[Rhodes22-list] for your consideration - credit cards

[Robert Skinner]

Something more for consideration:

I have been using a Bank of America credit card for 
20 years, and have always paid by bill on time.  I 
used to have 25 days to pay the bill.  They have 
made a hell of a lot of money from me - about 5% of 
everything that I have bought over that time.  But 
now that is not enough for them.

Recently they have tightened up their terms to 20 
days.  In addition, they now take their own sweet 
time after the closing date getting the statements 
into the mail.  The net result is that I have only 
a couple of days to get off a check.  If I plan to 
get out of town for a couple of weeks, I have to 
get or calculate a balance and pay in advance.

The alternative is a shower of fees and interest 
charges, which have been increased as the grace 
period has been reduced.  So far I have dealt with 
it without getting bitten.

I checked, and Chase bank and Discover have also 
changed their terms in an identical way.  It is 
clear that allowing Bank of America to buy out the 
small local banks and their credit card 
competitors has materially reduced competition and 
effectively eliminated consumer options.  They 
provide a cover for the minnows to hide under.

The effect, if not the intention, is to game the 
customer into paying late.  I fully anticipate 
that the pay period will be shortened to 15 days 
in the next 5 years, forcing customers to allow 
them to draft a bank account or be late.

Why not use debit cards?

The Hannaford security breach exposed tens of 
thousands of customers bank accounts to raiding, 
and thousands had to cancel their debit cards 
and/or bank accounts.  Electronic communications 
are not by any means secure, and a debit card 
breach (by law) is not immediately communicated 
to the customer.  It took Hannaford 3 months to 
'fess up.  When the money is already gone from 
your account, it is up to you to scramble to get 
it back -- eventually -- while checks bounce like 
Ping-Pong balls and your credit is ruined.

Rik, it is not quite so simple as who pays 
interest and who collects it.  We have allowed 
the consolidation of financial power to the point 
where the average guy has few options if he has a 
run of bad luck.  The walls cave in.

While some are concerned that we might tax them 
for the benefit of others, it is increasingly 
obvious that the corporations are being given 
relatively unfettered license to farm the populace 
for their own benefit.

There is something wrong here.

And, by the way, my home is paid for.

/Robert

-----------------------------------------------------
Rik Sandberg wrote:
> 
> John,
> 
> Glad you liked my quote, but you may have misinterpreted the message.
> 
> Actually, it is not supposed to be a slam on bankers as much as a wakeup
> call to folks who can't seem to buy anything without paying for it on
> time + interest. The bottom line cost seems to never be considered
> anymore, only the monthly payment. Compound interest is a beautiful
> thing when it's working in your favor, but a tough adversary when it's
> working against you.
> 
> One's "home" isn't HIS home until he's paid for it.
> 
> Take good care,
> Rik
> 
> "Is this gonna' put me in a bad mood? 'Cause I'm not usually this pleasant".... Rik Sandberg
> 
> Chris Geankoplis wrote:
> > Thanks John!
> > Chris G
> > ----- Original Message -----
> > From: "John Shulick" <jsbudda at verizon.net>
> > To: <rhodes22-list at rhodes22.org>
> > Sent: Saturday, May 17, 2008 9:56 PM
> > Subject: Re: [Rhodes22-list] for your consideration
> >
> >
> >
> >> <
> >> "There's a reason why bankers drive Cadillacs and the rest of us drive
> >> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
> >> Sandberg
> >>
> >> "all through this world I've traveled I've met lots of funny men some rob
> >> you with a six gun others
> >>  with a fountain pen and through this world I've rambled and through this
> >> world I've roamed you never seen an outlaw drive a family from there home.
> 
> >> "Arlo Guthrie.  A fine comment giving the credit crisis we face as a
> >>
> > nation.
> >
> >>                           JOHN Shulick
> >>                                Pgh. Pa.
> >>
> >>
> >> --
> >> View this message in context:
> >>
> > http://www.nabble.com/Harmony-at-Mackey%27s-Marina-tp17251619p17299273.html
> >
> >> Sent from the Rhodes 22 mailing list archive at Nabble.com.
> >>
> >> __________________________________________________
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> >>
> >>
> >
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> >
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-- 
Robert Skinner  "Squirrel Haven" 
Gorham, Maine         04038-1331
s/v "Little Dipper" & "Edith P."