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Banks making too much money.

Discussion in 'The Okie Corral' started by JW1178, Jan 10, 2010.

  1. JW1178

    JW1178

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    I always thought the rage against the oil companies and walmart was just crap, considering they made only about 5% profit while providing a profit, but so much anger towards them, but little to nothing about the banks, that make around a 20% profit margin. Yes they do offer a "product" but not really. Consider that they are still making considerable profits in this economy, yet when they screw up being greedy, they turn right around and get the government to bail them out. Credit card companies are the worse, as they are banks as well, as they get a loan for 3%, now much of that is from the bailout which is OUR money, then they loan it back to us for tripple if not more the interest, pure profit unless the account goes in default. They work with the government to get the interest rates they can charge. Why are they allowed to make a 30% interest rate? If you are late the charge is $39 with chase, higher with some, and that is sheer profit. I heard about how banks made about 40billion last year in overdraft fees. Overlimit fees too.

    My girlfriend a couple years ago made the mistake of getting a credit card and her ex husband ran up the balance to $3500, which after a child they could not pay, and in three years they have turned that $3500 into near $8,000. You know, if the average person was to do this, we would be called loan sharks. Her parents offered to pay the $3500 but the bank refused to take it, saying those interest and late fees were rightfully theirs.

    I am tired of people defending banks and "the right to make a profit". It makes me hate republicans as they always defend money-makers. The republicans just want to make more money for those who already have it, the democrats want to just give everyone's money to those who don't even try to earn it. What is the guy in the middle who is trying to work to get something to do? Then they wonder why I didn't vote Obama or McCain last time, and why I hate both parties. I'm just a blue collar working man with a morgage, soon to be wife and her kids to be my own.

    Interest on my credit cards went up recently, not because I did anything wrong. I called and asked why and basically got it out of the "represenative" that because so many people are defaulting even those with good credit aren't so good... that basically I am expected to pay because of those who won't pay. CC companies just went lib-tard. I am so close to not giving them any more payments.
    I think they banks should be extremely limited as to what they can charge for overdraft payments and interest rates.
     
  2. Atlas

    Atlas transmogrifier

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    Or, just choose to not do business with them.
     

  3. rb-s13

    rb-s13

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    I only use the bank for a checking account/debit card. I only put money in when I need to buy something online. I try to pay cash for everything and If I do need a loan I use a credit union.
     
  4. Hef

    Hef Stop Obammunism

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    Don't get a credit card. Most companies listen to you more attentively when you speak with your wallet.
     
  5. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    Or figure out how business works. Republicans have not one thing to do with capitalism other than they participate in it. Just like you. Of late liberal Democrats feel that a socialized approach and central planning will make things all cozy and fair despite historical failures. Republicans have lost touch with their conservative roots and appear to have fallen into the same mindset of big government big spending. Guess who's money they are spending?

    Who do you want spending your money? You or the government?

    If you pick yourself, welcome to capitalism.

    Money isn't a political party.
     
  6. hatidua

    hatidua

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    that should work out well...
     
  7. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    :rofl:
     
  8. Zombie Steve

    Zombie Steve Decap Pin Killa

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    The credit card thing sounds like a bad judgement call from your girlfriend, not the evil banks. If you don't like the terms of your credit card company, get a different one. Better yet, ditch them altogether.

    By the way, the big 8 have all paid back the TARP money.
     
  9. recycooler

    recycooler 9-11-2001

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    You have some legit points for sure.Banks have every right to charge you what they can get.This is what makes America great ,you can have a product and charge what ever the market will bear for pricing as a business.And as a consumer you don't have to buy it.The trouble seems to come when the govt gets involved in trying to fix it in the name of helping people.I also am a blue collar worker and a business owner.I choose not to carry or own a credit card.PERIOD.Yes it took getting used to but it can be done.Take responsibility for yourself and don't play the larger banks game,Use local small banks where things are still personal.Your political points...Lumping republicans as always letting the rich get richer doesn't fly anymore,the platform is one of let business thrive so it can hire you and me then we have jobs,Todays market is a perfect example of what happens when you start tying the hands of anyone large or small running a company.I for one will not expand past the 3 we have now due to all this stuff coming down the line,cap and trade epa regs,healthcare,all this business is bad is bad for business,they create the jobs that employ the people.If this doesn't suit you start your own company,it can still be done this is the greatest nation on earth.my 2cents
     
  10. CarbineKid

    CarbineKid

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    I had a chase credit card until a month ago. I hd a small balance on it. My interest rate went from 5.99 to 14.99%. I called and asked them what was going on. I always paid early, and paid way more then the balance, and have NEVER been late. I was told it was something they were doing accross the board. I told them that if they kept my rate at 5.99% I'de stay otherwise I'm closing the account. They would not budge, so I closed all my accounts with them and went elsewhere.
     
  11. bchandler

    bchandler

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    I've read if they change rates on you you have the right to deny the rate change, at least on the balance you carry at that time.

    To the OP- it sounds like your problem is carrying CC debt. Now who's fault is that? The terms and rates are spelled out to you when you sign. I do think agreements should be easier to read for the common man (ie- obliterate all strictly legal terms, word limit, etc), however. No one is forcing you to carry CC debt, how about living within your means? Banks do have a right to make a profit- it is a free market and the rates are set by market forces. It's your own stupidity of carrying debt that is to blame, not the company.
     
  12. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    Credit makes business possible.

    Try thinking on a larger scale before calling a poster stupid. Do you have a mortgage? Plan to? Have you ever financed a vehicle? That's small beans compared to business expense. Most folks don't have the liquid assets to purchase everything with cash nor is it feasible to save until you do.

    Responsible use of credit is an absolute necessity in the business world.

    You're not better off without credit, you've just decided you can't use it responsibly.
     
  13. FullClip

    FullClip NRA Benefactor CLM

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    :agree:

    You beat me to it! Exactly the reason why now I just carry AM-Ex and my MC debit card. 99% of my transactions are cash, I use the AM-Ex for hotels, rental cars, internet purchases and airplane tickets where cash isn't nomally accepted. Think I'm in the small minority now that even will mail a check to pay electric, phone and heating oil bills.
     
  14. FullClip

    FullClip NRA Benefactor CLM

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    Yep...bought my house at 14 1/4% with zero down in 1984 (VA Loan) Luckily the rates went down in a couple years and I refinanced twice over a few years and turned the FIXED rate down to around 6 percent, and the 30 year to a 15 year with lower payments. Paid it off way early to get out from that debt load. Have paid cash for the past 2 new vehicles...a 2000 Yukin XL with leather and my present one, 2005 GMC with leather and power ashtrays!:supergrin:

    The point is that many people use credit cards to purchase things they can't afford with the idea of scraping by to make the minimum payments instead of saving up until they have enough cash to pay for it out right, then blame the banks or CC companies when they start to fall behind.

    Buying anything with a VARIABLE interest rate is a gamble at best, and a lot of people did that and then cried Boo-Hoo when things happened.
     
  15. SP-FIN

    SP-FIN

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    Hum, he was specifically referring to credit cards, which is a very expensive form of credit, if not the most expensive in the dollar-range under discussion. A business that finances via credit card sounds very strange (granted I'm non-US). Liabilities/debts in general are not bad provided there is a way to handle the associated cost, unnecessarily expensive liabilities/debts are. A viable business should have access to cheaper financing options.
     
  16. bchandler

    bchandler

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    We are talking about CC debt, not credit in general. Buying a home or buying capital for a business on credit is a lot different than racking up CC debt buying crap at the mall. I'm sure you would agree the average consumer certainly should have the liquid cash available before they buy a new TV, clothes, food, etc. I'm not sure if this is how the OP got into this situation (or his GF, or whatever), but this is indeed how most Americans get into CC debt.
     
  17. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    I consider that responsible use of credit.

    I've had to float 10-15K worth of debt in the past for business transaction I didn't have the liquid assets for to get projects complete. That's tough to do with no credit. Same with buying a house for the typical non-vet. If you haven't proved you are a good risk yet to the people with the money you may end up disappointed. I depends solely on the individual and what they expect out of the cash they have at hand. I prefer MY money working for me and use OTHER people's money when I can.
     
  18. Ol Timer

    Ol Timer ↓ hog hunter ↓ Millennium Member

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    No such thing as making too much money. That's like saying a' girls too pretty. A horse is too fast. Sex is too good.

    Don't ask how I went from girls to horses to sex, but still, there is no such thing.
     
  19. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    I see these CC threads come up all the time. People rarely stop and think before they start preaching the tenants of a CC free life.

    CC are one of the fastest ways to build your credit. Carrying a reasonable balance can improve that rating. Not using the CC can lower it. It's not an all or nothing game as some would have you think.
     
  20. SP-FIN

    SP-FIN

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    Oh, you were talking about credit history/score. Ok, that I know nothing about. But I still stand by the fact that aiming to carry a credit card debt is not a good thing, unless you absolutely must. Emergencies and such notwithstanding.
     
    Last edited: Jan 10, 2010