Broken interest rates
The Business Today section of today's Buffalo News leads off with a story about how two of the nation's biggest banks are making an end run around the new law governing credit card charges by introducing variable rates on more of their cards.
- Some credit card issuers say goodbye to fixed rates
Two of the biggest issuers in the nation — Bank of America and Chase — say they’re switching some fixed rate cards to variable rates to manage costs in light of the sweeping new reforms to the credit card industry. The interest on variable-rate cards is tied to the rise and fall of the prime rate.
The banks' Web sites already have some disclosure information posted including the variable rates and how they are figured. Chase is here. BoA is here.
More from LA Times finance columnist David Lazarus.
Frightening related story from The Concord (Vt.) Monitor about how credit card companies are, well, monitoring your purchases. If they see transactions that they think indicate you are having financial trouble -- charging groceries or medical bills, shopping at pawn shops or second hand stores -- they can lower your limit and raise your interest rate. [What about those ads that encourage you to charge everything to earn points or cash back?]
Another bank story, this one local, about M&T's plans for expansion.
- M&T is building new branch at Southgate Plaza
M&T Bank Corp. is building a huge branch at Southgate Plaza with a contemporary, environmentally friendly design that will be used going forward, and which the bank hopes will qualify it for LEED certification.
[Press release.]
-- George Pyle/The Buffalo News
The sidebar news is why so many bank customers stay to be abused by their banks?
They are simply not well-informed. Credit management and credit building are part of an OVERALL career and financial plan. I teach it.
There are too many good alternatives, say from credit unions to coops to
even certain brokerages and online qualified sites to be stuck in credit card hell.
If someone wants to live a disciplined financial life,
it becomes duck soup. One look-see at a budget tells a world of mistakes. Just look at the government budgets.
Posted by: Hank | July 13, 2009 at 12:05 PM
Oh, yes. Interest rates. Broken? How about the taxpayers' collective backs?
Think about the taxpayer bailouts and costs involved in saving Goldman Sachs. The, they "allowed" to become legally a bank holding company. And in return, the public ("we the people") got warrants. With high risk of loss.
Fortune's Allan Sloan: "Goldman Sachs bites Uncle Sam's Hand."
http://money.cnn.com/2009/07/17/news/companies/goldman_sachs_tarp_ingratitude.fortune/index.htm
Posted by: Hank | July 17, 2009 at 09:38 PM