# Destruction of the credit card companies



## Plainsman (Jul 30, 2003)

Congress just passed regulations on the credit card companies. I don't think it was fair of the credit card companies to change the rate of interest on current balances myself, but government is going to far. Now the only way the credit card companies can stay afloat is to charge annual fees and interest rates on those who pay their bill on time.

I use my credit card for everything, because I get 1% back. I put $50,000 a year on that one card. If they charge me I'll drop them. The only reason I have it is for the rebate. Those who pay on time don't need them. All government will succeed in doing is destroying another company.

As for the cars government is demanding who is going to buy them. They were interviewing people and they all said they would keep what they have much longer. The Marxists in Washington don't know what they are doing.


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## TK33 (Aug 12, 2008)

I disagree that the govt is ruining the credit card industry. They ruined themselves. When I was in college I got at least 10 credit card apps per week, they went after suckers and their lack of ethics and unprecedented greed got them into this mess. Once again the hand in the cookie jar too long.

Not only are they jacking rates but they have also changed their payment policies. In two consecutive months my payment due date fell on a weekend, both months I dropped off my payment on the thursday night before it was due. I got hit with late fees because US Bank's new policy is to open payments from the previous night after the end of business the following day. In other words, drop off your payment on thursday night it does not credit until the following monday. I asked the jerks where their greed ended but they had no answer, any way to rip off the consumer is cool with them.

My late grandfather was chairman of the board for a small bank and before he died he told me the banks' greed would be their demise. I am happy to see Obama making good on this promise.


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## Chuck Smith (Feb 22, 2005)

One thing about CC companies is that everyone and anyone is getting their hand in the cookie jar. Look at retail companies like cabelas, gander mt, kohls, JC Penny, etc. They are all getting credit cards. yes they are backed by Visa but they want some of this high interest money as well.

I also agree with TK33. Why do you think CC comapnies went to colleges and handed out t shirts if they signed up for a CC. Because kids want free stuff and then they could always "pay for it later". Yep and that is what we are doing now!


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## Chuck Smith (Feb 22, 2005)

A side note on this. Every high school in the US should teach a finance course to its graduation class. It could just be a three day course. What needs to be taught is compounding interest. Both good and bad. Bad like your CC bill. Good like in an annuity.

Also show what a $100 extra on a car payment or home loan can do to the principle.

Stuff like that. It would make this country hopefully a little more responsible.


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## Plainsman (Jul 30, 2003)

Chuck Smith said:


> A side note on this. Every high school in the US should teach a finance course to its graduation class. It could just be a three day course. What needs to be taught is compounding interest. Both good and bad. Bad like your CC bill. Good like in an annuity.
> 
> Also show what a $100 extra on a car payment or home loan can do to the principle.
> 
> Stuff like that. It would make this country hopefully a little more responsible.


I agree, and I also agree that the credit card companies were greedy. I just think the cure is not going to work. I'll simply drop my credit card. I don't need it. 
Odd that Obama doesn't like the way the credit card runs things he is doing much the same thing. Voters wanted something for free just like kiddies. They are not going to get it.


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## Chuck Smith (Feb 22, 2005)

Plainsman....

CC companies are like banks now. You can negotiate with them. If they are going to charge you a fee. Tell them you want to cancel the card. If they want to keep you as a customer they will waive that charge or annual fee.

I also agree that raising the interest with out knowledge is a bad move. But the CC companies need to be thinned out just like mortgage companies.


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## Bobm (Aug 26, 2003)

CC companies have been doing all kinds of unethical crap and they deserve to get this treatment IMO

There should be a 4 semester course on economics and money management in every high school real stuff not some PC nonsense either.

Its not going to happen

the government runs the schools and they have a vested interest in people not understanding economics.

It should be obvious to anyone paying the slightest attention no one in congress follows sound money management principles. If we had a educated population that understaood what they are doing they would be marching on Washington with pitchforks

ESPECIALLY YOUNG PEOPLE you are going to pay for this for a long time probably your whole life, or revolt


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## redlabel (Mar 7, 2002)

I use my credit card for everything, because I get 1% back. I put $50,000 a year on that one card. If they charge me I'll drop them. The only reason I have it is for the rebate. Those who pay on time don't need them. All government will succeed in doing is destroying another company.

I wonder if the consumer understands what the cost of credit cards really is to the consumer?

Credit card companies charge a large customer somewhere between 1.5% - 1.85%. Smaller companies will be charged up to 7%. If the card is not swiped on the machine and phoned in they usually charge an extra 1.25% or just under 1% if the three digit codes were collected. With phone inquiries, transaction fees, and statement fees our fees charged for taking credit cards is about 3.0% - 3.5%. I don't absorb this but calculate it into our cost of good before figuring our selling price. That's why gas stations used to give you a nickel back if you paid with cash rather than a credit card?

We have also been able to pay our bills with many of our vendors by credit card so this adds to the cost of the product by the supplier as well. We use them for airline travel and haven't bought an airline ticket in 15 years.

The price of credit cards to the end user is substantial when you take into account these fees and any interest they are paying.


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## Plainsman (Jul 30, 2003)

Good points redlabel. I think my Discover costs the vendor 7%. I forget, but I do know it's a couple of percent higher than my Visa. That's why some places don't want to take it. I bought a boat, motor, and trailer at a local sport shop here in Jamestown a couple of years ago. It came to $27,000 and I immediately started calculating 1% back. I thought heck $270 is $270 so I handed them my credit card. Their eyes got big and they said "oh no we are to low already". Well I don't buy that, but it's beside the point. I said fine, give me 1% off the price we already agreed on or take the card. I paid $2000 more here than in Minnesota but I figure if I need service I may get better service if I buy local.


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## R y a n (Apr 4, 2005)

debit cards work identically to Credit Cards, offering the very same protections, without any of the hassles or fees...

Credit cards companies have been gouging American consumers left and right and deserve to fry... RIP I say..

Last month was the first time in history that Debit Card were used more than Credit Cards, making up 50.4% of all transactions...

Our society needs to completely rid itsself of credit cards. They have no no use in a society that properly handles it bills/finances.


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## Plainsman (Jul 30, 2003)

I always worried about loosing a debit card. How well are they protected? I wondered a while about getting a debit card, and my just have to get serious about it.

My only hesitation about the new credit card rules was not based on my worry for the companies, but on the economy. Your right the debit cards could fill that niche. Can you call an order in to a place like Cabela's and order over the phone with a debit card. If you can I have no need for a credit card.


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## R y a n (Apr 4, 2005)

Plainsman said:


> I always worried about loosing a debit card. How well are they protected? I wondered a while about getting a debit card, and my just have to get serious about it.
> 
> My only hesitation about the new credit card rules was not based on my worry for the companies, but on the economy. Your right the debit cards could fill that niche. Can you call an order in to a place like Cabela's and order over the phone with a debit card. If you can I have no need for a credit card.


Yes absolutely.

They are completely protected just like a credit card.

_As long as_ you hold a debit card from a well-known name like Visa or MasterCard, it will have the *exact *same policy about unauthorized charges that credit cards have. You can check with your local bank to hear it from the horse's mouth. Almost all banks use Visa or MC as their debit card issuers, so it is a moot point.

This was one of the early "knocks" on debit cards that Credit Card companies jumped on to keep customers from switching over, however in the past several years, they have extended the same coverage and fraud protection to their debit cards.

Here is a link from Dave Ramsey that discusses: http://www.daveramsey.com/etc/cms/basic ... _7085.html






As a personal example Plainsman, I have no credit cards. Excuse me.. let me amend that.. I have 1 credit card that never gets used. I have been exclusively using only 2 debit cards for the last 3 years. I have one card thru my hometown Jamestown Credit Union, and one thru a local institution here in Washington that has zero fees associated with anything I do with it.

With that debit card, I've purchased thousands of dollars of plane tickets, online purchases, Cabela's purchases etc... never ever had an issue. Essentially you can do everything with them.

Check out Dave Ramsey above. He is a huge advocate for debit cards on Fox's Business Network (FBN), and runs a daily show on that network. I tape it out here and watch him at least 3 or 4 times a week....


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## seabass (Sep 26, 2002)

R y a n said:


> debit cards work identically to Credit Cards, offering the very same protections, without any of the hassles or fees...
> 
> Credit cards companies have been gouging American consumers left and right and deserve to fry... RIP I say..
> 
> ...


I thought debit cards cost the vendor more than a credit card... is that not correct?

Plainsman, I have both a debit and a credit card but I put everything through my credit card as I also get around 1.5% back. Besides the 1.5% cash back, your money stays in your bank account where it will grow interest until you pay the credit card company, albeit a very low interest rate. Still, I like to have my money in my account rather than in Visa's account.


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## Plainsman (Jul 30, 2003)

> Still, I like to have my money in my account rather than in Visa's account.


That makes good sense seabass. To tell the truth I have never looked into them. I guess I am still judging them by the rules they first begin under. 
So seabass, are you telling me that one must keep a balance at Visa, and not at your bank? If that is the case I am back to square one, because I will not give them a penny they have not earned. 
Ryan, thank you very much for the information. I don't have time to watch it now, but I will. I think you too seabass. I appreciate the information from those of you with experience.


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## seabass (Sep 26, 2002)

Plainsman said:


> So seabass, are you telling me that one must keep a balance at Visa, and not at your bank?


No. A debit card immediatly deducts the transaction from your bank account when you swipe your card. On the other hand, if you use your credit card card, you don't need to pay until the credit card company sends you the bill. So, when you use a credit card you can accumulate some interest on the money that you owe them by keeping your funds in your own bank account for that ~30 day period until the balance is due...

It's not much I realize, but it's something.


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## Plainsman (Jul 30, 2003)

> It's not much I realize, but it's something.


Absolutely. Are you sure your not conservative? :beer: Thank you for that classification.


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## seabass (Sep 26, 2002)

8)


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## TK33 (Aug 12, 2008)

I write CHECK ID on my cards, the cashier asks for it almost every time, even when I use the ones that are at the front of the cashier table or whatever, if they see it they ask for my ID.

On the debit cards-
the amount is deducted from your account the moment it is swiped, as seabass said. But it does not clear your account until they get the signed or authorized copy, which is usually a few days later.



> Are you sure your not conservative?


Plainsman-
When I read your post yesterday I was surprised that you were against this, this falls right into the fiscal conservative's lap. Don't spend what you don't have


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## huntin1 (Nov 14, 2003)

Plainsman, your credit card company is not going to care if you drop them. You pay your bill off every month, They don't make much off of you, they don't get to charge you the interest charges. 

I have one credit card with a $1000 limit, it is for emergencies and rarely gets used.

I use my debit card all the time, in fact I rarely carry a check book anymore, saves money on checks too.

huntin1


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## Plainsman (Jul 30, 2003)

> Plainsman-
> When I read your post yesterday I was surprised that you were against this, this falls right into the fiscal conservative's lap. Don't spend what you don't have


Oh, I don't spend what I don't have. I have not paid interest on a credit card for 20 years.

I didn't have real strong feelings against it. The credit card companies tick me off, and I always thought whatever card company calls me during dinner I will never use. I don't like invasion of my privacy so I make it a point to never buy anything when someone calls.

My only concern was that the liberals are always trying to punish anyone who makes a profit. I was just concerned they would carry it to far. To far would be something that hurt the economy when it's already having trouble.


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## TK33 (Aug 12, 2008)

> Oh, I don't spend what I don't have. I have not paid interest on a credit card for 20 years.


I wasn't referring to you personally, I meant the conservative's spending philosophy is in line with this legislation. 



> My only concern was that the liberals are always trying to punish anyone who makes a profit. I was just concerned they would carry it to far


This is a big part of why a lot of americans voted for obama. People are tired of watching and hearing about these companies making outrageous profits and giving out ludacris bonuses. Republicans were corporate stooges for too long.


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