Wednesday, March 3, 2010

Credit Card Reform? Not So Much

Now that we have had some new regulations placed on credit card companies, they have had to make some changes, but believe me, the changes are minimal. I did appreciate the easier-to-read statement that included more specifics about interest costs and the length of time it will take to pay off the card paying only the minimum payment. Thanks a lot! Now, shall we talk about what the four and a half pages of tiny-tiny print say?

After they discuss--in only slightly less mysteriously obscure language—our Agreement Acceptance and Amendments, they toss in the caveats: “We have the right to change the terms of this Agreement for any reason, and in any respect, by adding, deleting or modifying any provision, including APRs, fees, the Minimum Payment and other terms.” Really? And this is supposed to make me feel all better because?

Another interesting proviso is the one under Credit Line. They tell us that the credit line is what they had called the credit limit. This is reform? Subtle changes in semantics? They add: “We may change or cancel your credit line without telling you ahead of time. If we do, it will not excuse you from your obligations to pay us.” Let me see: They can change the rules in the middle of the game, but we, the card-holder, are ordered to play the game by any rules they set down whenever they decide to do so? That’s like adding football rules to a basketball game at half-time. How does this make any sense at all unless one has fallen down the rabbit hole and is now hanging out in Wonderland? Actually, it’s more like playing a game with a child who makes up the rules as he or she goes along. It works out well for the child but not for anyone else playing.

Let’s face it. We cannot win in this battle. No one can function in the world today without a credit card. We cannot make a hotel reservation or book a flight without one. It actually hurts your credit rating if you only pay for everything in cash, and in some cases, it is even suspect. The credit card companies have us just where they want us, and it is evidently impossible to pass substantial reform in Congress as enough congressmen and women are in the pockets of Wall Street and Money in general. The moneyed interests have deep pockets and the bonuses to prove it.

A few years ago, I finally managed to pay off everyone and now have but my debit card and one credit card. I had held on to another that I never used because it had a higher credit line, just in case there were a huge emergency. A few months ago, that company wrote to me and discontinued my card because I had not used it in a year. It is not worth their time if I owe them nothing. Sad, isn’t it?

And then, just when I thought I had heard everything, I read about one credit card company’s plan to add a fee to users’ cards if they hadn’t used them that month. All of this just gives me a terrible headache. However, I had better not get sick enough that I need to use a credit card for a hospital expense, only to learn that they have changed my credit line without telling me since they can do that “without telling you ahead of time.” What happens then? My bet is that my interest rate would go up to one that would make Shylock blush, and I’d owe some kind of penalty as well. Is usury even a word anymore? Is there some significant difference between some lenders and loan sharks? Next thing you know, your Master Card or Visa provider will be sending out some thug to knee cap us, literally. Now they only do it figuratively.