Do you think high interest rate credit cards should not be allowed by law.?

Question

It' s the poor who have to suffer.they need things and can't afford them without charging sometimes and credit card companies take advantage of that.

Answer 1

they should put a cap on it. And none of those hidden, small print sliding rates. Say 5% but if you are late then it doubles to 10%. There are rates out there now ranging from 1.9% - 26.9%, that is just nuts...

Answer 2

No.

Nobody has to suffer.

Nobody is forcing you to apply for a Credit Card.

You can have a Credit Card and pay the entire amount within the grace period (Typically 20 days) and you don't pay a dollar of interest.

In fact, this is what 50% of the populations does. (The rich half)

One of the good things about credit cards is precisely you can charge whatever you want and that is attractive to Banks.

If a Law was written to limit those interest rates then the banks would send the money to another country with better laws.

In fact, I think the opposite should occur and Interest Rates should go higher to reduce consumer debt.

Consumer Debt is getting out of control.

Did you know the United States of America has a debt of 20% OF THE ENTIRE DEBT OF THE WORLD?

What are you going to do when the Mexicans, Chinese, Indians and Russians decide they don't want to lend you any more money?

Sell California back to Mexico?

Answer 3

Of course it is bad in law, but Governments are not taking any effective step to curb such things. Firstly, because the credit card companies have a great influence on the political parties. Secondly, the needy persons do not complain about such malpractice so that they may not lose the lonely source for their financial help.

The credit card companies take advantage of the defectinve national banking systems, which prescribe stringent, rather non-practicable conditions for the grant of personal loans etc. They are usually aftraid of bad debts. In the case of any loan becoming a bad debt, the banking systems don't have effective recovery system. On the other hand, these high interest rate credit card companies don't normally prescribe such conditions and in case of failure in payments by any person, they have effective recovery system for which they pay lavishly.

Answer 4

Poor people can manage to have good credit, too, although it is harder. I'm one of those people who lies and says their middle class when I have to charge groceries occasionally. However, a credit card shouldn't go over 20%, even if you default on your payments and are penalized. One of my cards somehow went to 25%, which I cleared up quickly with the company, but what seems fair or realistic to pay 125% for something I bought? There are laws to limit lots of things like caps on law suits for medical malpractice and so on, so there should be a limit on how high an interest rate can go.

Answer 5

banks are in the business to make money. federal law allows up to 31 percent on cards if the banks want to. its under the same law the pawnbrokers use to be under and anything more amounts to loan sharking. there was caselaw on this several years ago. many cards issued can be obtained for 0 percent for a certain period then go to nine percent or more. many cards are out there at 9 percent and if you are late one payment it jumps 31 percent until six consecutive payments are made on time and it goes back to nine percent. if you have had your card a long time, contact your cardholder and ask for a better rate and that if you can't reason with them, let them know you will switch cards to another bank card that has a lower rate. most people haven't seen it, but for years every credit card from any business was their card. if you defaulted they were out. but now everywhere you apply they are visa's, so if you default, the store or chain got their money, but the banks the visa come from get stuck with the default now. so hence, the higher rates to cover more losses. its not the poor mans card anymore. i have several friends that are multi-millionaires and have forgot to pay the bill by the date due even though they pay in full and they are jumped to 31 percent. shop around for the best rates and get the 9 percent cards and at the very least. pay the minimun amount as to not get caught in the higher rate. you can also make additional payments at anytime you want.

Answer 6

Credit cards aren't secured loans. If you default on a car or a home, they can take your car or home away from you. If you run up your credit card bill, then default on it, they don't come and take what you bought with it. This *significantly* adds risk to the banks, so the banks *rightfully* charge high interest for it. If banks can't make money then there won't be any banks. Have fun trying to get loans or finding a place to store your loot w/o them...

Answer 7

No.
The the truth is opposite. The poor benefit because credit companies wont lend any money to high risk people without charging higher interest.

Answer 8

I think credit cards should not even be allowed, they should come up with a more reliable system that wouldn't harm the economy.

Answer 9

We don't need a law regulating credit card companies.

If you don't have the cash to buy it...you can't afford it!

Answer 10

I don't think high interest credit cards should be allowed.

Answer 11

Yes. Banks take advantage of the needy.