For many years credit card companies have been taking advantage of thier custmers by participating in unfair business practices. There is no regulation for credit card companies, and they can charge any interest rate they feel, and change it whenever and to whatever they fell , whether or not you agreed to it.
I believe that there should be a cap on interest rates for all businesses and companies that lend credit or capital to any person or business. This will increase consumer confidence, and reduce the risk for unfair business practices and usury.
I will suggest the following:
1. Credit card interest rates should be caped at a maximum of 8.9%, even in the case of default or any other failure to pay bu the borrower. This is aso non-negotiable, so the borrower cannot be circumvented by legeslation that changes the wording of contracts and can simply return to thier old ways of business.
2. The "universal default" clause imposed by all credit card companies will be considered illegal, and will be placed under the category of "predatory lending". The term "universal default", is a clause used by all credit car companies to raise intrest rates for ay reason, at any time, to any rate. This needs to not only be banned, but made illegal with penalties including jail time for imposing "universal default".
3. Credit card companies will need to pay reperations to all customers who have paid unfair intrest rates. These rates will be considered any rate over the 8.9% cap that will be imposed, and these companies will be forced to pay every individual the amount of intrest that has been paid over the 8.9% cap, no matter how long the interest rate have been over 8.9%. These credit card companies will be forced to pay in full the back intrest that has been overpaid to them for years, and must pay within 90 days, otherwise risking an 8.9% intrest rate adjustment to the payments owed, plus late fees for failure to pay.
4. Credit card companies including, CITI Bank, Bank of Amerca, Visa, Master Card, discover Card, American Express, etc. (ex, every credit card company that has chargerd more than 8.9%) will be forced to make a public appology to thier customers for engaging in useury practices, and will be forced to undergo consumer fairness training, and also sign a legally binding doccument stating that any attempt to rais intrest rates over 8.9% will result in legal action resulting in fines, seisure of assets, and/or prison.
These are the demands of millions of people who have been taken advantage of by credit card companies who have engaged in the practice of adopting the "universal default" policy , and must rectify thier greed and failure to be fair to thier customers. The practice of useury must stop , and the credit card companies must be held responsiable for stealing billions from innocent people who pay thier bills on time, yet never get ahead.
