CC Company bails

[Pappy]

One of the credit card companies I use sent me a letter today stating they are done. Advanta Business Cards will be Out as of May 30th.

Interesting....shame to, was agreat card, and they have been the card company i've used for almost 7 years:ermm:

[protraxrptr17]

Do you still have to pay your debt (if any)? I'm sure you do, but how sweet would that be.:D

[Pappy]

Ofcourse:p

I just thought it interesting that the trust company that backs the CC decided it didnt want to be in the CC backing business anymore. I reckon it has to do with Obama overhauling the CC companies. Can't say that I blame them.

I wonder whats next

[JIM GRACE]

advanta is going out because they are a small buisiness credit
card company and with the economy the way it is small buisiness'
are defaulting on credit card lines and advanta cant survive.

also other cc are giving you options like close your account and
keep your nice intrest or keep the the account open and pay 20+
intrest rate. the reason why is that most credit card companys
are out of money and cant support credit lines any more...

[Pappy]

It states in my letter that the company backing the card is opting out, not advanta themselves. I have 2 other cards from the same company and no letter and I even called them, no changes.

I dont blame them for not wanting to take the risk any longer. I also was kind of glad to see some stabilization to garuntee us rates or atleast give us ample notice of a rate change, but my gut tells me more will follow suit as they do not want the government telling them how to run thier company..good or bad.

[derekhonda]

Originally posted by Pappy
But my gut tells me more will follow suit as they do not want the government telling them how to run thier company..good or bad.

Yup, just more regulation. This new bill only helps out people who were irresponsible to begin with, seems to be a trend....

[rundrave]

only problem is that they are tightening up the restrictions now, and a when they all go in to effect the same people who cant pay or afford a credit card today are going to b!tch that they are not able to get approved for one with the new standards

[<DRS>GPF]

Originally posted by derekhonda
Yup, just more regulation. This new bill only helps out people who were irresponsible to begin with, seems to be a trend....

after years of lax regulation/oversight in many areas, its about freakin' time..
greed has driven the economy where it is now and nobody wanted to stop it for fear of losing campaign funding..

the bill also helps out consumers who pay their debts, but are/were still getting the interest rates raised with little or no notification.
this was happing already, well before the bill was announced, but again.. greed allowed it to continue.

imagine making a cash withdraw to find out later the interest had been raised from 12% to 25%.. $25 on a $100 is rediculous and its about time they made CC companies be more up front to consumers. they were "loan-sharking" those who werent watching plain and simple.
i caught capital one twice in 2 yrs, raising my interest up without notifying me whatsoever. no reason or rhyme, but they put it back down after a verbal lashing.. my CC is used often and paid up often, but im dropping it soon as of the recent letter i received. (unless by chance they heed my words, which seems unlikely)
discover tried it early last fall so i told them i no longer needed their services.. they later sent me new cards, trying to get me back, but the rate was still too high(21.xx%... it was 12.xx%)

CC companies still troll colleges handing out cards to people without jobs, which is much of their problem to begin with.

this will "lean" lending practices, which were well out of control and im perfectly ok with it..
minimum wage workers shouldnt be buying "no money down" $30 - $40K vehicles and $200K homes with 35yr payment plans..

[08mxkfx]

Whats funny is i work full time and I'm 19 years old and i can't even get a credit card. Ive applied for every card out there and i keep getting declined for no credit history.

[derekhonda]

Originally posted by <DRS>GPF
after years of lax regulation/oversight in many areas, its about freakin' time..
greed has driven the economy where it is now and nobody wanted to stop it for fear of losing campaign funding..


This economy works on a invisible hand theory. Ah Screw it i'm not even gonna give you a lecture, just an example.

Back in the 90's, the clinton administration decided that the housing market needed some more regulation so people could afford better houses even though their wages didnt add up to the monthly payment they were supposed to be making. That regulation 10 years ago sure is workin out good for us today isnt it.

[Pappy]

Originally posted by <DRS>GPF


this will "lean" lending practices, which were well out of control and im perfectly ok with it..

minimum wage workers shouldnt be buying "no money down" $30 - $40K vehicles and $200K homes with 35yr payment plans..

Sure they can, it WAS a free country. Now we SHOULDNT be bailing out companies that were irresponsible in lending....but we are. The end all will be to help the companies and in the end ,the little man who does right by the world will pay the bill. I geuss it's easier to blame the people and excuse the companies and hand them some heavy cash in the process.

Same ****, different day. Just a new spin on it all by a new figure head.

[Quad18star]

Originally posted by 08mxkfx
Whats funny is i work full time and I'm 19 years old and i can't even get a credit card. Ive applied for every card out there and i keep getting declined for no credit history.

If you can make it through life without a credit card, you're better off. I've got a card , and the only thing that really gets put on it , is my internet bill. Everything else I pay for with cash ... if I don't have the cash, I don't buy it.

Another helpful hint , always carry about $60 in cash in your wallet, that way if something happens and your debit card doesn't work, atleast you'll have some cash to pay for something ( ie gas or whatever). I keep cash in my wallet that I don't touch unless it's needed in an "emergency"

[<DRS>GPF]

Originally posted by Pappy
Sure they can, it WAS a free country. Now we SHOULDNT be bailing out companies that were irresponsible in lending....but we are. The end all will be to help the companies and in the end ,the little man who does right by the world will pay the bill. I geuss it's easier to blame the people and excuse the companies and hand them some heavy cash in the process.

Same ****, different day. Just a new spin on it all by a new figure head.

while i agree we shouldnt be bailing any of these unscrupulous lenders, not pointing a finger at the borrower sounds a bit like blaming the bar owner for the accident because the guy bought his beer there.. or the gun shop that sold the ammo..

just because someone is handing out cookies, doesnt mean its ok to eat enough to get sick.

it seems personal responsibility is lax these days(decades), enough so that big brother needed to step in.
if people dont want the govt in their business, then they(the masses) should straighten up and be more responsible.

[Pappy]

We will have to agree to disagree about big brother and how much involvement he should have in a persons life. The free market has a way of removing those that get greedy or cant play by the rules, just like nature weeds out the slow and weak.

[scuzz]

Just saw someone in another forum had the same thing happen to him. His car was for his business and he would use $17k in credit (and pay it off) each month.

Now he's looking for a card that will allow him to charge that much. Better go kiss some plum butt over at AMEX.

[<DRS>GPF]

Originally posted by derekhonda
This economy works on a invisible hand theory. Ah Screw it i'm not even gonna give you a lecture, just an example.

Back in the 90's, the clinton administration decided that the housing market needed some more regulation so people could afford better houses even though their wages didnt add up to the monthly payment they were supposed to be making. That regulation 10 years ago sure is workin out good for us today isnt it.

actually it was done much earlier..
http://en.wikipedia.org/wiki/Community_Reinvestment_Act

originally signed by Carter and "fingered" by every sitting president afterwards..
while the original may have been the in "the peoples' best interest, it hardly stayed that way..

like the saying sort of goes: give an inch, but leave a means so a mile could be taken without everyone knowing and profits could be maximized.

[<DRS>GPF]

Originally posted by Pappy
We will have to agree to disagree about big brother and how much involvement he should have in a persons life. The free market has a way of removing those that get greedy or cant play by the rules, just like nature weeds out the slow and weak.

i honestly think they(the govt.) should let the market bear out the winners and losers.. from company to consumer.

allegedly, the money now being "handed out" comes with strings attached and these businesses and states arent liking it..
they voted for the free money, whats this crap?


but again, i see the real problem as the senators and congressmen who wont stop taking funding from companies who only want to manipulate laws/bills to make more money.

seatbelt laws are a prime example.. insurance costs still rose after law was passed, at an even higher % rate than before the law existed.. the excuse was more drivers on the road or something lame like that..

[Pappy]

Well I see that as part of the bigger problem...the government shouldnt be in the money making business. Term limits should be in place (never happen, too much money for poloticians)

The good bad and ugly should pass or fail on thier own. The strings are what we wanted toa void, what alot of americans voted for(change) and geuss what, same crap with a new costume.

I would have prefered MCCain...not because he was the better candidate, but we knew what direction he would go and it could have been better countered by the Democrats. All we have now is a free pass and no restraint

[scuzz]

*cough*federalreserveisasham*cough*

***later edit***

I agree wholeheartedly with you about Obama.

[derekhonda]

Originally posted by <DRS>GPF
actually it was done much earlier..
http://en.wikipedia.org/wiki/Community_Reinvestment_Act

originally signed by Carter and "fingered" by every sitting president afterwards..
while the original may have been the in "the peoples' best interest, it hardly stayed that way..

like the saying sort of goes: give an inch, but leave a means so a mile could be taken without everyone knowing and profits could be maximized.

You are very correct, it was started in the 70s by the dems, and been tweaked ever since, just as you stated. It was when clinton added more regulation and started the "sub prime" loans that the housing market began to inflate and then burst.

Now I read through your wikipedia source, so do me the favor and watch this youtube video and then tell me why more regulation is a good thing.

http://www.youtube.com/watch?v=1RZVw3no2A4

[<DRS>GPF]

Originally posted by derekhonda
You are very correct, it was started in the 70s by the dems, and been tweaked ever since, just as you stated. It was when clinton added more regulation and started the "sub prime" loans that the housing market began to inflate and then burst.

Now I read through your wikipedia source, so do me the favor and watch this youtube video and then tell me why more regulation is a good thing.

http://www.youtube.com/watch?v=1RZVw3no2A4

the video, though not untrue, is "right" leaning and left out some facts about how well the influence was spread across both parties.. the "dems" were the minority for much of Bush's terms and during both of the alleged attempts to "stem the tide". it was more than democrats that stopped the bill.

more facts conveniently left out of the video:
"At least 20 McCain fundraisers have lobbied on behalf of Fannie Mae and Freddie Mac, netting at least $12.3 million in fees over the past nine years."
"McCain tapped Culvahouse, the former Reagan administration official, to head his search for a running mate. Currently a partner at O’Melveny & Myers, Culvahouse lobbied on behalf of Fannie Mae in 1999, 2003 and 2004, according to Senate records."
http://www.politico.com/news/stories/0708/11781.html

not strickly picking on McCain, but the video used him as an example so...

the video wants to blame 'the left', when there is plenty to go around.

why would i be "ok" with more regulation? because letting those greedy bastages spew financial influence without oversight got us in this mess..
the fox is in the henhouse and noone is watching.

i would also be ok term limits except then we'd have a bunch more of lazy nogoods living off the govt. teat when their terms ended.
i can assure you theyd make for some nice severance packages.:grr:

as for obama.. ill give him the 1st term then look back at the record.. to judge in 100+ days is rediculous and narrowminded. its like describing how a car drives by going to the grocery store and back, having never left town.

in less than 2yrs, the congressional tide has the opportunity to change.. we'll see what the public thinks then.

[derekhonda]

Oh there is no doubt about it that video is very pro-right wing, I was mearly pointing out something that it sounds like we both agree on, some regulation is good, but when it is force fed bad things can and do happen. Just really pisses me off that because of things that were imposed years ago that shouldnt have been, now we need more regulation to correct the old regulation, seems like a endless spiraldown hill to me.

I personally think, that the credit card companies should duke it out on their own. If you have a visa and you are paying 8%, and then it goes to 20, open up another card, and transfer your balance, and give the new company your 8%. The market will duke out a winner if everyone would pay a little attention and do something to better themselves.

As for everything thats going on now, good thing the government gave gm all those billions so they could survive for three more months, maybe they should have just let them fend for themselves...