So, the Federal Reserve and other federal regulators announce credit card reform intended to level the playing field for consumers. Of course that won’t be until JULY 2010 giving credit card companies plenty of time to go on an economic rampage.
I, like hundreds of thousands of other Americans got this letter in the mail last week from Capital One—recipient of $365 billion in bailout money that it admitted in SEC filings it didn’t really need.
“Due to extraordinary changes in the economic environment, we’re reviewing our existing credit card accounts. Having considered these economic conditions, your account’s current purchase rate, and the length of time you’ve had this rate and account, we will be increasing your Purchase Rate. We are also raising your Cash Advance and Default Rates.”
Kind of reminds you of their commercials doesn’t it? A brutish unwashed horde behaving brutishly, oblivious to decent, civilized behavior crashing around destroying things. Clearly, these commercials were cast with Capital One management acting out their regard for their customers. Except instead of slapping us with a battle ax—it’s our own tax dollars.
Extraordinary changes in the economic environment huh? How about the extraordinary changes in my economic environment? I’ve been using that Capital One card to $380.00 a month for my medical insurance, so, consequently, I’ve racked up quite an outstanding balance for that luxury item. Oh, and then there are the medical bills charged on Capital One. Of course Capital One gives me the opportunity to “opt out”, meaning I close my account but continue to pay off the balance . That of course would be the true double-whammy because it would crater my FICO score. I’ve diaried about the outrageous scam of the FICO score that arcane, mysterious number that governs your consumer life.
Consumer Union is attempting to put pressure on law makers for some sort of relief from these unconscionable practices. They have an informational site set up that automatically emails your senators and representative.
That’s a start. But it seems like there must be more that consumers can do to make our voice’s heard—like maybe a credit card revolt: say, for the month of May those of us unfortunate folks who have outstanding balances with Capital One or AmEx or any of the other banks that received bail-out money should just not pay our bills for that month. Yeah, I know, there goes the credit rating. It’s their game and they have us by the short hairs. So, when the brute on the Capital One commercial asks, “What’s in your wallet?” well, for me there sure isn’t much money and Capital One is going to make sure there's even less.