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200 Comments
- edstate, on 10/27/2009, -5/+103Ain't it always the way? All the douchebags out there who abused their credit, and home equity, and bought more house than they could ever afford… THEY get bailed out and rescued, and those of us who practiced sound finances get screwed. Yet again.
Wow. - DarkMatter911, on 10/27/2009, -0/+83Those that are responsible and pay their bills are going to be f'ed again.
- Doofy, on 10/27/2009, -1/+78Remember, banks already make 3% on everything you buy, even if you never pay any interest. The vendors have pay it for the "privilege" of accepting credit cards.
- JohnGalt01, on 10/27/2009, -0/+66That would be the perfect way to lose me as a customer.
- duggitt4u, on 10/27/2009, -0/+41As Dave Ramsey says...I'd perform "plastic surgery" by cutting up my card and telling them to stick it.
- Chompy, on 10/27/2009, -1/+36Meh, if they try that ***** I'll just cancel the affected account and get a new CC. If every CC decides to try this, I'll just stop using credit cards entirely.
- dyintrovert2, on 10/27/2009, -0/+33So, avoid Bank of America.
Got it. Good to know. - GrandZooby, on 10/27/2009, -1/+28It hasn't taken effect yet - the banks are trying to get their digs in before it does.
- JackHererUK, on 10/27/2009, -0/+26The article asserts the popular myth that banks make no money from people who pay off their credit cards every month but it is simply not true. The only credit card holders the banks make no money from are people who do not use their credit cards at all. The banks take a percentage of every transaction you make with your credit card. Even if you pay off the full amount the banks have still made money. Adding an annual fee for these people is simply greed.
- PopcornDave, on 10/27/2009, -0/+21Once again, ***** in the business world have proven that there really isn't enough money in the world for them at all. I'd be curious if these people are paying yearly fees for these cards in the first place.
HSBC tried a stunt where they tried to raise our interest rate to 25+% and we've got a fairly high credit score so obviously we got the payoff amount and told them to close the account, note on the credit report that it was closed at customer request and that they could take their business and use it as a replacement for a colonoscopy.
The important thing is that if you do decide to close an account that you make *sure* that you make them report it closed at customer request. That's not supposed to do anything to your credit rating I believe. - ricksite, on 10/27/2009, -1/+19It isn't something for nothing. The credit card companies get paid a fee every time you use their card. The fee is paid by businesses which in turn have to factor that into the cost of their goods.
- BigStare, on 10/27/2009, -1/+17That's the problem. Closing an existing account hurts your credit score. So does opening a new line of credit.
In order to avoid the extra charge from having a great credit score, you need to hurt your credit score...
WTF - hypogenic, on 10/27/2009, -0/+16Just give up the card, I would. Screw those bastards.
- v1c1ous, on 10/27/2009, -1/+16ಠ_ృ i say, this is hardly paramount
- zbeast, on 10/27/2009, -3/+17This was going to happen credit card reform or no credit card reform.
Banks need to make back all of the money they lost and are loosing the in the housing collapse.
Credit cards, fee's, charges make outrageous amounts of money for banks.
I say it's a bout time credit cards show there true colors to everyone.
Credit cards, the pick pocket in your pocket.
They are like the flat mate that steals $20's from your wallet when your not looking. - KnightWhoSaysNi, on 10/27/2009, -0/+14You are correct that she is being charged for paying her full balance every month, not for having flawless credit. However, credit card companies already make 3-5% on every purchase you make. The monthly interest on balances is just icing on the cake. Until very recently, American Express didn't even have credit cards, you were required to pay the full balance every month.
- RudeTurnip, on 10/27/2009, -0/+14Wow, the proper use of irony for a change and no one gets it.
- sirbeta, on 10/27/2009, -0/+13It's Bank of America. It's not like they're not known for creating ***** charges and fees.
- thefinalsql, on 10/27/2009, -2/+15cash and carry
- foster5652, on 10/27/2009, -1/+14I have been angered by Banks and Credit Card companies for the longest time. Yet, until recently, congress took almost no action against them. They had free reign to screw all. To me, they are a great example of the fact that consumerism is largely dead. Almost no politician or executive is concerned with the wealth and health of the vast majority of Americans and our needs. So, the system works against the vast majority of us.
So, for everyone who is against credit card reform, why? Are you not angered by the huge profits that banks have enjoyed over the decades? Do you support their practices? Let free markets take care of it? I don't see that happening. Where are the competitors offering great rates and reasonable terms? Now, if we could only produce something of real value in this country and pay good wages again. - altgeeky1, on 10/27/2009, -6/+19Thanks for having a fingernail-deep comprehension of the news... otherwise you'd know he's been fighting to get this bank behavior regulated.
Or are you against reform, pretending otherwise, and mocking the problem? - erkokite, on 10/27/2009, -0/+13No, Mr. Aheinzm, banks are what is causing this.
- altgeeky1, on 10/27/2009, -0/+11Actually that is not completely true.
All CC companies charge retailers 2 to 3% on a per-charge transaction basis.
Yes, if you buy a $1000 television, the CC immediately makes $30 - they'll charge a fee to the store you made the transaction at.
Considering how short the "loan" is, that's VERY good money.
There's also the fact that the CC companies get to build up a VERY detailed profile of your spending and purchasing habits, and then sell that information. That's paying for a bit of profit... - Solkre, on 10/27/2009, -1/+12You talk like someone who doesn't know the credit card co. makes transaction fees on everything you buy. It doesn't matter if you pay it off every month or not. The only way they'd lose money is if you opened an account and never used the card.
- DrNemo, on 10/27/2009, -3/+14Don't forget the douchebags at the FED who flooded the markets with credit. Until we end the fed, this will continue on and on, and the blame will always be placed on business, not on government.
- GrandZooby, on 10/27/2009, -1/+12I highly recommend looking into a local credit union. By design, they have lower fees, higher interest on savings, and generally fantastic service. With the relatively new nation-wide shared-branch networks, you can do most transactions with your CU at nearly any other CU. Even the Citibank Kiosks in 7-11 allow you to do CU shared-branching (no fees either).
I switched to a CU more than 15 years ago because they had a branch in the building I worked in and the cute girls were always suggesting I open account when I'd come down to use the ATM. I finally switched and have never looked back. - dyintrovert2, on 10/27/2009, -1/+11Exactly. What's this crap about not making money off these customers? They get their money back on time, with some interest, and a cut of everything they buy and every bill they pay. Car payments, rent, occasionally entire mortgage payments.
That's not even including what we buy at WalMart. . . - zoomaKabu, on 10/27/2009, -5/+15You do not need a credit card.
- Solkre, on 10/27/2009, -0/+9Yes, but your roommate made it clear in his fine print he would do so.
- ROBINEW, on 10/27/2009, -2/+11What's the problem? Just close the account and open one with a different bank that doesn't charge the fee.
- ZooMigo, on 10/27/2009, -0/+9The lesson of avoid BofA goes way back before this.
When I was young, I opened an accout there with $100. They charged me $5 to open the account. Over the course of two months, I made counter withdrawls from the account, and once I hit the magic number, they started charging me for the transactions.
Needless to say I was pissed when I got my statement and went down to close the account. Because it had been open for less than 90 days, they charged me $15 to close it.
I tell everyone who will listen this short story, and hope they will never do business with BofA. I haven't in the 35 years since it happened. - InactiveUser, on 10/27/2009, -7/+16Money in the bank says everything. Debit cards rule..
- dyintrovert2, on 10/27/2009, -0/+9At least then you know about the annual fee up front.
- altgeeky1, on 10/27/2009, -0/+8They also bought Fleet, made a public promise of no layoffs in Boston, and then did it anyways just as soon as the ink dried.
BoA also laid off TONS of tellers for not being bi-lingual. Their goal was to have ALL BoA branches always have bi-ligual capability during all hours.. but without regard for the needs of the community. I can see doing what they did in larger cities, but they imposed this on the rural branches also. They let go of good faithful workers (some who put in 19 years, going back to Fleet and BayBank) and to COMPLY with the BoA headquarters they had to hire tellers from 20 miles away (this is a pretty small town and any Latinos here did not speak Spanish). And then... BoA closed the branch.
Bank of America also helps illegal aliens to "navigate paperwork" when opening an account, which seems to be knowingly aiding a crime. - gl77, on 10/27/2009, -8/+16"THEY got bailed out and rescued"? I'm sorry, but last time I checked, THOSE people were forced to move out of their homes and were basically tossed out on their asses. you're talking about it like it was their fault and not the fault of predatory lending institutions and spineless banks who told these people that they would certainly be fine and assured them that those pesky interest rates hardly ever go up. No, as a matter of fact, THOSE people are still having a bitch of a time even trying to find another place to live because of those ***** financial institutions who assured them everything would be alright, THOSE people received no kind of bailout whatsoever, I think you need to be angry that THOSE financial institutions are the ones who got bailed out, because THAT''S what happened in reality. don't pick on the people who didn;t know any better and who were lied to.
- SgtQuackers, on 10/27/2009, -0/+8The problem with that is the credit card company is making money off of all the money perfect customers spend. They get like 3% of every purchase from the store even if you don't carry a balance.
- jd72277, on 10/27/2009, -0/+7I have been card free since Feb 09. So far so good. i do this crazy thing where I save my money for things I would have bought with a card instead.
- Jonjonr6, on 10/27/2009, -0/+7And don't forget to point out, that right now, a lot of the people who are bailing out on their mortgages are people who can afford them.
Obviously some people didn't read the article from yesterday's front page about the "strategic foreclosure". - TimtheTaxMan, on 10/27/2009, -0/+7Many cards offer rewards for using them, plus you get float which is basically the time between you charge something and the time you actually pay it. Float has economic value if you consider the time value of money.
Moreover, credit cards have many more fraud and consumer safeguard protections than debit cards or cash. Credit cards are wonderful if you have the discipline to pay them off every month.. - rebrad, on 10/27/2009, -0/+7It will only affect your credit rating temporarily and that's better than submitting to the coercion and intimidation that Bank of America and Citibank are threatening their paying and credit worthy customers. Let them keep the deadbeats and see how well they'll do. Even the Obama administration will throw them under the bus when the Chinese won't back them anymore.
- TimtheTaxMan, on 10/27/2009, -1/+8People who pay their balance every month tend to be more financially savvy and responsible. They will simply flee to another carrier that won’t charge them.
- KrustySr, on 10/27/2009, -0/+7LOL, WOW! Someone shot my dog, SCREW YOU OBAMA!
If anything thing, this goes to show that big corporations are in it to squeeze you of every last dime you have any way they can. It's not about making a profit anymore, it's about making as much as you can before the floor drops out with your golden parachute fully deployed. - thebuggalo, on 10/27/2009, -0/+6Just yesterday I went to deposit a check at my bank (Chase), and was quickly taken over to someone's desk where they proceeded to inform me that I should open a Business Checking Account, a savings account with them, and start a new credit card with a reward program.
I kept insisting that I'd rather not open any new accounts, and just want my check deposited into the account I asked it to be deposited in. But they continued to go through aLL my personal info... "I see you have $X in your Checking Account, why don't you open a savings account and put money in there... I'll set that up for you..." or "It looks like you pay your credit card in full and on time each month, you technically have the wrong credit card for that. You should be using a card that earns you points and rewards. We cant set up a reward program card for you..." or "If you are going to be freelancing on the side of your regular job you should really open a Business Account to keep all the expenses separate. That's no problem to start. We'll get you some new checks..."
I kept saying NO NO NO. And finally got them to do what I wanted, but was appalled by how I was treated in my own bank that I have been using for years. What business is it of Chase where my money comes from, and where I deposit it, or keep it? I felt like my personal information and fiances were compromised and that did not make me happy. Clearly they saw me as some young kid they could hustle into opening a few more accounts which would give them more chances to charge me fees and overages. Luckily I wasn't about to open 3 new accounts (let alone 1) on a whim, but I know some people could be tricked into these things. It made me reconsider my choice of banks. - GrandZooby, on 10/27/2009, -0/+6These are the customers who pay off their bill every month and don't pay any interest or fees. Oddly enough, these responsible people are called "deadbeats" by the credit card industry. They really prefer people who rack up their cards to the limit, occasionally go over, and sometimes pay late. These are the real profitable "customers".
- diggopolous, on 10/27/2009, -1/+7And you can blame the lack of government regulation on the mortgage/Wall street fiasco while you are at it.
- RyeBrye, on 10/27/2009, -4/+10So you are suggesting that those of us who have worked hard and made a lot of sacrifices to get in a position where we have sufficient reserves in the bank to weather most any financial storm - plus pay for insurance to cover low-probability catastrophic situations we couldn't take care of ourselves should NOT be upset that we are now being tapped to pay higher fees to help others who weren't willing to make the same sacrifices?
You are suggesting that it is wrong for me to be upset about having a negative reward for financial responsibility? What reaction would you suggest that we have? Joy? Elation? "YES! I'm going to seek out the credit card with the highest annual fee and I'll be sure to use it, because then I know I'm helping out someone else!"?
You call my hard-earned indignation selfishness, but I call your naive attitude entitlement.
Those who you think "need help" should be insulted by how you are describing them. You are basically saying that they are incapable of change, and are incapable of managing their money.
In the declaration of independence we stated that all men were created equal. You seem to imply this is not the case - that some are created inferior and must be watched after and protected from themselves. In reality, anyone - regardless of their situation - can work and save and get ahead. It takes sacrifices, yes, but why should those of us who are willing to postpone buying that big car or buying that new TV have to pay to support those who don't? - ricksite, on 10/27/2009, -0/+6But they are good to have. I would rather someone steal my credit card with fraud protection than have someone steal my cash or debit card. Credit cards are also useful for building credit. Even if you never need the credit directly, good credit can save you on car insurance.
- RyeBrye, on 10/27/2009, -1/+7Nobody "made up the rules." They are generated based on statistics. Statistics show that, on a whole, people who do certain things have predictable behavior when it comes to how likely they are to repay loans.
Of course, now they are almost self-fulfilling prophecies. - diggbigwig, on 10/27/2009, -0/+6"Free"? They charge a fee every time you purchase something. It's like 3%. Here's how that works. SOMEBODY has to pay that 3%. Who do you think pays it?
If you guessed that the store passed that little operating expense onto the consumer in the form of higher prices then you get to move to the front of the class.
This is nothing more than a way for the banks to recover lost revenue from the defaulters by making the loyal paying customers pay for it. - neomatrix724, on 10/27/2009, -0/+6It's funny, because banks consider those who pay their balances on time and in full as deadbeats!
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