Forum Post: Bank Achilles heel:After you have paid as much in excess interest as your credit limit your rate should drop to near zero..
Posted 12 years ago on Dec. 16, 2011, 8:13 a.m. EST by scvblwxq
(155)
This content is user submitted and not an official statement
If you have a $1000 credit limit, a 25% interest rate and the bank pays 0% from the Fed for money after 4 years if you are maxed out the bank will have collected $1000 in interest.
The bank doesn't have to worry about you defaulting because they have the money through the interest they have collected so your interest should drop to what the bank pays plus their costs, profit included.
If fact the rate should drop as they collect excess interest since the amount they can actually loose is less as the interest they have collected increases.
This is a big fraud being perpetrated on credit card holders and it should be brought to light and fought in the courts, legislatures and the court of public opinion.
Best idea is to cut your credit card in half and send it back to the bank. Personally I do not have a car or a credit card. One thing this Occupy business has taught me. You only need two things in life - coffee and gas to heat the water.
We can all protect ourselves and accept things as they are, but I think trying to have a better society where dangers and predators are removed is a better solution.
Couldn't agree more. Lets do it. :)
It is brought to light. It's just that credit card borrowers are too stupid and too in need of immediate gratification to give a shit. We can protect you from a lot of things, but it's really really hard to protect you from yourself.
I'd say its poor public policy to allow it. We ban all types of things like jaywalking to protect people from themselves and price-fixing to protect people from collusion, this seems along those lines.
I use a credit card and pay the bill in full every month. There are many like me. I NEVER pay any interest.
Probably before the recession there were a lot more like you and hopefully one day there will be more like you, but then the banks will put in a fee like for ATMs where it costs them $0.25 and they charge $3.00. They just tried to put a fee on debit cards after paying customers to use them.
It is not honest capitalistic behavior by the banks, they are pretending that every transaction is a new event and you just walked in out of the blue and they only have your credit score to go on and they conveniently don't keep track of interest you have paid that would offset any losses.
We don't ignore murder just because its not near us.
Use Credits Unions!