It seems that credit card interest rates have really spiraled out of control. Even customers with good payment histories are affected. How did we ever get to the point where credit card issuers had the right to raise your rate just because you apply for a card somewhere? Or if a consumer was late with one other account, and now they can raise your rate because you were late to anyone? Even if your payment history with them is spotless? How do these companies get away with charging usurious interest rates to begin with? Isn't there some kind of legal cap on what constitutes usury?

No wonder consumers can't find their way out of debt! And what about the folks who ARE struggling to make their bills? Whack them with more interest and make it even MORE difficult for them to pay their debts? That makes a h3ll of alot of sense....

Was reading an article this morning about this, and it just burns me up..... And come to think of it, I don't know too many people with cards that have interest rates under 18% and it seems that the norm now is 22-24%....... How did we get to this point?

I'd be interested to know if it's the same in other countries? Are there any protections in place for the consumer?

Getting off soapbox now................

if it is ever possible for anyone to get out of debt, use cash to purchase anything...........but did you notice when gas prices shot way up, so did everything else ? the band wagon just had to make it rounds...............

Citigroup raised
my rate from around
11% or so to over 20%
without even telling me.

I will never get another
Citigroup card ever.

This should be illegal
but it isn't.

We should ask Congress
to prevent this type
of thing from happening.

Another perfect example..because people do not think or read the fine print and think, "ok, what if"

There is no doubt what so ever that the companies are taking advantage of the "non thinking self centered, self consumed Americans" (which are the majority these days)

Watch, when enough people start whining about it, our great "lets make everyone feel good" government will probably step in and freeze those rates too.

These companies are NOT FORCING ANYONE to do these things! Therefore there is nothing illegal here. it is up to the comsumer to say "NO!"

There were some hearings last week or the week before on the subject. I pay mine off pretty much every month but it's a viscious cycle for a lot of people.

lol......congress can care less about this............i haven't seen a politician yet to focus on us taxpayers........all i can say about it is, they would be better off going after 12 million or so illegals, than to tackle 250 million taxpayers........we are tired of being pushed all directions.........o, this was about credit cards wasn't it?

Sumthingdifferent

Ok, so you
think that
just because
someone doesn't
read the fine print
where somewhere it
might say that credit
card companies can
raise your interest
rates without telling
you that this is something
the consumer should have
known about, therefore
it's the consumer's fault?

You sound like a lobbyist
for the credit card companies.

I've been there, done that!

Yes, lets help our customer by burdening them until they owe us all they possess. It would seem to me, If there were some leeway given, instead of gouging, the companies would fair better in the long run. I do not own a credit card for this very reason. I settled with a company a few years ago, the balance was over three thousand...i settled with them for less than half. I get offers from them all the time...oh no...We aren't going there again.

Actually, usury is illegal, yet there are really no caps on credit card interest rates. They can pretty much do as they please, with no oversight by anyone. That's the issue before Congress at the moment. Not whether they can charge interest, but how much and the method of disclosure. People cannot make an informed decision when the rules can be changed on a whim and with no notice.

Sumthing, you are right about the choices we make, but 20-30% interest rates are not right! It's pure greed! There is no reason they should be allowed to even charge that kind of interest! Crap, the bank can charge 20% interest to you on a credit card, but they only give you 1.5% - 3% interest if you have money in a savings account? CDs don't even pay anything worth doing them anymore.Come on!
I think MNhiker is right. There needs to be consumer pushback. Yes, I read the fine print, but practices like jacking your interest for any reason they can find are wrong! That should be illegal. I can see it if you are late with THEIR account, but why do they have the right to jack you up if your account is in good standing..... Doesn't make sense.

texas found the keyword: GREED............... that seems to be a way of life with people in power.............one day they will be hit so hard from us, there grand kids will feel it..........

Having worked in the credit card industry, I can tell you why rates are going up...

It's really not the fault the of credit card companies. It's simple math. More and more people have become irresponsible with their credit debt and are defaulting on the cards. Guess who has to pay back the $5000 credit card debt that someone defaults on? You do. All of the people who have cards pay, in the form of higher interest rates, for all the people that default on their cards.

Sorry guys, it's the american consumer, and their lack of responsible spending that's driving up the credit card rates.

Suz..... I hope something gets done. There needs to be a reasonable maximum cap on what can be charged in interest, and these companies need to be prohibited from raising your rate for the heck of it, as well as based on anything other than your payment history with THEM! It's like the banks.... all these companies are making their profits off fees for this and fees for that....
They are out of control and need to be reined in. The consumer is getting SCREWED.

im probably one of the last people on earth who doesnt have a credit card, my moto if i havent got it i dont spend it lol they aint getting my money lol

just don't apply for credit cards, plain and simple.........let them waste their money on junk mail to send to you to apply...........

Who knows what, if anything will ever be done. Chances are, knowing our government, whatever is done will be a joke that will benefit no one.

amen suzin

Italian, you are right about some people being irresponsible, but then, shouldn't the credit card companies tighten up on who they give cards to? I can't open my mailbox without there being some kind of credit card offer! I throw them in the trash! If the companies would quit shoving these in people's faces, it might help.
And interest rates are STILL too high, even with what you describe!

i could be wrong, but some how, the war with irac opened up a hole for everything else to jump in.........think about it...........