Study: Credit card late fees much higher

[OhioChick]

By MARCY GORDON, AP Business Writer
24 minutes ago

WASHINGTON - Late fees for credit card payments have jumped, but card issuers have done a poor job of explaining their policies on fees and penalties to consumers, a new study by congressional investigators has found.

The report released Wednesday by the Government Accountability Office, Congress' investigative arm, describes the fees, interest rates and disclosure practices of 28 popular credit cards. It found that late fees averaged $34, up from $13 in 1995, while some credit card issuers impose penalty interest rates of more than 30 percent on consumers who pay late or exceed the credit limit.

"Millions of Americans depend on credit cards to pay their bills and buy essentials like groceries or gas. Unfair or confusing credit card practices take advantage of working families," said Sen. Carl Levin (news, bio, voting record) of Michigan, the senior Democrat on the Senate's investigative subcommittee, who had asked the GAO to conduct the study. "This report shines a needed spotlight on excessive credit card fees, unfair interest rates and inadequate disclosure practices that ought to be stopped."

http://news.yahoo.com/s/ap/20061012/ap_on_bi_ge/credit_cards

[patrick t. cakes]

1. these companies really are criminal

loan sharks.

im finally out of the hole and its a good feeling. :)

[Occulus]

4. I've often felt we need a national credit strike

As in, everyone stops paying, and never pays again.

Everyone.

Kill the beast in one blow.

[Captain Hilts]

2. And Biden voted in favor of all this. Mr. MBNA, he is. nt

[truthisfreedom]

3. this is an excellent issue and will resonate with voters on both sides!

we should be pushing this issue this year because it's a very big deal.

[wholetruth00]

5. A big part of the Republican base.

Under this Republican controlled government the average consumer is being run into bankruptcy that they can no longer file for. The deregulation of the banks and complete lack of oversight by Congress is the way the Republicans want it. They are heavily invested into banks and the corporations that hire illegal immigrants. Yet the Democrats seem to be unable or unwilling to get this message out. People understand these issues but the Democrats haven't crafted a message on either issue.

On immigration: Securing the border is only a part of the problem. Eliminating what attracts illegals is the bigger part of the issue. And holding corporations and businesses accountable for hiring illegal immigrants something Republicans have refused to do. They would rather divert attention away from their base of corporate welfare kings than to deal with enforcement of the laws already enacted.

On banking: The paltry tax cut was simple to hand out millions of middle class when they knew they would get it all back a hundred times in banking fees and high interest rates. The banking stock holders, of which most middleclass are not a part, have made billions on the borrowing of the middleclass.

[LetsThink]

6. Credit Laws Recently Reformed..... to Help......Yes! You Guessed

.... it! The credit card companies and banks. There are now fewer protections for the average consumer- another squeeze on the middle class who often are only a paycheck away from financial disaster.

Included in the credit company bag of tricks:
- Hold payments w/out posting them in order to boost interest income or trigger late fees.
- Advertise low rates on 'pre-approval' only to issue a card with much higher, hidden rates.
- Failure to note all fees for which cardholder could be charged (except in the micro-print)
- Mandating negotiated settlement/ arbitration for any/ all disputes- at a location convenient to the company, but thousands of miles from many consumers. This effectively precludes most consumers from using arbitration. They end up having to concede any dispute in favor of the company's position.
- No ceiling or a very high one,tied to floating rates (FedReserve indicator rates/ LIBOR/ etc.)

[oasis]

7. Greedy corporate vampires can never get enough.

:puke:

[NVMojo]

8. yep, and these greedy companies bought and paid for Dems and Repuke

whores in Congress to give them the bankruptcy bill so they could shove it to Americans harder.

[tblue37]

9. It is called "usury," and it used to be illegal.

It is also specifically unchristian. (I am no Christian, but I have studied religious history.) In fact, that is why Jews came to be associated with banks and moneylending--because usury was forbidden to Christians by the Church.

[aquart]

10. There used to be laws against usury.

Whatever became of them?

[ninkasi]

11. Republicans

N/T