CNN just had a spot on about the rates credit card companies will start charging if your monthly payment is even one day late: 30% or more! It won’t matter what your credit rating or payment history is, they said.
As things stand right not, credit card companies can charge interest rates that are outrageous. The host asked their financial adviser what people can do if this happens. Here’s a novel concept: how about some legislation from Congress?
Here’s why: the actions these corporations are taking work from a punishment frame: miss their deadline and BAM!, you’re in trouble. How about rewards for doing things correctly, like making your minimum monthly payment or history of on-time payments.
Or how about increasing interest rates for savings accounts? 2% and 3%, the rates available to the vast majority of Americans (who has $10,000 or $50,000 that can sit around in an account?), don’t even keep up with the rate of inflation.
I say Congress should pass legislation that caps the amount banks, operating anywhere U.S. customers can acquire cards from, can charge.
And let’s go a step further, shall we? Where are the Republicans and libertarians when it comes to all the taxes those credit card companies are charging us? That’s right, taxes. They call them fees, but do you have any choice in how much you’re charged? No, you have more control over the taxes the mean old government collects. Republicans are so pro-corporation, they look the other way, nay, they encourage, the taxes that corporations charge us. I say enough is enough. If my money really is my money, banks shouldn’t be allowed to charge me late payment taxes, or insufficient funds taxes, or any other kind of tax.
Taxes should be reserved for governments. They are an investment in the commons that we all need and use. Corporations should not be allowed to levy them against us.