@TCarson wrote:
@bichonmom wrote:Wow! That is really unfair. I am *so* terrified of doing that myself. I've done it with other non-CC bills -- just slipped my mind with so much going on in my life and work.
Have you tried talking w/a supervisor/credit analyst (in other words, higher up than a regular CS rep) re lowering your rate given the circumstances. Sometimes you'll get through to someone who will realize the situation and give you a one-time adjustment. You might also try to see if Juniper (which I believe is Barclay's, isn't it?) will give you a CLI so you can BT the whole thing?
At least you've partially gotten out from under that insane 25% rate. Personal opinion: I think that should be illegal. Really.
I thought about contacting them about this, then decided to just pay it off and put it in the safe.
25% vs 8% isn't much difference if I pay it off in two months, and the ultra high interest keeps me focused on getting rid of it NOW!.
25% of $0 is $0 and that's what they are going to get from me going forward.
As for it should be illegal, I agree.
When a "non-bank" charges that much interest on a personal loan, it is illegal... it's called Loan Sharking.
I think the same rules should apply (i.e. Jail Time) and refunds should be given to those that have been scammed by these large banks that the US public keeps bailing out.
Will this ever happen?, only in my dreams.
As it sits right now, the balance went from $11K last month to $2,400 right now.
The ChristmasTree will be less a few boxes under it, but the people around it will be in much better spirits.
Actually the reason banks now refuse to lower rates is because the politicians made laws to keep the banks from rauising rates on existing balances. Be careful what you ask for. You might get it. If more laws are enacted, the interest rates will only go up for the people who can least afford it.
As far as what is illegal and what is not. Some "non banks" (ie. pawn shops) charge as much as 25% PER MONTH. That is a rate of over 300%/year. Most government capped interest rates ceased years ago. The last I remembered was Arkansas having a cap on interest rates. It was called an anti "usury" law. That is why Arkansas (ie Simmons First) issued credit cards had some of the lowest interest rates. Of course someone without a great credit score couldn't get approved for credit at all. Most of the investable capital posessed by Arkansans was simply invested in other states. I don't what the state's current usury laws are like.
South Dakota and Maryland became banking meccas because of the higher allowable interest rates.
If the government enacts more "reforms" it will only enable the banks to grab more money by again raising rates and adding more (& higher) fees. The banks justify thier latest revenue grabs by blaming the latest round of government (new) rules, regulations and laws.
The best defense is as you pointed out, is to keep debt as low as possible. No matter what the government does; the borrower will still always be slave to the lender. 