We pay, again
So let me get this straight. First we had thousands of homeowners forfeiting on their mortgages because they bought more than they could afford. So Congress decides to buy out all those bad mortgages and pass the bill on to the taxpayers.
Now we learn that because thousands more individuals charge more on their credit cards than they can ever hope to repay, Congress is providing relief by passing the "Credit Card Bill of Rights," or whatever it's called, that puts more restrictions on credit-card companies to protect those who cannot pay for things they buy on credit ("Credit Card Reform Sent to Obama," May 21).
And, of course, the credit-card companies say they will have to make up for the lost revenue by increasing fees to all of their customers, including those of us who live within our means and pay off our balances each month.
Gee, thanks, Congress. It's great having you in my corner.
WILLIAM B. GORDON
A few years ago, I wrote a letter to the editor complaining about the barrage of credit-card companies begging my 80-plus-year-old aunt who was on a fixed income well below the poverty line to apply for new credit cards.
Now I am retired with a reasonable income and an excellent credit rating and I am the one receiving notices from credit-card companies (one of which I have dealt with for more than 30 years). Unfortunately, these are the notices informing me that either my credit limit has been lowered or my interest rates have been increased.
The company that decreased my credit limit informed me that I should contact a credit reporting agency to determine what "adverse effect" their lowering of my credit limit might have on my credit score. How can someone with an excellent credit-card history have an adverse credit report based, not on one's own action, but on the arbitrary decisions of one's credit-card company?
The company that increased my interest rate lured me in with a 9 percent interest rate, which increased significantly over the past two years, and, just recently, the company informed me that if I get a cash advance, the interest rate will be 24 percent. God forbid, I should ever need a cash advance.
So much for any reward for paying one's bills on time. The irony comes in when one tries to cancel those credit cards. Then your credit score goes even lower.