WARNING: Banks are coming after more of your money again – or still…..

 As the Federal Reserve is continuing to keep interest rates artificially low, the great interest rates that we are seeing are allowing banks to fund mortgages with some pretty fat margins. The same banks that were bailed out are now in part benefactors of the same Fed policies that are intended to get people buying houses again.  It makes sense – our economic recovery is dependent on our mortgage recovery, but if recovery is the goal, and the banks are already double dipping on rate margins and bail out money, then is it fair that they are triple dipping by raising credit card rates?

 After telling the banks that they have to get their credit card rate hikes under control, the banks told Congress that they need more time to get geared up for the Congressionally  mandated changes. Congress granted them an extension through February.  So how are the banks using that time to gear up for the required changes?? They are hiking their rates!  All in time for the holiday shopping season.  Isn’t that a great way to stimulate the economy?! Chase and Citi have both raised their rates to as high as 30% – for people who have never had a late payment – ever.

 Here is what you can do about it. The banks are required to send you a letter that will trigger the higher and permanent rate.  If you get a rate hike letter in the coming weeks, you need to stop using the card. Call the bank and tell them you are opting out. This will freeze your current rate until you can transfer the balance to a card with a lower rate or simply pay it off.

Barney Frank and friends are working overtime to get rid of all those unscrupulous mortgage brokers. You know, those dishonest people who shop rates for you at the different banks. His goal is to get rid of any competition for the banks. There are now 4 major bank entities left, thanks to the government’s involvement. Citi, Bank of America, Chase and Wells Fargo – all now deemed “too big to fail”.  How any of this is good for you, the consumer, is anyone’s guess. The banks continue to show over and over again that their only concern is their own pockets.