Tuesday, August 25, 2009
Metro columnist Dan Casey: Cardholders mad enough to get out scissors
Dan Casey is The Roanoke Times' metro columnist.
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@roanoke.com
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Dan Casey
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Read Dan's blog
Jed Yatzor of Northwest Roanoke is not at all alone in his anger at Bank of America's credit card operation.
Since Thursday's column about Yatzor's hand-built "Bank of America are crooks" billboard, I've heard from angry readers far and wide.
Most decried the sleazy practice of banks jacking up interest rates on credit-worthy customers at a time when the prime rate is at or near historic lows.
And many indicted other large credit card operations by Chase, Capital One, Citibank and American Express for similar or even more egregious practices.
One of them is Linda Wigington of Troutville, who lives on a fixed income.
She held low fixed-rate cards from both Bank of America and Chase. Both notified her this spring that her interest rates would climb above 15 percent if she ever used either card again.
So she didn't. Then, she got a letter informing her that her minimum monthly payment was being raised from 2 percent of her balance to 5 percent.
"When I called, they said this was to 'help me pay it off earlier!' I asked if they had received a bailout, and they said, 'Yes, but it has been paid back in full.' No wonder!"
Buddy Spangler of Clifton Forge has a similar story.
"I also had a Bank of America card and for no reason they raised my interest rate. I canceled the card. Look also at American Express. I just received notice that my interest rate will go from a fixed 8.9 percent to a variable in October.
"Highway robbers yet legal and when they need help we're the ones they demand pay for their mistakes," Spangler wrote.
Bill Clarkson of Floyd County struck back in a different way when Capital One notified him that they were raising his credit card rate from just over 9 percent to 18 percent.
"I went instead to a local/regional bank, BB&T," said Clarkson, who noted he'd had a long relationship with BB&T. "They gave me a rate slightly less than my original [Capital One] rate."
Also, "the big banks, they'll start adding all these little fees on. They think they can get away with anything," Clarkson said. "They're making us pay for the losses they had from the subprime mess."
"The whole thing is a racket," wrote Sandi Saunders of Hardy. She fears for less-financially able folks who can't simply pay off their cards and get new ones from other banks.
"When they will 'screw over' a good customer with good credit and means to take their business elsewhere, there is no hope for the other shlubs who have no such choices. I understand that we all dig our own holes, but pulling up the ladder is still a dirty trick."
Elena DeRosa of Southwest Roanoke County said: "Chase and Citibank are crooks, too.
"Not only have my rates been jacked up, but I've had three cards canceled as well since they got their bailout money from me. My crime? Paying on time and not having high balances. According to Chase, 'I was costing them money.' Personal responsibility seems to have become a negative trait to have these days."
If there's one common theme (besides anger) that ran through all the responses, it was a vow to forsake credit cards, avoid unnecessary purchases and pay cash for necessities.
That's the best way to strike back at these charlatans and to improve your personal finances at the same time.
"I just wonder though: How are they going to make money if we quit using them?" asked A.S. Cooper of Roanoke, who counts himself as another victim of Capital One.
To that I would answer: Who cares?
Dan Casey's column runs Tuesday, Thursday and Sunday.
