Why, despite the 'chatter' is there no talk whatsoever of consumer bridge loans?

[ixion]

As I watch my personal economic situation deteriorate day-by-day, I find myself asking this question with more and more intensity.

We have poured trillions of tax dollars into the financial industry, and to what effect? Well, I don't know about you, but my credit card rates have increased despite having good credit and never missing payments. So now the banks, flush with bailout cash and 0% loans from the Fed, have decided to add injury to insult, as it were, by jacking fees and interest rates for the very people who bailed their sorry asses out just a few months back.

There is something very, very wrong with this picture, in my opinion.

Since when is a "fixed interest rate for the lifetime of the balance" subject to to a 10% increase for no apparent reason? I have fulfilled my side of the contract by never missing a payment, but now I'm in a difficult spot since they decided to change the playing field, 'cause they could.

There are many phrases for this type of behavior: dirty pool, bad form, not cricket, loan sharking, FRAUD, and so on.

So now, much as the F.I.R.E section need bridge loans to survive, I need to find a long term, low interest consolidation loan because of these rate increases. I imagine I'm not alone in this regard.

It seems to me that it would be very helpful for Freddie/Fannie or Sallie to set up super low interest loans to consumers who need to dump credit cards. Something like this would be very helpful to me, and again, to others.

I've heard many people talking about this, but haven't seen anything on it in the MSM. Nary a peep.

Further, I've not heard any talk about the effectiveness of bottom-up as opposed to top-down solutions.

In short, I feel like I'm being played and/or scammed and/or taken advantage of. I don't tolerate that in my personal relationships, and I certainly won't tolerate it from the financial industry.

We, the People have the power to stop this, by forcing our Congress to enact and enforce reasonable interest rates on consumer loans. I mean really, is that such a 'radical' concept?

Mr. Frank has started the ball rolling, but it's not enough. Opening "investigations" and then pursuing them takes months, if not years. We don't have that much time. Our government needs to start doing things to help We, the People and Main St., rather than Wall St.


end :rant:

[ixion]

1. Update... and maybe useful info for someone

So I called Chase today, and wound up closing the account. The "Opt out" deal is that you can close the account and leave the interest rate unchanged, or leave it open and have it go up. I gladly closed the account.

I recommend doing this for all credit cards. :)

[CoffeeCat]

2. In my opinion...

...the behavior of the credit-card companies is one of the single biggest economic indicators that
we have today.

Their collective panic is palpable. They're angering and incentivizing people into canceling their
cards. These companies are also slashing credit lines and making it impossible for people to nothing
but pay off the cards.

This tells me that these companies see financial armageddon. They don't want to be left holding the
bag when the country goes into "every man for himself" mode.

What company would want their cards in the hands of people who realize that they need to stock up
on essentials, in order to survive? People will stockpile and use those cards--with no intention
of ever paying back the money.

These greedy companies would sell their own mothers for a nickel. If there was money left to be
squeezed from the American people--they would find a way to get it. Their behavior demonstrates
that they understand very well---that the jig is up.

[ixion]

3. I agree completely

they are predators, and they know the game is over and that the bill is coming due.

Fortunately, the debt I have with them is relatively small. I should be able to get it cleared up. I really empathize with people who are in deep, though. It's so easy to do, and once you're in, they own you.

[CoffeeCat]

4. All the best to you...

...and I think it's wise to pay off and cut up.

These companies are like injured animals. You don't know what they'll do, but anything is possible.