Yahoo News is reporting on the latest shenanigans by the credit card industry. Evidently some companies are arbitrarily raising the rates on some of their customers cards. The rationale the industry is putting forward is that when an individuals credit situation changes, the card company has a “right” to adjust the rate to compensate themselves for the increased risk.
Provided you pay off your monthly balance, most people will have no problems with their plastic cash. That said, this latest move by the industry seems a bit too close to profit gouging for my taste. After all, shouldn’t your borrowing rate be determined by agreement between you the bank – the bank shouldn’t just be able to change your rate at will.
Best,
James
