As yet another sign that credit companies view their customers as little more than prey, they’re raising interest rates on even their best customers – customers who pay more than the minimums, pay on time, and never miss a payment. American Express raised my rates from 10% to 13% this year for no reason; I'm one of the aforementioned good customers and I have excellent credit.
The reason? It’s a pre-emptive strike against their customers who will soon be protected by new regulations. Once these regulations start preventing credit card companies from earning the extra profits in all the crooked ways they’ve grown fond of in recent years, they’ll have to go back to making their money the old fashioned way. Buy earning interest on money loaned. They’re playing catch-up in advance.It’s the best they can do until they dream up new ways to screw their customers that congress hasn’t figured out how to stop yet.
The reason? It’s a pre-emptive strike against their customers who will soon be protected by new regulations. Once these regulations start preventing credit card companies from earning the extra profits in all the crooked ways they’ve grown fond of in recent years, they’ll have to go back to making their money the old fashioned way. Buy earning interest on money loaned. They’re playing catch-up in advance.It’s the best they can do until they dream up new ways to screw their customers that congress hasn’t figured out how to stop yet.
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