A Widening Credit Squeeze? Cards Raising Their Rates

[EV_Ares]

With the home-mortgage crunch roiling stock markets, economists are beginning to worry about America’s credit-card debt.
Bernd Kammerer / AP Web Exclusive
By Susanna Schrobsdorff
Newsweek

Aug. 9, 2007 - Kristin Schantz, a 26-year-old manager for a human-resources company in Kenosha, Wis., got some unpleasant news in the mail last week. In a form letter, Capital One told her the interest rate on her credit card was about to almost double—she’d been bumped up from a fixed 8.9 percent rate to a "variable rate that equals the prime rate plus 6.9 percent"—or about 15.8 percent. Schantz, who says she’s “never late with payments,” is irate. The letter blamed rising interest rates across the economy for the decision.

Schantz isn’t the only American who has lately received Capital One’s letter. Blogs are teeming with postings from people complaining about sudden rate increases by the company. In a statement to NEWSWEEK, the McLean, Va.-based Capital One acknowledged that it had raised rates for “some” customers, citing “business and economic factors (a core one being rising interest rates)” and changes in the lending market.
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http://www.msnbc.msn.com/id/20201030/site/newsweek/page/0/

[crikkett]

1. Huh. I got one from Capital One saying late fees etc. were being upped.

I haven't been late so I didn't think 2x about it.

[Deja Q]

2. I wonder how much unsecured debt she has piled up...

Probably a lot for them to have done that.

[alstephenson]

5. Not necessarily! They do it because they CAN do it.

Gee, thanks, Congress!

[EV_Ares]

7. Not necessarily, all you have to do is read the fine print and they can

raise it for any reason at any time which is what they are starting to do. I think it is McCaskill and someone else who are trying to change that very thing about raising the rates for any reason. As the other poster said, they are doing it because they can do it.

[SoCalDem]

3. Slip-slidin' awaaaaaaaay

This is the tip of the iceberg, folks.. full steam ahead!

Every few decades, this shit happens, and every time it does, a whole new batch of suckers get sucked down the shithole..

The bank panics of the early 20th century
the depression
the multiple recessions of the 70's
the oil embargo of the late 70's
the savings & loan scams of the 80's
the dotcom shitstorm of the 90's
*²stupid³'s whole administration
and now we have the housing bubble popping

The ONLY time this country has actually "functioned well" was between the post-WWII era, until the end of the 60's

[hedgehog]

4. Gee, you don't suppose that had anything to do with the low mortgage rates

and fairly narrow income distribution during that time frame, do you?

[SoCalDem]

6. What it means is that the people who "control" the money

always have the "edge" over the people who are obviously not getting the proper education they need, in order to survive in Sharksville, USA.

People get sucked into scams all the time, because they TRUST the smart guy in the suit..the one with all the education.. the one who knows how to manage money .

People trust the wrong people..over and over..and pay dearly for it.

[EV_Ares]

8. During the Dem years, right, it went well. eom.