Sean has a warning for Consumerist readers with Bank of America credit cards. At the beginning of December, he tells us that he called the bank about a billing issue, which earned him an account review and a drastic reduction in his credit limit. [More]
credit crunch
Who Will Save The Economy? Not Strapped Consumers
By 7.7.09
Consumer delinquencies hit a record high in the first quarter of the year. Debt-to-disposable income ratios are down only slightly from the beginning of the recession. Who will save the U.S. economy if consumers can’t return to our habits of buying crap we can’t afford and don’t need?
Advanta Notifies Customers About Impending Credit Shutdown
By 5.26.09
T-Minus four days to the closing of Advanta accounts to new charges this Saturday, the small business credit card issuer sent an e-mail out to customers explaining the situation and how it will affect them.
Payment Late? Lenders Can Remotely Disable Your Car
By 4.17.09
Repossessing cars is so old-fashioned. All that driving, locating people’s houses, towing the cars away… with the mess credit markets are currently in, who has time for that? Car lenders don’t.
Store Cards Turning Into A Nightmare For Retailers
By 2.10.09
Our eyes shoot fire when stores make their poor employees harass us about opening a store card, so we’re feeling a perverse sense of joy at the news that store cards are turning into a nightmare for retailers.
Consumers Are Learning The Hard Way: There's No Such Thing As A Fixed Rate Credit Card
By 1.13.09
For years personal finance experts have been telling consumers to watch out — that there was “no such thing” as a “fixed rate” credit card — the bank can raise your interest rate whenever it wants as long as it gives you a little notice. You don’t have to miss a payment. You don’t have to do anything “wrong.” Now some consumers are learning the hard way.
The Economist's Credit Crunch Game Makes Subprime Loans Fun Again!
By 12.29.08
We think the idea of “Credit Crunch,” a print-it-yourself board game in this week’s issue of The Economist, is great. We’re not convinced it’s exactly cost-effective to print the board, cards, and money with your own equipment, though—as someone suggests in their comments section, maybe a web-savvy reader should create an online version.
Former Treasury Secretary Says He "Forgot" That People Had To "Afford Their House"
By 12.22.08
Former Treasury Secretary John W. Snow has told the New York Times that he, along with the entire Bush Administration, simply “forgot” that people had to be able to “afford their house.”
Chrysler Shuts Down All Production
By 12.18.08
Friday will be the last day of production as Chrysler shuts down for 30 days — citing lack of available consumer credit.
Credit Card Squeeze Is Pushing Consumers Toward Foreclosure
By 12.16.08
USAToday says that panic by the credit card industry is squeezing customers who ordinarily would be able to pay their bills — pushing them toward financial ruin and foreclosure.
AMEX Cuts You Off Unless You Show Them Your Tax Returns
By 12.15.08
The credit crunch is affecting all of us differently. Right now its affecting Nick as he sits in a hotel 3,000 miles from home.
Stock Market Pleased By New Phase Of Bailout
By 11.25.08
Today the Federal Reserve announced the creation of a new special purpose entity that will buy consumer and business debt. Under the new plan, the Treasury will provide $20 billion dollars in of credit protection (from the Troubled Asset Relief Program) — and will absorb most of the losses, should they occur.
Credit Card Defaults Hit QVC
By 11.13.08
QVC, the home shopping network, has announced that they will be laying off 910 workers over the next 14 months. A reader who would like to remain anonymous, described the layoff process in an email to Consumerist.
American Express Becomes A Bank… And Wants Bailout Money
By 11.12.08
American Express won U.S. Federal Reserve approval to become a bank holding company — giving it access to the bailout party as credit card defaults climb. Bloomberg News says that the Fed waived the usual 30 day waiting period because (in the words of Fed Chairman Ben Bernanke) we’re experiencing “unusual and exigent circumstances affecting the financial markets.” Today, American Express has requested $3.5 billion in taxpayer-funded capital from the federal government, says the WSJ.
Yes, It's Official: That Stupid "Saved By Zero" Commercial Isn't Working
By 11.4.08
You, dear consumer, have abruptly stopped purchasing automobiles. GM’s sales are down 45%. Ford has sunk by 30% and Toyota, yes, that Toyota is down 23%.
Wall Street Hoped They'd Be "Wealthy And Retired" Before The House of Cards Fell
By 10.23.08
If you’re wondering why all these supposedly smart people bought bullsh*t securities made up of pools of overpriced mortgages given to broke people with crap credit — it’s time for you to meet the rating agencies. Rating agencies are the folks who decide the “quality” of investments. They’re the ones who decided that these securities deserved a AAA (read: awesome) rating. Did they know that they were passing junk off as gold? Um, yeah, according to reports from Bloomberg and the New York Times. It looks like they sorta did.
