Credit Card Woes

I have had a Chase Visa for years that gives me rewards from Amazon. Last year, I realized that I didn't use my USAA credit card very much because I didn't get rewards so I gave them a call to see if there was a plan that would give me airline miles. USAA was incredibly accommodating and I was able to negotiate a super low interest rate based on my years of loyalty and superb begging techniques. I started using that card for most of my purchases to accumulate miles. The Chase Visa sat as a back up not getting much use, and now it is cut in two and lying at the bottom of the trash can. Chase sent me the "rate-jacking" letter that consumers are complaining about and raised my APR rate to at least 13.24% - up from 9.65%. I have great credit scores and have never been late or missed a payment. The options are to cancel or accept their new terms.

In addition, many credit card companies have as much as doubled the monthly minimum payments due on outstanding balances. This is, of course, because banks are trying to get a jump ahead of consumer protection laws going in to effect in February. Yes, the banks are holding a lot of consumer debt. Yes, the economy sucks. Yes, people are in debt. But, no one seemed to be reigning in the banks when they were filling the mail boxes across America for years with low APR intro offers and giving cards to just about anyone who knew how to fill out an application. Hey, you could get instant credit and cool looking credit cards AND a gift at almost any sporting event in the 90's. I don't think they were doing this because they felt magnanimous and wanted to boost our retail economy for the good of the country.

Obviously I am viewing the banking system with a bit of skepticism considering the mess the banks and mortgage companies have made. It starts in Congress. A quote from Senator Dick Durbin who has been instrumental in leading legislation for consumer protection - "and the banks -- hard to believe in a time when we're facing a banking crisis that many of the banks created -- are still the most powerful lobby on Capitol Hill. And they frankly own the place." Doesn't anyone in government have any brains when it comes to the economy? Doesn't anyone get cause and effect? And why do you apply for a credit card and get accepted based on the terms at the time of the initial contract and then the terms can change. It seems like "bait and switch" to me. Geez, can our mortgage rates double too?