Interest Rates

With all of us so concerned about our personal and nation finances, we are told that we need to get out there and spend. In Utah we have handled the situation very well with the hard work of all involved. Some of the very banks that we are bailing out with taxpayers help and now we find out that they are gouging us! Some have reported that their credit card interest rates spiked at 23.9%! President Obama has waded into the issue and advised that while the nation is in the current economic conditions, this is not the smartest thing to do.

When we talk about credit cards, we often forget the role of the merchant. How many times have you gone to the store and they don’t accept certain types of credit cards, that is because of the fee placed on them by the credit card companies. Sometimes the merchant loses up to 3% percent on every transaction. Imagine that times by a gazzilion people. Now to make things worse, we see bills being sent out late, if only by a day or two, and now the interest rates go sky high.

Caller Randy felt the credit card industry isn’t the only one taking advantage of American citizens. The medical insurance industry is another one that is taking advantage of us. To a degree we all have a responsibility here with the education that we have provided for our kids. For those that say they had nothing to do with the problem have everything to do with it.

Caller Patricia used to work for a company that took calls for over 20 credit card companies. They had to have extensive training before they could talk to any customers. Every company is different and had different rules and regulations.

Caller Matt told about a documentary that was made about how credit card companies purposely withhold payments so that they can charge the higher interest rates.

Caller Cindy thinks that the credit cards shouldn’t be regulated, but should be left alone. If we are to pressure them into taking up the slack for those that don’t pay on time, they will make it hard for those that have excellent credit scores and stop giving them benefits.