Credit card companies continue to treat consumers like targets as they jack their interest rates to as high as 33%. The Pew research company found that 99.7% of credit card companies change their rate without notifying the consumer, of which they have a contract with.
This is simply outrageous and it is outright lone sharking.
Consumers have a contract with a credit card company and for the company to change the terms of that contract they should have a mandatory obligation to notify consumers. I am in favor of business, but this borders on illegality. There needs to be regulations in place to crack down on this practice.
I argue that with 2 people entering into a contract it should be illegal for one of those parties in the contract to vastly change the conditions of the contract. Especially when it comes to the terms of a loan. Imagine the outrage if you signed up for a mortgage at 6% and the mortgage company had the right to change the interest rate to 20% without notification and within a one month period. It is simply outrageous and should not be put up with any more.
Some would argue that the example above is not a good one, as adjustable rate mortgages fit in that category. However, mortgage companies have regulations on them and the mortgage company cannot change the rate beyond a certain percentage amount within a fixed period of time.
Credit cards are under no such restrictions and can literally change your rate from 6% to 20% in one month... and they don't have to tell you about it.
This needs to change and people need to demand that it change.
Lou Dobbs on the credit card ripoff
