Here's an idea regarding credit card companies that might be worth considering....

[Blackhatjack]

Credit Card Companies sent their CEO's to Congress to explain that the cost of credit card debt is 'repriced' on the 'credit worthiness of consumers model', and how the default rates of as high as 29.99%-%50 were justifiable where a card holder missed making one payment on time to them or someone else.

Well, that model only works where all credit card holders fall in line and cooperate with it.

I've heard of one idea which might wreck this model and make it harder for the credit card companies to continue this unfair gouging of consumers ...

EVERYONE with a credit card takes a payment holiday next month! DO NOT MAKE A PAYMENT OF ANY KIND TO ANY CREDIT CARD COMPANY .....

This would put everyone on the same level ... everyone would have missed one payment, and be subject to the old default rate imposition rules. Then when the late fees and default interest rate is imposed, everyone refuse to make the next monthly payment unless the late fees are waived and the original interest rate is restored.

If the credit card company restores the original interest rate after an intentional missed payment then they would have a hard time justifying raising anyone else to the default level on a 'repriced credit model' explained to Congress --because EVERYONE would be in the same boat.

I'd love to see them deal with zero payments coming in one month as people unite for fair and honest treatment.

What do you think?

[Kansas Wyatt]

1. Republicans would pay just to wreck the plan.

Seriously, a majority of people would not get on board, and if they did, the media would do everything to censor it and put fear in the public.

[Kip Humphrey]

2. Key flaws in your idea: "EVERYONE", and "intimidation of fear" imposed by lenders.

[JoDog]

3. I did something like that

declared bankruptcy last Wednesday. Come and get me evildoers!

[Blackhatjack]

5. Of course here the idea is to AVOID Bankruptcy n/t

[Blackhatjack]

4. IF the great majority did not participate then the 'repricing credit model' won't be replaced...

IT takes cooperation ... just like protesting the Vietnam War took cooperation.

[Turbineguy]

6. The credit card (it should be remembered)

is a tool of convenience. That's all. But like all conveniences (like elevators for example) you can become dependent on them.

We want the convenience but would prefer not to pay for it.

To charge somebody who is in trouble, a special very high default rate would seem counterproductive. But in our upside down financial system, it makes sense. When you sit on someones chest, it makes them want to breathe even more. Who are you going to pay first? Your kindly landlord or your 29% charging credit card?

He who gets the most money first wins. No matter what the cost. It's living in a Republican paradise.

[Uben]

11. CC companies would have to.....

..go back to only issuing cards to people who are credit-worthy....something they should never have gotten away from!

[Turbineguy]

13. Also

Credit card companies get a commision on every transaction whether you ultimately pay the bill or not. They get that money up front. Therefore, the CC companies push the "buy, buy, buy" agenda and give cards to those "not credit-worthy". The default rate puts people who for one reason or another do not pay in the same cohort. Those who eventually do pay pay for those who eventually don't.

This would seem inherently fair to those who always pay on time etc.

But as a practical matter, the system impoverishes those who get in trouble.

[RUMMYisFROSTED]

7. Simpler plan: Congress imposes a Prime +5% law.

Currently 3.25%-----> Credit card ceiling equals 8.25%.

[elocs]

9. My current 4.90% Capital One card is going up to nearly 14%,

so 8.25% looks good.

[RUMMYisFROSTED]

10. Usury. Plain and simple.

And the 20+% rates are inhuman.

[elocs]

8. The reason it would not work is the same why large, broadscale boycotts generally do not work.

Everyone would not join. Not even close to everyone and those who were brave enough to try it would find their credit ruined and the rate on all of their credit cards skyrocket. Believe it or not, there are people who have worked many years to get good credit scores.

Nice try to try and think outside of the box, but the idea is seriously flawed.

[pipi_k]

12. You speak the truth!

I personally worked too hard and too long (over 20 years) to repair a bad credit rating.

I now have great credit.

I'm not going to take a chance of ruining it. Or having my credit score drop. It's because of Mr P's and my credit scores we were able to refinance our home at a lower rate, get needed vinyl siding, replace some old, inefficient major appliances, and buy a decent vehicle.


So I'll say to the advocates of this idea...start without some of us.

But go ahead and let us all know how it works out.