I hope credit cards get taken care of soon. Things are a real mess.

Can you ask if they can make Wanda Sykes the new press secretary?
Not much to do about credit cards, but BOY would it make the White House press conferences more watchable!

PS: most impressive, Consumerististas, most impressive!

@Trai_Dep: Aaaaaaand cue angry comments on how her Oxycontin and kidney failure jokes were "ZOMG Completely NOT Funny and WAAAY Over-The-Line!!!!1".

But yay Consumerist for getting the chance to do this!

@Trai_Dep: Yes! I wasn't expecting much since NO ONE can top Colbert's performance at the conference a couple of years ago (especially when he was performing to a Republican majority-yikes!) but I nearly fell out of my chair with that Oxycotin joke!

On topic, I sent an article in to the tip line concerning the credit card reform. I hope someone read it. At least I thought it was insightful :o(

I saw the adorable Meg on the cover picture of this article. my hopes were up.

I feel so betrayed. :[

On a kind-of-related-but-only-because-it's-about-a-credit-card note... is it normal for a bank to suddenly just double your credit limit? I follow my balance religiously (because I accrue points and pay it off as soon as there's a balance), and today the limit is 2x what it was on Friday. No letter or notification, just *poof* extra credit is suddenly available. Not complaining, because I'm not gonna go crazy and go run up a bill I can't afford, but this is actually my first (and only) credit card... had it for approximately a year.

PBS Frontline series questions are all unanswered during Bush 2:

http://www.pbs.org/wgbh/pages/frontline/shows/credit/

In this report, how do we outlaw people like the evil credit card corporate lobbyist?

@Where The Mild Things Are: Oh the best comments so far have been the ones where they feign shock and awe over the traitor comment.

Really? REALLY?? I guess they never once watched Fox during the entire Bush reign.

@Jim Fletcher: Definitely. Citi does it to mine about every 6 months.

@TinkishDelight: K... it just seemed odd having that happen after reading about everyone whose limits were chopped.

I'd like to know if they understand the impact that credit card companies are having on the recovery.

We hear all the time that people like Bernanke say that the recovery will be driven by the recovery of the housing market.

The Fed and Treasury lower rates and pump money into the economy, in theory to provide more capital and incentive to borrow.

But then credit card companies lower the credit lines of even their best, highest rated customers, lowering their FICO scores by increasing their debt to available credit ratio. FICO scores go down for the most credit worth, and the cheap money that the Fed and Treasury have worked so hard (and spent so much of our taxpayer dollars) to generate sit idle because folks can't qualify for loans at rates that they can afford.

I have no suggestions to solve this. I'd like to know if our lawmakers and leaders (1) understand this problem, and (2) have any ideas.

Are you going to post a video of the interview?

@ChaseAlcathous: Hells yes.

@Knippschild: Damn, I guess you'll just have to go outside and hit on real women rather than obsessing over people who shall only ever exist to you on the internet.

Ask why it is reasonable, or ethical, to allow an industry to make a sizable portion of it's profits from fleecing it's customers with a growing list of ridiculous fees.

It's one thing to make money, but to have a significant portion of credit card lender profits coming from the fine print is a little ridiculous.

Way to go, guys! Now that you're famous, are you going to sell out to those mainstream guys? Just remember, you were Consumerists before it was cool!

Vastly increasing interest rates:
Bad- People who can pay their bills at a reasonable rate go into default because of the action of the CC company itself.

Solution: Interest rates increases only apply to new purchases

Fees: $39 for a day late, especially if it's late because they sat on it until it was late?
How about NO.

Solution: Postmark date. When they sent it is when it was paid. Or the transfer date if doing direct billpay.

Universal Default: no
Interest on fees or interest: no

The companies can decide what your limit is, as long as they don't set your limit below your balance.

@WiglyWorm: True fact... true fact.

@WiglyWorm: "only ever exist ... on the internet"? That's not what the restraining order filed against me says.

How about this- are there any plans to tie savings rates to credit card rates? Seeing as most major CC comps are banks as well, I find it offensive that they can charge upwards of 20pc for my irresponsible neighbor, but I, with no CC debt have no incentive to put my money away. A possible solution could be to increase incentives for reserves by subsidizing savings account interest.

Ask why the credit card companies won't stop sending those infernal blank checks that they beg you to use. There should be an opt-out. They're an additional risk if your bill is stolen before arriving, you can't just throw them out (you need to shred) since they have your account info on them, and killing those trees is environmentally unfriendly. Of course they hope a few suckers will actually use them and pay dearly for the privilege, but if someone hasn't used a single one in the last 15 years I'd say it's pretty clear they're not going to. I once asked a CSR if they could stop sending me them. He laughed and said they'll NEVER stop sending them.

Pls. ask them to STOP all the CC companies to STOOOOOP increasing APR just because they *beep* can just to milk more $ from the taxpayers.

Thanks

@Trai_Dep: She really should be the next press secretary. It'd be a brilliant move. You can never have too many 9/11 jokes and have them be repeated at press conferences.

I want to know HOW MY CREDIT IS DETERMINED. Some clearly published "rubric" to determine your "grade." These companies get to judge me to see if I'm a good credit risk, I at least want to see how they're coming to X or Y conclusion, especially since it's such an important number now that I'm looking to buy a house. I remember growing up (which officially ended yesterday (kind of), so yay college graduation) and having debates with my folks over how to build my credit. Nobody knew exactly HOW it worked. Some people even told me I should rack up a credit card and just keep paying the minimum so that it'd "build my credit and it looks like they'll make money on me." Thank god I avoided that advice. Who else gets stuck with advice like that?

Shouldn't you be interviewing Joe Biden instead? He's kinda the guy who made all this possible...

@NF-Wolf Pryde: myfico.com , click on education

==

If you get a CC and pay it in full each month, that will be better than just paying the minimum.

@humphrmi:

If they pay in full each month before the card reports to the credit bureaus, then they will always have 0% utilization.

On the subject of universal default, some of the companies have since discontinued that practice. Great for those who weren't affected by it, but I have yet to hear about any compensation/reparation/atonement for those of us who were.

Quick case in point, three years ago, BOA slashed my limit from $20,400 to $10,800, putting me near my limit. A couple of months after that, Chase began charging me default interest "upon a review of my credit." BOA followed suit with the default interest soon after. I had never gone over my limit, ever, was never late with Chase, was late with MBNA (now BOA) only once almost a full year before my limit was cut by BOA, and was never late with any other creditor. I worked my rear off for a year to pay those cards down and transfer their balances to other cards. Sorry, I guess the case wasn't so quick in point.

These companies have ceased using universal default because they had their arms twisted by the public and Congress, but I believe they should also be made to refund that interest to their comsumers. Otherwise, it seems to me that we are condoning they're robbery of us.

My Question: Why can banks be allowed to change APR's on existing balances, shouldn't the new APR only be applied to purchases and balances move forward from the date of change?

Case in point, Chase buys WAMU and jacks APR up 3 points, no particular reason other than: "we can".

@Trai_Dep: Anyone who will throw out "mulatto" as a punch line gets extra points from me. Well, maybe not anyone. I don't really think Limbaugh could pull it off, for example.

Given the importance of credit scores, I think both of the following should be required:

1) Yearly free access to your FICO score(s). This should be the same as the free once-a-year access to the underlying reports. You shouldn't have to pay to see what other companies will see about you.

2) Credit card companies should not be able to decide what they will/will not post about an account to your credit history. Citibank posts the amount owed, but refuses to post credit limits. This means that any amount owed can look like 100% utilization of available credit, hurting a user's credit score unfairly.

I know Consumerist wouldn't ask this - why is the administration so determined to punish responsible consumers and help irresponsible consumers? Credit card "reforms" only help those incapable of paying their bills on time and not buying things they cannot afford, while hurting those who can pay their bills on time and stay in budget. Why is Consumerist even supporting this, does the blog only support dead beat consumers now?

@wcnghj: That's not the point. And zero utilization is worse.

If I fail to pay on a credit contract the entity I am in debt to has all the power to do what they want to my credit report. Further, they can screw it up and I must prove myself innocent.

The system is unfair. If they screw up or fail to meet their contractual obligations I as a consumer have no recourse to fight back against them in the same way they can fight back against me.

So my question would be what will you as the President do to make it fair?

Who fucking cares? Credit cards are a vehicle to transfer money between debtor and creditor. Its a contract. A legally binding contract. Tough shit if the debtor didn't read it. Tough shit if the creditor can't collect. Let them both LEARN from their mistakes and take responsibility.
I should not have to bail out anymore assholes that don't know how to manage their money. We all will just crash harder, the US consumption is not sustainable no matter how many dollars the Fed creates.

Moreover, what is credit? An imaginary ability to generate more pretend money backed by nothing other than the US Govt pretending US currency has some intrinsic value. The joke is on us. China already figured it out. Which country produces? Which country consumes? Pretty fucking obvious where things are headed.

Stop subjugating the issues! This is all about how corporations can cover their asses via government transfer of wealth from the common tax payer to the elite sitting on the board of directors. It ain't socialism, its called FASCISM!

This "progressive with libertarian leanings" wants you to ask the WH Admin, if they could go FUCK THEMSELVES?

@sspeedracer: I agree 100%. I don't have a credit card and with the way things are going I never will. The Fed printing money won't help a damn thing. 1. The dollar is based on nothing and 2. Inflation that follows large money infusions is hidden tax that hits us ALL later on down the road.The government should encourage people to no longer use Credit Cards and getting into mountains of debt. I bet the Credit industry would take notice when no one wants their mafioso loans.

@Jim Fletcher: Yes. It was more normal in boom times, but last time I called to check something unrelated and had to listen to the soul-killing spiel where they recite all current data on my credit card before letting me push buttons to talk to someone, I noticed my limit had gone up about $3000 since I last checked.

I checked my backup card just now, which I got in college with I think a $300 limit? It has a $9500 limit. (Though I've had it for 10 years now.) And I don't actually USE that card ... I charge lunch on it twice a month to keep it active. So it'd still be okay with the $300 limit. :)

(I'd check my other cards but one came with a ridiculously high limit so I've always just ignored it and the other my husband opened before we were married so I don't know what it started at, but that's the one that just mysterious went up another $3000.)

I just recently canceled my PAID OFF Chase card. I had NEVER been late on a payment, NEVER been behind in any way AND was early paying off the balance by 2 months. Yet, when I asked the CSR if closing the account would be detrimental to my credit rating she transferred me to some other brain trust member who said categorically that it WOULD negatively impact my credit rating.

How about we ask the administration to have the FICO organizations PUBLISH how they come up with our credit ratings? I am tired of it being "ask the expert" and see if this one agrees with that one. How come there are no published parameters about how credit scores are calculated? Everyone you ask has a different "method" they "think" the credit card morons are using.

@Chris Walters: ...Unless the mulatto was unusually happy.

Does it bother ANYONE else that the Fico people posted a cash dividend when the rest of the market is tanking?

[www.fico.com]

Last post, I want consumerist to ask Fico to open their software. Decisions that affect millions should not be made by a private company.

This should be in the hands of a non-profit or government institution, NOT a privately held company. The numbers that FICO produces affect everyone, therefore, it should be public knowledge HOW our numbers are calculated. Who knows, maybe the geniuses got it wrong and they don't know it.

If my tax dollars paid to bail out my creditors, why am I the one being penalized with out-of-nowhere increases in APR? If the government had just given me my share of the bailout instead, I would have paid off the cards.

Now it seems like these creditors have the government money (my tax money) AND my payment money. And that ain't right.

It seems to me that credit (FICO) score should NOT go down if a credit line is paid in full and closed by the consumer. If anything, it has shown that you can be responsible with money, and in control of your available credit.

On the other hand it does nothing to benefit the economy or lenders when consumers are strongarmed into keeping open credit lines because of the veiled threat of a FICO adjustment.

@humphrmi: Some have claimed that 1 percent is better than 0. Just let a small % in the single digits report.

Dear Consumerist,

As you know, JP Morgan Chase Bank a/k/a "Chase Bank USA, N.A." took $25 Billion (thats with a B) in TARP money, and went out and purchased Washington Mutual (in addition to other things like outsource U.S. call center jobs).

In October, I decided it was time to get a credit card so that I could do things like rent cars without hassles (and other types of interstate commerce activities that we just aren't able to carry out freely without credit cards - where's that commerce clause when you need it?) when I travel to Miami to visit my girlfriend, who is down there for a year pursuing a Master of Law degree. Well, WaMu came through and extended me a Credit Card with a $2300 limit and a 14 month promotional APR of 0% (dubbed the WaMu Real Values Program). And then, their toxic assets were called, and WaMu came crashing down.

So Chase, now all leveraged up with TARP money buys WaMu and begins controlling my account at some point in January. They give me this lovely message in my Jan 23rd Statement:

Your account is now owned by Chase Bank USA,N.A. See enclosed Privacy Policy. If you are a new Chase customer you need to contact us to exercise your privacy preferences.
PLEASE NOTE: Effective February 1, 2009, we will no longer offer the WaMu Real Values discount program.

As you guessed it, my Effective APR went 0.00% to 23.96%. They even took extra care to make sure this new APR was applied to my previous cycle's average daily balance. Gee, thanks Chase!

So, I'm taking Chase up on their offer and I'm exercising my privacy preferences by forwarding my Nov08 , Dec08, and Jan09, statements to The Consumerist. U.S. consumers shouldn't be forced to pay off your bad bets through these devious practices.

Ask them why why not make the companies comply with the usury law of the state of residence of the individual receiving the loan instead of the lender's state.

I think the credit card company shouldn't be allowed to modify your agreement after it has been decided on. Those clauses should not be allowed. Arbitration should also be not allowed.

If you sign up for a credit card, they shouldn't be able to reduce your credit limit or change your APR without realistic just cause. Their reasoning should be reliant on your business transactions with them and them alone.

I had a case of a credit card where they reduced the limit and never even notified me, I found out on my own. Given I had not used it in awhile, but they reduced it to a limit making that "awhile" be forever.

Also, no stores promotions with the "No Interest, No payments till so and so". Sure people should read the fine print which says you must pay it off entirely by that date or they charge the full accumulated amount. When you read the big, bold text that says "No interest" to you, to most everyone it logically translates into "No interest" till that period, not it accumulates till that period if you didn't pay it off.

There is some sneaky advertising with credit cards, that itself should see much more scrutiny.

My first question would be, do you think Meg is as cute as everyone else does? Depending on the answer, the followup question should either be "All right my man!" or "What the fuck is wrong with you? This chick is beautiful."

That is all.

@wcnghj: I think NF-Wolf Pryde is asking - and I would agree - for the specific formula. Sure it's "35% payment history" and all that jazz but what is that? It turns out to be a number at the end, but there must be a formula that gets you there.

I would like the Consumerists to ask about credit score transparency (above) and, as a follow-up, also ask why it isn't readily accessible. Seeing my credit report once a year doesn't help me. If I'm being judged by it, I want access to it all the time. You wouldn't apply to college without knowing your SAT scores and your high school grades, would you?