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Credit card abuses are widespread and varied

By Helen Huntley, Times Personal Finance Editor
In print: Sunday, July 6, 2008

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Last week I wrote about the Federal Reserve's proposals to crack down on abuses by credit card issuers. This week I'd like to share excerpts from comments on the proposals that Tampa Bay residents sent to the Federal Reserve. They are among more than 8,200 people who have taken the time to write.

My credit is and was excellent. Bank of America started raising my interest rate every month. I started at 14 percent and within six months I had an interest rate of 28.9 percent. I had no late payments, and I was paying double my monthly minimum. When I called and questioned why, I was told I had not paid off a significant amount of the balance. At 28 percent, there is virtually no way one can pay off a card.

David Stringfellow, Tampa

The current system is part of the reason that we are going into a recession — the common people are up to their necks in a pool of drowning financial obligations!

Sita Fields, Clearwater

The most blatant abuse that should be curtailed is credit card companies' ability to change interest rates at will. The contract rate should not be subject to change without the customer's agreement.

Ronald Fuller, Palm Harbor

I have been charged $30 for a late payment fee when my bill was mailed in plenty of time but they delayed posting it to my account.

Vernetta Mullins, Tampa

Stop them from applying your monthly payment to low-interest debt first. Give us time between the bill and the due date so I can always pay on time. Stop interest charges on debts paid off the previous month.

Virginia Carrion, Tampa

I have never missed a payment on any credit line I have or have had, and to raise my rates is ludicrous. Chase has done this to me three times for no apparent reason other than "changes in my credit report," which were nonexistent.

Ron Dailey, Tampa

My son almost lost his home because of the interest that kept going up and up on him. He didn't realize what was happening until it was almost too late.

Martha Kenney, St. Petersburg

Want to add your 2 cents? E-mail comments to regs.comments@federalreserve.gov (write "Regulation AA: Unfair or Deceptive Acts or Practices" in the subject line) or send a letter to Jennifer Johnson, secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, D.C. 20551.