Companies still push bad credit ideas on people - Is there no shame?

robinseidner — Thu, 16 Oct 2008 09:43:20 -0500

I had to take a moment to rant about the continued availability of the kind of credit that gets consumers into trouble. It's amazing to me that companies are still pushing high-interest credit on people during these economic times. Here are my two examples from this week, one mine, one experienced by my mom.

I had to call Capital One, my credit card company, to get reimbursed for a plane ticket. After I finished the transaction, the rep then offered that I could transfer my other credit card balances to Capital One. Since I don't carry a balance and told him so, I declined. Then, he had the nerve to offer me checks so I could get cash out. You know, those terrible checks your credit card company sends you so that you will spend more money at a higher interest rate? I have to say, I lost my temper, told him that he ought to be ashamed of himself for continuing to offer these terrible credit traps to customers. People are defaulting on their credit card debit! Doesn't it make more sense to stop these horrible lending practices?

My mom had to buy a new refrigerator last week. So, she went to Sears and bought one. If she used her Sears card (unused for close to 10 years), they'd waive the delivery charge. So, she said sure, knowing full well she would pay it off the minute she got the bill anyway (did you know that department store credit card interest rates are ridiculously high?). Then, they offered an additional 10% off the price if she financed with a "no payment, no interest" due October 2009. What this plan really means is sure, you don't have to pay until then, but if you don't pay the whole thing off by October 2009, you owe back interest from the day you took out the loan. At a very high rate.

Why are these credit traps still being offered to consumers? Its outrageous!

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Companies still push bad credit ideas on people - Is there no shame?