Before the recession began a little over a year ago, credit card
companies were offering some of the most attractive rates and balance
transfers ever seen. Many people were using credit cards to not just
supplement their lifestyles, but many also began using these offers as
a means of financing their businesses.
It made sense to transfer an 8% SBA loan to a 3.99% fixed rate
with a credit card company…that’s quite a savings. The problem is
that apparently these companies can’t be trusted and their “lifetime”
fixed rate offers were not worth the paper they were printed on.
As we speak, the banks that we bailed out with billions in
federal loans, are now rapidly changing the rates and terms of their
previous agreements and driving more and more people and small
businesses into financial crisis and bankruptcy. Without cause or
conscience as to the potential consequences they are creating for their
customers. Customers who were paying faithfully and honoring their
agreements no less.
That’s right…you don’t have to have been late, gone over limit, or done anything
for that matter for a bank or credit card company to raise your rates,
decrease your line of even increase your required minimum payment to
twice it’s previous amount.
Meanwhile, the new credit card law that Obama signed in May, which was
meant to prevent these very practices from occurring, is not effective
until July 2010. Effectively, what the government appears to have done
is provided a window of opportunity to these companies to do whatever
they please. By the time the law is effective, it’ll no longer be
needed and the damage will be done.
Personally, I think this could become the equivalent of the mortgage
Millions of Americans have a credit card with a balance. If credit card
companies continue with these blatantly abusive practices, the national
default rates will increase. And we cannot afford another meltdown.
We greatly need to pass the Credit Cardholders’ Bill of Rights and we
need it now. I strongly urge you to contact Congress and your local
representatives now. Tell them your stories and how these unethical and
unfair credit practices are affecting you, your family and/or your
business. Urge them to pass this new law before more Americans are
driven into financial crisis and insolvency. Enough is enough.
Peace & Blessings!
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