NYT: The Foreclosure Crists

I wanted to take this time to comment on a letter to the editor published in the New York Times yesterday titled The Foreclosure Crisis.

Credit card regulation is overdue

Great article from the Dallas Morning News on credit card companies lack of ‘expediency’ posting payments so as to generate penalties and late fees from customers who actually pay on time. Here’s an excerpt:

Editorial: Credit card regulation is overdue
06:37 AM CDT on Wednesday, May 7, 2008

For years, credit card companies have orchestrated due dates and payment postings to generate late penalties and fees – all in the name of extra profits. Enough is enough.

This newspaper was glad to see the report last week that three major financial regulators, including the Federal Reserve, have proposed rules to curb deceptive credit card practices. Separately, Congress also is considering measures.

New regulation is overdue. Creditors have been free to hike interest rates at any time and for any reason – and then apply the new rate to purchases the consumer has already made. Credit issuers also have manufactured revenue by selectively posting payments to maximize interest charges.

Read editorial