How Credit Card Companies Have Legalized Theft
by Michael Chekian
Why do rich people get cheap credit while you struggle and pay way more in late fees, interest, over the limit fees, transaction fees, etc.? Is this fair? According to the most recent statistics, America’s consumer debt hovers around $2 trillion. So if you owe money you are in good company. Credit card issuers try to “steal” accounts by offering low teaser rates. They like to target people with low incomes, high debt, the elderly, and those with credit card problems.
They have sunk to new lows by offering pre-approved cards to consumers with credit limits they could not possibly afford, overextending credit lines to retirees and those newly emerged from bankruptcy.
The ideal consumers for creditors are the ones who charge the maximum and make the minimum payment. More than $50 billion is paid in finance charges every year!
Typically, the teaser rates start between 5.9 and 14.4 percent. After six months, they shoot up to 17 percent, 24 percent, 27 percent, and more! An initial 8.9 percent interest rate with a $2,000 balance would carry an annual finance charge of $178. That figure would almost double to $349 if the interest rate were 17.45 percent!
Fight Back! Live like the rich: change your poor FICO credit score (in 500’s) to a great
one (700’s)!:
- Send a cease and desist letter by certified mail to any bill collectors who bother you;
- Order your FREE credit report from www.annualcreditreport.com from all 3 bureaus;
- Or call them: Experian (800) 682-7654; Equifax (800) 685-1111; Transunion
(800) 888-4213; - Dispute anything on your credit report which is not accurate;
- Hire a legitimate credit clinic by calling the North American Consumer Alliance
(800) 297-4934; - Clean your credit report: the law gives you the right to dispute negative items on your credit report, and you may include up to a 100 word explanation of your dispute(s);
- Pay off your debts, even small ones;
- Pay with cash; pay on time, and pay more than the minimum amount (even if it’s $5 more!);
- Apply for secured credit cards and get information at www.bankrate.com;
- Do not have more than 3 open unsecured credit cards; if you have too many, it looks like you are desperate or overextended.
BIOGRAPHICAL INFORMATION
Michael Chekian has been practicing law in California since 1993. Mike represents consumers in bankruptcy, violations of debt collection laws, immigration, and real estate fraud. He can be reached for a free, courteous, no hassle consultation at (877) 243-5529 or mike@cheklaw.com.