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reply to mglunt
Re: I can see both sides
said by mglunt:Yeah, and didn't you just love having to beg the sonsabitches for a reprieve for being two days late in making payment to them, and being threatened with a 24-30% interest rate. Smacks of the mafia to me...BTW, you are aware that another common clause in credit agreements these days is that the late payment you make doesn't even have to be to the credit company; it can be a late payment on anything you purchase by any means whatsoever from anyone whosoever and your credit card company (all of them) can treat you as if you are in default to them and raise your interest rate to the default rate (often without a legal ceiling/cap). So, say your HMO receives your payment late, and/or doesn't post your timely payment promptly and the payment gets flagged as late. Your credit card company, totally unrelated to the HMO, can raise your interest to the highest default interest rate tier they have immediately upon finding out about the late payment to the HMO.
I can see both sides... However, I bet if you had a truly independant 3rd party to do the arbitration (someone that knew all the rules, fine print of what you agreed to, etc), I bet it would still be pretty damn close to 95%. Just because the vast majority of claims would be from people not paying bills, not knowing the terms of the agreement, etc.
I've been in the shoes of the couple days late and see the interest go from 8 to 30%. This is why I tend to stay with the same company. I've had the same CC company for about 8 yrs. When this happened, I called, explained why the date was missed, talked about how long I have been with them, and it was changed back with all extra interest refunded.
Many states, like California, have laws that make it illegal for a person to be required to give up their legal rights, especially when they do not know what unknown future consequence may result, to obtain lodging, goods or services, etc.. The problem is the courts have ruled that a person may VOLUNTARILY WAIVE THE PROTECTION OF SUCH STATUTES, thus defeating the purpose of such statutes altogether. In the case of most business/consumer relationships, the contract is written by the business, outrageously favors business interests, and requires the consumer to waive any rights they have under law to be protected from such egregious contract provisions as usurious interest rates, right of access to the courts, etc.. The "opt" choice is to either agree to draconian contract terms, and surrender all legal defenses available, or to do without whatever the subject of contract is; e.g., credit, lodging, telephone and/or television services, etc., etc., ad infinitum. The point of removing the ability of the consumer to seek redress from the legal system is to eliminate class-action lawsuits, and their right to punitive damages in egregious cases of business misconduct, etc.
North Andover, MA
Maybe if your credit card is from Sir Shady's Kredit Corp down the street.
The worst the majors did was called universal default (now outlawed by the fed earlier this year) in which if a credit you had WITH THE BANK was delinquent, they would flag you as delinquent with all your accounts, including your credit card.
It's not like people don't abuse the credit card companies right back anyway. These companies generally write-off 4-5% of their portfolio's EVERY YEAR, and that's on the prime portfolio's. That's probably close to $20B each year from people who abuse the system. You shouldn't be carrying a balance on your credit card anyway. If you can't afford it, and it's not an appreciating asset, you shouldn't be financing it. You're renting your productive life away for immediate gratification.
| Thanks for the unneeded, and unwarranted, credit lecture.|
I have high limit credit cards with several major banks. Some I carry a balance on, others not, but none are unmanageable, nor do they carry high interest rates.
I'd be interested in your source for saying universal default has been outlawed. Last I heard, it was still in effect with most, if not all, credit card companies. If it is truly gone, hallelujah! It was a true abomination.
In any case, it is the lax and profligate policies of the credit card companies that is responsible for credit card abuse. It is their policies that cause the cost of credit to be as high as it is, because they encourage the use of credit by people who cannot afford it, or handle it responsibility. The defaults of the non-creditworthy are paid for by increased fees and interest rates to responsible borrowers. If the credit card companies would stop handing out cards to every Tom, Dick and dumb-fuck whose only qualification for credit is that (s)he has a pulse, things would be better for all.
Attached is the latest six page notice I received re a credit card account I have, but never use. The bank has bought out a few other banks in the last few years, and are now attempting to make all the various terms of account from these formally independent vendors the same for all credit card account holders. The text is self-explanatory, and illustrative of the issues under discussion.
Notice the "Default Rate", and the choice of arbitration outfit under the MANDATORY, SINGLE ARBITER arbitration clause, and the prohibition against participation in "class action" lawsuits.