EBiz Owners, Watch Your Credit Card Rates !
Even as the Federal Reserve actually said today that the recession is easing, many of
the banks that contributed to the problem are still cracking down on us small business
owners (and anybody else with a credit card) and doing thier best to make things worse.
Keep a close eye on your credit cards, people. The banks and card companies are up to a
nasty trick designed to make YOU pay for thier greed and mismanagement. Citibank
(phhhhtttt! to Citibank!) pulled this one on me, and after speaking to other people, I
find that the other banks are doing it too.
Banks and card companies are raising thier credit card interest rates overnight, many of
them doubling those rates with no apparent reason except that somewhere in the fine print
of thier lengthy Terms and Conditions page, it says they can. What they’re really doing is
tracking down everyone who’s ever made even a slightly late payment, and targeting them
for risk re-evaluation. In other words, make one payment a couple of days late, and they
use that as an excuse to double thier rates on you so that you can’t afford your card
payments.
Why would they do this? It would seem that they would want you to be able to MAKE your
payments, right? Ah, but you haven’t heard Part Two of the dastardly plan yet! So here it
is.
When you call them and say I can’t afford to make my credit card payments if you double
my interest rate, they cleverly offer you a reduced rate buyout of your account. What
this means is that they will actually lower your interest back down to the previous rate,
IF YOU AGREE to close your account and pay off the full balance at the lower rate within a
year.
How does it benefit the bank when you agree to this helpful offer to close your account
and pay it off at the lower rate? It allows them to book the entire balance due on your
account as a recieveable in thier financial books, payable in full within 12 months.
When they pull this crap on enough people, they LOOK like a stronger company on paper, at
YOUR expense. What else is new.
If your rates haven’t gone up already, make sure you’re not even one day past the due date
on your cards. In fact, pay them early. Don’t let these bloodsuckers chew on YOUR neck
like they have so many others.
This is a despicable practice, and should be looked into at the Federal level. Not holding
my breath waiting for that to happen, though.
Hey, gang, don’t forget: you can spend a weekend face to face with me here in Orlando
tuning up your EBiz for maximum performance during this economic mess. Check It Out.
