Thursday, June 15, 2006
What happens when the credit card industry writes the laws? According to judges, it’s called anarchy. See this article. Credit cards are the modern tool of empire building, instead of guns. The more we use our credit cards, the more power we give our credit cards.
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Here is an example website that could be the king of deceptive advertising. When you do, however, take a close look at the fine print. Be careful not to let yourself be tempted.
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The ruthless unfair business practices of credit card companies, may come back to roost when merchants who accept credit cards fight back. A lawsuit was filed back in Sept. 2005.
Click here to Read the article.
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When you make charges on your credit cards in a foreign country, there are fees hidden in the currency exchange. Exchange rates fluctuate all the time, but the charge is made to your account in U.S. Dollars.
When that is done, the bank charges a 1% currency‐exchange fee, and then on top of that, they most likely tack on another 2% for overseas purchases. The fees are extremely difficult to find on your statement because they aren't listed. They also don't make it easy to see in the cardholder agreement either. Like many other credit card company policies, they aren't clear. Sometimes they aren't even expressed to you until you complain about them. Bankrate.com reports that there are currently a number of lawsuits over this currency exchange policy.
However, don't believe their propaganda that credit cards are still cheaper. If you understand what simply having the account open is costing you, it is cheaper to avoid credit cards.
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When Congress passed the bankruptcy bill in 2005, what were they thinking? Look at the large number of lawsuits! Citibank forced to make changes in its marketing practices and cease billing card holders for products never ordered, and is caught allowing mortgage fraud.
Class action against MBNA certified for breach of contract, fraud, and other claims. FIRST USA settles for $84.9 million in a class action suits over charges that the bank had illegally hiked interest rates on consumers. Fleet Boston loses case over violations of Truth in Lending. Next Card gets closed by the Office of Comptroller of the Currency. There are many more cases that show a steady pattern of abuse of customers.
On 17 May 2005 there was a US Senate Bank Committee Hearing on Abusive Credit Card Practices. Link to full hearing, download PIRG’s testimony, download Credit Card Reform Platform released at hearing by PIRG.
In this session MBNA's General Counsel testified that MBNA does not use "universal default", while there were simultaneously many complaints from cardholders to the contrary on many consumer websites claiming the very tings that describe universal default.
What has Congress done since then? NOTHING!!! What is the answer? Don’t use credit cards folks! Don’t make yourself vulnerable to these oppressors. Proverbs 22:7 is holding true even now.
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