Bank of America is set to raise the interest rate for any credit card customer that carries a balance and has an APR lower than 10 percent.  A company spokesman claims it’s affecting a small part of the business… but why raise the APR for someone who is already carrying a balance?  If someone owes you money have you ever tried to get paid in full sooner by saying “Hey, I know you only owe me $20, but you're more likely to pay me back if I bump it up to $30”.  Increasing interest rates in this fashion singles out the customers that need the most help.  Credit card customers might as well bend over and let Bank of America swipe the magnetic strip right down their butt crack.  Cha-ching.  Approved.

The Fed passed rules in December that limit a banks’ ability to raise interest rates but it doesn’t start until July 2010.  They obviously realize there is a problem (thus creating new rules), but why not put the rules into effect for 19 months!  If you’re playing some beer pong with house rules at your place and a guest suggests a rule that will instantly improve the game do you say “Great input, come to my 4th of July party in 2010 and we’ll put that rule into effect”.  Didn’t think so.

Banks are trying to squeeze as much money out of customers as possible before the new rules are put into effect next year.  This might result in higher profits in the short term, but ultimately contributes to the long term problem of debt in America.  The government is helping out people that can’t make payments on their devalued homes (which have fallen as much as 40 percent in many areas), why not lend a hand to the people in credit card debt whose purchases have probably decreased at a similar rate.  I bought my 42 inch LCD TV for $1000 about a year ago and I’ve seen the exact same one sell on Craigslist for $700.  That’s only a 30 percent decrease in value, better than homes in San Diego, Las Vegas, Phoenix and Miami.  Where’s my consumer electronics bailout?

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