Gary's Thoughts and Opinions

Sunday, February 01, 2009

The banks are screwing us to get through the credit crisis they created!

    Within the last 3 months, I have had almost all of my credit card companies' contact me telling me they are doing 2 things:

  1. They are lowering my credit limit to just barely cover the balance.
  2. They are raising my interest rate or changing it from a fixed to a variable interest rate.

I have to tell you this surprised me because I do not have a single "late" on my credit report, have never made a late payment, I pay more than the minimum payment and I have never gone over my credit limit. In other words I am a good customer with a great credit history. In addition I have been doing business with some of these companies for over a decade.

Bank of America didn't even give me a written notice that they were changing the terms of my loans until AFTER they had already done so. After waiting on hold for 1 hour and 32 minutes to talk to someone at BofA, I was told that the reason they have done this is because they reviewed my credit report and feel that I have too much available credit. They are concerned that I won't be able to pay all of my creditors.

What a bunch of BS! By changing my interest rate from a 7.99% fixed to a variable rate the interest rate is now 15.99%! The minimum payment has more than tripled! I have higher monthly payments and less credit available. My credit score took a 125 point drop because now all of my accounts are close to the limits because they have lowered the limits! Before they lowered my limits I was less than 50% on every account.

After they have taken billions of dollars in bailouts from MY tax money, they are now screwing me AGAIN! The government is now considering passing legislation to make these actions illegal but unless they make it retroactive I am still screwed!

Now at this point because they have screwed me, I am no longer able to make the payments on my credit cards and still put gas in the car, pay my car payments and insurance, pay my utilities and buy food. I have looked at my expenses for ways to cut back so as to afford to make the credit card payments and there is not near enough there to make a significant difference.

I do not own a home so I can't refinance to pay off the credit cards. Even if I did own a home, my credit score has tanked as a result of the lowered credit limits so I wouldn't even qualify for a loan. This leaves me only 2 options:

  1. File bankruptcy and reaffirm my car.
  2. Not pay the single largest creditor which will free up $685 a month. This just happens to be BofA! J It would of course go on my credit report, but my credit is already screwed and having a single account in collections seems to be better than a bankruptcy.

In case you didn't know, bankers run this country and do not give a damn about you or me. The only thing they care about is making money and do not care who suffers as long as there is a profit. The recent bailout of Wall Street and the banks are proof. The Federal Reserve is the largest privately owned bank in THE WORLD and they are in control of our country. We are getting screwed and can't do anything about it.