Banks again in the crosshairs (April 24)
By Chuck Doud
The Madera Tribune
Congress last year was criticizing banks for lending too loosely, giving mortgages to folks who couldn’t repay them, even though previous Congresses had passed laws enabling and even requiring such loans in certain circumstances.
Now, Congress is getting after the banking system for being too tough, and is threatening to make rules which would prohibit banks from raising fees on credit cards.
If you have a credit card, you may have received a missive from your bank telling you that rates for certain transactions — such as cash advances on your card — are going up. The same missive, or perhaps another, may have informed you that your credit limit has been lowered.
These terms may have been dictated even though you pay promptly and do not use your card irresponsibly.
Some people take umbrage at the requirements being imposed on them and immediately write their represen- tatives in Congress to complain. Those representatives, who also may have received such letters from their credit card companies, figure they have nothing to lose if they put the card grantors — aka banks — on the grill and turn up the heat. They hold hearings, they propose legislation that would make it harder for banks to make changes in credit card arrangements.
Even the Federal Reserve has gotten into the act, anticipating what Congress might do, imposing new regulations.
Credit card users have options, of course. The first and most logical is, don’t use the card of a bank that has rules you don’t like. Second is pay off the balance as fast as you can, to avoid higher interest rates. Third is, budget the higher fees into the cost of buying with a credit card (maybe you’ll decide to put off the purchase). Fourth is borrow money from your bank — if you qualify for the loan.
