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
