will drive many to default. It will make some of us smart enough to stop using credit cards though. Wonder how the cc industry is going to feel about that.

If Obama and the dems even want to try to fix the economy after giving these banks our tax money and in return they thank everyone with rate hikes…….FREEZE THE CREDIT CARD COMPANIES FROM RAISING RATES NOW!!!!!

]]> By: George Palmer, Ormond Beach, Fl http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1806 George Palmer, Ormond Beach, Fl Thu, 28 May 2009 01:05:30 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1806 Everyone, just look at it this way. This is a wake up call for all of us. Pay the cards off and never use one again. I know thats the path I'm walking towards!!8-) Everyone, just look at it this way. This is a wake up call for all of us. Pay the cards off and never use one again. I know thats the path I'm walking towards!!8-)

]]> By: Will, Kentucky http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1802 Will, Kentucky Wed, 27 May 2009 16:11:27 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1802 Just because people make mistakes does not give other people the right to take advantage. There are good people out there that use their cards for emergencies only and pay their bills faithfully like good upstanding citizens do, but yet they get caught up in the orgy of crap because of other peoples mistakes. We are not outraged by the people who made the mistakes, we are outraged for the people that obey the rules and get raped anyway. Just because people make mistakes does not give other people the right to take advantage. There are good people out there that use their cards for emergencies only and pay their bills faithfully like good upstanding citizens do, but yet they get caught up in the orgy of crap because of other peoples mistakes. We are not outraged by the people who made the mistakes, we are outraged for the people that obey the rules and get raped anyway.

]]> By: PizzaMan, Kentucky http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1800 PizzaMan, Kentucky Wed, 27 May 2009 16:01:56 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1800 You shouldn't insult honorable Pizza Delivery drivers like that. And I don't mean that to be cute either. My Pizza delivery job is getting me through college, no credit cards required. You shouldn't insult honorable Pizza Delivery drivers like that. And I don't mean that to be cute either. My Pizza delivery job is getting me through college, no credit cards required.

]]> By: ChamberstucsonAZ http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1789 ChamberstucsonAZ Tue, 26 May 2009 16:56:55 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1789 Heres something to think about. Did you know that the average retailer raises the cost of every item in the store in order to cover the loss on receivables? Its called "allowance for bad debts" and is contra to accounts receivable. Think about it -- if yu pay cash for the items purchased you are payinf MORE than you should pay. You are literally being penalized for paying cash!!! I s this a great country or what??? Heres something to think about. Did you know that the average retailer raises the cost of every item in the store in order to cover the loss on receivables? Its called "allowance for bad debts" and is contra to accounts receivable. Think about it — if yu pay cash for the items purchased you are payinf MORE than you should pay. You are literally being penalized for paying cash!!! I s this a great country or what???

]]> By: Todd Burke http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1775 Todd Burke Fri, 22 May 2009 20:46:40 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1775 That's a lame excuse......One of my credit cards systematically reduced the due date from the 29th to the 23rd over a four month time span. When I missed a payment by one day (after they reduced it by three days), I complained and they removed the late fee and put my due date back to the 29th. Your lame excuse is worthless That's a lame excuse……One of my credit cards systematically reduced the due date from the 29th to the 23rd over a four month time span. When I missed a payment by one day (after they reduced it by three days), I complained and they removed the late fee and put my due date back to the 29th. Your lame excuse is worthless

]]> By: Tyler Durden, Surf City, NC http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1768 Tyler Durden, Surf City, NC Mon, 18 May 2009 20:29:37 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1768 This is not about irresponsible consumers who some of you posters think are to blame! This is about banks being too big to stop. THEY have found less than honorable ways to dramatically increase their profits. THIS WASN'T HAPPENING 10 YEARS AGO when the industry was more reputable. WORST OF ALL, this is impacting small businesses who create more than half of the private non-farm gross domestic product, and they create 60 to 80 percent of the net new jobs. Nearly half of small-business owners identified credit cards as a source of financing they had used in the previous 12 months. How many businesses are being forced to layoff workers because of these unwarranted rate hikes? One of the basic tenets of free-market capitalism is the sanctity and insolubility of contracts, but somehow the credit-card industry has managed to insulate itself from adherence to this principle, retaining the right to unilaterally change the conditions of their contracts at any time. This is not about irresponsible consumers who some of you posters think are to blame! This is about banks being too big to stop. THEY have found less than honorable ways to dramatically increase their profits. THIS WASN'T HAPPENING 10 YEARS AGO when the industry was more reputable. WORST OF ALL, this is impacting small businesses who create more than half of the private non-farm gross domestic product, and they create 60 to 80 percent of the net new jobs. Nearly half of small-business owners identified credit cards as a source of financing they had used in the previous 12 months. How many businesses are being forced to layoff workers because of these unwarranted rate hikes? One of the basic tenets of free-market capitalism is the sanctity and insolubility of contracts, but somehow the credit-card industry has managed to insulate itself from adherence to this principle, retaining the right to unilaterally change the conditions of their contracts at any time.

]]> By: G'mmel Ola, Ottawa, ON, Canada http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1717 G'mmel Ola, Ottawa, ON, Canada Thu, 23 Apr 2009 14:28:35 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1717 I am employed at Bank Of America and we use a similar system but its not because you pay on time. If you take into account holidays in the billing cycle it can increasethe amount of days in your billing cycle. That's why it states on the credit card agreement that the billing cycle can fluctuate anywhere from 25 - 35 days in a billing cycle. This is why your due date changes from month to month I am employed at Bank Of America and we use a similar system but its not because you pay on time. If you take into account holidays in the billing cycle it can increasethe amount of days in your billing cycle. That's why it states on the credit card agreement that the billing cycle can fluctuate anywhere from 25 – 35 days in a billing cycle. This is why your due date changes from month to month

]]> By: wallis,austin,tx http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1716 wallis,austin,tx Thu, 23 Apr 2009 14:06:12 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1716 Its absolutely insane, how some legislators/congresspersons, can fight bring credit card companies in line with basic tort laws. If someone is ,<b>not,</b>fighting these loan sharks, then they must be promoting and <b>supporting loan sharking practices</b>. Example,"I haven't heard any evidence that the competitive market isn't working," said Rep. Jeb Hensarling, R-Texas. "In the absence of that, why are you attacking risk-based pricing?" This guy is an elected crook, voters, get rid of this trash now, or we all suffer losing our homes/business's. Its absolutely insane, how some legislators/congresspersons, can fight bring credit card companies in line with basic tort laws. If someone is ,not,fighting these loan sharks, then they must be promoting and supporting loan sharking practices. Example,"I haven't heard any evidence that the competitive market isn't working," said Rep. Jeb Hensarling, R-Texas. "In the absence of that, why are you attacking risk-based pricing?" This guy is an elected crook, voters, get rid of this trash now, or we all suffer losing our homes/business's.

]]> By: Mark, Phoenix, AZ http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1702 Mark, Phoenix, AZ Sat, 18 Apr 2009 22:04:00 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1702 I was told by Citibank (for a Sears card) that they have a 30 day billing cycle and can change the due date each month. But if you pay off the balance they make it a 20 day cycle. I think they will still send you a bill once a month and change the day if they notice you paying to the due date. I was told by Citibank (for a Sears card) that they have a 30 day billing cycle and can change the due date each month. But if you pay off the balance they make it a 20 day cycle. I think they will still send you a bill once a month and change the day if they notice you paying to the due date.

]]> By: Vivek L, White Plains, NY http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1569 Vivek L, White Plains, NY Fri, 27 Feb 2009 22:09:07 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1569 Hi Owen, We have been hearing the same complaints from other small business clients of ours who are being subjected to arbitrary increases in credit card rates and fees. The bankruptcy law rewrite did a lot of damage to the consumers’ rights and the result is today every lender can raise their rates on your debt if you miss one single payment with any one of your other creditors! Indeed our bankers alliances have been telling us that they are constantly monitoring small business owners credit scores to see if there are any new inquires against their credit so that they can in turn use that as an excuse to jack of up rates or freeze out lines. Hopefully the added pressure from congress and the promise by this administration to get tougher on banks with regards to banks lending practices may bring about some change. In the meanwhile I recommend that you carefully ready all about how you personal credit scores can be affected on this excellent forum and our websites, both of which give you tons of free resources. Good luck. Vivek L www.smallbusinessplanresources.com En Espanol www.smallbusinessplanresources.com/spanish Hi Owen,

We have been hearing the same complaints from other small business clients of ours who are being subjected to arbitrary increases in credit card rates and fees. The bankruptcy law rewrite did a lot of damage to the consumers’ rights and the result is today every lender can raise their rates on your debt if you miss one single payment with any one of your other creditors!

Indeed our bankers alliances have been telling us that they are constantly monitoring small business owners credit scores to see if there are any new inquires against their credit so that they can in turn use that as an excuse to jack of up rates or freeze out lines.

Hopefully the added pressure from congress and the promise by this administration to get tougher on banks with regards to banks lending practices may bring about some change.

In the meanwhile I recommend that you carefully ready all about how you personal credit scores can be affected on this excellent forum and our websites, both of which give you tons of free resources.

Good luck.

Vivek L
http://www.smallbusinessplanresources.com

En Espanol
http://www.smallbusinessplanresources.com/spanish

]]> By: Mark, Kenosha, Wi http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/17/credit-cards-gone-wild/#comment-1539 Mark, Kenosha, Wi Sat, 21 Feb 2009 03:10:32 +0000 http://askfsb.blogs.fsb.cnn.com/?p=874#comment-1539 Hi I was told by a senator that a credit card law/bill was passed last year December 2008. This law that will go into affect July 2010 will protect consumers/business from alot of these evil practices. Everyone should contact there state representatives and President Obama and ask to put that into law NOW. I think what you will see on your credit card bills now in 2009 will shock you even more. ADVANTA, CITI, CAPITOL ONE, WELLS FARGO, CHASE AND MANY MORE ARE ON THE MONEY QUEST. I belive you will see more bankruptcys then you could of ever imagine, people and small business will not have a chance with this open ended finance situation. Pay day loans and loan sharks sound like a better deal than your local bank. The worst thing is Citi was working on hitting us in the wallet while they were cashing the BIG WELFARE CHECK GIVEN TO THEM BY US "WE THE TAX PAYER" talk about biting the hand that feeds you. Hi

I was told by a senator that a credit card law/bill was passed last year December 2008. This law that will go into affect July 2010 will protect consumers/business from alot of these evil practices. Everyone should contact there state representatives and President Obama and ask to put that into law NOW. I think what you will see on your credit card bills now in 2009 will shock you even more. ADVANTA, CITI, CAPITOL ONE, WELLS FARGO, CHASE AND MANY MORE ARE ON THE MONEY QUEST. I belive you will see more bankruptcys then you could of ever imagine, people and small business will not have a chance with this open ended finance situation. Pay day loans and loan sharks sound like a better deal than your local bank. The worst thing is Citi was working on hitting us in the wallet while they were cashing the BIG WELFARE CHECK GIVEN TO THEM BY US "WE THE TAX PAYER" talk about biting the hand that feeds you.

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