Credit Card Ethics?

During the beginning of the economic recession there was a travel trend of consumers actually paying back their recognition dining table loans from banks but defaulting on their mortgage payments. This was in effect(p) a signal of things to come for the credit peak lenders. Since hard times live fallen on most the Statesns it has been increasingly harder to keep up with credit card payments with elevated interest rates. Even just paying the minimum payment has begun to get tough. Credit card lenders were able to increase rates with push through little knowledge from the customers dimension the cards. Banks make their revenue off the cards by charging high interest rates and fees. The card lenders sell off the debt to opposite investors so that issuing the cards to anybody was not considered a tough option. The question has been raised if the lenders were acting ethically? The government provided the credit card bank lenders with bailout money in 2008. The Emergency scotch Stability Act known as TARP authorised 700 billion dollars in relief to various financial firms (Capital buy Program). Two of those firms that received the most money were Citigroup and Bank of America each receiving 45 billion dollars in federal uphold (Capital Purchase Program). The bailout was aimed at increasing the amount of credit in the market.

At the same time the card lending banks jacked up interest rates sometime doubling or triple these rates and strapping high fees to cardholders. Why you may ask, head banks need to make a profit too. But how outlying(prenominal) is too far? In one such case, a Bank of America customer who had never missed a payment in six years accidently do little than the minimum payment stated while on vacation. On the next bill the card company, instead of working with him on the mistake, increased the monthly interest rate from 12% to virtually 28% and hit the customer with late fees. The bank would not change his interest rate till he had made 6 consecutive payments at the new rate. Also with out giving him... If you want to get a full essay, score it on our website: Orderessay

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