I have been a Wells Fargo customer for 20 years. I have a retirement account, a business account and a credit card with them. I have a considerable chunk of money invested with them, have a high credit score, and pay more than the required payment and on time each month.
Today I was rewarded for being a good customer with a notification that Wells Fargo is reducing my credit line, increasing the interest rate of my credit card by 3%, and cancelling the travel perks for using the card.
There has been no change in my credit score, employment or spending habits. They are just raising the rate and fees because they can.
Banks are doing everything they can right now to increase fees, interest rates and other charges before federal regulations to curb their activities take effect next year. They are raising rates based on your credit score (and running it monthly to nab you), raising your rate if you take out a loan with some other source (such as a car loan), and if you pay only your minimum monthly payment.
Banks that recieved bailout money paid for by us taxpayers are the worst culprits in squeezing consumers. They blame the economy. I blame them for their greed > that led to their loose lending practices> that backed the housing bubble.
They helped create the downward spiral the economy is swirling in, then had to be saved on the backs of taxpayers. As an added insult, they are sticking it too us right when people can't stretch their budgets any further.
We consumers get the short of end of the stick once again.
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Comments: 9
They really are playing catch up. I blame it on the yuppies that grew up to be greedy, careless American businessmen.
VTY,
Eddie R.
When I called to object to this change, I was told they were made in direct response to HR 627. When I mentioned that was anti-predatory legislation, an employee explained the legislation backfired because it was past hastily with vague language allowing for these increases. I was offered an opportunity to apply for a platinum card for a lower interest rate until I cited my income status as cause for my alarm. Then I was transferred to another employee who threatened to close my credit card - that is and always has been in good standing.
There is information on what action to take to fight against this consumer assault in a blog @ http://www.sassyalternativemusic.com/speakyourtruth.
I suggest everyone who has any money invested in any bank, credit union or other institution that strikes a blow to the middle class to WITHDRAW EVERYTHING as well as write your United States Senators, Representative and the President demanding they punish defiant retaliations by Predatory Lenders with IMMEDIATE SUSPENSION of BUSINESS LICENSE. If the government is serious about protecting consumers, it ought to be serious about closing companies that violate the public trust.