CITIBANK COLLECTIONS, INTEREST RATE CREDIT CARD COMPANIES INCORPORATE IN IN NORTH DAKATO BECAUSE THERE ARE NO USARY LAWS AND CAN CHARGE ANYTHING THEY WANT IN INTEREST EVERYWHERE Nationwide

Excellent posts. Real facts and figures. Detailed references that can be checked. Logical and understandable. Certain people could learn a lot from your posts. Notice, I said "could", but they probably won't.

1995 Total Consumer fees = $ 8.3 Billion.
2003 Total Consumer fees = $20.7 Billion. (2.49x)

1996 Late fees = $ 1.7 Billion.
2002 Late fees = $ 7.3 Billion. (4.29x)

J., it is not just supersmart people who are designing these programs. It is supercomputers with A.I enabled genetic algorithms that use real time detailed information about you that you would not believe.

You make a lot of sense. Yes, I am saying that supersmart people are devising strategies to screw over anyone they can.

You clearly understand that the system will try to get over on you. That is why I gave the warning.

It's like in the movie "War Games"; where the computer finally figures out that the only way to win is not to play the game.

A question: Who is right, Steve or me? It seems from your earlier posts, that you agree with me.

And, if we agree that the banks are not going to change voluntarily, what do we do?

In two different posts you asked me a questions, First one, was I equating credit holders to crackheads. Nope, maybe I came across wrong, But I sure was equating credit card companies to drug dealers, both out to make a buck anyway they can. If anyone took offences to this, Sorry

The second do I think a person should not pay their bills, NO, I think it should be a fair playing field, If you charge something let say 1,000 at 9%, you pay off 150 leaving a 850 dollar balance, why should a credit card company be allowed to raise it to any other rate, on that 850, they should only charge the higher rate on any thing else, It seems they always raise a person rate when they have a high balance, just to make that extra dollar.

If a person defaults, on any loan agreement, then the money should go to the original credit, not some collection agency, that buys debt for pennies on the dollars, If a collection agency is contracted by the original creditor, to collection for them, then the creditor is getting paid.

I don't understand, if a credit card company writes off and sold a debt at 500.00, that's what they lost, If it sold, How can a collection agency that paid 25.00 for that debt be allowed to collect all back interest, late fees, ect. and now the debt depending on how many years it was sold to different collection agencies its now 2-3,000.00 dollars and the original credit doesn't get a penny.

In one of your posts you stated that supersmart people are coming up with new programs, are you saying that the supersmart are coming up with way to screw over the not so smart?

As far as Steve being my friend I don't know Steve from Adam I do like his style, I did live and work in the county just north of him for 22 years and have spend some time in his city, working with a joint task force, but I do not believe we meet.

from fdic government web site

The Supreme Court Deregulated Consumer Interest Rates

In the economic environment of the late 1970s, the general opinion on usury limits appeared to change.11 Part of this relaxation can be attributed to the high nominal interest rates of the time, which restricted credit availability and made the disadvantages of usury limits more apparent.

In 1978, the Supreme Court profoundly changed the interpretation of usury laws with a ruling in the case of Marquette National Bank of Minneapolis v. First Omaha Service Corp. ("Marquette").The solicitor general of Minnesota was attempting to prevent First Omaha from soliciting credit card customers in Minnesota at the higher Nebraska interest rates by contending that the exportation of Nebraska's interest rate would make it difficult for states to enact effective usury laws.12 The Supreme Court agreed that such might be the case, but it decided that the usury issue was a legislative problem to be handled by Congress.13. The Court held in Marquette that section 85 of the National Bank Act allowed a lender to charge the highest interest rate allowed in the lender's home state, regardless of a lower rate limitation in the customer's state of residence.14

The Effects of the Marquette Decision on Credit Card Lending

The Marquette decision applied to all types of consumer loans, but it had the greatest consequences for the credit card industry. Because of its use of technology in the solicitation and underwriting process, credit card lending can be accomplished entirely by mail, without the borrower and lender ever meeting. Consequently, credit card lenders head-quartered in states with liberal usury ceilings can easily export their rates to borrowers residing in states with restrictive usury ceilings.

State Usury Ceilings Were Dismantled

After the Marquette decision, liberalization of state usury ceilings occurred. Some states quickly seized the opportunity to deregulate interest and other banking functions to attract banks and other consumer lenders. Two such states were South Dakota and Delaware. Citicorp was one of the first lenders to take advantage of deregulation at the state level. It established a new national bank and credit card processing center in Sioux Falls, South Dakota, in 1981 (Janklow 1985, 32).

The practical effect of the Marquette decision was to force states to deregulate or face a loss of the credit card segment of the banking business (Langevoort 1987, 686). Major banks pressured state legislatures to relax limits on lending by threatening to move their businesses to states with more liberal ceilings. The four largest banks in Maryland did move their credit card operations to Delaware when the Maryland state legislature refused to relax the state's usury laws.15

According to Ausubel (1991), most leading banking states had relaxed or repealed their interest rate ceilings by 1982, and the bank credit card market was effectively deregulated.

Steve, I know that you have never admitted that you were wrong and that you probably do not know how to do it. So, I will write something for you, so that you can see what it looks like. You can print it out and sign it if you want to.

I, Steve[Not a Lawyer]-Bradenton, Florida, Do hereby admit that I was completely and totally wrong. I was superwrong and I sincerely apologize to everyone for being so wrong. I should know better than to post while I am smoking crack. My posts were irresponsible and deceptive. I am a pathological lier and arguer. Please forgive me.

Steve, please read that over, make any necessary changes and post it as soon as possible.

Some people like to complain about Steve. I like Steve, he is very smart and entertaining. He just needs to make sure that his work is kept in the fiction section.

Steve, even when you know you're wrong you continue to fight. I like that. You love to argue.

You might have more credibility if you even knew how to spell usury. And, if you gave anything to support your claims. Give some specific references to back up what you say, like I did. Why don't you post some of the information that you claim is in the "disclosure sent with your credit card"? Where you say that it "is all clearly explained"? I'm sure you will come up with some reason that you can't.

At least J gave specific references that we could check. We need something more than the ramblings generated by your overheated imagination.

In Jessup v Pulaski the court ruled in favor of the bank, not the customer who was claiming that the bank had to follow the customer's state law.

You make a reference to your business that you had. 1) Unless you started a nationally chartered bank, your reference is irrelevant. 2) You say that you "operated" out of AZ and that meant that you operated under AZ law. If you will pay attention, I said that where a bank "operated" out of determined the usury law. Where a bank handles all operations, determines where they "operate" from.

Did you watch the video that I referred to? It is also available as a written transcript.

J, I understand that Steve is your friend, but when he is wrong, don't be afraid to say so. And, are you equating credit card holders to crackheads?

Steve, even when you know you're wrong you continue to fight. I like that. You love to argue.

You might have more credibility if you even knew how to spell usury. And, if you gave anything to support your claims. Give some specific references to back up what you say, like I did. Why don't you post some of the information that you claim is in the "disclosure sent with your credit card"? Where you say that it "is all clearly explained"? I'm sure you will come up with some reason that you can't.

At least J gave specific references that we could check. We need something more than the ramblings generated by your overheated imagination.

In Jessup v Pulaski the court ruled in favor of the bank, not the customer who was claiming that the bank had to follow the customer's state law.

You make a reference to your business that you had. 1) Unless you started a nationally chartered bank, your reference is irrelevant. 2) You say that you "operated" out of AZ and that meant that you operated under AZ law. If you will pay attention, I said that where a bank "operated" out of determined the usury law. Where a bank handles all operations, determines where they "operate" from.

Did you watch the video that I referred to? It is also available as a written transcript.

J, I understand that Steve is your friend, but when he is wrong, don't be afraid to say so. And, are you equating credit card holders to crackheads?

Steve, even when you know you're wrong you continue to fight. I like that. You love to argue.

You might have more credibility if you even knew how to spell usury. And, if you gave anything to support your claims. Give some specific references to back up what you say, like I did. Why don't you post some of the information that you claim is in the "disclosure sent with your credit card"? Where you say that it "is all clearly explained"? I'm sure you will come up with some reason that you can't.

At least J gave specific references that we could check. We need something more than the ramblings generated by your overheated imagination.

In Jessup v Pulaski the court ruled in favor of the bank, not the customer who was claiming that the bank had to follow the customer's state law.

You make a reference to your business that you had. 1) Unless you started a nationally chartered bank, your reference is irrelevant. 2) You say that you "operated" out of AZ and that meant that you operated under AZ law. If you will pay attention, I said that where a bank "operated" out of determined the usury law. Where a bank handles all operations, determines where they "operate" from.

Did you watch the video that I referred to? It is also available as a written transcript.

J, I understand that Steve is your friend, but when he is wrong, don't be afraid to say so. And, are you equating credit card holders to crackheads?

Steve, even when you know you're wrong you continue to fight. I like that. You love to argue.

You might have more credibility if you even knew how to spell usury. And, if you gave anything to support your claims. Give some specific references to back up what you say, like I did. Why don't you post some of the information that you claim is in the "disclosure sent with your credit card"? Where you say that it "is all clearly explained"? I'm sure you will come up with some reason that you can't.

At least J gave specific references that we could check. We need something more than the ramblings generated by your overheated imagination.

In Jessup v Pulaski the court ruled in favor of the bank, not the customer who was claiming that the bank had to follow the customer's state law.

You make a reference to your business that you had. 1) Unless you started a nationally chartered bank, your reference is irrelevant. 2) You say that you "operated" out of AZ and that meant that you operated under AZ law. If you will pay attention, I said that where a bank "operated" out of determined the usury law. Where a bank handles all operations, determines where they "operate" from.

Did you watch the video that I referred to? It is also available as a written transcript.

J, I understand that Steve is your friend, but when he is wrong, don't be afraid to say so. And, are you equating credit card holders to crackheads?

I've read numerous complaints regarding fees/interest rates charged by credit card companies. Many have said 'there ought to be a law.' Susan Tompor's article in this morning's Detroit Free Press states Congress plans to do something about it.

'Last week, Senate Banking Committee Chairman Chris Dodd, D-Conn., said that a bill would be necessary to prohibit some credit card practices.'

'A recent heaaring held by Sen.

Carl Levin, D-Mich., highlighted some hardships. Levin intends to write a bill to outlaw some credit card practices, to.'

Some changes already made:

'Chase Card Services, a division of JP Morgan Chase, has eliminated two-cycle interest calculations...'

'Citigroup Inc. will no longer raise interest rates and fees for current customers "any time for any reason." The change takes place immediately and goes into effect for current cardholders by April.

'Citygroup also stopped universal default--where rates on a City card can go up if a consumer makes a late payment or defaults with another lender.'

Tompor's complete article can be read at:
http://freep.com/apps/pbcs.dll/article?AID=/20070322/COL07/703220422/1002/BUSINESS

Melinda,

Please re read my first response, as you obviously did not fully read and understand what I wrote.

REGARDLESS of the "Marquette Decision", a bank/credit card issuer CANNOT issue a credit card with a higher interest rate than the cardholder's state allows. That was my point.

State law sets the MAXIMUM rate, and that is based on where the consumer lives.

The OP made some erroneous statements, and those were what I was responding to. Where a company is incorporated makes no difference at all in these issues stated.

I owned a business and incorporated in NV, but operated out of AZ. That means that I operate under AZ laws, not NV.

Melinda,

Maximum interest rates are determined by state law, and each state is different. This is a fact.

Once again, read your entire cardholder agreement. It has different provisions for different states.

Your maximum interest rate is determined by where you live, NOT where the card is issued from.

You do not understand the decision you are quoting.

Usury Laws are at best confusing,

Something that might help explain it would be to read Jessup V. Pulaski Bank May 5, 2003 It out of the 8th circuit court of appeals.

Another interesting, but very confusing thing to read is the Section 731 GLBA (12 usc 1831u(F).
reading this gave me a headache, and sent me for a drink.

Like many people with credit cards, we think the Feds or the state lawmakers are looking out for our interest, after reading the above and watching the frontline video Melinda talked about. I don't believe that anymore and the O.C.C appears to be a big waste of our tax dollars.

Bottom line is the courts allow credit card loans interest rates to exceed state usury rate as long as they comply with the TILA.

And if your get a 15 day notice that your rates are going up, they complied.

I know one thing after reading this I'm going to do everything I can to pay off all my credit cards, and keep one for me and one for the wife, That'a really going to go over will with her, lol

All this started back in 1970's and each time a case goes in from of the courts, it changes for the worst to the customer.

Bank and credit card companies are very powerful, They were the ones that got the bankruptcy law changed, they were the cause of the increase in bankruptcy cases filed.

All this to the Adv. person is verying confusing, all I know is when I went to school we learned that laws were made to protect mankind, Its doesn't appear that way anymore, Its business that get the protection under most civil torts/actions.

Marquette National Bank v. First of Omaha Service Corp. 439 U.S. 299 (1978). Under 12 U.S.C. 85 a national bank located in Delaware could charge interest at the rates allowed under Delaware law on credit card loans made to customers who resided in any other state, even though such rates would be usurious under the customer's state of residence's laws.

Furthermore, under Smiley v. Citibank (1996), The court ruled that fees were also determined by the state where the bank was located.

Steve, please admit that you were wrong and include an apology for being so wrong and we will forget all about it.

Are you saying that if you decide not to pay for the credit that you have borrowed, the banks should not be allowed to sue you? A loan is a contract, and if you breach the terms of that contract, you can be sued. There are plenty of reasons that you can sue someone if an investment goes bad.

And, the Constitution starts "We the People of the United States,". The banks do not run the country, the people do. If we don't like the law, it is our duty to change it.

Steve, even when you're completely wrong, you are very convincing by being so adamant. I'm sure it works on most people you deal with because you seem to be fairly intelligent. However, I know better. So, it doesn't convince me just because you use capital letters in all of the right places.

Are you saying that if you decide not to pay for the credit that you have borrowed, the banks should not be allowed to sue you? A loan is a contract, and if you breach the terms of that contract, you can be sued. There are plenty of reasons that you can sue someone if an investment goes bad.

And, the Constitution starts "We the People of the United States,". The banks do not run the country, the people do. If we don't like the law, it is our duty to change it.

Steve, even when you're completely wrong, you are very convincing by being so adamant. I'm sure it works on most people you deal with because you seem to be fairly intelligent. However, I know better. So, it doesn't convince me just because you use capital letters in all of the right places.

Are you saying that if you decide not to pay for the credit that you have borrowed, the banks should not be allowed to sue you? A loan is a contract, and if you breach the terms of that contract, you can be sued. There are plenty of reasons that you can sue someone if an investment goes bad.

And, the Constitution starts "We the People of the United States,". The banks do not run the country, the people do. If we don't like the law, it is our duty to change it.

Steve, even when you're completely wrong, you are very convincing by being so adamant. I'm sure it works on most people you deal with because you seem to be fairly intelligent. However, I know better. So, it doesn't convince me just because you use capital letters in all of the right places.

Are you saying that if you decide not to pay for the credit that you have borrowed, the banks should not be allowed to sue you? A loan is a contract, and if you breach the terms of that contract, you can be sued. There are plenty of reasons that you can sue someone if an investment goes bad.

And, the Constitution starts "We the People of the United States,". The banks do not run the country, the people do. If we don't like the law, it is our duty to change it.

Steve, even when you're completely wrong, you are very convincing by being so adamant. I'm sure it works on most people you deal with because you seem to be fairly intelligent. However, I know better. So, it doesn't convince me just because you use capital letters in all of the right places.

You're wrong and you know you're wrong. If you watched the Frontline story that I referred to, you would have clearly seen them explain that the state where the bank operated out of determined the maximum interest rate allowed and that it did NOT matter where the customer lived. Section one, ref: the Marquette Decision. This is the second time you have deliberately tried to mislead people.

Why would a bank give a person 10 credit cards with a $1,000.00 limit each instead of 1 card with a $10,000.00 limit? Simple math, 10 late fees at $50.00 each and 10 overlimit fees at $50.00 each add up to $1,000.00 per month. 1 late fee and 1 overlimit fee per month add up to $100.00 per month. It does not take an Einstein to figure this out.(Or maybe it does).

Banks give cards to risky customers because it can be very profitable to do so. In the above example, the customer would have paid off all real debt in about 8 months. After that it's all pure profit.

Most of these programs have already been in the works for some time, there the same ones they used for many years to raise rates and fees.

As far as a bank, credit card company not placing a credit limit on your credit report, to make it appear you are running a high balance, all the consumer needs to do is request that it be placed. and if the credit card company uses incorrect information to raise your rates, or is the cause of the rates going up, the consumer has options to follow, pay the card off and cancell it, which I believe would be the best.

File a civil action again the company, File a complaint with the do nothing agency O.C.C..

Giving someone muti-cards that are a risk is bad business, Its only a matter of time before congress and the courts step in.

If a person is a crackhead, no matter how much they want to stop, you put a rock in front of them, they will smoke it, Credit card companies are bacially the same. If a person have already proved that can't use a credit card within reason, then why give them muti-cards.

Banks and credit card companies need and must be held accountable, for there actions.

Just like any investment you make there is a risk, and most of the 170 million people that do have credit cards are a risk, I can't sue on my investments if they go bad, banks and credit crad companies should not be allowed to do so, if they give muti-cards to people. Its stupid to throw good money after bad.

Banks and credit card companies will spend millions to block or change a law that is for the good of the people, or against their interest, what does that tell you about the companies and the sad part is we the customers, are paying for these laws, that don't help us, with the money we send.

This country is ripping itself apart from the inside out, to make that all mighty dollar. and thats real sad what kind of furture are we leaving are children or their children. How could my child or your's, just starting out in live afford to get a card that already starts at 30% or buy a car at the high rates that are being charged.

In my opinion, and we know what is said about opinions, is any person that ever defaulted on any credit should NOT get a credit card, unless its secured, for 12-18 months.

Sorry to get long winded here, and Melinda, if I came across as yelling at you I wasn't, so don't take offences to this.

One last thing, in all the court cases against collection agencies, banks or credit cards companies, ect, that totaled in the ten of million of dollars, you ever notice that the people that were screwed, never got any real money or what they lost.

Melinda,

Maximum interest rates ARE set by state law.

They ARE set by which state you live in. A credit card company cannot charge an interest rate higher than your state's maximum.

And, did you ever read one of those disclosures sent with your credit card? This is all clearly explained.

For example, years ago I had a few credit cards after rebuilding my credit. I was in the military. In AZ my interest rates were in the
21%+ area, I got sent to AR and established residence, by getting an AR DL and registering to vote, etc.I was planning on getting out and living there.

After my first full billing statement, my rates were reduced to 12% as that was the AR state max at that time.

If you saw the Frontline story, you saw the development of programs that increase the costs of consumer debt.

These programs are still being developed. Banks are a business. They exist to make a profit. They will do whatever they need to do to do so. Banks and credit cards are a tremendous service and are highly beneficial when they are used properly and responsibly.

Unfortunately, when people act irresponsibly, banks are induced to follow the money. Customers create the policies more than the banks do.

One new strategy is to give a customer multiple cards to make up their total credit limit, rather than just one card. This way, when you start to get in trouble, you pay late fees and overlimit fees on multiple cards and not just one. You still have the same total credit limit but you end up paying anywhere from 2 to 10 late fees and overlimit fees instead of just one each.

Another strategy is to report to the credit reporting agencies in such a way as to lower your credit score. This gives them an excuse to raise your rates and it helps protect the credit grantor from competition. One example is to not report your credit limit. This makes it look like you have low limits and are maxed out.

Right now, supersmart people are devising new and innovative methods, just like the ones above.

Here's the new slogan for lenders:

"Give a man a fish and you feed him for a day, but loan that man money, at 30% interest, to buy a fish and you feed yourself for a lifetime."

Don - Belleville, Illinois and J - Lakewood, Ohio

Thanks so much for your concern on the illness front. Among other things that have gone crazy is they had to defibulate me on the OR table .... d**n - glad I was out of it when that happened!!! And they wonder why I am making late payments

thanks for downloading the story. If it was in 5 parts I KNOW my system would have choked on it!!

I also remember reading some articles last year about what you mentioned regarding credit card companies not posting payments somethimes up to a week after receiving them. Seems to me they got slapped on the wrist and told "you know better than that" and that was the end of that story.

I am trying to play catch up on some of the "usual offenders" regarding collection agencies but everybody moves so fast on this thread, I am usually "a day late and a dollar short" ... OK OK - I just couldn't resist the dollar short comment given this thread topic!!!!

Sorry to hear about your illness.

Well I downloaded this thing from front line, it was in 5 parts, nothing that you already didn't know and it was from 2004 if I downloaded the right story.

Pretty much it states a credit card company can change the original contract anytime they want as long as you give a 15 day notice, The turning point for credit card companies was a case called smiley V. citibank 1996.

That credit card companies set your payment due date up on a sunday or holiday so it will get posted late for most people, fee's are for profit.

How the O.C.C is having a turf war with all 50 state attornies gerenals, that they will not have the states taking the banking companies to court, oh they did say somthing about how credit card companies will deposit your payment and not post it to your account, causing late fees

I didn't come across anything that Melinda was taking about, maybe I downloaded the wrong story.

Melinda, I can respect you can't really say much, but there's something the card companies should not forget, many subprime housing companies are now being closed down, losing their license and some here in Ohio and Florida have been taken to jail for there action, So it will just be a matter of time to the credit card compaines get their's. and with luck I'll get to be the cop that get to arrest them or my child.

P in my reply I made about what was on the news here in Cleveland, the big three credit card companies were citibank, chase,and MDNA.

Glad to see you back. Hope it is a short recovery time.

J -Howdy back at ya .... Thanks for the info .... when I told Citibank (I as a 20 year card holder) I became disabled after a signficant health event of which I am still recovering (why I was gone so long from the boards...) - within one month of me notifying my creditors of the disability I saw my credit rate increase every month to over 30% bt only with Citibank. My others credit cards did not increase ....

Melinda - can you give an approximation of the date when these rates will increase. I am on dial up and can't load videos b/c I time out. If anyone can run the video and give me a heads up - much appreciated.

The Subprime market is taking a beating. Companies that market to the subprime group are desperate to make up the losses.

I am not at liberty to discuss the details that I know. Just please be aware that consumer debt will be much more costly in the near future.

Pay off all consumer debt ASAP. You can't win paying 20+% for necessaries.

The exact details are not all that relevant. This is a game that you can't win. The details will be buried in the fine print.

Sorry to seem so cryptic. Watch the Video at pbs. Frontline "Secret history of the credit card" to see the development of current programs that generate Billions of dollars in profit.

The Subprime market is taking a beating. Companies that market to the subprime group are desperate to make up the losses.

I am not at liberty to discuss the details that I know. Just please be aware that consumer debt will be much more costly in the near future.

Pay off all consumer debt ASAP. You can't win paying 20+% for necessaries.

The exact details are not all that relevant. This is a game that you can't win. The details will be buried in the fine print.

Sorry to seem so cryptic. Watch the Video at pbs. Frontline "Secret history of the credit card" to see the development of current programs that generate Billions of dollars in profit.

The Subprime market is taking a beating. Companies that market to the subprime group are desperate to make up the losses.

I am not at liberty to discuss the details that I know. Just please be aware that consumer debt will be much more costly in the near future.

Pay off all consumer debt ASAP. You can't win paying 20+% for necessaries.

The exact details are not all that relevant. This is a game that you can't win. The details will be buried in the fine print.

Sorry to seem so cryptic. Watch the Video at pbs. Frontline "Secret history of the credit card" to see the development of current programs that generate Billions of dollars in profit.

Howdy: citibank was one of the three that was there, the only other one I remember was Chase. That CEO appears to be a real shithead

C.N.N touched on the story, but the local news here in Cleveland, went alittle more into it, in there report, they told of the guy, pretty much the same as you did, and a couple of others, they also showed a list of what was being addressed. The universal fee, late fee and the charges they do, to pay by phone.

Melinda: what new program are you talking about?

Warning to all credit holders: Pay off all consumer debt ASAP. New programs are being designed, right now, to dramatically increase the cost of such debt.

Banks operate out of South Dakota and Delaware because of a Supreme Court Decision called the Marquette decision.

This decision said that banks could export their interest rates.Where you live is not relevant.

Go to the PBS website and watch the Frontline video story called "The secret history of the credit card."

Banks are a business.The amount of interest they charge is determined by what they can get you to pay.Soon all prices will be set the same way.Each person will be charged a different price for everything.Everything will be negotiated.

You will be scored on everything,not just credit.

You are under no obligation to keep a balance on your credit card.Pay it off in full every month.If you choose to keep a balance then you have decided to buy that service.

When Warren Buffett was asked what advice he would give about money,one thing he said was not to have any consumer debt.

I thought I read that Citibank/Citi Financial was one of the big offenders of charging over balance and late fees even after the cards had been cancelled. (I could stand corrected on this as I only saw a brief report on it.) As I recall one fellow who testified in the Senate (?) that the credit card company raised his interest rate to something like 30%, then began the overbalance charges and late fees in addition to the outrageious interest and there was no way he would be able to pull out of the debt. The problem appeared to be that the credit card company was charging the 30% interest on the late fee and the over balance fee charges.

To the responder in Kentucky ... As you read many of the postings you will see people find themselves in unfortunate situations which would make your recommendations impossible. Why have autopayment if there is no money there to deduct?

Steve - Brandenton, FL - Hey I know I have been away for a while but I know you and J - Lakewood kept everybody in line!!!

Not to long ago, the big three credit card companies had to appear before the lawmakers.

Several people appeared before the commitee also, Telling of the fee's and other things they were charged for. The credit card companies are coming under fire for some of the fee's, they charge.

Some of the changes, that may come about is the Univeral fee's, where they raise your interest rate because a another company posted a bad payments in your credit file.

Late fee's, and the interest rate charged, posting payments late, the fee's they charge to pay over the phone or interent, the fee's charged when you contact customer service, fee's charged when you get a credit increase. Running of late fee's, when your over the credit limit because of late fee's.

Time will only tell, if the commitee has a backbone and follow thru, with the new laws they want to pass.

Usery laws are determined by the state of residence of the cardholder as determined by the mailing address of the card, NOT where the bank is incorporated.

Your information on interest rates is flawed as well as the comments on the other 49 states.

The bottom line is, where the card comes from has absolutely no bearing at all on your interest rate. It is determined by which state you live in when you apply for the card, and where the card is mailed.

FYI.. Nevada has no usery laws either. And Interest rates as high as 39% are legal in some states. The "default" rate of many banks is currently 35.99%.

AND, it is YOUR CREDIT SCORE, among other factors that determines your interst rates.

I HAD a credit card out of SLC UT with a 6% interest rate.

Citibank along w/ all other credit card companies are governed out of South Dakota, not the North! Yes, they do govern themselves there for a reason! They are a business! And S. Dakota lets them charge 23.99% plus the prime rate as the default rate on their credit cards. The key word here is "Their" credit cards.

I'm not defending the bank in any way shape or form. I as a consumer think that an Apr of 32.24% as a result of a late fee is b*&*&. However the bank will provide you the tools needed to ensure you never have a late fee. Its called Autopay. Fill out the form and have the money automatically w/drawn from your acct provided. You'll never see a late fee!

But, as someone who has worked in customer service for a credit card company and listened to all the people call in whining about how they deserve something for free and that based on their credit they don't deserve a late fee. I never recieved my statement is heard all day long. How do you expect me to pay my bill if I don't get my statement? No one here gets a statement each month to pay their mortgage,car payment, student loan, etc.... I bet those get paid! Most people owning credit cards think that the bank that issues it owes them something. In fact they don't! Banks spend their money to pay for your charges, so you can get a bill a month later. While your money is still earning interest! And then pay your statement in full by the due date and no interest accrues. Thats what the educated Card member does.

For those of you that don't want to pay interest , pay your card off in full each month. If those of you can't because you made a large charge utilize the tools issued to you by the bank to ensure your payments are on time. If you don't like the terms and conditions of the card , don't sign your name on the back of the card and activate. You may be more inclined to use a Debit card. Ignorance kills me, educate your self and quit blaming everything on the banks. Remember it is their card, not yours! A credit card is a privilige! Thank You