NBC had some "horror stories" to share with its audience on March 7, according to "Nightly News" anchor Campbell Brown. Brown introduced the report by Lisa Myers that told the story of Wesley Wannemacher, a man who's $3,200 credit card debt ballooned to $10,700 after interest and penalties.
Wannemacher's plight also featured prominently in similar segments on ABC "World News with Charles Gibson" and CBS "Evening News" for the same day. [continued after jump]
“Every time the phone would ring it gets hard to breathe and you’re not sure whether you should even answer it or not,” said Wannemacher in his testimony.
CBS “Evening News” reporter Sharyl Attkisson called Wannemacher a “vivid example of how quickly credit card debt can spiral out of control.”
Attkisson’s CBS report was the only segment that brought up personal responsibility in credit card use. Bob Rolls charged $5,000 on a home improvement credit card, but when that happened he was notified that his Bank of America interest rate would go up to 27.99 percent. Rolls told CBS, “I said ‘to 27.99 percent? Forget it. I’m closing this account.’”
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they deserve to be bashed!the
March 8, 2007 - 18:43 ET by buddycthey deserve to be bashed!
the leg has given them the unilateral right to change the terms after the fact!
it is a monumetal rip off and consumers should be upset.
Not unilateral
March 8, 2007 - 21:31 ET by Dan GainorIt's an ongoing contract. The CBS story showed exactly how to handle it when you don't like the new terms -- tell them to shove it.
Credit companies have gone fa
March 8, 2007 - 19:24 ET by niner-four-whiskeyCredit companies have gone far, far beyond the realm of honest business. There's a 30+ post thread yesterday on a related story.
I dare anyone to tell me the current terms of their credit cards. I dare anyone to defend common consumer credit practices such as "Universal Default" clauses.
I'm a big beleiver in personal responsibility and I pay off my cards monthly. But anyone who thinks that is the end of it and that the card issuers have not developed a set of standard practices which are designed to deepen and maintain their customers in burdensome fees and interest rates is a fool.
Remember that there but by the grace of god go I.
We all know what you mean
April 16, 2008 - 13:48 ET by GordmanWe all know what you mean but there are no clear borders for what's honest or not. When it comes to handling finances many people loose control of it, perhaps this is the reason they feel that they are under assault. I have applied for debt negotiation because I know that financial problems also come with options and this was the right thing to do at the moment.
Totally agree nine-four...tot
March 8, 2007 - 19:29 ET by bigtimerTotally agree nine-four...totally.
There were some interesting calls on this very subject this morning on the Washington Journal.
What is a "Universal Def
March 8, 2007 - 19:41 ET by mandrakeWhat is a "Universal Default" clause? I usually just payoff each month and don't bother with the fine print...but now you have me worried.
Universal Default works like
March 8, 2007 - 19:48 ET by niner-four-whiskeyUniversal Default works like this:
If *any* creditor or agency reports you as late or having missed a payment, your account goes into immediate default status, whether or not you have missed a payment with that creditor or not.
In some cases, you can have $0.00 balance on a card and get billed $35 default fee, and begin acruing interest immediately at the default rate (often 27%) because some other company, completely unrelated, reports you late.
Go google it or look it up on wikipedia.
...for any reason on anything
March 8, 2007 - 19:54 ET by bigtimer...for any reason on anything...sometimes in life stuff happens and we are not home at all times before some bills get to you, emergencies come up... Phone bills, cable blah blah blah...anything. They have a million ways to add more money and take more money, you have to be very careful. I too pay bills on time ect. but these companies have gone beyond belief, if you want to pay early you get charged a fee...on and on...
9-4-w Thanks for the info. I'
March 8, 2007 - 19:57 ET by mandrake9-4-w Thanks for the info. I'll take a closer look at my contract...but I'll have to find my glasses first..;-) I guess the way around this is keep a negative $35 balance on the card.
The theory behind this is tha
March 8, 2007 - 21:33 ET by Dan GainorThe theory behind this is that your risk profile just changed in a big way. Sure, including fees on a zero balance is silly, but again, the solution is to cancel the card. You bet if the card companies kept having THAT happen, this would change.
"I usually just payoff e
March 8, 2007 - 20:08 ET by ThisnThat"I usually just payoff each month"
In the credit card business, you are officially known as a "deadbeat". Credit card companies only put up with you because they can't legally close your account.
Shame. Now, go out and rack up those bills and pay the minimum each month.
TnT...LMAO!Isn't that the tru
March 8, 2007 - 20:10 ET by bigtimerTnT...
LMAO!
Isn't that the truth!
You said it all!
I agree with these and the
March 8, 2007 - 19:47 ET by NetizenCainI agree with these and the other - now - 40+ posts concerning this issue. I pay off my CC when I use them, which is sparingly. But last month I got hit with the 'default' clause. I used my CC and failed to let my wife know, hence she didn't pay the bill when it was due (thinking it was zero). I find it perfectly acceptable to have the CC Company (Bank of America) charge me a late fee and interest. But to go from 12% to 33.4% is just stupid. We called them and they said it would stay at that rate for 6 months. Wow.
Now can you imagine other businesses doing that? A bit late on a car payment one month and you your rate goes up from 4 or 5% to 30+? Missed a mortgage payment one month because you got laid off and the rate shoots off the chart? This is just stupid. And while yes, I did sign a contract with BoA, the contract is changed monthly and these small nuicances are buried in the micro-print that they mail out like spam.
It struck a cord with me bacuase just a month ago BoA announced it was going to offer credit cards to illegal immigrants.
But why is this congress dealing with this issue now? What about the war? The environment? Taxes? Universal Healthcare? Seeing how everyone knows that all of their election rhetoric amounted to a hill of beans, the democrats have nothing else to do but regulate businesses.
The credit card whine again...
March 8, 2007 - 22:46 ET by UnsaneWhat, are the credit card companies walking around with guns and mafiosi, FORCING people to take up these offers?
Do you or do you not agree with the concept of freewill?
These clauses may well exist on the cards I carry, but to be honest, I don't care. The strategy is to pay them off every single month as they come in. Hence my credit rating rises, and they become the massive conveniences they are intended to be. (Why you or anyone else want to long-term borrow with a credit card is beyond my comprehension...)
Don't tell me about being unemployed or injured either - that is what our long-lost friend, the "savings account", is for. Toss 20% of EVERY paycheck in said account every single paycheck, and watch what happens to your standard of living.
You want to solve/prevent 99% of your money problems? Consult my list on that thread you cite.
I have been getting whined at all friggin day. Whiners and whining is really starting to piss me off...
"HAV3 TH3 BRIDG3S OF INSANITY B33N CROSS3D AND FOR3V3R R3TRACT3D???." - Meshuggah, "3ntrapm3nt", from Catch Thirty Thr33 (2005)
Unsane...read my post..Why MU
March 8, 2007 - 22:55 ET by mandrakeUnsane...read my post..Why MUST I have a credit card to rent a hotel room?
Come now! Why does the ho
March 8, 2007 - 23:10 ET by NL207Come now! Why does the hotel want a credit card? Damage your room and see what happens. Even in Ontario, there are still suficient property rights as to allow a hosteler to attempt to recover damages if unreasonable use is made of the room. Read your room rental contract carefully. You will see that your signature authorized the hotel to charge you if you break things.
NL207, I'll give you that one
March 8, 2007 - 23:24 ET by mandrakeNL207, I'll give you that one. It just annoys me that cash is not good enough. After all...It's not like I'm Led Zepplin or something.
Cash business certainly isn't
March 8, 2007 - 23:42 ET by NL207Cash business certainly isn't what it used to be.
Hence neither is individual
March 9, 2007 - 08:12 ET by sarcasmoHence neither is individual privacy anymore, but because it's financial instead-of-speech privacy-rights being slowly-eroded, groups like the ACLU -- even in the wake of an unpopular online gambling-ban inartfully-tacked-on to a "port security" bill at the behest of shyster-lobbyist-crooks -- haven't picked up the ball, which is sad but not that surprising considering their stance on high taxes, which also erode financial privacy... Because it's gambling and hence allegedly-immoral, groups on the right haven't done much-better on the issue, leaving libertarians & others who simply want to be left-alone, as usual, screwed by growing-government. Anyway, if you ever ran for any office from dog-catcher to President, you'll understand this: "without money, there's not much effective speech." A corrolary is: as financial privacy erodes, ultimately all privacy erodes. (As foretold in a scary-chapter of a certain Book, come to think of it!)
JMR
Not that I support gambling,
March 9, 2007 - 13:21 ET by Conservative VoiceNot that I support gambling, but Rush Limbaugh has said that the most important right we have is property rights, as without the ability to own something all rights become useless. I, and the Supreme Court agrees that without money, there is not much effective speech....which is one of the reasons why I will not vote for McCain and why I was not happy for President Bush not doing his job and veto McCains bill.
I don't want to get into why gambling is immoral, because that would take away from your point.
Thank you, I absolutely agr
March 9, 2007 - 14:11 ET by sarcasmoThank you, I absolutely agree regarding the cowardly non-veto of McCain-Feingold, which is an abomination because it's absolutely contrary to the First Amendment. WRT the morality of gambling, there are many, many things I consider immoral, but I don't think all of them should be illegal because (unlike some of my political "betters") I don't consider myself an ultimate moral authority & likewise don't consider big goverment to be an ideal morality-enforcer. For me, gambling is just entertainment (and many would argue that my game of choice, poker, isn't gambling but instead a game of skill). I like it, and I want very-much to, for once, be left the hell alone while I'm doing it, even if others believe that my doing it is somehow immoral. They're free to go picket casinos, and I'm free to ignore/ridicule them if/when they do. What (if lawyers & politicians sworn to do so actually paid attention to the Constitution...) they should not be free to do is what they just did sans-debate, which was to sic big government's rare law enforcement resources on the likes of me while Osama Bin Laden & a wide variety of other real criminals walk free, IMO.
JMR
sarc,I totally agree with you
March 9, 2007 - 14:29 ET by bigtimersarc,
I totally agree with you on this one.
Really and truly.
On another issue of the states/govt. interfering with us, I heard this morning where they are going to start policing sites on the internet, (the AG of some states, this one in particular is Conn.) namely My Space to force the site to prove people are the age they say they are because of pedophiles ect. I wonder just how far in they will reach, IMO they will never stop and there will be lawsuits that will end up shutting whole sites down with this, this particular AG said something abut 10 other states joining this crusade...I wished I believed it was because they care about the children but I don't, they have found a way to have control of all of our info and what we may say or not say, in other words our freedom of speech, 1st Amendment...btw...this was a Democrat AG I heard on msnbc this morning.
Btw...Just how in the heck do they plan on doing this anyway...get our info or others to prove you are who you say you are, let alone track everywhere else you go on the internet...the hostess/talking head/anchor never asked the simple questions as usual.
Not trying to change the subject, but wanted to throw that in there.
BT, thanks, much obliged, a
March 9, 2007 - 16:48 ET by sarcasmoBT, thanks, much obliged, and you're seemingly with me on the importance of overall financial privacy, gambling being just one example. And we've both experienced people who'd prefer that we shut-up & who'd probably have no trouble with using the state's power as a substitute for debate.
The sad truth is, I've found, as a longtime privacy advocate, that people will usually give-up almost all their personal info -- even if they say they "love privacy" -- for something like the price of a Big-Mac. Sad but true.
Also, to make things worse, computer-users tend not to compute securely (causing themselves a host of problems!) and tend not to want to spend the time and effort to learn how to use relatively-simple to use encryption software like PGP. (There are a few NASA astronauts right now who now might regret not-taking this time -- think about it!!! An email's about like a postcard, but LESS secure, longer-lasting, & passing through more post offices!!)
And the people who mistakenly equate identity-papers/internet-schemes done by an ever-so-competent (HA!) big-government with actual (as opposed to the feeling-of) security need to go read some of this man's stuff IMO. Online theft, "phishing," spyware/viruses, and other issues are huge problems now, and can't very-well be solved by big government (although some of the law enforcement that's been thrown at honest gaming sites could have certainly been better-used on online-crooks instead, IMO!).
JMR
if you paid your deposit in c
March 9, 2007 - 04:12 ET by Conservative Voiceif you paid your deposit in cash I am sure the hotel will let you. Hotels like credit cards because its more secure, easier on them (accounting wise), and easier for the client. But there are other alternatives...camping, staying at a motel, find a friend or relative, or shop around. I seriously doubt credit card companies are telling companies that they must do all their transactions with a credit card, more likely the company choses the policy for themselves. Here is another thought...don't buy from companies that force you to use a credit card if it bothers you that much.
I DID read your post and cann
March 9, 2007 - 07:50 ET by UnsaneI DID read your post and cannot imagine what is so horrible about paying for a hotel room with a credit card. I do the same; I just peel off a check the next month and it is paid off. Problem solved.
Next.
"HAV3 TH3 BRIDG3S OF INSANITY B33N CROSS3D AND FOR3V3R R3TRACT3D???." - Meshuggah, "3ntrapm3nt", from Catch Thirty Thr33 (2005)
Once again, we have folks h
March 8, 2007 - 20:04 ET by ckc1227Once again, we have folks here blaming others for problems they bring on themselves. When you get right down to it, in the end, I guess those who say Dems and Repubs aren't really that different are correct after all.
Reminder: Don't forget to pay your taxes. 12 million illegal immigrants are counting on you.
So you think the tactics of t
March 8, 2007 - 20:15 ET by mandrakeSo you think the tactics of the credit card companys have nothing to do with it. I HATE credit cards. I resisted having one until I was in my mid-twenties...when I discovered that
1) I could not rent a car without one.
2) I could not book a hotel room without one.
3) I could not book an airline flight without one.
So please tell me how THEY got so much power?
"So please tell me how T
March 8, 2007 - 20:20 ET by ThisnThat"So please tell me how THEY got so much power?"
Easy. It's all a conspiracy. The Libs can't get rid of "In God we Trust" on currency; so, they have substituted credit cards which aren't encombered with that awful phrase.
Don't forget: Bush lied, God died. Or something like that.
For that very reason mandrake
March 8, 2007 - 20:20 ET by bigtimerFor that very reason mandrake.
I didn't get a credit card until my fourties...I detested them for years, still do, we have no choice.
Any of you guys ever heard
March 8, 2007 - 20:38 ET by dabalAny of you guys ever heard of a Debit Card?
Just keep $500 in a special account just for when someone needs to put a hold on a few of your bucks while you play with their toys.
You don't need a credit card...ever. It is the opposite of earning interest. If you carry any debt, you might as well cash in ANY investment you have to pay it off...because you're in net loss, guaranteed. The 8% you're making on your mutual funds is being eaten alive by the 19% you're losing to the credit card.
Read "The Richest Man in Babylon". It is designed to give children a basic concept of debt and lending. Live by it and you'll never cringe at your bank statements...because your statements will be in the black. Just like the Bank.
Stupidity IS painful.
Quite so, dabal.I'd had that
March 8, 2007 - 20:55 ET by BlondeQuite so, dabal.
I'd had that thought yesterday....but never got around to posting it.
A debit card works as well as a credit card for the credit-card only transactions...car rental, airline tickets, hotel reservations.
Plus, you're not in the hole.
After my divorce, I got rid of all credit cards.
If I can afford something, I can afford it. If not....well, I wait.
With an attitude like that I'
March 8, 2007 - 21:34 ET by Dan GainorWith an attitude like that I'd ... well, I'd vote for ya!
Well, thanks, Dan.But I'm not
March 8, 2007 - 21:47 ET by BlondeWell, thanks, Dan.
But I'm not running for anything.
Other than my own fiscal sanity.
A debit card works as well as
March 8, 2007 - 22:32 ET by niner-four-whiskeyA debit card works as well as a credit card for the credit-card only transactions...car rental, airline tickets, hotel reservations.
Actually, that's NOT true.
Many transaction simply do not work with debit cards. Try doing some of the above when traveling abroad for instance.
Or, like many people, travel on business. Sure, I turn in the expense report and get re-imbursed, but I may not have cash in the bank to cover the entire trip.
Then there is the matter of emergencies.
Look, credit is a tool. Yes, way too damn many Americans abuse credit. On the other hand, the playing field is definitely NOT level. It is heavily tilted in favor of issuers, not consumers. The issuers do everything in their power to keep their customers in debt.
And yes, I'm a dead beat. They don't want me because I don't carry revolving debt.
But there's really little I can do, except move to the woods and live off the land, without a credit card.
Having been divorced, I know what it feels like to be in a mountain of debt, not of my own doing. I've had to deal with these companies and I know the games they play. I was fortunate and clever and disciplined enough to work my way out of that mess, but it wasn't easy.
More damned whining
March 8, 2007 - 22:53 ET by Unsane"The issuers do everything in their power to keep their customers in debt."
Really? I find that rather surprising. Again, you have MUCH more power than you can imagine...but I guess that isn't as easy as sitting on the ground and doing what Leftists most love to do: whine.
What is so difficult to comprehend about:
1) Spending less than you earn;
2) NOT taking up every credit card offer that comes along just because they sent one to you;
3) Saving 20% of your paychecks every single paycheck in a savings account,
4) and otherwise wisely spending your money?
"HAV3 TH3 BRIDG3S OF INSANITY B33N CROSS3D AND FOR3V3R R3TRACT3D???." - Meshuggah, "3ntrapm3nt", from Catch Thirty Thr33 (2005)
Blonde, my internet provider
March 8, 2007 - 22:47 ET by mandrakeBlonde, my internet provider once cancelled my service because my 'credit card' number had expired. (I neglected to tell them cause I didn't realize they needed to know) They won't accept the debit card number from my local bank.
mandrake,Sorry about that guy
March 8, 2007 - 22:52 ET by Blondemandrake,
Sorry about that guy.
I'm not the big debit card advocate here. I'm jus trying to say...don't spend it if you don't have it.
And it's not necessary to have a credit card...a debit card will suffice in lieu of...for things like plane tickets and such.
Again, my point was don't spend it if you don't have it.
I read all of the sorry stories of credit denial, and sorry circumstances, above. Obviously, sometimes, one's life gets out of hand.
But that IS the point of prior planning, and restraint.
Or maybe, that's just me.
Blonde, don't misunderstand..
March 8, 2007 - 23:00 ET by mandrakeBlonde, don't misunderstand..I can pay my bills...no problem. In fact I would love to live on a cash only basis. The Credit Card companys have made that quite impossible.
mandrake,That's just the poin
March 8, 2007 - 23:41 ET by bigtimermandrake,
That's just the point, the banks figured out along time ago how to make people eventually have to have plastic...and it has worked. I fought against it for years. I too have debit cards now...but like you say, they cannot be used for everything.
The banks and financial institutions are of course in this for greed, and they know every trick in the book, even to those of us who are not dead-beats, it takes awhile to learn all the tricks in the book and make sure and read the fine print...or the interest rates will eat you alive...
That's the plan Stan!
LOL!
BT, I know, but sometimes it
March 8, 2007 - 23:48 ET by mandrakeBT, I know, but sometimes it just feels so good to rail against the system. I love it when these poor saps from the banks phone me up and offer me a 'better' deal...I just eat them alive..LOL
mandrake,Me too...it is great
March 8, 2007 - 23:54 ET by bigtimermandrake,
Me too...it is great fun...or any other financial institution you may have just paid off...I have a riot with them!
One thing about it...they never tire of calling no matter what you say...you might as well play them like a cat does a mouse...afterall, thats what they do to us...
LMAO!
You have MUCH more financial
March 8, 2007 - 22:49 ET by UnsaneYou have MUCH more financial power than you can even imagine.
My utilities are charged to a credit card (for example)...
...that actually deducts from checking as a debit card, AND my bank refunds me some change when I treat the card like a credit card purchase. :-)
The credit card companies are begging for YOU to manipulate them. Do you want to? It really is quite simple...
"HAV3 TH3 BRIDG3S OF INSANITY B33N CROSS3D AND FOR3V3R R3TRACT3D???." - Meshuggah, "3ntrapm3nt", from Catch Thirty Thr33 (2005)