MasterCard accounts closed without warning...

Originally posted by LightFantastic

Originally posted by extr5
This week two cards from Bank of America were canceled.
No balances when canceled.
Balances were paid off every month before due.
Credit score of 780.
???

By being too good a customer by paying off the balance before due it will actually cost them money when you use your card.

They want customers that run the card up to near max and pay the minimum payment - they make loads from them. They are called "Credit Revolvers" over here.

Ok.

But what about the 3%-5% the credit cards take on every transaction that you charge off. The vendor pays this fee. Not the customer. Credit cards ALWAYS WIN!

Yes, they also make money from the intersest (23.99%) that you pay each month on any unpaid balance. It's considered usery in NY if the interest charged is greater than 24.00%. Also note that late fees are considered interest in NY. Add the late fee to the interest charged, and calculate the new interest rate. If the resulting amount is over 24%, then you have a way to have the interest reduced, or having the case dismissed.

Thus the credit card companies make money two ways, from the vendor's commission, and from your interest paid.

Deplorable! This is called Financial Rape, and should be made illegal!

BTW - when was the last time you ever got a 0% credit card application?

I can't remember either.

-EyesII

reply to post by EyesII



I know that American Express is about businesses that is why I was quite suprised when you mentioned that.

How can they expect small business to compete in an already unlevel playing field without the use of credit to stock invintory?

I gave up my credit cards years ago. Now that I don't have credit card debt, I have cash to buy what ever I need or want. I do have a debit card that acts as a credit card for convenience, but, of course, I have to have a balance to use it.

What I'm wondering, though, is why are credit card companies still trying to pick up new customers - I've thrown away several offers this week - yet at the same time are shafting the customers they have.

Wouldn't it make more sense to not make the customers you do have mad at you?

Originally posted by washingtonsghost
Free yourselves from financial slavery. What do you think Jesus would have to say about all you 'christians' worshiping the false idle that is your credit score? When the SHTF your credit card isn't going to work! Join me in a real economic revolution, close your bank accounts, Max out your credit cards, and then change your phone number. With the number of people who are financial screwed right now, its only a matter of time before the current 'credit score' system is completely useless. Stop paying interest, this is slavery. Not me, no more. All done supporting the financial system.

You are right about this. It starts a whole bad cycle of slavery when you get in debt and ruin your credit. Suddenly you can't get a car, a place to live or even a job in some cases. Christians are always talking about a mark of the beast well what if credit cards were the mark symobollically?

reply to post by Tippys Dad


Most customers don't know how bad their being shafted. Few care. I know someone who got a set of nice pretty rims for his new car. Charged them and I tallied up how much those rims really cost him at minimum payment. He said I was nuts when I told him that it's take him over 10 years to pay them off.

People either don't know or don't care. That's why I love ATS! We educate ourselves!

Originally posted by Jkd Up
www.msnbc.msn.com...

The most chilling thing about this is this quote in the story:

"No law, including the Credit CARD Act that has started to take effect, prevents banks from closing down credit accounts without warning."


Think about this. Just for a moment. Think about what this can mean to you... Your money...

wont mean a thing to me... only have one card and its only got about $20 on it, no biggie, only use it to keep it active and only have it for emergencies.
loans, oh well, no biggie if they shut the line of credit down, prefer to pay in cash anyway, no monthly bills.