Past Due Notice

If there’s anything out there that’s really past due, it’s this set of restrictions on credit card companies.

Credit cards are truly instruments of the devil, but I guess you could also say that about guns, and the argument you get in return is, it’s the user, not the instrument, that’s the problem. In the interest of full disclosure, let me say that I have a credit card balance and as far as I know, the card companies I deal with have always treated me fairly.

After hearing the horror stories from others, though, I was waiting for the day when I might be treated unfairly, so I could file my multibillion-dollar class action lawsuit. That would be the day I was late on a utility bill and found my interest rates jacked up to 29 percent by all my card issuers. But I am never late with anything, knock on wood, so that day hasn’t come.

I found that practice especially offensive, whereby being late on one bill would trigger mass rate increases among all creditors. As far as I’m concerned, if you have a relationship with one creditor, all that creditor should be concerned about is your check or payment arriving on time to them. What happens in other relationships is none of that creditor’s damned business. I’m glad this is an abuse that will be corrected under the new rules approved by the Office of Thrift Supervision (in 2010, if we last that long). Exactly what has the Office of Thrift Supervision been supervising all this time?

The credit card companies are warning that if rules are put in place to keep them from playing the games to which they have become accustomed, costs will be going up for current users, and it will be harder for many people to qualify for new credit cards. Perhaps that’s a good thing, compared to hidden fees and unexpected rate hikes.

It has always been curious to me why they raise rates to penalty levels for those who have been late on payments. If someone is late on a payment, is that an indication that they may have trouble paying even the current interest, much less covering the penalty?

The card companies are perfectly within their rights as creditors to be strict with their customers – as long as they do it transparently and for good cause. Credit – even unsecured credit – is one of those things that all of us – even the most responsible – need from time to time. Few of us are taught to use it responsibly, and in that regard, the card companies have been little or no help.

For these companies, there must be a middle ground between drowning us in credit and forcing us to die of thirst.

There, now I’ve said it.