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Home : Top Stories : Your Say for Thursday, April 23

Your Say for Thursday, April 23

Font-size:      Share  Print  Comments(57)

Date: Thursday Apr. 23, 2009 6:53 AM ET

Should the government force credit card companies to lower their interest rates?

Yes

No

Wednesday's poll results:

Who should pay the ransom in international kidnapping cases?

  • Governments: 13 per cent 
  • Insurance companies: 17 per cent 
  • Ransom should not be paid: 70 per cent 

Please Add Comments( )

Joanna of Woodstock, NB
said
0 0

The government should not force the credit card companies to lower their interest rates because this will just lead to more incentive to borrow. The higher interest rates should at least make you think twice before spending money you don't have.


Eric
said
0 0

No. These companies are businesses, not charities, and they are not obligated to lend money to all & sundry.

If you don't want to be hit with interest charges, either pay off your card in full when it's due or learn to live within your means.


Rhonda Burnett
said
0 0

I remember not so many years ago that lending rates of 24% or higher were considered "loan-sharking" rates, yet now are commonly charged on many credit card accounts. I'm surprised that these rates have not been governed federally long before this.


Adrian from Hamilton
said
0 0

Credit card companies are offering cards to anybody who breathes the way US mortgage companies offer mortgages to anyone who breathes a few years ago.
One of the reasons for high interest rates, defaults in payments, would be a lot less if the credit card companies are more careful who they issue cards to.


Mannie N.S.
said
0 0

I believe credit card comp. should be forces to lower their rates, this would allow the consumer more money in their wallets after paying their bill, Right now I only use my credit card for emergencies, I'm better off using my Line of Credit from my bank, it has a lower interest rate then my credit card, and therefore I can pay it off faster and for less money.


Greg in Cambridge
said
0 0

A better question in today's times is should gas companies be forced to lower their gas prices.
A much better bang for the buck every day than a little lower rate on your Canadian Tire card once a month.


Herb
said
0 0

Herb, Ontario

I think credit cards should only be 1 or 2 points above prime. It is the banks who promote the use of these credit cards with all what they(the banks)say are benefits. In reality credit cards are financial killers. If bartenders and bars are acountable for drunk drivers then banks are accountable for credit card situation.


Intelligent consumer.
said
0 0

Everyone who holds a credit card knows what they are getting into when they use it. If a person cannot use it responsibly then they should cut it up, put it away, stop their destructive behaviour, and own up to their responsibilities. We don't need the government to play mommy. The services we are offered do not come without a price. Get over yourselves already.


lizabeth
said
0 0

Yes,the interest rate credit cards charge is outrageous.Given the times we are in,this is putting an extra strain on families who have lost their jobs and are relaying on their credit card to get through the month at a Visa rate of 19.5%.They can not get a loan because they have lost their jobs,but the same bank will allow you to pay 19.5% on your credit card.I think we all need to make concessions including the credit card companies.


Sue
said
0 0

The police officers who arrested the autistic teenager in Mount Pearl yesterday should be strongly encouraged to learn about autism and spend volunteer time helping in the promotion of Bill C-360 on Parliment Hill. I realize this is not the topic... but bandy it about the office please... for everyone's sake.


annika
said
0 0

No, cc companies should not be forced to reduce cc rates. When we sign up for credit cards we do so knowing we are going to pay an outrageous interest rates on unpaid balances. We accept and use the cards with full knowledge of rates, it's not like a mortgage that renews at higher unexpected interest rates. If you don't like the rate on the card, don't use them and if you do be responsible and pay off the balance every month & stop whining.



DON
said
0 0

Yes you never hear about them taking a loss.only a huge profit.


steve T portage la prairie mb
said
0 0

no i think the government should keep thier noses out . its not like the credit card companys holding a gun to card holders head.any one who has a card knows the small print.


diane
said
0 0

competion. it is possible to find a company that offers an "affordable" interest rate. you need to do your homework, and of course, practice common sense and prudence.


Jonathan, Halifax
said
0 0

The ONLY people complaining about the credit card rates are THOSE people who are not financially responsible in how they use the cards. The rates should not be dropped.


Mark Parent
said
0 0

Some credit card interest rates are ridiculous, no question. But we're the consumers, and if we aren't prepared to pay these rates, we can simply choose not to use these cards. All the major banks do offer cards with very low rates without the 'reward' perks, and it's simply up to us to make the right choices for ourselves. Credit Cards are not essential; I'd rather see government regulation of gas prices!


Bill
said
0 0

No, interest rates need to offset risk of default & loan losses. Forcing banks to lower rates will result in lower borrowing limits and credit denial. Many borrowers are turned down for loans charging 60% and resort to day loans with annual effective rates above 500%.


Mike Macdonald - Winnipeg
said
0 0

One of the reasons cited by the major credit card providers for the high rates is that default rates are increasing. The phrase 'due diligence' comes to mind. Perhaps they should look in the mirror if they wish to see the root cause behind the increase. We are paying for their mistakes.


Kevin
said
0 0

Rates that credit card companies charge are akin to legalized theft. They say they need to charge these high rates because of the levels of default. Well, maybe people wouldn't default so much if more of their payment went to principal rather than the interest! Some people are in a very tough spot right now and their only option is to utlize credit cards to live but it's a vicious circle. They need a break and lower, reasonable rates should be that break.


Ray, N.B.
said
0 0

No, the government does not need to get involved and mess it up.
We ,as individuals, should force them to lower their rates by not using credit cards.


Sharon from Toronto
said
0 0

People should not use credit cards unless in emergencies..Make one withdraw a week with your bank card for expenses, and pay with cash.


John In Edmonton
said
0 0

I said yes to the question. However, there should be a maximum interest charge of about ten percent. That would be a law.Thereby allowing a reasonable profit for the company and a realistic payment for the borrower. Or you can NOT use the cards or Pay them off once a month. Your choice.


Bill C
said
0 0

I think the credit card rates are fine. It's unsecured credit and should have a high rate. What people need to do is learn to live within their means. If they pay their card off, in full each month, the interest rate shouldn't be a factor. At one point in my life, that is exactly what happened to me. Too much entertainment. I lost my card and had bad credit. But I've learned to spend more wisely.


Jo
said
0 0

It doesn't matter what the interest rate is if you pay the balance each month. If you can't pay the balance, don't make the purchase.


brian cook
said
0 0

The legislation will be futile unless they tackle how they calculate their interest charges.I missed paying off my December $1400 statement by 10 days.This was due to mail problems getting my statement. The interest charged was $68.58 and up till that point I had not missed completly paying off my statment for over 5 years.They report 19% interest, but this is over 55%/year.I am still trying to clarify how they calculated this amount with the bank as my previous balance was $225 and was completely payed off in time


Percy Moose Jaw
said
0 0

If used properly the credit card is a document of convenience that enables the purchaser to make needed purcheses without carrying excessive cash. If paid within the deadline date on the statement of the amount owing, there is no interest. People using the credit card as a method of borrowing would do well to look at other sources of credit.


david sawkiw[saskatchewan farmer]
said
0 0

Al capone and the boyz charged less interest than the bank cards do today!!
Let's not forget,, the BANKS are behind these outrageous rates......

Organised criminals.


Darlene, Winnipeg
said
0 0

not only should they have to lower the interest rate but also the practice of automatically raising the lending limit on credit cards just because you have been making the minimum payment on time. They don't even bother to see if the card holder is employed. I have heard from so many friends and co-workers how their children (late teens early twenties)have gotten themselves into major debt because of this practice. I worked in banks for many years and would see people (usually young)turned down for a fixed term loan beacuse they "didn't qualify" but amazingly enough they qualify for a credit card which is a revolving credit which may never be paid off & at a way higher rate. They have a licence to stick it to the ones with the least means of paying. How is this fair?


Phil
said
0 0

Retired now from working in the banking industry and introducing the first MasterCard system we were very cautious as to the authorizing of an individual's credit limit. A lot of consumers were not self diciplined and many got into financial difficulties then with the new toy! Now there is no due diligence in the credit industry! Competition for business and solicitations are abound everywhere mail,retailers,TV etc If the rates were reduced then the credit card financial institutions would be much more cautious by reducing the credit limits and marketing solicitations


Gord. Robson, Nova Scotia
said
0 0

WHAT ABOUT THE 29% THE DEPARTMENT STORES CHARGE?



Allan, Arborg
said
0 0

NO. Come people, do you expect the government to regulate everything in your life? Quit being so lazy. My son at 23 and who was a student went and shopped around for the lowest rate/fees on credit cards and got the lowest cost one. Be proactive like him.


Randy
said
0 0

It isn't the credit card companies fault people abuse credit. If you have credit card debt, the best thing you could do for yourself is cut up your card(s) and start living within your means.


Michael - Cambridge
said
0 0

Credit card interest rates represent government allowed loansharking. If it was being perpetrated by organized crime rather than banks the authorities would be all over it! Let's not forget that the banks are also collecting a percentage on ever card transaction from the vendor too!


John, Winnipeg
said
0 0

The banks are charging outrages interest rates on credit cards and the increase for credit card use fees to retailers really upsets me. The tax payers help out the big banks when they are in trouble. With the increase to fees banks are stalling the recession. It’s time for more stringent regulations, especially on the fees charged to retailers for patrons using credit cards.

John, Winnipeg



Steve from Saskatoon
said
0 0

Credit card companies charge high interest rates because they indiscriminately hand out credit cards to anyone and everyone and so end up with a lot of bad debt. The government should crack down on the irresponsible way these companies operate and force to stop handing out credit cards as though they are candy. Only then can you talk about lowering interest rates.


mitch
said
0 0

businesses and subsidiaries are expected to identify, assess,
manage and mitigate any fiduciary risk inherent in our business and
operations or arising from our specific activities and relationships
with clients. we generated more than
$4.5 billion of earnings and a return on equity of 18.0%. Two excerpts taken from a banks public accountability statement. How do they reconcile this with a 20% interest rate on their credit card sivision.


Bennett Guinn
said
0 0

Absolutely! Regulation of credit card interest rates are long overdue. Better yet,
government should stipulate that some portion (say 50 per cent) of ALL loan's principal be subject to paydowns with each payment. This way
consumers can get out of debt sooner.


Dave in Manotick
said
0 0

I think governments should put a cap on rates, however it should be noted that it is not that credit card companies forced people to spend in excess of what they could pay each month. if people lived within their means then the effective rate would be zero.

Perhaps the banks should be mandated to offer a no frills, low interest rate, card that mimics consumer loan rates plus a bit more for convenience and administration. Then people who want to pay over time can afford to do so with a card plan that is meant just for that. If they are concerned about credit worthiness, then either don't issue the card or demand a deposit up front.


Paul - Courtenay BC
said
0 0

In the 80's when interest rates soared, the credit card companies said that the reason their rates were so high was because their cost of borrowing money from the central bank was so high. Now that the Bank of Canada rate is onoy 0.25%, what's their excuse for outrageously high credit card interest rates? I propose that its because no one complains, no one stops using credit cards, and the companies know that.


margo
said
0 0

Why cant the credit card companies do as the banks when borrowing money. ?? The credit card companies have themselves to blame for credit cards not being paid. They send out cards knowing how much a person is in debt. Even high school students get cards in the mail without even requesting one. Visa and Mastercard and others need to stop the greed.


Gil Lantaigne from Pembroke Ontario
said
0 0

Should the gov't force banks to control interest rates?
Let's see,,, profits in the billions of dollars... oh yeah,,,,, EVERY QUARTER..... DUH. They won't do it voluntarily, so yes.


Faith
said
0 0

Credit Cards are an option that adults can choose from.
Unless it is a medical emergency for which you need immediate money, live within your means.
Mortgage is a need. New clothing or vehicles are not.


Veronique, Toronto
said
0 0

Who cares about the interest rate on the credit card? If people keep spending money they don't have, then it really is their problem. Do you budget, decide what you can afford and pay the credit card in full the moment the bill arrives. If you follow these simple steps, you really won't care about the interest rate


Dan
said
0 0

If credit card companies only approved credit worthy applicants rather than offering them to almost everyone and also keeping the credit limit reasonable based on income or ability to pay, versus calling and offering credit limit increases all the time, they would not experience as many defaults and pass that cost on in higher interest rates. Not to mention that it is an incrediblly high source of income for the banks etceteras and they have the average Canadian in a box, you uses credit cards as an operating line of cash. Lets get back to paying cash and that will change the credit card comapnies approach to being more consumer orientated.
Dan London, Ont


Paul of Mississauga
said
0 0

Credit cards should only be used as a convience to cash and to collect points. Pay your account on time and the rates will mean nothing to you.


Brenda from Etobicoke
said
0 0

I have to agree with the person who mentioned loan sharking because this is exactly what is happening. There is no need for this yet our illustrious government allows it so who is the more corrupt here?


Brad
said
0 0

Credit card rates should be Criminal' Some cards are at nearly 30% and that's pure robbery, By all means the Government needs to step in and force these rates to be lowered to a fairer rate!


Carey from Cranbrook, BC
said
0 0

I don’t think the government should stipulate the rates, but there should be a cap on interest rates.
Some of these credit card companies are day light robbers! How do they sleep at night?



Rod
said
0 0

idiots live on revolving credit.Defaulters cause high interest rates.Higher standards to qualify cure both problems.


Kenneth, Oakville
said
0 0

The consumer accepted the terms and conditions when they applied for the credit card. High interest rates should prevent you from using them. We all need to learn how to live within our means and this recession would not have happened


David B
said
0 0

Sure, tell the banks how much to charge and who to lend to - how do you think the mortgage crisis in the US started?

What's next telling GM how much to charge for cars or CTV how much to charge for commercial time? How about how much you can charge your employer?


Lil - Saskatchewan
said
0 0

I am a personal banker who often deals with customers who have maxed out their credit cards. It's easy to get the credit but do they understand the impact of that credit? I do my due dilegence of calculating the total debt service ratio the customer can afford and when needed, explain why I cannot give them additional debt that will hurt them and give them a strategy to turn the situation around if possible. I believe if the Credit Card companies would do the same, they would not experience the risk of delinquency and could offer afforable credit!


Tom Hanna
said
0 0

You go sk farmer! credit card companies are accustom to a set income, if we start regulating interest rates, then they will start gouging us with service charges and we all know how much the big banks enjoy service charges and thier multibillion dollar profits


Bill Peitsch - Kelowna, BC
said
0 0

Credit card companies are not only gouging the card holder but also the merchant! Examine a merchant statement from VISA/ M/C and you'll see a miriad of charges from card branding to "infinite card percentages" etc. Credit card companies have charged too much for too long!


Ted Cumber
said
0 0

Lets face it. This is just greed by the banks to make up for high loan rates they can no longer charge. Several states put 25 percent as loan sharking.


Dave in Manotick
said
0 0

Sorry Mr. Sawkiw,
Al Capone was not known to be in the loan sharking business. But if you borrowed from Myer Lansky, the rate was 100% per week. If you couldn't pay the vigorish each Friday, it was added to the nut, so the loan doubled again next week, etc. ad infinitem, until you either paid or took the big swim.
This actually makes the banks and credit card companies look like small potatoes.


Richard C. --Ottawa
said
0 0

No. Why is everyone trying to become a government employee--whether pensions, medical plans, credit card interest rates? There are choices---one may always pay cash....


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