var json_comments = new Array("

$\"user-pic\"$

September 14, 2009 6:04 PM

Moderate | Flag for review

Ugh. This is wrong. So wrong. This is why we are in the mess we are in. Carrying a perpetual balance of several thousand dollars? Stupid. Arbitrarily bumping the interest rate to 30%? Stupid. Blame her, yes. She deserves it. Blame Bank of America, too. She shouldn't have been given such a high limit, but they wanted her to rack up that debt. Being stupid deserves consequences, but so does preying on the stupid.

10 replies

$\"user-pic\"$

September 16, 2009 3:18 AM

Moderate |Flag for review

I never worry about hospital bills.

Just repeat after me folks - \"no hablo english\". Works like a charm.

$\"user-pic\"$

fgarvin

September 15, 2009 6:01 AM

Moderate |Flag for review

I have two Bank of America cards, both with zero balance. My credit limit combined on those two cards is almost $40k.

Limits didn't start out that high. Bank of America increased my limit several times on both accounts.

She's right on one front - BoA encouraged people to use the cards with low interest rates and ever-increasing credit limits. It's no stretch to assume they also planned to suck in as many as they could so they could raise the rates.

She's wrong on another front - never trust a bank and NEVER run up a high balance on a credit card. That, and if the rate hike didn't come out of delinquency and only out of banker greed, she would have been able to opt out of the rate hike in exchange for closing the account.

$\"user-pic\"$

Saboth

September 14, 2009 8:08 PM

Moderate |Flag for review

I don't think everyone in the world is so wealthy that they have never had to borrow money, ever. Personally, I had car repairs, sevearal thousand in vet bills, and some unexpected house repairs all at the end of the last year. Sure, I should have had a lot more in savings, but I had to put a huge chunk of change on credit cards. I've learned my lesson, but I'll be paying off that CC debt for probably 2 years.

$\"user-pic\"$

bohemian

September 14, 2009 8:01 PM

Moderate |Flag for review

@Tightlines: You don't know what caused the balance though. It might have been a car repair combined with other emergencies or a job loss. It could have been a medical debt she was strong armed into putting on her card.

Not every card debt is drunken vacations and designer handbags. Though I am a big advocate of just about any option other than credit cards for these very reasons. They are worse than loan sharks. The card bank owns you and can rewrite the rules however they want, your their slave.

$\"user-pic\"$

September 14, 2009 7:01 PM

Moderate |Flag for review

There's no reason to immediately assume she's not properly managing her finances. Carrying a balance and assuming an interest payment along with it is perfectly fine in an awful lot of situations.

Not to give her a free pass. But just saying.

On the other hand, BOA (and others) are simply being abusive now. My own interest rates have been upped, and credit lines reduced, despite carrying zero balances and/or not even using the cards.

I see no reason to condemn this girl - but I see no reason to exonerate BOA either. No excuse for what the CC industry is doing to consumers now.

$\"user-pic\"$

September 14, 2009 7:40 PM

Moderate |Flag for review

@YouDidWhatNow?: I agree with everyone who said I shouldn't have assumed what I did. The more I think about it, I really didn't put myself in her shoes. I was there once. Stupid personal financial management put me in the hole for thousands of dollars. I sobered up. And I would be pissed if I was working to pay everything off and my bank just out of nowhere jacked up my interest rates and refused to negotiate with me. So yeah, I see where she's coming from now. I had a brain fart and forgot how I was in the same boat at one time.

So yeah, back to being my usual liberal self now.

$\"user-pic\"$

kaceetheconsumer

September 15, 2009 1:55 AM

Moderate |Flag for review

@Tightlines: That was awesome. And incredibly mature. I am impressed.

$\"user-pic\"$

emis

September 14, 2009 6:54 PM

Moderate |Flag for review

@Tightlines: Arbitrarily bumping the interest rate to 30%? Stupid. Blame her, yes. She deserves it. Blame Bank of America, too.

Um... I think what we'd prefer is something REASONABLE like, oh say... a regulation that says that banks can feel free to raise the rates on NEW charges, but not on existing charges--

I know, variable rates are clearly written in, but it ought to be something more reasonable and at least tied to problems w/ the relationship between you and the bank like a late or missing payment.

Or at least make it like an ARM--you sign up for your CC at say 12.9%, and they are not allowed to raise the rate more then 2% per month with a maximum of 10% per year and a cap of 30% overall interest...

At least give people a shot... this jumping from something reasonable like 9.99% up to 29.99% is bullshit--on a $5K balance you jump from ~$41.66/mo in finance charges to $125/mo, another $83/mo you have to come up with in a given month w/o little to no warning--at least my no more then 2% per month caps your monthly increase at $8-9 for a $5K balance.

$\"user-pic\"$

macndub

September 14, 2009 6:49 PM

Moderate |Flag for review

@Tightlines: Regardless of the reasons for her debt, the bank was perfectly willing to sell her all the cocaine she wanted. A plague on all their houses, but the bank bears more responsibility than the debtor. The bank has had regulators in their pocket. The bank changed the bankruptcy law. The bank used binding arbitration. The bank put our economy into the ditch in its search for maximum short run management compensation.

In the good old days, the bank would simply have refused to issue the debt to someone who clearly can't afford to repay it. They actually underwrote loans because they bore the responsibility of screwups, rather than the taxpayer as the system exists now.

It is undemocratic and uncapitalist to pay a fraudulently issued debt to the benefit of the lending mafia that got us into this mess. The regulators and politicians won't listen to the real pain out there, so perhaps it's time for some civil disobedience.

And ruined credit rating? Please. When everyone has bad credit, nobody does.

$\"user-pic\"$

kaceetheconsumer

September 14, 2009 6:17 PM

Moderate |Flag for review

@Tightlines: I never carry a balance myself, but I do know several people who do solely because of medical costs. Health care is responsible for a huge percentage of personal bankruptcies.

I do also know people who are idiots and overspend relative to their income, so I have no pity for them.

But without knowing why this woman has debt, it's a bit unfair to assume she's just an irresponsible shopaholic.

That being said, I don't agree with walking away either, unless it's through bankruptcy, which is the legal way to do it (and yes I know personal bankruptcy law has changed to make it ridiculously punitive).

$\"user-pic\"$

September 14, 2009 6:37 PM

Moderate |Flag for review

@kaceetheconsumer: You're right, I shouldn't assume the reason for her debt. I did raise an eyebrow though, when I read, \"Minch said she hadn't been paying much attention to her account -- she didn't even notice when her interest rate went from 12.99 percent to 25.49 percent in January.\" That sort of tells me something there. And the fact that she herself doesn't mention a reason for the debt says something too, I think.

$\"user-pic\"$

kaceetheconsumer

September 14, 2009 6:49 PM

Moderate |Flag for review

@Tightlines: Ah, but when you're sick, paying attention to financial minutia is the last thing you have the time/energy/mental capacity for.

She doesn't appear sick to me (not that I'd be able to tell from a video, unlike members of congress who apparently can diagnose vegetative states or not by video, heh), but the point is it doesn't help the overall issue of consumer debt to assume that everyone in debt is evil. In fact, if we assume the opposite and put in laws to make it so that ONLY the irresponsible have debt, that works out better for society as a whole, in my opinion.

$\"user-pic\"$

That's Consumer007 to you

September 14, 2009 8:41 PM

Moderate |Flag for review

@kaceetheconsumer: Repugnican party line is exactly that debtors are evil, and just watch when they get back in office for the return of DEBT LABOR CAMPS / DEBTOR PRISONS.

$\"user-pic\"$

tbax929

September 15, 2009 12:06 AM

Moderate |Flag for review

@Areyouagoodlittleconsumer:
I'm not a Republican, but I have many friends who are. Don't let the folks like Glen Beck make you believe all Repubs are like that. Actually, I'm a fiscal conservative but a social liberal. Most people I know are the same way - conservative on some issues and liberal on others.

$\"user-pic\"$

mackjaz

September 14, 2009 11:06 PM

Moderate |Flag for review

@Areyouagoodlittleconsumer: There are numerous reasons to dislike the current strain of Republican, but this is not one of them. Also, the readers of consumerist.com are generally above silly name-calling.

$\"user-pic\"$

Shivver

September 14, 2009 10:54 PM

Moderate |Flag for review

@Areyouagoodlittleconsumer: I'm a Republican and I don't think debtors are evil. As has been stated plenty of times in this thread, there are plenty of legitimate reason for someone to incur a good deal of debt.

That being said, it's still your responsibility to pay your debts. Furthermore, it's your responsibility to know the terms of your CC so something like this can't happen. Simply refusing to pay the debt because you're not happy with the terms of an agreement you entered into voluntarily is wrong. I hope now that she's brought some attention to herself BoA takes her to court.

$\"user-pic\"$

September 14, 2009 8:56 PM

Moderate |Flag for review

@Areyouagoodlittleconsumer: This is one the most idiotic things I've ever read.

$\"user-pic\"$

pecan 3.14159265

September 14, 2009 7:20 PM

Moderate |Flag for review

@kaceetheconsumer: It could have been from medical bills, and maybe she doesn't look sick anymore because she received proper medical care. But you're right - when you're sick, it's hard to think straight.

$\"user-pic\"$

kaceetheconsumer

September 15, 2009 1:54 AM

Moderate |Flag for review

@pecan 3.14159265: Yeah, I couldn't even knit after my surgery and I was only on lack of sleep and a low dose of hydrocodone. I can't imagine having to worry about math while on long-term chemo or something.

","

$\"user-pic\"$

Diet-Orange-Soda

September 14, 2009 6:04 PM

Moderate |Flag for review

I'm so happy I don't have any credit card debt. I think my Providian->WaMu->Chase card is at 29.99% or something as ridiculous. I never cared because I never let the balance carry over into the next month.

6 replies

$\"user-pic\"$

NewsBunny

September 14, 2009 6:36 PM

Moderate |Flag for review

@Diet-Orange-Soda: You should care. You could have a major health crisis tomorrow, and wind up screwed up the ying-yang. I use my credit cards for emergencies only. I was recently in the hospital for five days. I used them then, despite having health insurance.

$\"user-pic\"$

dmuth

September 14, 2009 8:08 PM

Moderate |Flag for review

@NewsBunny: People keep saying \"only use your credit cards for emergencies\".

And I keep asking: \"why spend money you don't have?\" Where is the logic in that?

I'd much rather be into debt to a hospital and work out some kind of payment plan with them, rather than owe money on a credit card with some godawful rate of interest.

When it comes to charging lots of money on a credit card, remember--just because you can doesn't mean you should.

$\"user-pic\"$

pecan 3.14159265

September 14, 2009 8:13 PM

Moderate |Flag for review

@dmuth: Why assume that people who put bills on credit cards don't have the money to pay for it?

If I had to pay medical bills, I'd arrange some kind of payment plan, as that would allow me to pay it off in installments, rather than tie up my savings entirely. But if my car breaks down and you're in Podunk, Iowa, I'm definitely going to use that credit card to get my car fixed!

$\"user-pic\"$

Real Cheese Flavor

September 14, 2009 7:33 PM

Moderate |Flag for review

@NewsBunny: Emergencies like that are why you're supposed to have an emergency fund in an account that you normally don't access.

$\"user-pic\"$

pecan 3.14159265

September 14, 2009 7:39 PM

Moderate |Flag for review

@Real Cheese Flavor: Can you get checks for a CD account, though? I wonder about this because what if the hospital wants you to cut a check right then and there, or use a credit card. It's one thing to use a credit card, then transfer the savings to pay it off immediately - but it could technically be easier just to cut a check straight from the CD account.

$\"user-pic\"$

Real Cheese Flavor

September 14, 2009 7:53 PM

Moderate |Flag for review

@pecan 3.14159265: No, I don't think you can for a CD because I'm not sure that a CD is an actual account in the same way that a checking or savings account is.

I think that with a traditional CD you can only withdraw the whole amount that you put in, and there's a penalty for doing so before it matures.

With as bad as interest rates are, I just leave most of my emergency funds in a savings account that I don't have an ATM/debit card associated with. That way I can just go to the bank's website and transfer the money I need into my checking.

$\"user-pic\"$

GrenadeTestSubject

September 14, 2009 7:05 PM

Moderate |Flag for review

@NewsBunny: You don't finance health bills on credit cards. If your insurance and cash reserves don't cover your medical, then negotiate a payment plan with the hospital. It's much better than than dealing with BOA's crap (or any bank for that matter).

$\"user-pic\"$

pecan 3.14159265

September 14, 2009 6:54 PM

Moderate |Flag for review

@NewsBunny: That's true, but with every credit card company jacking up their rates, what can you do? Yes, it's good to have a low-interest rate card, but you can't keep opening up low-interest accounts in case you need to put a ton of charges on one and slowly pay it off.

$\"user-pic\"$

September 14, 2009 6:34 PM

Moderate |Flag for review

@Diet-Orange-Soda: Yay, yet another \"I have no CC debt\" first post!

","

$\"user-pic\"$

September 14, 2009 6:06 PM

Moderate |Flag for review

Not paying will only get her stuck dealing with collection agencies and a ruined credit rating. Not worth it, IMO.

9 replies

$\"user-pic\"$

EllisDees

September 15, 2009 3:13 PM

Moderate |Flag for review

About 12 years ago, I walked away from a couple thousand dollars in credit card debt. Sure, I got a lot of collection calls, but they stopped after a while. So I just waited, and here in Ohio, after 7 years the statute of limitations ran out and I was free and clear. Funny thing was I didn't even know about the statute of limitations thing and they called me up a year or so after it had run out. I wouldn't have even thought of it if the douchebag on the phone hadn't mentioned it, so I looked it up and called them back the next day and told them to screw off.

I have great credit now, but during that time when it was bad, I didn't really have any problems. Worrying about your credit score is overrated unless you're buying a house. Just save up and you can afford anything else. After all, you'd pay for it anyway.

$\"user-pic\"$

Shoelace

September 14, 2009 6:36 PM

Moderate |Flag for review

@dragonfire81: I'm inclined to agree, though the bad press for BoA is a perk.

She should borrow money at a cheaper rate (shouldn't be hard), pay off BoA, schedule destruction of her card in a public place, then post that video on YouTube.

$\"user-pic\"$

Skaperen

September 14, 2009 8:25 PM

Moderate |Flag for review

@Shoelace: You gonna loan her the money? Keep in mind that people refusing to pay often have other contributory reasons for refusing, such as job loss, poor money management, etc. Who do you think is gonna loan her money after whatever it is that triggered the increased interest rate on her, which most likely is showing up on her credit report.

Shame on BoA and all the others that are just driving more people into bankruptcy that might otherwise have been able to pay.

$\"user-pic\"$

pecan 3.14159265

September 14, 2009 6:22 PM

Moderate |Flag for review

@dragonfire81: It won't work, either. She is obligated to pay off her debt, whether she wants to or not. Either she refuses until she's forced to pay, or she relents and pays.

$\"user-pic\"$

Skaperen

September 14, 2009 8:22 PM

Moderate |Flag for review

@pecan 3.14159265: .. or she files bankruptcy.

$\"user-pic\"$

September 14, 2009 8:01 PM

Moderate |Flag for review

@pecan 3.14159265: 8-10 years she will be home free. it will be like it never existed.

$\"user-pic\"$

Skaperen

September 14, 2009 8:33 PM

Moderate |Flag for review

@JohnDeere: Except that there is no time limit on harassing debt collection calls.

$\"user-pic\"$

September 15, 2009 1:56 PM

Moderate |Flag for review

@Skaperen: ya but there is a statute of limitations on actually collecting it.

$\"user-pic\"$

LadySiren is murdering her kids with HFCS and processed cheese

September 15, 2009 1:14 AM

Moderate |Flag for review

@Skaperen: Uh, you'd be wrong. If the statute of limitations is up on the original debt and you haven't re-aged it somehow (i.e. - by promising to pay, making a payment under duress, etc.) then the collectors are SOL.

It varies by state and by type of credit it is (installment, revolving) but once it's out of the statute of limitations, you can send them a letter telling them the debt is out of the statute of limitations, they have to stop calling you, and all further communications must be by mail. If they violate the FDCPA, you can then file suit and collect $1000. Gotta love the fair debt collections practices act, no?

Info: [credit.about.com]

$\"user-pic\"$

treimel

September 14, 2009 6:46 PM

Moderate |Flag for review

@pecan 3.14159265:

You know that most charge-offs in the CC industry are *not* actually collected, right? That's partuicularly true if thge debt is under 10K, like this one.

$\"user-pic\"$

September 14, 2009 6:53 PM

Moderate |Flag for review

@treimel: so you just get a hit on your credit report and that's it?

$\"user-pic\"$

Skaperen

September 14, 2009 8:29 PM

Moderate |Flag for review

@dragonfire81: Sometimes you get sued. That just depends on whether or not the junk debt buyer that buys your debt is aggressive or not.

$\"user-pic\"$

treimel

September 14, 2009 7:35 PM

Moderate |Flag for review

Most of the time, yes, for the smaller debts like this one. Now, this particular person went ahead and made herself a minor celebrity on Youtube, so who knows what the outcome will be--probably a lawsuit, but for an anonymous person? Unlikely.
Remember, for the credit card company to \"force you\" to pay they have to first sue you, then get a judgment, and then actually collect it: you pay voluntarily, they get a lien on your property (of which there are exemptions in every state), wage garnishment (again, there are exemptions). Sometimes they do all this--more often, they sell these debts for pennies on the dollar to debt-collection agencies.
All of that assumes you don't respond to the lawsuit, and they get a defaslt judgment, if the debtor actually *fights* the lawsuit, a debt very much under 10K is absolutely not a winner for the CC company. It simply isn't worth the cost it would take to litigate it.

$\"user-pic\"$

Skaperen

September 14, 2009 8:32 PM

Moderate |Flag for review

@treimel: Or bankruptcy. You forgot about bankruptcy.

There are people who simply cannot pay anymore due to things like major medical expenses and job loss. They usually end up in bankruptcy. If the CC company raises interest rate in this situation, it becomes easy to take it out on them, too. She MAY be judgment proof.

$\"user-pic\"$

treimel

September 14, 2009 7:27 PM

Moderate |Flag for review

href=\"#c15368436\">acasto:

Well, she agreed to the terms, so ... I still say deadbeat.

$\"user-pic\"$

Skaperen

September 14, 2009 8:30 PM

Moderate |Flag for review

@treimel: Technically, yes, a deadbeat. We need more deadbeats to drive bad banks out of business.

$\"user-pic\"$

cuchanu

September 14, 2009 6:37 PM

Moderate |Flag for review

@pecan 3.14159265: That's not necessarily true: I had a Shell card about 6 years ago and payed reliably online every month. Then that stopped working and they couldn't tell me why. So I paid when I got my bill in the mail but then I moved and they couldn't figure out how to get a bill to me at my new address despite me calling them multiple times.
So an over-the-phone payment being my only remaining choice I called them to pay my bill. They wanted to charge me an $8 processing fee despite the circumstances. I called back, same thing.
Since it was their problem I told them I wouldn't pay it and unless they could make online payments work or send me a bill by the time my bill was due I wouldn't pay my card anymore. Neither happened so I haven't paid since. It wasn't very much money but they've been happy just sending collections from fake sounding lawyers for the last few years and that was the last I've heard of them.
Sure, my credit suffered but I don't plan on using it anytime soon so it was worth it to not feel like I was getting robbed. The jackers got jacked in my opinion.

$\"user-pic\"$

Skaperen

September 14, 2009 8:28 PM

Moderate |Flag for review

@cuchanu: Another example of corporate irresponsibility. If they can't do the basics, they don't deserve to even stay in business. But they are probably too big to fail. Chop 'em up.

$\"user-pic\"$

SonicMan

September 14, 2009 6:32 PM

Moderate |Flag for review

@pecan 3.14159265: Most likely this will just go to a credit collection agency. Then be written off in a few years. Her credit will suffer until this debt is off her report.

","

$\"user-pic\"$

Pixel

September 14, 2009 6:06 PM

Moderate |Flag for review

Can't watch the video at work, and I have sympathy for her. However, how exactly is a 25.49% \"Run[ning] people's interest rates up to 30%\" Seems like it is still 4.51% shy of that.

3 replies

$\"user-pic\"$

shimage

September 14, 2009 10:58 PM

Moderate |Flag for review

@Pixel: Somebody already caught this, but the key is that it's up to 30%. Like when the weight loss program advertises that you can lose up to 50 lb. The only thing you're certain of is that you will not have a rate over 30%, nor weight loss of over 50 lb.

$\"user-pic\"$

Kogenta

September 14, 2009 7:22 PM

Moderate |Flag for review

@Pixel: Seems like it's a generalization. Maybe 29.99% is the standard right now, and the people the bank got jacked to 25% a few months ago haven't been pre-approved to be raised to the new rate yet.

I guess the key word is \"Up to\" since that would imply a range of values under 30% of which 25% is a part of.

$\"user-pic\"$

September 14, 2009 6:32 PM

Moderate |Flag for review

@Pixel: You round up.

","

$\"user-pic\"$

G.O.B.: Packers WIN. Cutler who?

September 14, 2009 6:11 PM

Moderate |Flag for review

My dad was telling me a few days ago that BoA did the same to his card. He doesn't have a balance on it and has pristine credit. It's a nice slap in the face to a responsible decades-long customer. Thanks BoA.

6 replies

$\"user-pic\"$

tbax929

September 15, 2009 12:09 AM

Moderate |Flag for review

@G.O.B.: Packers WIN. Cutler who?:
Chevron did the same thing to me. I promptly closed the card. Not only did they lose a long-time customer, they ruined any potential of me ever doing business with them again. Also, I stopped buying their gas altogether. Dumb move on their part.

$\"user-pic\"$

nstonep

September 15, 2009 1:46 PM

Moderate |Flag for review

@tbax929: It's Chase that always seems to take a piss on my parade.

But BOA get's a black eye from me because during my college days they wouldn't let me open a student checking account.

$\"user-pic\"$

mackjaz

September 14, 2009 11:09 PM

Moderate |Flag for review

@G.O.B.: Packers WIN. Cutler who?: You're right... this is vintage BofA behavior. Stab your employees in the back, turn on your loyal customers, do whatever you have to do in order to make more money right this minute. It's the worst sort of capitalism - the kind that begs for and requires regulation.

$\"user-pic\"$

lmarconi

September 14, 2009 7:09 PM

Moderate |Flag for review

@G.O.B.: Packers WIN. Cutler who?: I've never missed a payment and never carried a balance but I have a ridiculously high interest rate and no benefits for my card. I recently asked BoA if I could switch my card or renegotiate for a better rate since I thought I deserved something better. Want to guess the answer? BoA doesn't care about its customers and it sure as hell shouldn't have gotten a bailout.

$\"user-pic\"$

cuchanu

September 14, 2009 6:46 PM

Moderate |Flag for review

@G.O.B.: Packers WIN. Cutler who?: In his case they didn't want him as a customer because he doesn't make them any money. My brother in law had his card revoked because he paid his balance every month and got cash back at the end of the year.

Either way it's an asshole thing to do to a loyal customer, you are right about that.

$\"user-pic\"$

sarahq

September 14, 2009 8:02 PM

Moderate |Flag for review

@cuchanu: But he does make them money: he makes them merchant fees by using his card instead of cash.

He just doesn't make them enough money.

","

$\"user-pic\"$

September 14, 2009 6:11 PM

Moderate |Flag for review

The woman is a moron. Sure, she might win the support of a lot of people, but we live in the real world where the inability to get credit has real world consequences. Good luck buying a home, or a car, renting an apartment, or changing jobs. She's effectively decided to ruin her life over an extra $60 a month.

8 replies

$\"user-pic\"$

EllisDees

September 15, 2009 3:18 PM

Moderate |Flag for review

@Al Swearengen:

If your credit is bad, you can always put a freeze on your credit report. Sure, you'd need to unfreeze it for a house or a car, but no job or apartment needs to see that information for anything.

$\"user-pic\"$

Mary Marsala with Fries

September 15, 2009 2:26 AM

Moderate |Flag for review

@Al Swearengen: Um, people used to live without credit quite often, you know. Instant gratification and living at the top end of your means isn't everything.

$\"user-pic\"$

Pslw

September 14, 2009 8:41 PM

Moderate |Flag for review

@AshCatScram: And (hopefully) you'd be smart enough to make compromises in the other parts of your life. She has internet! That's a luxury, not a necessity. How about all those toys behind her in the video? I'm sure she could pawn those off.

$\"user-pic\"$

Skaperen

September 14, 2009 8:35 PM

Moderate |Flag for review

@Al Swearengen: The extra $60 a month can ruin people's lives, too. It can drive people into a greater financial mess. Presumably they did this because of some ding on her credit report. All the bank is doing is making it worse and driving her into bankruptcy.

$\"user-pic\"$

cuchanu

September 14, 2009 6:44 PM

Moderate |Flag for review

@Al Swearengen: \"ruin her life\" is a bit of an exaggeration.

She can buy a car with cash. I did. She can rent an apartment with a little bit higher deposit. I did. She can get a job as well, believe it or not, even people with bad credit change jobs.

Buying a home...might be hard unless she already ownes a home with some equity then a down payment at a credit union towards her new home would be possible.

So in your opinion everybody with bad credit must be homeless? Or they are just stuck in the same job and home for the rest of their lives? Give me a break.

$\"user-pic\"$

September 14, 2009 8:44 PM

Moderate |Flag for review

@cuchanu: I'm inclined to disagree about the apartment rental. The first apartment I rented with my then-boyfriend was cheap because it was in a bad area with bad management. However, because he had such bad credit due to using the same tactic as this woman for a few credit cards, he would not have been allowed to rent the apartment at all. His scores were that low by their standards.

What allowed him to be in that apartment with me was because I had stellar credit.

$\"user-pic\"$

September 14, 2009 8:00 PM

Moderate |Flag for review

If she can't pay a little extra a month on her $5000 credit card balance how is she is going to buy a car with cash or put extra money down on a home?

$\"user-pic\"$

cuchanu

September 14, 2009 10:08 PM

Moderate |Flag for review

@Al Swearengen: Buying a car with cash is about saving over time. I don't think she could do it right this second, but it doesn't take long to save up for an inexpensive car. I doubt that she is unable to pay the $60, she is just unwilling to sacrifice. People live from paycheck to paycheck whether they make $500 a month or $5000 a month. So they could all say \"I don't have $60/month to pay this\" and it might be technically true, but the only people that truly can't save enough money to buy a car are people who really don't make any money.

And I'm not really referring only to her situation since I don't really know what it is. I'm just speaking in general terms that having bad credit is not a death sentence and I'm proof of that. Yeah, I'd probably be screwed if I wanted to open a business. At least in this country!

BTW I couldn't watch the video cuz I'm at work.

$\"user-pic\"$

That's Consumer007 to you

September 14, 2009 8:44 PM

Moderate |Flag for review

@Al Swearengen: It's called debt negotiation - get it down to 10% of the balance and pay in full - that's what BoA deserves.

$\"user-pic\"$

P=mv

September 14, 2009 6:28 PM

Moderate |Flag for review

@Al Swearengen: An extra $60 a month would essentially make it impossible for me to buy groceries for two weeks out of every month. $60 may not be much to you, but for some it is the difference between eating and starving half the month.

","

$\"user-pic\"$

gparlett

September 14, 2009 6:13 PM

Moderate |Flag for review

Credit cards should make you mad, mad enough to pay them off, cut them up, and never use them again. Credit card companies are evil, truly truly evil, but the great evil here isn't that they jacked her rates up to 30%, its that they convinced her that a normal part of adult american life was to have thousands of dollars in rotating credit card debt.
That said, you can't simply stop paying. You have a legal obligation and unless you plan on declaring bankruptcy there isn't a way out of it.... Yes the debt collectors will negotiate with her, but by they time they but the debt it will no longer be 6 grand. With the 30% interest and penalties it will be thousands more, she'll be lucky to negotiate this back down to 6k.

6 replies

$\"user-pic\"$

September 19, 2009 6:04 AM

Moderate |Flag for review

@gparlett:
A friend of mine closed his card when they did this to him. That's the best way to protest. He was a good, paying customer and a cardholder with the company for over 10 years. He got another card in a flash from another company and even got a better interest rate.

$\"user-pic\"$

nstonep

September 15, 2009 1:41 PM

Moderate |Flag for review

@gparlett: @Pixel:

I assume she's talking about a variable rate. The current prime rate is historically low, it will not stay this low.

In order to get to 25 they probably tacked on about 22% to the prime rate...It's around 3% right now I believe.

$\"user-pic\"$

Mary Marsala with Fries

September 15, 2009 2:35 AM

Moderate |Flag for review

@gparlett: Exactly backwards. If you don't care about your credit, the best way to handle a problem debt like hers IS to stop paying it. Credit card debt is unsecured; they can't come after your home or property for it. They'll bounce you among debt collectors for years, often, and each successive one will be MORE likely to cut you a better deal in order to get something. (Just get it in writing that you paid them, and follow up with your credit reporting agency to make sure it was noted.)

If you wait too long, the worst that happens is, they sue you. You can't go to prison or lose your house, car or job over it. As long as you bother to show up, the judgment will usually be much smaller than what they're asking for. Then they have to gather the information to garnish your wages which, if you're not a putz and give it to them when they ask for it, can take a really long time too. Worst comes to worst, they start dinging your paycheck, at (or before) which point, if your total debt is on the high side (I say $25K or higher, personally), you pay a lawyer and file bankruptcy, and the judgment, along with any credit card balances you have left, is discharged (if you don't make a lot of money & file Ch 7) or reduced to an amount you can actually pay every month, with no interest (if you have more money and/or lots of property and file a Ch 13).

Or you could just pay B of A's 30% pound of flesh and protect your oh-so-valuable credit score. ::coughprolecough::

$\"user-pic\"$

September 15, 2009 1:00 AM

Moderate |Flag for review

@gparlett: That's what I'm doing now.

I cut up a lot of my cards to prevent myself from spending on them. I'm going slowly but surely on paying them all off, but once that's done, all of the interest I used to give to the banks will then be mine.

Yes, it's stupid to keep a balance. But then again, that's the motivation of paying them off and not putting a balance on your card - starving the banks of their source of easy income.

$\"user-pic\"$

September 14, 2009 6:34 PM

Moderate |Flag for review

@gparlett: Not at all true. It is increasingly unlikely the banks and creditors will be able to track her down and \"make her pay\". As long as she has access to the internet there are a million wannabe lawyers out there who can give her enough advice to make it more expensive for the company to try to collect than the debt is worth. I say good luck to her. They're trying to screw her, so she has every right to screw them back.

$\"user-pic\"$

Skaperen

September 14, 2009 8:37 PM

Moderate |Flag for review

@harvey_birdman: It's more a case of the bank is being stupid, so she has every right to be stupid back at them.

","

$\"user-pic\"$

OutsmartBullet

September 14, 2009 6:14 PM

Moderate |Flag for review

I'm going to stand aside on the morality issue; I haven't thought about it enough.

But it doesn't seem like a good idea. Switching to ramen and selling some stuff seems like a better idea in the long term.

4 replies

$\"user-pic\"$

Skaperen

September 14, 2009 8:42 PM

Moderate |Flag for review

@OutsmartBullet: (Maybe) she already eats ramen and already sold her stuff just to pay the regular debt, because she lost her good job and has to work some minimum wage job. She might have been just barely making it until the bank went stupid on her. So either she's being stupid back at them, or she's planning to file bankruptcy.

$\"user-pic\"$

nstonep

September 15, 2009 1:47 PM

Moderate |Flag for review

@Skaperen: Yep...if it's enough she should file for bankruptcy. Does it last on your record 7 years?

But...don't do it for federal student loans...bankruptcy doesn't wipe them out as I recall.

$\"user-pic\"$

varro

September 14, 2009 6:53 PM

Moderate |Flag for review

@OutsmartBullet: File for Ch. 7 bankruptcy.

F B of A.

$\"user-pic\"$

September 14, 2009 6:38 PM

Moderate |Flag for review

@OutsmartBullet: And when that's not enough?

","

$\"user-pic\"$

September 14, 2009 6:14 PM

Moderate |Flag for review

I am with her on principle. And I totally understand the point she is making... But not making payments would not be my course of action though.

Each one to his own, I guess, as long as other people don't miss the bigger point and stop making payments.

3 replies

$\"user-pic\"$

CFinWV

September 15, 2009 12:47 PM

Moderate |Flag for review

@MostlyHarmless: It's her \"you should've left well enough alone, so now I'm going to punish you by not paying!\" attitude that gets to me. Paraphrased.

$\"user-pic\"$

CFinWV

September 15, 2009 12:48 PM

Moderate |Flag for review

@DefineStatutory: And somehow, those same people who don't have the extra cash manage to get by without using a credit card. Whine whine whine, learn to live on $10 a week for food, I did it for years.

$\"user-pic\"$

tbax929

September 15, 2009 12:10 AM

Moderate |Flag for review

@MostlyHarmless:
I've been told by several friends that banks are more willing to negotiate debt now than they were in the past. That would be my first course of action, at least.

","

$\"user-pic\"$

September 14, 2009 6:17 PM

Moderate |Flag for review

It really bothers me when people use \"rape\" to mean something other than rape; it dilutes the meaning of the word and reduces a horrible crime to being on par, in this case, with an interest rate hike.

That said, the lesson that the girl in the video in particular and America in general needs to learn is: pay off your credit card in full every month. It's called responsible spending. If you can't afford it, don't buy it. The reward for spending responsibly is not having to pay any interest at all. The penalty for spending irresponsibly is that credit card companies are going to charge you interest. The choice is yours.

8 replies

$\"user-pic\"$

Skaperen

September 14, 2009 8:51 PM

Moderate |Flag for review

@vladthepaler: The lesson you need to learn is that not everyone has lots of leeway to just start paying more when the bank demands more. Charging interest is one thing. Jacking it up beyond her ability to pay is something else, entirely.

People like you always like to oversimplify out of reality. The reality is that driving up interest rates is driving people into bankruptcy, and in turn hurting the banks. Many people do have situations where their money coming in is suddenly reduced, or they have involuntary new debts like medical costs. People can be making perfectly sound financial decisions and find themselves in over their heads anyway. Then the bank jacks up the monthly payment beyond the ability to pay. At that point, there is no choice. If she is in that boat (I do not know if she is ... but I know a lot of people are), I can understand why she is angry, and why she is wanting to take it out on the bank.

$\"user-pic\"$

gparlett

September 14, 2009 7:39 PM

Moderate |Flag for review

@vladthepaler: Were really getting off topic, lets just all agree with Vlad that this woman is really getting raped by BoA.

$\"user-pic\"$

razremytuxbuddy

September 14, 2009 7:27 PM

Moderate |Flag for review

@vladthepaler: I agree with you about the use of the word rape. It greatly offends me when people use it to mean something that isn't.

But, there also should be a word for what finance bullies do to people in a weaker financial position. The damages are way more than just the monetary amount you add up with a calculator. They undermine peoples' lifestyles and sense of self worth, as well as trying to get their hands on as much of their victims' hard-earned money as they can.

$\"user-pic\"$

coan_net

September 14, 2009 7:15 PM

Moderate |Flag for review

@vladthepaler: All I know I was raped the other day at McDonalds when they forgot to include a straw in my bag for me drink! How dare they violate me like that!

$\"user-pic\"$

September 14, 2009 6:41 PM

Moderate |Flag for review

@vladthepaler: Yeah, you know. All those people are the same. They all go out and buy TVs and crap they don't need.

It couldn't ever be medical bills. Or school tuition. No, nothing responsible like that, it's only ever frivolous crap.

$\"user-pic\"$

treimel

September 14, 2009 6:49 PM

Moderate |Flag for review

But let's say it's only *responsible* debt, like medical bills--so? What does that have to do with throwing your arms up and saying \"I won't pay.\" That's the part that makes her a deadbeat, not the spending.

$\"user-pic\"$

acasto

September 14, 2009 7:19 PM

Moderate |Flag for review

@treimel: She was paying. They could make this whole thing a win-win again right now. She could pay her debt and BoA could make some interest. The problem is is that is not enough for these people. If there was no legal limit on what they could raise her rate to, how far would they have to go before it would be okay for someone to say enough is enough? This isn't about being a deadbeat, it's about drawing a line somewhere and sending a message to the banks that if they want the customers to play ball, then they are going to have to play as well.

I know someone who was having some problems with their mortgage after their rate went up. They called the bank ahead of time to try and work something out. You know what the bank told them? That they couldn't do anything for them until they were so many payments behind. What sense does that make? As long as you are a good responsible customer, these customers will take every last dime they can from you. They will only play ball if you give them incentive too. It's sad and retarded, but unfortunately it's true.

$\"user-pic\"$

Ananelle

September 14, 2009 6:39 PM

Moderate |Flag for review

@vladthepaler: Generalities are not always the way to go. I'm really happy you're an insanely responsible human being and have never done anything like take out student debt or have a medical emergency.

Be a f^#cking human being? Yeah, that would be excellent. Thanks.

$\"user-pic\"$

September 14, 2009 6:37 PM

Moderate |Flag for review

@vladthepaler: I don't know where you went to school but in the English language words often have more than one meaning. They are called \"alternative definitions\" and it is perfectly acceptable to use a secondary definition as long as the context makes clear which definition is intended. In this example, no one would seriously believe she means rape as in \"sexually assaulted\". Rape in this context means to \"take advantage of to an unfair, unreasonable or illegal degree\".

Thank you for your attention to this installment of English 102. Now go peddle your PC nonsense elsewhere.

","

$\"user-pic\"$

hi

September 14, 2009 6:17 PM

Moderate |Flag for review

Don't you know? Rich people are too infallable to fail. We must bail them out or they might have to live like the rest of us. Big companies can't fail! End of story. Now pay your bills!

And for whoever says the country would fall apart if we don't bail them out you're a god damn tin foil conspiracy theory nut case.

3 replies

$\"user-pic\"$

September 14, 2009 6:55 PM

Moderate |Flag for review

@hi: Well, if you let enough financial institutions fail, you would basically let a large part of the industries that require financing collapse in on itself, as there would be much less competition, and it would lead to even more unfair practices.

Can you imagine a single company being the only financial institution in America? That's a hell of a lot of power.

$\"user-pic\"$

nstonep

September 15, 2009 1:50 PM

Moderate |Flag for review

@ballistic90: Well...then they'd just have to do it the old fashioned way...by selling an ACTUAL PHYSICAL PRODUCT. I believe the term is manufacturing as written on an ancient tablet buried deep within the earth's crust by cavemen when they decided they needed pterodactyl insurance.

$\"user-pic\"$

CarbonFiberFootprint

September 14, 2009 8:07 PM

Moderate |Flag for review

@ballistic90: You mean like the Federal Reserve?

","","

$\"user-pic\"$

eabu

September 14, 2009 6:18 PM

Moderate |Flag for review

this is as stupid as having an existing wound and deciding to stab yourself more

3 replies

$\"user-pic\"$

Skaperen

September 14, 2009 8:53 PM

Moderate |Flag for review

@eabu: Bad analogy. It might be the case that the increased monthly payment is putting her into the unable to pay category. At least she has bankruptcy to fall back on, which your analogy doesn't have an equivalent for.

$\"user-pic\"$

LadyTL

September 15, 2009 5:44 AM

Moderate |Flag for review

@Skaperen: if she can afford to file for bankruptcy.

$\"user-pic\"$

ohnoes

September 14, 2009 6:37 PM

Moderate |Flag for review

@eabu: Well, if you have to debride and don't have any maggots around...

","

$\"user-pic\"$

September 14, 2009 6:20 PM

Moderate |Flag for review

@Tightlines - a CC balance of six grand was considered modest just a year ago. Of course, when you have a reasonably stable job, it still is.

@Al Swearingen - I sort of agree about the $60/month, although that becomes big money when you're unemployed. Walk a mile in her shoes and see how it feels. If it were me, I'd be looking for some asset that I could liquidate so I could just pay the balance and be done with it (driving a hooptie for a year or two would be more than worth it, IMO), but I suspect she's probably already considered that option.

1 replies

$\"user-pic\"$

RecordStoreToughGuy_starcommandseries.com

September 14, 2009 8:25 PM

Moderate |Flag for review

@HurtsSoGood: I have less than 2k myself, but even that seems like a bit of a burden. Of course, I could cut my payments in half and still make the minimums, but then wouldn't be paying them down as quickly.

","

$\"user-pic\"$

DefineStatutory

September 14, 2009 6:21 PM

Moderate |Flag for review

Cue the people running the \"If you can't afford it, don't buy it\" rhetoric.

Some of us don't always have the extra capital laying around to make important purchases. Tell you what, I'll decide to not make that transmission repair on my car, which will cause me to lose my job because I can no longer drive the hour to work, and see where that lands me.

Personally? I'm swiping that card on the rapair, and hoping to pay it off soon, but not this month. Not all of us make enough money to have a stash set aside for emergencies. Someday, yes, but today? I wish.

4 replies

$\"user-pic\"$

Ananelle

September 14, 2009 6:42 PM

Moderate |Flag for review

@DefineStatutory: I really appreciate your post. I am severely in debt at my private college right now, and have had so many people cue the \"Go to a public college!\" rhetoric.
No public college in NY has my major. Yeah.
Again, thank you for the logic.

$\"user-pic\"$

ludwigk

September 15, 2009 2:01 PM

Moderate |Flag for review

@Ananelle: I would argue that you could still probably get the background that you need at a different school by designing your own major, or doing an interdisciplinary degree of some sort, but the point is that you picked your college, presumably for good reasons, and you seem to feel strongly about the choice you made.

I like it when people make the hard choices, but I would implore you to fully consider the ramifications of your decision, and appreciate the economic impact that it may have over the rest of your life. Will this debt mean potentially putting off a house purchase for 15-20 years? Does it mean not having the money to support your own children through higher education? What kind of earning potential does this field of study promise?

There's a book \"Going Broke by Degree\" by economist Richard Vedder, where he comes to to the conclusion that some people never economically benefit from their higher education over the course of their entire lives, and I would suggest you read it, or something like it.

I'm currently in grad school, and its somewhat surprising to me that I need to remind the people here that they're not only incurring the typically ~$120-200k of debt from student loans here, but that they are sacrificing 3 whole years of income to be here, which is easily another $75-180k, and any savings and investments one might procure during that time. Of course, I am in a law school, and it is hard to find a graduate field of study that offers a larger earning potential vs. costs spent, but it is still necessary to property evaluate the costs of a degree.

$\"user-pic\"$

sponica

September 14, 2009 6:51 PM

Moderate |Flag for review

@Ananelle: well, i did private for undergrad and public for grad. public ballooned my debt from a reasonable (if ramen eating for 3 years) 40K to 113K.

@DefineStatutory: i've been unemployed since May, got a car from my uncle which failed inspection. the choice was don't repair car and then not be able to drive car to interviews and the like, or bite the bullet and charge the 800 dollars and hope car helps me find job. living in the land of the car means needing a car.

@mrgenius: she'd still have to pay interest though, wouldn't she? it's not like she'd be able to cough up the thousands to zero out the balance

$\"user-pic\"$

mrgenius

September 14, 2009 7:37 PM

Moderate |Flag for review

@sponica: If she can't/won't pay, she is entitled to bankruptcy protection so that she can write off her debts. And future potential lenders are entitled to steer clear of extending credit to a risky borrower for 7-10 years.

Perhaps living a cash-only lifestyle would be better suited to someone in her situation.

$\"user-pic\"$

DollaValueLIFO

September 14, 2009 7:04 PM

Moderate |Flag for review

She'd lose her ability to make new charges, but depending upon her terms, she'd only need to pay on that balance at the prior interest rate. It seems to me she wants to keep that card open to charge more to it and is upset that to do so she'll need to agree to the interest jump.

\"People\" shouldn't influence your choice of majors. But your choice shouldn't be blank check to expect sympathy of others.

@DefineStatutory:

No one is arguing that you shouldn't get the car fixed. Some may be snarky and talk about what you should've done, but they're assholes. What is fair to say is that you shouldn't use your debt on that repair as some sort of whambulance card. Pay your debts, or persue bankruptcy. That's the ethical/moral way.

$\"user-pic\"$

mrgenius

September 14, 2009 6:27 PM

Moderate |Flag for review

@DefineStatutory: Right, but the interest is only charged if you carry a balance. It's not a loan; it's a line of credit. If the interest rate is raised to a level that seems too high for her, she has the option of closing the line of credit and paying the balance in full.

She is no hero by not living up to her obligations.

","

$\"user-pic\"$

drmcclin

September 14, 2009 6:21 PM

Moderate |Flag for review

WOW!!! A real American Hero!

Give me a break... I'm so tired of seeing these types of sob stories in the paper and on places like CNN... YOU are the one that spent money you didn't have. YOU are the one that signed off on the Terms & Conditions to do so (T&Cs that clearly state they can jack your rate at will). Maybe you should've thought of that before you let your greed takeover. Whatever you bought, you probably didn't need it in the first place.

Sad part is, millions of people will champion this lady: \"AH, THOSE GREEDY CREDIT COMPANIES ARE OUT TO GET US!!\" That's just the mentality in the U.S. these days... sad.

10 replies

$\"user-pic\"$

David in Brasil

September 19, 2009 11:58 AM

Moderate |Flag for review

@drmcclin: Must be nice to live in such a black and white world.

$\"user-pic\"$

Skaperen

September 14, 2009 9:04 PM

Moderate |Flag for review

@drmcclin: Wow, what and incredible idiot you are.

You said \"Whatever you bought, you probably didn't need it in the first place.\"

It might well be the case that she knew she could pay for what she bought, and limited herself to that level, knowing what she could pay. She might have figured that out by making a budget.

It might well be the case that she had a situation where she had \"no choice\". Maybe she drives an hour each way to work because there is no public transportation over that route and the transmission in her car broke down. So she had the transmission repaired or replaced, because it just barely fits within her available credit line, and hopes she'll be able to sell enough stuff to pay it off ... because the alternative is not getting to work, losing her job, and not being able to pay ANY of her debts at all.

This happens to people. IT DID HAPPEN TO ME ONCE. Fortunately for me, the banks were not operating in \"stupid mode\" back then. Today, it might actually be the event that pushes some people into bankruptcy. Others, possibly this lady, might have been able to just barely make the payments for the debt that let her keep her job ... and then the bank decides to jack her interest rate, raising her payment beyond the level she can pay.

$\"user-pic\"$

September 14, 2009 10:09 PM

Moderate |Flag for review

@Skaperen: You can cry \"no choice\" all you want, but the simple fact is that the vast majority of Americans buy more crap then they can afford. End of story. The fact that a very small percentage may have dug themselves in too deep by factors beyond their control doesn't reinforce your point.

$\"user-pic\"$

Persistence - Long viv revolisyon an konsomatè yo!

September 14, 2009 8:21 PM

Moderate |Flag for review

* Main Entry: pre·da·tion
* Pronunciation: \\pri-ˈdā-shən\\
* Function: noun
* Etymology: Middle English predacion, from Latin praedation-, praedatio, from praedari
* Date: 15th century

1 : the act of preying or plundering : depredation

* Main Entry: 1plun·der
* Pronunciation: \\ˈplən-dər\\
* Function: verb
* Inflected Form(s): plun·dered; plun·der·ing \\-d(ə-)riŋ\\
* Etymology: German plündern
* Date: 1632

transitive verb 1 a : to take the goods of by force (as in war) : pillage, sack b : to take by force or wrongfully : steal, loot
2 : to make extensive use of as if by plundering : use or use up wrongfully

The practices of credit card companies are largely unsustainable to it's customers, and take advantage of how little the customers understand the terms, which makes it predatory.

$\"user-pic\"$

treimel

September 14, 2009 8:33 PM

Moderate |Flag for review

Thanks for the definition--the cc didn't take anything by force, steal, loot, or make extensive use as if by plundering of anything. So ... not \"predatory,\" then.
Seriously, if a person is an adult, they have a responsibility to understand the agreements they make. Can't understand the terms? Don't agree to it. Any other rule is for children.

$\"user-pic\"$

CarbonFiberFootprint

September 14, 2009 8:10 PM

Moderate |Flag for review

@drmcclin: Just because they slide the 'clearly state they can jack your rate at will' in and no one flinches at it does not make it right or fair. A person smarter than yourself could extort from you as well.

$\"user-pic\"$

GuinevereRucker

September 14, 2009 7:01 PM

Moderate |Flag for review

@drmcclin: I think both of those may be true.

The credit cards ARE out to get you... well, your money. That's why they are in business. They do this through various methods (vendor charges for card use which raise prices, interest on balances, fees). I think the world would be better off without credit cards.

Then we have the stupid people who can't manage their finances and spend money they don't have. This is why I think basic finance classes should be taught in high schools. You know, how to manage a budget, balance a checkbook, interest rates, etc.

$\"user-pic\"$

September 14, 2009 6:56 PM

Moderate |Flag for review

@drmcclin: Unless it's, you know, medical bills.

$\"user-pic\"$

September 14, 2009 6:56 PM

Moderate |Flag for review

@drmcclin:
You don't know her situation. She could have had a bad illness or injury, resulting in a multi-thousand dollar hospital bill. Maybe she just made a big purchase ( refrigerator, car transmission, etc. ) that she planned to pay off and could easily do so, but then got laid off the next day. I agree that, whenever it is possible to aviod, a high revolving balance is a bad idea. But, at least realize other things could have happened.

However, I do agree with others on here. She should at least talk to them to settle rather than not pay.

$\"user-pic\"$

treimel

September 14, 2009 6:53 PM

Moderate |Flag for review

X 2! I'm not exactly sure why not living up to your agreements is celebrated as of late in this country, but nothing good can come of it.

","","

$\"user-pic\"$

September 14, 2009 6:22 PM

Moderate |Flag for review

Perhaps she should have thought about interest rates prior to putting several thousand dollars on a credit card with a variable rate. And now she's simply not going to pay it? Why not pay the bill based on the old interest rate instead of not paying it at all? This seems to be a round-about way of just not paying your bills and taking responsibility for your actions.

Maybe people need to be informed that \"variable\" means \"can/will change at any time\". Americans, by and large, seem to have forgotten that.

4 replies

$\"user-pic\"$

Skaperen

September 14, 2009 9:07 PM

Moderate |Flag for review

@howie_in_az: Tell me which credit cards are NOT variable rate.

Fact is, the new consumer protection laws being proposed have a clause which forces the banks to leave the interest rate unchanged for existing balances. That way, you know the rate when you buy, and the rate for THAT debt won't change. When they raise the rates, then new purchases have the new rate, but the old purchases keep the old rate.

But, of course, banks being the stupid beasts they are, don't want to do things like this that let people keep paying, and instead want to keep doing things the old way, which is forcing more people into bankruptcy.

$\"user-pic\"$

CarbonFiberFootprint

September 14, 2009 8:12 PM

Moderate |Flag for review

@howie_in_az: How about they ban variable interest rates? The banks front the money to get the men who will look out for their interests into power. This is not hard to figure out...

$\"user-pic\"$

September 14, 2009 7:07 PM

Moderate |Flag for review

@howie_in_az: All credit cards are variable, though, because even ostensible \"fixed rate\" credit cards reserve the right to change that rate with minimal notice.

$\"user-pic\"$

kenposan

September 15, 2009 2:21 AM

Moderate |Flag for review

@floraposte: This. I had a 7.99% fixed with Capital One until they decided turn it into a variable rate reward card. Still not sure what the rewards are, they were vague on that. lol

","

$\"user-pic\"$

chiieddy

September 14, 2009 6:24 PM

Moderate |Flag for review

I can't watch at work, but wouldn't the correct thing to do be to transfer the balance to another company's card so BoA doesn't get her interest anymore and she maintains her credit rating?

3 replies

$\"user-pic\"$

Skaperen

September 14, 2009 9:08 PM

Moderate |Flag for review

@chiieddy: How about she transfer the balance to YOUR account and have her pay YOU at the old monthly rate?

$\"user-pic\"$

kexline

September 14, 2009 6:50 PM

Moderate |Flag for review

@chiieddy: A couple of factors, based mostly on conjecture:

(1) If she's missed payments recently, especially if this is her only line of credit or if she's missed payments on multiple lines, ain't nobody gonna extend a balance transfer offer to her. So she could have helped herself by doing that that before all of this started. Except...

(2) Her \"initial\" interest rate was 12.99%, so her credit may not have been that good before. It's also possible that she just didn't mind her rate, but if you're rolling a $6k balance at 13% with good credit and you're not constantly pestering the issuer for lower rates, then you're beyond careless. If it's the former, nobody would have helped her transfer out anytime in the past two years. If it's the latter, then this situation snuck up on her and we're back to (1).

$\"user-pic\"$

annab

September 14, 2009 6:49 PM

Moderate |Flag for review

@chiieddy: Yeah, but good luck to her opening a new card with a balance high enough to transfer it all over.

","","

$\"user-pic\"$

Brunette Bookworm

September 14, 2009 6:27 PM

Moderate |Flag for review

@Tightlines: Is it bad to have debt? Yes, but I agree with kaceetheconsumer. We don't know the reason for the debt. I could be medical bills or education expenses. Soemthing that required her to pay more than she had the available cash for.

2 replies

$\"user-pic\"$

September 14, 2009 6:36 PM

Moderate |Flag for review

@Red-headed bookworm: Blanket statements about the stupidity of all people with debt not useful. Mental disorders can cause people to spend excessively. Mania, depression as well as compulsive disorder come to mind.

$\"user-pic\"$

Persistence - Long viv revolisyon an konsomatè yo!

September 14, 2009 8:16 PM

Moderate |Flag for review

@JohnQPublic: Yeah, did everyone forget about predatory lending, confusing legalese in the contracts and the one I've never understood \"Let's charge the people with the least ability to pay the highest interest rates so that they can never pay their balance down.\" I don't have credit cards, I don't even have a checking account. The only reason I have a bank account is because my previous job required direct deposit and if you don't have an account with a bank you get charged to cash a check.

","

$\"user-pic\"$

Whtthfgg

September 14, 2009 6:28 PM

Moderate |Flag for review

Ive got a question. Is this something new. Cause I dont think it used to happen.....

I had a FIXED 7.9 and they moved it for NO REASON at all to a variable 12.99. Can they do that?

I guess the change happened in May, but I hadnt spent on it since last July.

What the hell is the point of a fixed rate if they can arbitrarily change it?

4 replies

$\"user-pic\"$

Skaperen

September 14, 2009 9:11 PM

Moderate |Flag for review

@Whtthfgg: Yes, they can do that. It's called \"closing your account, but if you want to continue doing business with you, we can open a new account, with the same number for your convenience, under these new terms, otherwise you can't charge any more and just pay off the existing balance slowly\". A few banks did this with the demand for the entire balance in full to avoid the new terms.

$\"user-pic\"$

September 14, 2009 7:32 PM

Moderate |Flag for review

@Whtthfgg: I froze mine and as it is paid off will not increase. If I miss a payment, there is a penalty of 30%.... They worked with me, but this IS BofA....

$\"user-pic\"$

wrjohnston19283

September 14, 2009 6:48 PM

Moderate |Flag for review

Fixed rates don't adjust each month with prevailing interest rates. Variables can change each month as the prime rate (or whatever benchmark is used) changes.

$\"user-pic\"$

Whtthfgg

September 14, 2009 6:52 PM

Moderate |Flag for review

@wrjohnston19283: but the question remains \"Can they on a whim change my 7.9 fixed to 12.9 variable?\"

$\"user-pic\"$

September 14, 2009 7:51 PM

Moderate |Flag for review

@Whtthfgg:
Yes. They can change the rate at any time at their discretion. Thanks to new laws, consumers can now opt to \"decline\" the rate increase. Basically, that closes your account and you pay-off your balance at the pre-increase rate. You cannot use that card anymore.

I'm not clear as to whether you still make monthly payments, or if you have to pay the whole thing off in one lump, though.

$\"user-pic\"$

September 14, 2009 7:09 PM

Moderate |Flag for review

@Whtthfgg: Sure, because they included in the initial contract that the reserve the right to change the rate and rate structure so long as they give you notice (I'm betting, but the odds are seriously in my favor). There's no such thing as a truly fixed rate credit card.

$\"user-pic\"$

DollaValueLIFO

September 14, 2009 7:08 PM

Moderate |Flag for review

They can't, unless you agreed to the change.

","

$\"user-pic\"$

jdmba

September 14, 2009 6:28 PM

Moderate |Flag for review

Saying \"cue the people who say she shouldn't have spent it\" does not, under any circumstances, make that comment wrong. I am sure for every \"transmission so you can get to work\" (yes, I read the response above) on her statement there will be a ton of other stuff that is not so noble.

I do without on a lot of things, and it really ticks me off when people get bailed out of their credit, bailed out of their HELOC, and bailed out of their mortgage, when the responsible spenders sit there being forced to actually pay for the decisions and purchases. If BofA gives her even $1 they should give everyone else $1 too.

There is a crazy pattern of entitlement going on right now, because everyone has their hand out (cue the woman asking Obama for a house). Just crazy.

1 replies

$\"user-pic\"$

acasto

September 14, 2009 7:08 PM

Moderate |Flag for review

@jdmba: So, it's okay that she and every other (previously) responsible customer are now bailing out BoA for their irresponsible behavior? I understand this woman's feeling exactly. To cover up their own mistakes, the banks are just pushing their problems off onto their good customers, and in the process taking many win-win situations and turning them into lose-lose ones. The big difference is is that when the traditionally good customer ends up on the losing side of the equation, there is nobody there to bail them out. What BoA and Chase and AmEx and the rest having been doing to people lately is about more than just money. Their actions have been a total slap in the face to some of their best customers. I think in any transaction there has to be some sense of mutual respect involved between the parties. The banks have been totally disrespecting their customers, and even if they do have the legal right to do so it doesn't make it good business.

What I find so sad about this whole situation, is all the cynicism that is going to come out of it. Many people have gone their whole lives being \"good\" customers and playing by the rules, and thought that for the most part at least the system worked. They would pay a price for a product or service, get treated fairly, everyone wins... common sense business. But over the past year or so, we have seen massive amounts of irresponsibility from the biggest corporations to the smallest house-flippers be tossed upon the backs of these otherwise responsible customers. Interest rates jacked up, problems with mortgages because the banks can't keep their paperwork strait, credit lines cut or dropped, etc... This is issue is about way more than someone carrying a balance on their credit card. It's about people getting burned while trying to function responsibly within the system. There has always been those who game the system and play dirty, unfortunately now that appears to be the only way to play the game.

","

$\"user-pic\"$

Megladon

September 14, 2009 6:28 PM

Moderate |Flag for review

I'm switching banks already after the usaa mandatory arbitration thing, and first thing I told my wife, BOA, wells fargo and hsbc are off the table, dont even ask them what their rates are. Neither of us have any outstanding debt on a cc or anywhere else, but I support this woman and as much as I dont think it will matter I hope things work out for her.

1 replies

$\"user-pic\"$

Skaperen

September 14, 2009 9:12 PM

Moderate |Flag for review

@Megladon: She'll file bankruptcy. She'll be getting credit card offers within a year of that because they know she can't file bankruptcy again for 6 to 10 years.

","","

$\"user-pic\"$

cmdrsass

September 14, 2009 6:28 PM

Moderate |Flag for review

Given the source, how do we know this is \"true\" and not some sort of stunt or gimmick?

","

$\"user-pic\"$

Trai_Dep

September 14, 2009 6:29 PM

Moderate |Flag for review

Here's the thing. You use the whip too often at the plantation, at some point, a Nat Turner will show up to burn the muther-[shut-your-mouth] down.
BofA (one of the most gov't (that's us, by the way) reliant banks turns to usury and obscene fees rather that the model that did banks well for over 2,000 years, I'm surprised the only result is an angry person on YouTube. Tarring & Feathering comes to mind as being appropriate.

1 replies

$\"user-pic\"$

Yoko Broke Up The Beatles

September 14, 2009 7:09 PM

Moderate |Flag for review

There are probably more YouTube videos like this, but do you really have time to watch them? No, certainly not, what with keyboard cat playing pretty much everybody out and/or recapping Kanye vs. Taylor.

","","","

$\"user-pic\"$

lilyHaze

September 14, 2009 6:32 PM

Moderate |Flag for review

I was under the impression that you were allowed to pay off your debt under the old rate if you didn't agree to the new rate (cancel) and stopped using the card.

Am I wrong?

4 replies

$\"user-pic\"$

acasto

September 14, 2009 7:30 PM

Moderate |Flag for review

@lilyHaze: Check out the recent post about AmEx raising people's rates on new and past balances and not giving the option to close the card and pay down at the old balance. They even confirmed it to me through phone and email. Most companies will, but the bottom feeders obviously won't and don't have to, yet.

$\"user-pic\"$

September 14, 2009 7:12 PM

Moderate |Flag for review

@lilyHaze: It may be that some cards offer that, but no law requires it. The CARD Act will require it starting next year, but there are a fair number of exceptions.

$\"user-pic\"$

P=mv

September 14, 2009 6:48 PM

Moderate |Flag for review

@lilyHaze: You are wrong. My CC debt from medical bills a couple month ago went from 7.9% fixed to 35% variable last month. They denied me the option of paying off the balance at the old rate and insisted I either give them $4000 right now or suck it. As someone who only make 25k a year, it was no option.

$\"user-pic\"$

pecan 3.14159265

September 14, 2009 6:38 PM

Moderate |Flag for review

@lilyHaze: No, but she would have to transfer her debt to another card, hopefully with a lower interest rate - and it might happen all over again.

","

$\"user-pic\"$

Stuey

September 14, 2009 6:32 PM

Moderate |Flag for review

Can't afford to pay for the things she bought and the credit card company raised the interest rates? Start returning things. Sell things.

\"A matter of principle\"? Sure....

She agreed to the terms of the card when she signed up. Honor? Integrity? Just because the bank has none does not mean that it's okay for this woman to run away from her debt because she feels she was wronged.

1 replies

$\"user-pic\"$

September 15, 2009 5:09 AM

Moderate |Flag for review

@ToolGuyd: Exactly! When a person screws over a company, it's called \"unethical\" and \"wrong.\" When a company screws over a person, it's called \"capitalism\" and \"just business!\"

","","","","","","","","","","","

$\"user-pic\"$

mrgenius

September 14, 2009 6:38 PM

Moderate |Flag for review

I think she's forgetting what the concept of credit is. Credit should be correlated strongly with one's ability to pay your debt obligations.

It seems clear that she poses a higher risk of default that the average person. Therefore, they SHOULD charge her higher interest to be compensated for taking on extra risk.

If she can't or won't pay, her credit SHOULD be screwed up so as to give future lenders a heads up about her ability (or willingness) to pay. That's how credit works.

I say this as someone who graduated college with 17k in CC debt and payed every penny off becuase it's the right thing to do. My credit certainly suffered for a period of years while I was paying it down (and rightfully so). When I finally had a track record of paying off my debts, my credit improved and my interest rates went down.

I don't think this is a moral issue. I don't care if she spend the money on health care or fast food or jewelry. Credit simply reflects ability to pay.

4 replies

$\"user-pic\"$

RecordStoreToughGuy_starcommandseries.com

September 14, 2009 9:16 PM

Moderate |Flag for review

@mrgenius: The problem, I think, is that along with the increased interest due to higher risk comes increased difficulty in actually paying the new minimum. It becomes a self-fulfilling prophecy. Like the old Gallager bit where he points out that when you bounce a check the bank charges you more of what they know you don't have any of.

$\"user-pic\"$

mrgenius

September 15, 2009 2:33 PM

Moderate |Flag for review

@RecordStoreToughGuy_IsNeckDeepInCrisis: The result certainly sucks for both sides if the borrower can't pay, buy keeping interest rates artifically low for all doesn't really help matters. A certain number percentage of people will default on their debts with a certain credit score and the lenders must pay for this. So those who are the biggest risk pay a higher interest rate. It certainly doesn't make sense for those who can MOST afford it to pay the higher interest rate!

The remedy if she doesn't want to or can't pay is to negotiate with the lender or declare bankruptcy. If she negotiates, the interest will likely be reduced way down, though her line of credit will be cancelled and she will certainly (and rightly) see her credit score suffer.

$\"user-pic\"$

msbask

September 14, 2009 7:42 PM

Moderate |Flag for review

@mrgenius: And where do you think you'd be now if, out of the blue, your creditor doubled or tripled the rate on your $17k debt?

$\"user-pic\"$

mrgenius

September 15, 2009 2:27 PM

Moderate |Flag for review

@msbask: They did. I WAS a higher risk, so it shouldn't be shocking that my rate was increased. I paid it, though it certainly took a bit longer. That is the cost of having a line of credit extended to you. If you choose to utilize it, then you've got to play by their rules. No one has ever been forced to use a credit card. And if one uses a credit card and can't pay, why shouldn't the interest rate be increased?

","","","","

$\"user-pic\"$

drmcclin

September 14, 2009 6:41 PM

Moderate |Flag for review

@mrgenius, I agree with your overall point.

But to say this is not a moral issue? What if we were neighbors and I came to borrow $10k with the promise to pay it back, and then never did? You'd probably call that stealing.

1 replies

$\"user-pic\"$

mrgenius

September 14, 2009 7:01 PM

Moderate |Flag for review

@drmcclin: I agree with the repayment moral issue. I was referring to certain purchases being more excusable than other purchases (like \"we should excuse her if it was medical care but not if she spent it on jewelry).

What I was trying to get across is that lenders don't and shouldn't care WHAT the $ was spent on, just that fact that high balances and history of non-payment should affect everyone in the same way regardless.

","","","","","

$\"user-pic\"$

Allen Harkleroad

September 14, 2009 6:47 PM

Moderate |Flag for review

I closed 5 credit cards 4.5 years ago, Now I used debit, check and cash. Life is good and I haven't paid anything in interest in years. I wish more folks would opt to not use credit cards, life is much less complicated and so much cheaper....

2 replies

$\"user-pic\"$

Yoko Broke Up The Beatles

September 14, 2009 7:03 PM

Moderate |Flag for review

@Allen Harkleroad:

You shouldn't have closed the accounts!

Well, on the other hand, five (!)....yeah, you were right to do it.

And, you are absolutely right about how much life is easier w/o credit cards.

$\"user-pic\"$

September 14, 2009 9:10 PM

Moderate |Flag for review

@Yoko Broke Up The Beatles:

If easier means \"more expensive\" then, yes, life is easier without credit cards.

","","","","","","","","

$\"user-pic\"$

PsiCop

September 14, 2009 6:51 PM

Moderate |Flag for review

I have mixed feelings about this. Moral outrage is not a sufficient excuse for violating a contractual obligation.

I do, however, question the validity of the contracts that the banks offer. IANAL but my understanding is that a contract must be predicated on a \"meeting of the minds.\" When the banks unilaterally change interest rates ... which are a part of the contract ... to whatever they want to, whenever they want to, I'm fairly sure this does not constitute a \"meeting of the minds.\"

Yeah, I get that's how these things work. I get that she signed an agreement that involved an inherently-uncertain interest rate. But I do not get how someone can be said to \"agree\" — knowingly — to something which is amorphous and defined only by one party to the contract, not the other.

I don't know whether Ann is right to do what she did. But I do know that the standard way business is done in the US, based primarily on \"short-form contracts\" — which by their nature always favor businesses over consumers — needs to be changed. I wonder if the nature of credit-card contracts — in which the banks have all the power to dictate terms and consumers have none — are sufficiently unconscionable as to trigger unenforceability under the principle of adhesion.

Somehow, though, I doubt this would ever be adjudicated in a court. It would never get that far.

","","","","","","","","","","","

$\"user-pic\"$

September 14, 2009 6:58 PM

Moderate |Flag for review

What would happen if there were a true debtor's revolt? If millions of people stopped paying their cards, mortgages whatever?

If everyone destroyed their credit rating all at once, wouldn't that essentially reset the game for everyone?

2 replies

$\"user-pic\"$

Mr.Duke

September 14, 2009 10:39 PM

Moderate |Flag for review

That is what has been happening during the past year.

$\"user-pic\"$

Yoko Broke Up The Beatles

September 14, 2009 7:06 PM

Moderate |Flag for review

Look for the suggestion in a forwarded e-mail. It'll be right after the one you delete talking about bankrupting oil companies by not buying gas on a particular day.

Seriously, though, that's an interesting thought. I wonder myself.... One thing's for sure, it would take a MASSIVE shift in thinking, and an even bigger shift in confidence. We americans are trained (brainwashed?) to think that we gotta pay off debt, and on time, or we are screwed. (Yes, I realize the irony in me saying that despite records suggesting we americans ALSO charge more than ever!)

","","","","

$\"user-pic\"$

wkm001

September 14, 2009 7:01 PM

Moderate |Flag for review

Guess she didn't read The Consumerist posting a month or so ago about the rate hikes. Or read the letter BoA sent out. I kept mine locked into a low rate. Of course I can't use the card anymore.

","

$\"user-pic\"$

Yoko Broke Up The Beatles

September 14, 2009 7:02 PM

Moderate |Flag for review

OK, hippies and/or bankers, exactly how high can one get smoking debt from bailout pipes?

","","","","","","","","","","","","","","","

$\"user-pic\"$

SectorScott

September 14, 2009 7:22 PM

Moderate |Flag for review

She had the option of refusing the credit hike. I received this same letter from BoA about my credit card about 6 months ago. The deal was:

A) Do not respond and your interest rate will change

or

B) Call us or send us a letter declining the changes. If you use your card at any time for any amount past April 1st, 2009, you will automatically accept the new interest rate, regardless of your declination.

So she obviously didn't read that letter or chose to spend on her card regardless of the warning. I had $3,000 of debt with BoA at the time. I have never missed a payment and always pay more than the minimum. Once I got the letter, I declined the changes and cut up the card. It was that simple.

6 months later I am only $400 away from being free of them, at which point I will be closing my BoA savings, checking and credit account for good. I was a fairly loyal customer but abusing your customers like this is not OK in my book.

Frankly, I probably would have struggled to pay it off so quickly if they had not barred me from charging any additional amounts to the card. While in the long term it is a negative move for them (they lost me as a customer), in the short term it is positive because they collected $3000 they didn't have before. My best guess is that this is a desparate attempt to reduce their outstanding liabilities + increase their cash in hand for 2009.

In summary, it was mentioned above but I thought I could clarify: She definitely could have avoided the interest jump if she was being a conscious consumer.

","","","","

$\"user-pic\"$

September 14, 2009 7:29 PM

Moderate |Flag for review

It's useless to condemn her for keeping a balance on her card - this happens, people do it, she's done it, the balance is there. I find myself rooting for her. Yes she'll ding her credit, but she already acknowledged that and moved forward anyway. She feels held hostage by a changing agreement and she's doing the only thing she feels she has any control over. I say go for it. The worst that happens is she dings her credit, and the best is that she's taking out her frustrations, she's speaking for a big group of frustrated, angry people, and she can let each of the collection agents have it as they call her. I bet she feels empowered. I hope she does.

","","

$\"user-pic\"$

September 14, 2009 7:32 PM

Moderate |Flag for review

Your poll is flawed.
Either way to vote can imply you even have a BoA account.

","","","

$\"user-pic\"$

ARPRINCE

September 14, 2009 7:33 PM

Moderate |Flag for review

lol....she gives new meaning to \"digging your own grave\".

","","","","","","

$\"user-pic\"$

HalOfBorg

September 14, 2009 7:41 PM

Moderate |Flag for review

Just like my CCs are doing to me - jack up the freaking rates. I have a lot of CC debt - and it's all locked in at nice, permanent, LOW interest rates. Of course 'locked in' and 'permanent' only applied until they added that \"can change terms of..... blah blah\" crap to their terms of service.

Now they are jacking my 2% minimum payment up to 5%, UNLESS I agree to let them raise all those rates to to 7%, and they know damn well that I can't pay the 5% minimum.

","","

$\"user-pic\"$

jeshurun

September 14, 2009 7:50 PM

Moderate |Flag for review

Here's the thing: I understand that banks jacking up your interest rate is crap. It's crap that she lost her job and it's crap that she can't afford her new payments, but the bottom line is: You can't expect the bank no to shirk their responsibilities... and then go and shirk your own.

Beyond this, looking in the background of this video, I can see a pretty large collection of car models and furniture which could probably go a long way towards paying off her debt if sold... Also, dying her hair that monstrous concoction of red/brown/blond/black probably incurs a rather large monthly expense...

The bottom line is this: She comes off as inarticulate, unintelligent, and unjustified.

","","

$\"user-pic\"$

fukngrvn

September 14, 2009 7:52 PM

Moderate |Flag for review

maybe she should try and do a balance trasnfer. *shrugs*

","","

$\"user-pic\"$

September 14, 2009 7:56 PM

Moderate |Flag for review

Good for her. Morally, it's usury. Legally, unfortunately, it's not since the massive 1980 consumer-screw, where national banks became exempt from state usury laws.

Bastards.

1 replies

$\"user-pic\"$

bifloman

September 15, 2009 12:36 AM

Moderate |Flag for review

Let me see if I understand, she took out an unsecured loan, paid only the minimum, the lender decided she was a more of a credit risk than when they issued the credit card and raised her interest rate and now she refuses to pay. I guess the lender was correct, she is more of a credit risk than when they issued her the credit card. Pay your bills, deadbeat.

","","","","

$\"user-pic\"$

wcnghj

September 14, 2009 8:02 PM

Moderate |Flag for review

She doesn't HAVE to pay it.

Plus, assuming other positive, open accounts, this won't mean the end of her credit life.

2 replies

$\"user-pic\"$

treimel

September 14, 2009 8:10 PM

Moderate |Flag for review

Well, if they get a judgment against her, some friendly sherriff's will come and put her house for sale/ garnish her paycheck, etc. If the CC company cares to do it, they *can* and do come after your assets.

$\"user-pic\"$

wcnghj

September 14, 2009 8:17 PM

Moderate |Flag for review

@treimel: Not likely to happen. The house for sure will not go up for sale... they may be able to get a lien, but they can't just sell it.

Got any case law where that was the case?

$\"user-pic\"$

treimel

September 14, 2009 10:33 PM

Moderate |Flag for review

Forced sales are very, very real--here's just the first thing that popped up in Google:
[www.illinoislegalaid.org]

I'm not saying this will happen here--in fact, very often CC companies don't even bother to get a judgment, let alone go to any lengths to collect it. The point is, though, judgments can be very, very real.

$\"user-pic\"$

treimel

September 14, 2009 10:42 PM

Moderate |Flag for review

@treimel:
Also, I recognize that this is too small for a forced sale, but all the other collection methods after judgment are open to the judgment creditor. It's also relevant what state she is in.

","","

$\"user-pic\"$

jamesdenver

September 14, 2009 8:07 PM

Moderate |Flag for review

The \"I don't use credit card\" posts are just like the people that jump on airline threads to post \"I don't fly anywhere and you should drive everywhere.\"

Basically completely irrelevant and self serving.

","","","","","","

$\"user-pic\"$

dprowitz

September 14, 2009 8:10 PM

Moderate |Flag for review

I can understand her frustration toward BOA. Before I learned how to correctly handle credit cards (haven't purchased on credit for over 4 years now), I rang up almost 40k in credit card debt. Since I legitimately incurred that debt, I tried to pay it off while following the \"rules\"...transfer balances to lower rate cards, call every 6 months to negotiate lower interest rates, etc.

Then I got the zinger from Citibank. Upon opening my statement, I noticed my interest rate was at 29.99%. Playing by the rules, I was meticulous in paying my bills on time, even up to 2 weeks prior to the due date. Did a payment get lost in the mail? My bank statement said they received payment. What was going on?

When I called Citibank, the representative initially couldn't find any reason for the increase. Hadn't had a late payment in over 3 years, everything was current...she'd have to get back to me. About 30 min later, she called back & said that a supervisor had given my credit rating as the reason for the increase and that I had no option but to either accept the new rate or pay off the balance.

A sick feeling washed over me as I hung up the phone. My credit rating? Had my identity been stolen? A subsequent online credit report showed my rating as excellent.

I tried to play by the rules, but the credit card company chose to change the rules mid-game to such an extent as to make it virtually impossible to pay it off. $245/mo min. payment with only $5/mo as principal. I figured at that interest rate, it would take me almost 50 years to pay off just that one card. Ugh!

Four years later, after enrolling in a credit counseling program that slashed all my interest rates without defaulting on any of the accounts, we're 90 days from being debt free. There's many reasons why people rack up debt. This woman's might be for reasons we don't understand. My debt resulted from sheer stupidity & living way beyond my means, but it's difficult if not impossible for some people to pay off their debt when the banks arbitrarily decide to jack the rates of their customers.

Makes you wonder what a \"revolt\" would look like. What would happen if every BOA customer \"forgot\" to send in their payment for just one month...the same month. Would the bank get the message?

","","","","","

$\"user-pic\"$

Wang_Chung_Tonight

September 14, 2009 8:19 PM

Moderate |Flag for review

I SO wish this would have her desired effect. Someone needs to step in here and put BofA down. I just closed my account today because they lied to me about minimum fees on my savings. Glad it was such a small ding ($12) and I could cut my losses and be done with them and their money sucking disease.

","","","

$\"user-pic\"$

That's Consumer007 to you

September 14, 2009 8:23 PM

Moderate |Flag for review

Personally I feel any bank getting bailout money should have been made to collect 3% or less interest on all borrowing products (loans, mortgages, credit cards, etc.) THAT would have stimulated spending for them big time and been a WIN-WIN ,but NOOOOOOOO!!!!!!

","","","

$\"user-pic\"$

rootehound

September 14, 2009 8:28 PM

Moderate |Flag for review

This woman is my new hero! Until we bring the banking industry to its knees we will never have a real economic recovery.

What she's proposing is a small start, and there's much more that needs to be done to these bastards, but it's a start.

","","","

$\"user-pic\"$

Keliken

September 14, 2009 8:29 PM

Moderate |Flag for review

How about you pay the card off and refrain from using it in the future. You bought items with BOA's money

1 replies

$\"user-pic\"$

September 15, 2009 5:17 AM

Moderate |Flag for review

@Keliken: And how much of the public's money did BOA get in the bailout? Oh, right, that's DIFFERENT because it's a fucking CORPORATION. THEY'RE entitled to use citizens' money. But citizens better beware when using BOA's money!

","","","","","","","","","","","","

$\"user-pic\"$

September 14, 2009 8:46 PM

Moderate |Flag for review

I'd say claim bankruptcy...BOa can then pay themselves said interest rate (25.49%). If you can live with bad credit for a couple of years...save some cash and try again..that should work!

You should also be a part of the bailout plan!

Whats up with this bailout pipe everyone is tawkin' bout, Willis ? I'm not really into smoking that much, but if it helps... I guess I'd try it.

1 replies

$\"user-pic\"$

wcnghj

September 14, 2009 9:44 PM

Moderate |Flag for review

@WatchOutNow: The amount is simply too small to BK.

The credit hit would be less with the chargeoff and collection.

","

$\"user-pic\"$

coss3n

September 14, 2009 8:49 PM

Moderate |Flag for review

I just can't get behind her. As someone who actually cares about their credit rating, I don't have the luxury of defaulting on my loans like she does. And all that is going to happen is that the credit card companies will pass on the additional risk to *my* interest rates. Gee, thanks!

Not that I'm paying interest right now. I may be in the minority, but I actually pay off my balance each month and even have some savings. I think they used to call it \"living within one's means\". Unless she has a good reason for the debt (and there are far too many cases of responsible people getting wiped out by, say, medical bills), she needs to clean up her own mess.

If she were a tween, I'd understand her impulse to whine on Youtube about how life is unfair. But she's not, and she ought to realize that most of us don't give a rat's ass about her failures.

","","","","","

$\"user-pic\"$

Stephmo

September 14, 2009 9:06 PM

Moderate |Flag for review

@dragonfire81: And sued. Which is another hit. Along with the judgment - another hit on your credit report. We're talking about going into 300-400 score range. If the judgment goes on there, it will be ugly.

Not to mention, she's thinking her job situation is enough to keep her from not having wages attached. She's forgetting that in lieu of that, liens can be attached to property if she's refusing to pay her debts and has means to pay. The courts will help BofA collect their debt.

I imagine that someone may want to make an example of her - they're probably already shut down her cards and are going to demand payment in full since she's made her intentions known. Her public \"I'm not going to pay!\" speech had too much rhetoric and not enough \"and I can't pay my electric bill for my iron-lung-bound Grammy\" in it.

That case with the collectible cars in the background - not helping either. They'll make her the face of the entitled customer forcing them to raise interest rates.

She would have been better shutting down her card and then paying off her card at the original interest rate every month, but putting the money monthly in an Escrow Account until BofA agreed to lower her rate again. That way, she could show she had every intention of continuing to pay her bill, but that she disagreed with the interest.

","","","","","","","

$\"user-pic\"$

Hybriddeathdealer

September 14, 2009 9:31 PM

Moderate |Flag for review

Credit Scores are a scam. Banks and credit card companies got their way with the Bush Administration at every turn. The Bush Administration took away our ability to file bankruptcy and gave it to the banks. They took away our right to gamble online and gave it to the banks, who took billions in 'Structured Investment Vehicles' and traded them like drugs to other countries. (Other countries by the way who are way better informed and very angry about the world wide recession. They know who did it and why, so their citizens are pissed to say the least. One Australian said recently that while visiting England and the Euro Countries, people thought he was American and scowled at him every where he went. He thought his family might be at risk, so he had to quickly tell people that he was Australian.)
Then after the death of capitalism, the banks had Henry Paulson go to congress and lie about nearly $3 trillion for TARP, committing the biggest bank heist in history. Henry Paulson got something in return by the way. He got a tax waiver for $200 million dollars in Goldman Sachs stock holdings. Say a payment of around $100 million dollars for lying about the TARP funds. (I'd bet almost nobody here knows Henry Paulson worked for the Nixon Administration. I'd also bet real money that almost no one here knows that it is the former Nixon people who are in charge of the Texas think tanks that put us here and are running the script that is trying to tear down America's infrastructure.) Now Americans are too damn dumb and apathetic, to stand up and get help with a Government health care option. Something the rest of the world can't believe we haven't done already. Americans are so stupid, it's amazing we're not eating Chinese food yet. So yeah, I'd say a revolt is in order! Enough with PAC funding and the corruption! If the FBI, the Justice Department and agencies like the SEC won't protect us, then what's our alternative, except to effect change ourselves and not that 'store bought' tea party stuff either. Personally, I'm tired of the Hypocrisy...

","

$\"user-pic\"$

wcnghj

September 14, 2009 9:41 PM

Moderate |Flag for review

@Stephmo: Plenty of people on a forum I post frequently on(creditboards.com) have a judgment, collection and chargeoff for the same account. After ~1.5 years they were back in the 600s.

2 replies

$\"user-pic\"$

September 14, 2009 10:04 PM

Moderate |Flag for review

@wcnghj: Regardless of your score, lenders can very well see that you had a \"judgment, collection and chargeoff\" and may choose to refuse you on that basis alone.

Shame on BoA and all the others that are just driving more people into bankruptcy that might otherwise have been able to pay.

Banks don't drive people into bankruptcy. People taking on loans they can not afford to pay back drives people into bankruptcy.

$\"user-pic\"$

shimage

September 14, 2009 10:55 PM

Moderate |Flag for review

@supercereal: I cannot, for the life of me, figure out why a bank would give a loan to someone they knew would become bankrupted by the loan. Why would they do that? When I get accepted to a school, I assume it's because they think I can handle their curriculum. When I get accepted for a job, I assume it's because they think I will do a good job. The converse is also true (that when I am rejected, it is because they think someone else would be better).

Is it wrong for me to assume that if a bank gives me money, it is because they think I can pay it back plus interest? And when a bank is bad at determining this sort of thing, shouldn't they be punished for it?

","","

$\"user-pic\"$

Xeos

September 14, 2009 9:55 PM

Moderate |Flag for review

I did this last year, and Bank of America contacted me to settle my debt for fifteen cents on the dollar -- 15% of the debt, this is called a debt settlement and it happens a lot more than you would think!

","

$\"user-pic\"$

Onion_Volcano

September 14, 2009 10:00 PM

Moderate |Flag for review

she should sell those dust collectors behind her to pay her bill. deadbeat.

","

$\"user-pic\"$

gemetzel

September 14, 2009 10:00 PM

Moderate |Flag for review

This is stupid. When you borrow something you have to give it back. In this case it's money. You can't rage-quit paying your bills and not expect consequences.

","","","","

$\"user-pic\"$

barty

September 14, 2009 10:17 PM

Moderate |Flag for review

Sorry, I don't agree.

This is a perfect example of why we're in this situation in the first place. Someone runs up thousands of dollars in debt, and their first reaction is to throw up their hands and declare that they're not going to pay because the bank decides to raise their rates. If you are in debt, you are a slave to the lender, plain and simple.

I'm sure the apologists will come out of the wood works to tell me how she had to go into debt to pay for some unexpected expenses or whatnot. That's what an emergency fund is for folks. You sock away whatever you can on a regular basis and DO NOT TOUCH IT UNLESS IT IS AN EMERGENCY! It is NOT a \"oh, that TV went on sale!\" fund.

","

$\"user-pic\"$

Mr.Duke

September 14, 2009 10:28 PM

Moderate |Flag for review

Did you read your credit card contract when you signed up for the card? Basically, when you have a balance that you carry month after month, the credit card company can do almost anything to you at almost anytime. So now you are going to compound the problem by defaulting, thus ruining your credit rating and raising the rate on any other credit cards you have. Plus affecting future credit requests. You must know which battles can be won and which are a losing effort. I agree the bailouts were a terrible idea. But hurting your credit is not the way to protest.

","","","","

$\"user-pic\"$

MrEvil

September 14, 2009 10:49 PM

Moderate |Flag for review

Y'know, I know the folks on Consumerist are the sharpest knives in the drawer, and I love this site for that. However, not everyone in America is. And all the common sense about credit cards in the universe is not going to do you any good when the credit card companies try their damnedest to trick people into over-riding their better judgment.

Watch In Debt We Trust, it's a documentary (available on Netflix) and it gives you a good peek into the psychology that credit card companies use against the public to get them to charge more and carry more debt.

","

$\"user-pic\"$

September 14, 2009 10:51 PM

Moderate |Flag for review

It is NOT unethical for her to refuse to make payments when they jack up the interest rate to nearly 30%. They have no moral right to RAISE the price of the things she bought AFTER she already bought them. She agreed that 12.99% was reasonable and made purchases based on that reasonableness. By charging the higher interest rate on the previously existing balance instead of only charging it on new purchases, they are unethically changing the terms of the purchase after the fact, when the product can no longer be returned. It's a scam, and should not be rewarded.

","","","","

$\"user-pic\"$

Tetrine

September 14, 2009 11:01 PM

Moderate |Flag for review

Why doesn't she use her right to opt-out, have BofA closer her account and thus get to keep her current lower interest rate while she pays off her debts?

","","","

$\"user-pic\"$

watsuk

September 14, 2009 11:23 PM

Moderate |Flag for review

B of A truly sucks. I had my own problems with them and while I sorted it out and got my initial deposit back I did accidently find out that B of A Admits to using credit reporting services and not providing the required notification to the consumer so copies of the credit reports could be obtained.

[bankofamericageorgiasucks.blogspot.com]

","

$\"user-pic\"$

Tzepish

September 14, 2009 11:38 PM

Moderate |Flag for review

@supercereal: Blanket statements like \"people taking on loans they can not afford to pay back drives people into bankruptcy\" neglect to acknowledge that many loans and causes for bankruptcy are due to factors that are completely under no one's control, such as medical situations. That, and she isn't stuck with a loan that *she took* - BoA doubled the interest rate on her.

","

$\"user-pic\"$

September 14, 2009 11:43 PM

Moderate |Flag for review

Okay, I would like to preface what I am about to say with \"this is just my opinion\", I am in no way playing \"blame the OP\". Given that, I would just like to say that I feel she is taking the wrong approach, at least from a consumerist point of view. In my opinion if she wants to revolt she should do the exact opposite of what she's doing:

She should completely pay off the balance (yes, I realize this might require procuring funds by extending her debt, she might be required to resort to saving money too). At any rate, after completely paying off the balance, shred the card and mail it to your financial institution.

I would just like to make one other point: I think that the repaid amount that she pays back should be at the initial rate; e.g., the rate prior to the increase. I would be ok (again, my opinion) if she refused to repay at the higher raised rate.

","

$\"user-pic\"$

Quake 'n' Shake

September 14, 2009 11:49 PM

Moderate |Flag for review

Seems like the the same thing as withholding rent until the landlord fixes those things he's supposed to. Sure, you may have a moral justification for doing so, but more than likely you don't have a legal leg to stand on.

I get where she's going, but in the end, she's, unfortunately, hurting herself.

","","

$\"user-pic\"$

H3ion

September 15, 2009 12:08 AM

Moderate |Flag for review

In all fairness, she signed up for a credit card with specific terms, maybe a teaser rate but then agreed terms. Whether the stuff she bought was necessary (like cat food) or wholly frivolous (like groceries for her family), she was making payments on an agreed basis. I don't carry a balance on any credit card so I don't really care what the rate is, but I don't believe I've received a rate increase notice on any of the cards. It seems like it's only credit cards where the rates change as often as Las Vegas odds. In the OP's case, I think what she's trying to do is stupid. In the short run, she'll get some publicity. In the long run, she's either going to pay what she owes, or declare bankruptcy if she fits inside the new restrictions. A smarter course might be to apply at a different bank and get a card to which she could transfer the BoA card. Problem solved. Alternative is to go to BoA and ask for some relief. Maybe they'd be willing to let her pay down her card at the old rate and then close the card. I also agree that Congress needs to step in and restrict rate increases to debt incurred after the rate increase. It would be like getting an auto loan and never knowing what the payment would be from one month to the next. That's just not right.

","","","

$\"user-pic\"$

September 15, 2009 12:23 AM

Moderate |Flag for review

Gah. I think she is using language that is a little exaggerated for the situation (uh, rape & pillage? Didn't *you* sign your name on the dotted line to borrow from BoA?) and for the life of me I'm having trouble understanding the cost-to-effect ratio of this woman's \"protest\": BoA sells your debt to a collection agency at a cut while you get your credit score trashed. Doesn't seem to add up to me.

Honestly, the fact that she can't get the CEO's name right multiple times tells me that this lady ain't firing on all cylinders. And I *always* go to YouTube for personal finance advice, who doesn't ;)

","","

$\"user-pic\"$

September 15, 2009 12:54 AM

Moderate |Flag for review

While I think what she is doing is a mistake that will only hurt her in the long run I understand her frustation. This is not a case of a normal adjustment to your interest rate. Most people don't have fixed rate cards. They have adjustable rate cards. The way it is supposed to work is that you have a card at a fixed margin over an index say 6.65 over WSJP. this would be at a rate o 9.9%. If prime goes up so does your interest rate. Prime has been at 3.25 for a long time. Banks have been adjusting customers contracts but sending written notices in advance. This can also be done on fixed rate cards by giving the customer notice. they have the option of closing out the card. I think the appropriate responce is finding a bank with a card with better terms. I went to a local bank in my town CoreFirst Bank. They haven't changed their rate struction in several years according to the person I talked to. They said that they couldn't promise that they wouldn't change them but the offer they were offering was resonable. I transfered my balance to them because they don't charge Balance transfer fees and the margin they gave me was 6.65 over prime. The card i had at Citibank went from about 6.99 over prime to about 16.99 over prime. I haven't been late on a loan payment of any kind in over 8 years and my credit score is over 700 so I didn't think the increase citi did was fare so I change companies and will not use them again. That is how I will show them. I didn't distroy my credit.

","","","","","

$\"user-pic\"$

quicknk

September 15, 2009 2:01 AM

Moderate |Flag for review

I think it's funny that the banks need a second handout from the general public who already gave them a large sum of money. So how much more of this do we have to take? Our hard earned money is going to line the pockets of just a few individuals and make the stock holders happy. Why can't we just turn the tables and say \"F-you pay me!\". We should let the high risk banks fail. They took huge risks and lost big. Is it my fault? nope, it's theirs. They were greedy and so were the shareholders. Businesses come and go, and so do people. They are seen as an individual in the business world. Why not treat them like one? They robbed themselves of a future, why should we pay them to do it again?
If you don't approve of the banks who are raising interest rates, pay off the card, and don't use that card again. If more and more people did this, the banks who love to drain the public will soon be drained themselves. This would open the way for improvements in the banks we will do business with in the future.

","

$\"user-pic\"$

Carlee

September 15, 2009 2:20 AM

Moderate |Flag for review

Can't she figure out a payment plan with the hospital, if she did have medical expenses? I remember my mom worked out a payment plan when I was 5 and I stuck my foot into a bike wheel (while the bike was in motion - long story). We didn't have health insurance. They let us split the payment into a few payments.

Frankly, I don't really care what her excuse is. I'm tired of hearing about people who scream and cry that their interest rates are ridiculously high, but never took the time to pay attention to the way a credit card works. I never carry balances on my cards but even I know how it works. It reminds me of an episode of Boston Legal where a clerk (working at the firm) was in some serious debt and they challenged the credit card company which eventually forgave her debt. Stupid episode.

","","","","

$\"user-pic\"$

Mary Marsala with Fries

September 15, 2009 2:42 AM

Moderate |Flag for review

While unfortunately I have to protect my credit score and thus am not in a good position to throw in with Ann, I totally agree with where she's coming from. The way these companies have been treating their customers IS usury, and the fact that governments have kissed their big-business asses this long and done nothing about it doesn't make it okay. If customers don't stand up and say \"hell no you can't charge me 25% on a debt I already was paying off at 13% just because you freaking feel like it\", then who will?

","

$\"user-pic\"$

seishino

September 15, 2009 2:51 AM

Moderate |Flag for review

Didn't the recent legal protections change prevent people from increasing interest rate on *existing* credit card debt? Or did I just dream that?

","

$\"user-pic\"$

September 15, 2009 2:51 AM

Moderate |Flag for review

Doesn't anyone else see the irony of her complaining about her credit card debt while in front of a bunch of useless crap that she undoubtedly bought on credit?

She thinks she has a right to a \"middle class lifestyle.\" I think we're all clear now that that lifestyle, fueled by easy credit and insanely overvalued home prices was an aberration. We're now in the new normal. If she wants to survive in it she'll take her 25% APR and be happy about it.

","

$\"user-pic\"$

September 15, 2009 4:11 AM

Moderate |Flag for review

I am unemployed, and only have enough money to pay my car and mortgage payments...

But i am so with you...

This is why this is the end of the era of big business and the rebirth of the small businesses like the old ma and pop stores, that even tho they can't match walmart's prices, can deliver better service...

","

$\"user-pic\"$

September 15, 2009 4:19 AM

Moderate |Flag for review

I was able to negotiate mine back down, as long as I don't ever use the card! That makes no sense at all! I have some things that automatically go on that card such as ebay fees. This is the first time I've really had a balance of any significance due to loss of work. It's a snow ball and I've considered doing the same as this lady as well.

Perhaps I will bring a New Jersey loan shark into a branch and ask to transfer my balance to him because his rates are better and he's less of an a-hole.

","","","","","

$\"user-pic\"$

golddog

September 15, 2009 6:07 AM

Moderate |Flag for review

My God...it's the female John Connor leading the revolt against credit Skynet! She ain't no Wendy Williams. I don't know if that personality can sustain the revolution...

","

$\"user-pic\"$

September 15, 2009 8:05 AM

Moderate |Flag for review

But all those people who tried to persuade me to use a credit card instead of a debit card said I wouldn't pay that percentage as long as I paid the bill off in full every month.

I guess this woman isn't doing that?

","

$\"user-pic\"$

September 15, 2009 12:46 PM

Moderate |Flag for review

If I weren't planning on buying a home in the near future I would have done the same.

","","","

$\"user-pic\"$

September 15, 2009 1:16 PM

Moderate |Flag for review

If you are going to use credit, then you are going to end up paying for it. I have a whopping $500.00 credit card debt so when they jacked the rate from 9.5% to 15%, I just paid the whole thing off.

The lesson isn't 'bad evil banks' it's 'If you don't have the cash for it, and it's not an emergency, don't buy it'.

","

$\"user-pic\"$

September 15, 2009 1:29 PM

Moderate |Flag for review

I still say she's only hurting herself. Hopefully she doesn't have a bank account at BoA. The bank expecys to take a certain loss and they can always sue her and garnish her wages if and when she gets another job. I don't know if this is true or not but i was told some banks have a clause in loan agreements that would allow them to take money from you bank accout to cover defaulted debt if the accout is at the same bank.

","","","","","","","

$\"user-pic\"$

YokoOhNo

September 15, 2009 2:27 PM

Moderate |Flag for review

If they're using the fact that her credit report has changed then they may be right...especially if a number of companies have reduced her available credit thereby negatively effecting her credit score.
Pretty easy for the banks to argue that the high percentage of a customer's credit in use is cause to lower their credit score and raise their interest rates. Seems a bit criminal to me...but they're sleeping with the politicians so this should be expected.

","","","","","

$\"user-pic\"$

Bad-Credit

September 15, 2009 5:22 PM

Moderate |Flag for review

Had a card from BoA my self. Didn't have much on the card. Interest rate went up to 26.something or other percent, and to add insult to injury, they lowered the maximum card balance by half, suddenly throwing me over limit and ruining what had been up to that point, good credit. When the card limit got cut to half and I was over limit, they hit me with fees for being over limit, as well as the new interest rate increase. In short, the amount I owed literally quadrupled over night. I went online to look at my account statement one morning and got the shock of my life as what had been a 400 and some odd amount on the card had somehow become a nearly 1800 dollar balance. My 500 dollar limit (self imposed and asked for) had been dropped down to 250. I had to pay a minimum of 1700 dollars of my new balance to straighten out my credit. Something I could not do.

I told them to stick it and refused to pay.

","

$\"user-pic\"$

September 15, 2009 8:56 PM

Moderate |Flag for review

Thats it! I am revolting!

Wait... that sounded wrong...

","

$\"user-pic\"$

CapitalC

September 15, 2009 9:07 PM

Moderate |Flag for review

This is exactly how Ann's story will play out...

Homer: \"Who is it?\"
Voice: \"Goons.\"
Homer: \"Who?\"
Voice: \"Hired Goons.\"
Homer: \"I don't remember hiring any goons...\"

","

$\"user-pic\"$

ramenboi

September 16, 2009 12:42 AM

Moderate |Flag for review

BofA is really not gonna be hurting for this woman's 6k or whatever her debt is but she's going to be hurting for at least 7 years as she struggles to buy or rent cars, apartments, cell phones, or insurance. I agree that we have to take a stand against these unreasonable increases in credit card rates/fees but I say hurt the banks not yourself. Pay off your balance every month and get an interest free loan from them, call their customer service numbers collect from overseas, basically become unprofitable to them. Not paying her bills only hurts her, not the bank.

","","

$\"user-pic\"$

theogre

September 19, 2009 12:52 AM

Moderate |Flag for review

I don't understand why it's even possible to change loan rates. I know it's got to be in the contract somewhere when you sign up, but it's crap.

If you charge $100, it should ALWAYS be at the interest rate at which it was first charged.

If the interest rate then changes, and you charge another $500, then that $500 gains interest at the rate applied before you charged it.

You just shouldn't be able to change rates after the fact.

\"I'll loan you a dollar for free.\" A day later, oh, that'll be 30% interest. Wait, what?

","","","

$\"user-pic\"$

September 21, 2009 7:17 PM

Moderate |Flag for review

I'm with her...but not by choice, by necessity. I have a BofA card with a very high balance and I have been making payments on it every month faithfully. Guess what? I'm being laid off in 8 days--there goes the money for my CC payments.

I have to prioritize and my mortgage, car payment and utilities come first.

Maybe this is a good thing. Hopefully I can settle it for a fraction of what I owe. It has been weighing on me for years and creeping up little by little.

");