Steve
05-28-2007, 06:32 AM
WOW! What these credit card companies get away with is amazing! "70 percent of the credit card industry's revenue comes from interest and penalty rates." I think we need a major overhaul to protect consumers. Have you ever heard of a "double-cycle billing?" I bet if anyone else tried to do that they would be sued and lose!
Credit card companies: As rough as ever (http://money.cnn.com/2007/05/25/pf/credit_card_survey/index.htm?postversion=2007052510) - Consumer Action found that almost half of the banks surveyed practiced what the group characterizes as "deceptive" methods of calculating interest. One is known as double-cycle billing - say you charge $1,000 one month, and pay off $900 on time, a bank may charge you interest on the full $1,000 in the next month and beyond until the remaining $100 is paid off.
A report from the Government Accountability Office estimated that about 70 percent of the credit card industry's revenue comes from interest and penalty rates.
Credit card companies: As rough as ever (http://money.cnn.com/2007/05/25/pf/credit_card_survey/index.htm?postversion=2007052510) - Consumer Action found that almost half of the banks surveyed practiced what the group characterizes as "deceptive" methods of calculating interest. One is known as double-cycle billing - say you charge $1,000 one month, and pay off $900 on time, a bank may charge you interest on the full $1,000 in the next month and beyond until the remaining $100 is paid off.
A report from the Government Accountability Office estimated that about 70 percent of the credit card industry's revenue comes from interest and penalty rates.