Comments on: Why does the government not control the interest rates and charges the credit card companies charge? http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html Debt Counseling Guide Wed, 11 Aug 2010 17:54:20 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: atmjay http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html/comment-page-1#comment-250 atmjay Wed, 22 Jul 2009 07:52:18 +0000 http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html#comment-250 The government does regulate the maximum interest rate a credit card company can charge. It is regulated at the state level. For instance, in Texas, if the bank or credit card company is based in Texas, the maximum APR is 13.9. You need to find out what your state maximum is and do your credit card business with a bank based in your state. The only alternative is to make your case to your state representative or your state senator and lobby for change. The government does regulate the maximum interest rate a credit card company can charge. It is regulated at the state level. For instance, in Texas, if the bank or credit card company is based in Texas, the maximum APR is 13.9. You need to find out what your state maximum is and do your credit card business with a bank based in your state. The only alternative is to make your case to your state representative or your state senator and lobby for change.

]]> By: stevo http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html/comment-page-1#comment-249 stevo Tue, 21 Jul 2009 05:59:30 +0000 http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html#comment-249 Try the UNITED WAY debt consolidation I did and the calls stopped and I made one payment a month according to income level and there was no fee. You MUST call your credit card company's and tell them to STOP your cards immediately or it just keeps getting more and more (very very important) don't use them at all go all cash or don't spend. This is a free country thank God and we should not let the Government dictate anything. I hope this helps. Knowone made you go into debt so its you that has to figure a way out. A real challenge indeed, with out claiming bankruptcy (even if you claim Bankrutcy you still have to pay back at a lower rate depending on kind of Bankrutcy and judges decision) go to consumers Q&A on your computer and see what other people are doing and follow what is working for the MAJORITY. It might work for you as long as your debts arent too far out (Hundreds of thousands). It seems the older we get, the less they care about us, not much can be done about that unfortunately. when the goin gets tough, the tough get going .....good luck my friend.... your imagination is thier worst enemy...... Peace Try the UNITED WAY debt consolidation I did and the calls stopped and I made one payment a month according to income level and there was no fee. You MUST call your credit card company’s and tell them to STOP your cards immediately or it just keeps getting more and more (very very important) don’t use them at all go all cash or don’t spend. This is a free country thank God and we should not let the Government dictate anything. I hope this helps. Knowone made you go into debt so its you that has to figure a way out. A real challenge indeed, with out claiming bankruptcy (even if you claim Bankrutcy you still have to pay back at a lower rate depending on kind of Bankrutcy and judges decision) go to consumers Q&A on your computer and see what other people are doing and follow what is working for the MAJORITY. It might work for you as long as your debts arent too far out (Hundreds of thousands). It seems the older we get, the less they care about us, not much can be done about that unfortunately. when the goin gets tough, the tough get going …..good luck my friend…. your imagination is thier worst enemy…… Peace

]]> By: The Wandering Blade http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html/comment-page-1#comment-248 The Wandering Blade Mon, 20 Jul 2009 16:51:19 +0000 http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html#comment-248 It is not reasonable to expect governments to control the activities such as pricing / interest rates of private companies so long as they operate within the law and follow set guidelines. The onus is on the customer to have read the agreement they signed when taking out the loan / card and to be responsable for their own financial affairs. Although card companies have the right to charge 30% if they like, they never will as it would make then uncompetitive and they would loose customers. Your local supermarket has the right to charge £1000 fir a pint of milk is it wants to, but it dosn't happen because we have a competitive market. Credit worthiness is assed differently by different companies who all have their own criteria based on the amount of risk they ar willing to accept. The cheapest deals will be with the companies who have strong rulings on credit history, others, who offer credit despite past records will always charge higher rates & fees as they are taking a higher risk of default. There are many laws as well as volountary codes which are desighed to make sure credit companies are open and up front with charges and fees, notifying the customer of changes to their rate / agreement in advance. There are many options other than debt consolidation companies / consolidation loans (which only ever provide temporary respite and actually increase the debt) such as the Citizens advice beaureux and local government helplines. Talk to your lender, if you make the move to explain difficulties paying your bills before you fall behind in payments they are far more willing to help than if you don't answer the phone / mail and they have to chase you. Remember, you will only risk loosing your assets if the loans have been secured on them (such as mortgage) and even then the companies are more willing to work out a payment plan than take court action as this action costs them alot of time and money. If your loans are unsecured, thay may threaten to send in the baliffs but this is not strictly true. This will only happen if you are taken to court and an agreement cannot be reached. If you are taken to court you will be asked to provide details of your income / expenditure and from this the judge / magistrate will determine a reasonable amount you can afford to repay. The credit companies will be obliged to accept this although they can appeal they rarely do. If this action is taken you will receive a county court judgement (CCJ) which will prevent you getting most credit (probably a good thing!) while the debt remains outstanding. Having said this, the CCJ usually stops showing on your credit record after 6 years. There is alot of help out there, don't be drawn in by companies which offer quick fixes, these will make the situation worse. Talk to your creditors / local authority advice / CAB etc. and you will find alot of help out there. When all is said and done, the responsability must be accepted that it is only you that has applied for the credit, only you that has spent the money and you who can sort it out. Credit companies are quite irresponsable in the way they offer credit to everyone, irrespective of circumstance, but they cannot force you to take it. It is not reasonable to expect governments to control the activities such as pricing / interest rates of private companies so long as they operate within the law and follow set guidelines. The onus is on the customer to have read the agreement they signed when taking out the loan / card and to be responsable for their own financial affairs.

Although card companies have the right to charge 30% if they like, they never will as it would make then uncompetitive and they would loose customers. Your local supermarket has the right to charge £1000 fir a pint of milk is it wants to, but it dosn’t happen because we have a competitive market.

Credit worthiness is assed differently by different companies who all have their own criteria based on the amount of risk they ar willing to accept. The cheapest deals will be with the companies who have strong rulings on credit history, others, who offer credit despite past records will always charge higher rates & fees as they are taking a higher risk of default.

There are many laws as well as volountary codes which are desighed to make sure credit companies are open and up front with charges and fees, notifying the customer of changes to their rate / agreement in advance.

There are many options other than debt consolidation companies / consolidation loans (which only ever provide temporary respite and actually increase the debt) such as the Citizens advice beaureux and local government helplines. Talk to your lender, if you make the move to explain difficulties paying your bills before you fall behind in payments they are far more willing to help than if you don’t answer the phone / mail and they have to chase you. Remember, you will only risk loosing your assets if the loans have been secured on them (such as mortgage) and even then the companies are more willing to work out a payment plan than take court action as this action costs them alot of time and money.

If your loans are unsecured, thay may threaten to send in the baliffs but this is not strictly true. This will only happen if you are taken to court and an agreement cannot be reached. If you are taken to court you will be asked to provide details of your income / expenditure and from this the judge / magistrate will determine a reasonable amount you can afford to repay. The credit companies will be obliged to accept this although they can appeal they rarely do.

If this action is taken you will receive a county court judgement (CCJ) which will prevent you getting most credit (probably a good thing!) while the debt remains outstanding. Having said this, the CCJ usually stops showing on your credit record after 6 years.

There is alot of help out there, don’t be drawn in by companies which offer quick fixes, these will make the situation worse. Talk to your creditors / local authority advice / CAB etc. and you will find alot of help out there.

When all is said and done, the responsability must be accepted that it is only you that has applied for the credit, only you that has spent the money and you who can sort it out. Credit companies are quite irresponsable in the way they offer credit to everyone, irrespective of circumstance, but they cannot force you to take it.

]]> By: Abhi http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html/comment-page-1#comment-247 Abhi Sun, 19 Jul 2009 22:08:31 +0000 http://counselingdebtreduction.com/why-does-the-government-not-control-the-interest-rates-and-charges-the-credit-card-companies-charge.html#comment-247 Because the credit card company has lots of money and they knows how to close the mouth of their opponents. Simply it is money power Because the credit card company has lots of money and they knows how to close the mouth of their opponents.
Simply it is money power

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