Secret history of the Credit Card - Frontline

[illbill]

http://www.realopinion.com/realboards/showthread.php?p=1583#post1583

Transcript of the program; trust me its important. :)

[unblock]

1. nice link! one thing seems inaccurate, though

the interview says that credit cards can raise your interest rate even when you're not in default to that particular credit card and there's not a damn thing you can do about it.

everything about that statement is true except the not being able to do a damn thing about it. when they notify you of the change, you can immediately stop using the credit card and cancel it in writing, refusing to accept the new terms. either inaction or using the card even once constitutes agreement to the new terms.

but if you cancel in writing and never use the card again, you can keep the old rate.

of course, you no longer have the use of the credit card, but at least you can pay off your balance at the originally agreed terms.


the whole thing still STINKS, but at least you do have that option.

[HereSince1628]

2. Thanks for that

Is it safe to assume that is true in all states?

Some states differ on rate limits and possibly liability for married persons.

[unblock]

3. well, i'm not a lawyer

but as the interview makes clear, there's pretty much only two states to worry about: sd and de.

[nosmokes]

4. an interesting theory i heard re: credit cards

that this show never broached. i heard it at an international labor symposium many years back in mexico city. anyhow, the guys stance was that credit cards/revolving lines of credit were just a new and improved version of the 'company store,' and it was designed to bust the unions.

i.e., if you buy everything outright, cash up front, then when the need arises, you're in a better position to go out on strike. but when you're paying on time for the couch you're sitting on, the table you're eating off of, the TV you're watching, the car you're driving, as well as the mortgage for the roof over your head, how can you even give passing up a paycheck more than a fleeting thought?

add to that the outrageous sums they make in the usurious raates they charge for lending the money and it's hardly more than a form of servitude.