AFSCME 3357-HOF'S BLOG

Exploding interest rates, late fees, and other credit card woes:

Below is a link to the syndicated (i.e. freely available) version of a Wall Street Journal article that discusses the current trend to higher credit card fees. I think it is unconscionable that credit card banks like MBNA, Household, and Citibank are lobbying Congress for bankruptcy "reform" when they raise interest rates, not if you are late on their card, but if you have too much credit out in their opinion, or if you are late on another obligation. I've seen rates as high as 28%. This is in a time where the fed's discount rates to bank is now still just 1 1/4%. So, when you have a card you're struggling to pay, but are paying at 18% interest, and then they jack it up to 28% and they add on $35/mo late payment fee and $35 over limit fee, what choice do you have but to file bankruptcy?



Banks cash in on fees from riskiest card holders