Bailed-Out Banks Stiff Credit Card Customers
Since bailouts are so timely today, Bloomberg weighs in to point out that banks that have been recipients of government bailout money are reacting by charging higher fees on credit cards for consumers. Apparently, they’re trying to get ahead of the curve on those new Federal Reserve regulations curbing their bad behavior, which don’t take effect until 2010.
“People are totally confused,” said Mark Zandi, chief economist at Moody’s Corp.’s Economy.com. “The taxpayer is essentially a big owner in JPMorgan, Bank of America and Citigroup, and these are the folks who make credit-card loans. Many are asking, ‘So why is it that my credit-card loan got pulled? Why am I being charged a higher rate?’”
Wonder if Southern lawmakers who fought so hard against helping the auto industry will be speaking up on this one.