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Created by: RealityPhil

Credit cards. Fraud by the company, not the user



Introduction

Credit card companies are tricking all of us. They offer a 0% transfer with a 1/1.5% transfer cost, but don't tell you the whole story or hide the gotchas in the small print which is designed to only be interpreted by a solicitor...

Article Content
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Back in 2008, I transferred a debt of around £1,500 to a well known credit card who offered a 0% rate for 9 months and then a healthy APR of only 15%. Great! That'll save me around £30-35 in interest each month, after the period is up and if I hadn't paid off the debt, I would have still saved around £8-£9 a month because of the better interest rate.
Okay, so you have to pay a 1.5% transfer fee, but I can't grumble about that because they still have to administer the transfer and it was still a heck of a lot cheaper than paying an APR.
What they don't tell you, and this is obviously designed to catch out the people who are having difficulty paying off debts, is that at the end of the interest free period, they have the right to change the APR even though in my situation they said it would be 15%.
I had already planned the budget, and had paid it all off by the time the interest free period ended, but the point I am trying to make is that banks know very well that many people are not able to clear the debt by the end of the offer period and they can whack up the interest at the last minute to catch them out. This particular credit card company whacked up the APR to 22%. That's 7% higher than the offer I signed up for.
Like I said, it didn't make any difference to me because I had finished paying it off about 1 month before the 0% APR ended, but I tried to imagine myself being a parent that is struggling to keep their heads above board because they fell victim to the bank's credit crunch and then get caught out by something like that!

Deceit

It is blatantly obvious that this type of behaviour is designed to catch out the little guy. As with most of the banking industry, the rich people make their money by lending it to the poor people who don't have money.
I'm not against good business, but it is truly disgusting that our government allows banks (who screwed up the worlds finance in 2007 I hasten to add) to perform such unscrupulous acts of victimisation.
The trouble is, the average person is nothing more than a number to these banks and credit card companies, and as we all know, they wouldn't think twice about destroying you and your family just to maintain their profits.
There are individuals in this world that give up everything and dedicate their lives to helping others, yet there is the other end of the scale where the fat cats are nothing more than thieves who prey on those who have very little.
Fair enough, some might say. "You don't have to borrow money from the banks" but try telling that to someone trying to feed their families who simply can't make ends meet.
Also, although many irresponsible individuals get themselves into unmanageable debt, it's largely the banks that have encouraged them into this situation along with the material world that is shoved down our throats on a daily basis.
I agree that individuals should take more responsibility, but if all the irresponsible borrowers stopped borrowing money they can't pay back, I guarantee the banks and credit card companies would find another way to maintain their profits, probably in the form of doubling mortgage interest rates.
Unless the world rallies to stop this kind of behaviour, the fat cats will still continue to receive their £million+ annual bonus while the little guys continue to struggle and have their lives torn apart.
The trouble is with the world at the moment, is that money nearly always wins!!!


End of Article

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Any comments?...6 years agoRealityPhil09296 years ago
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