Peoples Defender: US Economic Meltdown - Credit card crises now looming in America: - by Danny Bubp Ohio State Representative

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US Economic Meltdown - Credit card crises now looming in America: - by Danny Bubp Ohio State Representative

"Credit card companies have dozens of reasons, I should call them excuses, for raising our interest rates. I have read that these large banks have formulas for their computers to automatically raise rates when they can determine that a family is trapped in a debt too large to handle. Some of these large banks are as bad as loan sharks. When the banks' computers detect that a consumer is near the maximum on his card and is only making the minimum payment, the rates are raised. Why would credit card companies push someone who is already in trouble into deeper trouble? Because they can. These large banks are now protecting themselves just like they did with the sub-prime mortgage fiasco. They are transferring their risk on bad credit card loans to insurance companies. We could very easily find ourselves in another national financial crisis. And this crisis would be handed to the taxpayers, just like the mortgage crisis was. However, the gigantic banks that control most of our banking systems are only interested in short-term profits and are working against the long-term health of the US economy."