Spiralling Credit Interest Rates

Posted by Tom Wilkins on Tue 28th August 2007 at 06:00 AM, Filed in Credit News

The problem of spiralling interest rates on credit cards and student loans is starting to become a problem. This is different from the sub prime mortgage issue much publicised recently.

High credit rates are causing real problems for hard working Americans and their families who are in secure jobs.

The story below seems to be more common place nowadays:

“To my utter astonishment, I discovered that I was being charged between 22% and 29.5% on all of my balances. This included one card, Care Credit (owned by G.E. Money Bank - hey, why stop at war profiteering?), which is intended to help people stretch out payments for dental and other medical care. The Old Navy card I opened to buy school clothes for the kids was (quelle surprise!) also parented by G.E. Money Bank. Both cards (and others) were charging me nearly 30% interest. For children’s school clothes and family dental care!”

Quote from Alternet.

Rates of approaching 30% on loans is clearly excessive.

Does the US government need to take a closer look at regulations concerning credit interest charges? 

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