Is it time for a National Credit Card Payment Strike?

[soupkitchen]

Because banks own so many Senators they think they can continue to deal with credit users with an iron hand, but in reality it is the consumer who has the real power in the credit wars. Basically, all credit users have to do is organize a National Credit Card Payment Strike and banks will come howling to Congress to legislate a fair and decent accommodation.

Such a strike would be structured along the lines of a rent strike, where payments are made into an escrow account until disputes with the landlord are resolved. Credit card users, as a sign of good faith, would make their responsible payments into escrow accounts, but the banks would not have use of the money.

So, faced with such a consumer action which would completely dry up their cash flow, what are banks going to do? Threaten to ruin individual credit ratings? No, because any settlement to the strike would have to have amnesty provisions written into the agreement. Or no end to the strike.

And it would never come to that. Banks could not survive a month without credit card payments, much less two or three. Faced with a well organized threat of a such a strike, bankers would cave like Cramer before Jon Stewart. Power to the People; Power to the People, right on!

[960]

1. Yes, and since the CC companies refuse to stop tightening the screws,

they will be getting a strike pretty soon, whether it's organized and intentional or not.

[MercutioATC]

4. CC companies are squirrelly. Mine actually LOWERED my rate today.

...and forgave a late fee...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5652791&mesg_id=5652791

[quiller4]

17. BOA has lowered my rate and raised my limit 3 times since Oct.

I really don't know why. We've had the card for 30+ years. For years we paid the balance in full every month. Now we carry a fairly high balance but we have never been late with a payment. We always pay 2 to 3 times the minimum payment. But we didn't suddenly improve last fall. We just continued the same pratices we've followed ever since my husband retired.

In March when BOA lowered our rate again, we got a notice from Penneys that they were increasing our minimum payment and reducing our line of credit. That card has a zero balance and has since February 2008. I've only used it once in the last 8 years. I got an optical exam and glasses in Oct 2007 and paid off the charges at 3 times the minimum balance over 4 months.

[Mari333]

2. this is one time when I am so glad I have no credit cards

got rid of it a few yrs ago, and will never use one again. bastards. I wish everyone could just get rid of them and never use them again. loan sharks.

[bunnies]

5. ditto.

Cancel the cards. Problem solved!

[Turbineguy]

3. It's not the payments

it's the commish on the purchase.

Make the payments, buy with cash.

[dkf]

6. Hows about a national pay off your credit card day?

Banks can't make $ on no balance.

Or a pay everything in cash month. Then no transaction fees either.

[Retrograde]

16. sure they can

Credit card companies charge merchants a percentage of each credit card sale. It can be 8%+ for small companies. Don't worry about the banks: they always seem to get their share off the top.

I use my credit card frequently, and pay it all off every month. I'm happy, the card company seems to be happy.

[villager]

7. It was time *years* ago...

n/t

[billyoc]

8. Yes.

K&R

[Coyote_Bandit]

9. I carry a balance on my credit card because

I own both my home and car outright. Carrying a credit card balance and making timely payments are the only way I can maintain a current credit history. Unless I want to go out and finance some major purchase.

I haven't paid anything late in well over five years. Yet my credit card company raised my interest rate from 5% to 11%.

How do I intend to deal with that? Simple. I will make current purchases in cash - and over the next few months I will reduce that credit card balance to a very minimal amount. Instead of paying current charges and maintaining an ongoing balance of $5000 I will be paying current charges and maintaining an ongoing balance of less than $250. Still serves my purpose and the fuckers will be getting far less in interest from me even with their obscene and unconscionable increase in interest rate charges. Fuck 'em.

[elocs]

10. Strikes do not generally work unless they are limited, specific, and local. You first.

Good luck with getting even a remotely large number of people willing to sacrifice their credit rating because it's just not going to happen. Actions have consequences and it's easy to call for a credit card payment strike, but how will you help out those whose credit is destroyed and they cannot buy a house or a car or maybe even lose out on a job?

I won't and would not do it. I've spent years building a good credit rating and I clearly understood about credit cards when I ordered the few I have. I've received the goods and services, so I am not about to refuse to pay for what I freely purchased. I wasn't raised that way, but if you want to strike--go for it.

I also believe there is more than a tinge of moral superiority to the "I don't have credit cards, I only pay cash" crowd. Good for you, but that does not mean that those who do carry a balance are somehow simpletons or dupes. Yes, there should be more rules and regulations for the credit card companies, but a strike is not the answer and would never work anyways.

[wolfgangmo]

14. I agree with you

At least mostly. The problem is that right now we are faced with laws being rewritten for the CC companies benefit and in total denial of the reality of many of us on main street. They are literally getting away with taking homes, ruining credit ratings which are now being used, perversely by many companies, to screen new hires. Plus they then use the ruined credit rating to make everything more expensive. I don't think anyone here minds paying interest, but they do object to usury.

In my case I use a credit card for my company simply because it is simpler and easier for tracking if I use it for office purchases and then pay it off totally every 2 weeks so I avoid any interest or penalties. They seem to be OK with some of us providing cash flow so they haven't messed with my rates or credit line.

I also agree with you that if someone buys something then they are obligated to pay it off. TANSTAAFL. But the crap the CC companies pull like jacking rates, or lowering credit limits to below what is currently on the card and then tacking on massive fees and interest, or jacking up their interest rate because someone else did, is pure criminal behavior.

I don't get the same vibe you do of moral superiority. But if for many people avoiding CC's is a good thing, and sound advice. If you own more than you can pay off this month then cut them up and pay cash. It really is the cheapest way to operate. As a business owner I LOVE getting paid in cash so I don't a fee on your purchase.

Just my 2 cents.

[Raskolnik]

11. Are you going to give back the stuff you bought with those cards? n/t

[pnutbutr]

12. Why would people want to do this? n/t

[ecstatic]

13. What am I missing? The cards provide unsecured loans

If you don't like the rate, don't use the card. It's really that simple! You decide not to pay your card and wonder why your rate is high? :crazy:

Don't get me wrong--some things need to be regulated--like the practice of jacking up rates for no reason mid contract, and lowering a credit line to a limit that has already been passed.

[dflprincess]

15. The only thing a payment strike would accomplish

is that those who participated would get their rates raised and credit ratings ruined for paying late and the CC companies would make even more profits.

[Matariki]

18. It would be far more prudent and possibly effective to have a strike on USING credit cards

Not paying will just make the banks more money.

[NoPasaran]

19. Why should I screw up my credit rating to indulge a bunch of losers?

No thanks.