That sucks your mom has to start over from scratch and old raggedy tribute card is robbing her

Here here, the gentleman from Colorado is definitely correct there. I am living proof that secured cards work and subprime cards don't. I went the subprime route because I was too proud for a secured card. But secured cards are going to be the law of land after 2010 anyway. Thankfully, I did it before it got to be that way. Now I have double the limit of my secured card. The "unsecured" subprime card had to be closed after 6 months because they didn't like the fact I was paying in full twice. I told them, you know what...as soon as I pay this off, you are fired. Wasted $250, but it was a lesson well learned. (I wasted much more for much less in my youth...so I was pretty fortunate).

I somewhat agree however raising our APR randomly is not fair. There has to be a stopping point somewhere. They have been let loose to treat us however they wanted for sometime. Maybe this will be a wake up call to and they might think a little harder before they come up with or stick us with some fee that is ridiculous. My mom is rebuilding now 61 year old they lost everything in the stock market. She has Tribute card charges her 4.95 a month to make a payment online and 19.00 a month for a participation fee. Yes she did make the choice to open the card but with a high APR and the fees they come with in the beginning wouldn't you agree that is crazy?

That sucks your mom has to start over from scratch and old raggedy tribute card is robbing her

I somewhat agree however raising our APR randomly is not fair. There has to be a stopping point somewhere. They have been let loose to treat us however they wanted for sometime. Maybe this will be a wake up call to and they might think a little harder before they come up with or stick us with some fee that is ridiculous. My mom is rebuilding now 61 year old they lost everything in the stock market. She has Tribute card charges her 4.95 a month to make a payment online and 19.00 a month for a participation fee. Yes she did make the choice to open the card but with a high APR and the fees they come with in the beginning wouldn't you agree that is crazy?

Oh anything First Bank of Delaware or First Premier is evil. I will agree with that for sure. This is why I preach secured cards. From what I understand the new law will limit initial fees to 25% of the credit line. So FPB and First Bank Delaware are going to have to change their business model.

And you better be sharing what you are learning with your mom!

As I have always said, people (consumers) should be careful what they wish for. I have always kept my nose clean by keeping utilization low, paying on time etc and I have been rewarded by obtaining no annual fee, low APR rewards cards. But because some people can't get their act straight they go and whine to congress about how the mean old bank held a gun to their head, made them charge excessively and then made them late and over their limits. So now congress wants to teach the "loansharks" a lesson.
I think it is kind of funny. If new applicants now get annual fees and tiny credit lines, they will whine to congress about how the banks are unfair.
I will admit, banks can be greedy, but we do live in a capitalist country afterall. Plus, the banks have to make money to make up for all the bankruptcies and charge offs.
Americans really need to look beyond themselves sometimes, it is really embarassing how some of us act.

I agree with you partially as well, but keep in mind banks do make money if you charge a lot and pay off at the end of the month (by the percentage that they charge the merchant for accepting their cards)....

Again Brian23 agree with you as far as AMEX's current policy but you have to like their Business Model (Charge Cards) If I were one of the Big Banks I would incorporate what they (AMEX) already have perfected. no use in re-inventing the wheel don't you agree

I am with you 110% there....

Tribute card charges her 4.95 a month to make a payment online and 19.00 a month for a participation fee.

Jeeesus! I don't see how these cards can stay in business. I mean come on, what is she participating in? That word is a bunch of crap and they know it. I could see if they are offering free drinks every weekend, $50 worth of free gas per month or something in that nature. $19 participation fee per month, let's blow the bank(s) up Buddie! There is one thing I will not do, and that is pay another bank for my mistakes, its enough I am paying for it through high Apr's, let alone participating in the sub-prime cult.

I somewhat agree however raising our APR randomly is not fair. There has to be a stopping point somewhere. They have been let loose to treat us however they wanted for sometime. Maybe this will be a wake up call to and they might think a little harder before they come up with or stick us with some fee that is ridiculous. My mom is rebuilding now 61 year old they lost everything in the stock market. She has Tribute card charges her 4.95 a month to make a payment online and 19.00 a month for a participation fee. Yes she did make the choice to open the card but with a high APR and the fees they come with in the beginning wouldn't you agree that is crazy?

As I have always said, people (consumers) should be careful what they wish for. I have always kept my nose clean by keeping utilization low, paying on time etc and I have been rewarded by obtaining no annual fee, low APR rewards cards. But because some people can't get their act straight they go and whine to congress about how the mean old bank held a gun to their head, made them charge excessively and then made them late and over their limits. So now congress wants to teach the "loansharks" a lesson.
I think it is kind of funny. If new applicants now get annual fees and tiny credit lines, they will whine to congress about how the banks are unfair.
I will admit, banks can be greedy, but we do live in a capitalist country afterall. Plus, the banks have to make money to make up for all the bankruptcies and charge offs.
Americans really need to look beyond themselves sometimes, it is really embarassing how some of us act.

Again Brian23 agree with you as far as AMEX's current policy but you have to like their Business Model (Charge Cards) If I were one of the Big Banks I would incorporate what they (AMEX) already have perfected. no use in re-inventing the wheel don't you agree ?

Brian23, like what you said, but have a question. Lets take AMEX, will banks go the way of AMEX, start issuing Charge Cards, i.e (Green, Gold, Platinum) where you HAVE to pay it off in 30 days ?

I would rather go that way, then based on your spending and repayment history you have the ability to purchase what you want/need. This in itself will curtail spending by the consumer knowing that unless you can pay if off in 30 days you will be more reluctant to charge.

You still are going to have to pay an annual fee, so the banks will make thier money and at the same time you have the ability to not be "capped" as far as the ability to purchase

Agreed, very good point.

But, on the topic of AMEX, look at the compay that they've become.....now they are barely lending to anyone and are reducing CLs and closing accounts for long time customers.... And yet the federal govt hasn't even done anything yet...

Brian23, like what you said, but have a question. Lets take AMEX, will banks go the way of AMEX, start issuing Charge Cards, i.e (Green, Gold, Platinum) where you HAVE to pay it off in 30 days ?

I would rather go that way, then based on your spending and repayment history you have the ability to purchase what you want/need. This in itself will curtail spending by the consumer knowing that unless you can pay if off in 30 days you will be more reluctant to charge.

You still are going to have to pay an annual fee, so the banks will make thier money and at the same time you have the ability to not be "capped" as far as the ability to purchase

You got a point there :

This topic is really a double edged sword in my opinion.

Currently, banks can charge whatever they want (interest, fees etc etc).

Reformed policy, banks will have caps on what they can charge based on the government limits.

Although I agree that banks have become downright predatory in their fees to good paying customers. The only thing I fear is if the federal government puts a cap on what can be charged on a credit card, banks are going to be tighter than ever in loaning to customers. Especially customers like myself in the sub-prime market. I myself, have a little over (2) years left before my entire credit profile is expunged of negative marks. What about those people that have to start over as I did 5 years ago? Where will they be able to start re-building their credit profile?

I am just fearful of what the reprecussions are going to be in this......

Well as many of you know the Credit Card Act passed in Congress and will be sent to Obama to sign.

For all of you who pay your bills on time, you will be glad to know that some banks will charge Annual Fees to carry their cards. They will also start charging interest from the moment you make your purchase. As the segment was shown on World News Tonight, someone made the comment, "The banks will make their money one way or another"