corporateabuse.net

We periodically read other consumer complaint sites to see what active trends in business/consumer relations lie. And every so often there is an articles that will not fit the demographics of a site. On Monday June 15th 2009 major credit card companies announced a rise in consumer card defaults, and some consumer sites have picked up on this information. The rise across the board is roughly 1 percent. Although that seems small in contrast, to big business that means serious a serious decline in dividends paid out to share holders.

Complaintsboard.com has an article posted up that we believe does not tell the whole story. Sure, explaining in detail the rise and fall of charge offs is at best daunting. What strikes us as odd, is complaints board article seems to be one sided. The author, who by the way forgot to post their name,  did in the last sentence ask that consumers not be surprised at the long term effect of consumer card defaults. But for the most part seemed to favor big business, take for example this excerpt “Considering you’re the ones in charge of the company, you know the company’s success depends on your decisions. So you realize that if your customers aren’t paying back their loans, it’s because they can’t afford to. You also come to understand that because they don’t have cash to spend, they are coming to depend on their credit cards to pay for their everyday costs even when they know they won’t be able to pay the bill once it comes.” Over the last year, credit card companies have been raising the interest rates on consumers across the board. We have received e-mails from consumers who claim to have credit scores in the low 700’s and a moderate debt to income ratio, yet their interest rates went from %12 to %22.

No, the issuer decided this. If you lost your job, and saw no other way to feed your family but use this card would you then use it? Yes you would. A few years back anyone and everyone was able to get multiple credit cards, with extremely high limits. If you received a credit card with a $10,00 limit, did you return it, and ask for a smaller limit? The consumer should not take all the blame to failures in our credit hungry society. There has to be a shared responsibility with the greedy corporations, who themselves were over extended. Now I hope this article will kind of balance out the inaccuracies that were posted up on other sites that were made to help people out. And remember, when in doubt read your credit rights over at the FTC’s website.

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