Shouldn't legislation be passed prohibiting banks from charging racketeering rates for consumer loans?
Vermont Senator Bernie Sanders has introduced legislation that would impose a 15% cap on rates for all consumer loans, including plastic.
Banks, including those getting bail out money, are gouging consumers by raising their credit card rates in hopes of raising cash to cover the industry's bad bets in the housing market.
For example, Citigroup Inc. has told cardholders their rates could soar to almost 30% if a single payment is missed.
Capital One Financial Corp. is raising many cardholders' rates to nearly 18% -- even for people who pay their bills on time and haven't missed any payments.
Bank of America Corp., Wells Fargo & Co. and American Express Co. also announced large rate increases.
This is a despicable policy punishing customers including those on fixed incomes and responsible families who have been laid off and cannot afford to pay the total monthly balance.
Yes there are people who irresponsibly max out their cards. Tough luck for them in my opinion.
But for those who believe in free market economics I say you are living in a delusional world.
Free market economics only works in an ethical environment. Unfortunately, that is not the reality we live in.
I am emailing my Congressional Representatives and asking for their support of his bill. Will you please do the same?
- 1 decade agoBest Answer
Yes they should. I have also heard on the news that some credit card companies will withdraw their customers' accounts if they pay off their balance every month. The Consumer Credit Act should be extended to enforce a maximum interest rate on both bank loans and credit cards.
- 1 decade ago
It's a circle that the credit card companies have been running for a long time to keep people paying them so that they generate more capital. Yes it is loan shark rates, this kind of crap is ridiculous anymore.
- 1 decade ago
man what they do on credit cards is murder.
currently the law allows them to charge usurious rates,......and get this...even if you pay them on time but your credit score drops ...they can cut your credit limit below what you already owe them and declare you delinquent and further damage your credit.
This needs to stop........and now!!!!!!