[Rhodes22-list] for your consideration - credit cards

Mon May 19 01:14:22 EDT 2008

Robert,

In the last 5 to 10 years, most credit card issuing banks have not only 
decreased the effective "grace period."  They have dramatically increased 
the late fees ($39), returned check fees ($55), over the limit fees ($48), 
etc.  In addition, they have increased their interest rates (29%, avg daily 
balance) well beyond what used to be termed usury.  My approach has been to 
always pay on time, usually electronically (instantaneous transfer.)  I also 
download statements several days after they are available, on line, to 
provide enough time to make the payment on time.  Since I depend on 
purchasing using a credit card, I am willing to play their game, using "cash 
rebate" credit cards when possible.  When I get tired of playing, I will no 
longer be a customer of theirs.

I, too, am very happy to have celebrated ownership of my residence.  In the 
coming years, it may be more important than ever.

Mike
s/v Shanghaid'd Summer ('81)
       Nissequogue River, NY

From: "Robert Skinner" <robert at squirrelhaven.com>Sent: Sunday, May 18, 2008 
10:10 PM
> 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."
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