I just posted a reply to Jennifer Marks' post regarding the credit card companies and how they're screwing their clients: Why pay on time? Stabbed in the back again
And that is the inspiration for this post.
The credit card companies are creating a much larger problem for all of us. And its affecting everything, especially RE.
By trying to get in front of the new legislation that is supposed to take effect early next year regulating credit operations, they're screwing their customers as fast and for as much as they can. I personally have been a victim of their new policies. Once I had stellar credit. Then the crunch hit, so they dropped the card levels to just above what was due. In that process, credit scores take a big hit because you are now using most of your credit limit.
Guess what? Interest rates go up because your credit score has dropped. And the snowball starts. 5% preferred becomes 12%, which becomes 18% then 22% then 35%!!!!!
In no time at all, you're really screwed. And our customers are having a hard enough time getting approved. Put something like this on their record and the party is OVER!
Jennifer's post asks the question, "Why pay on time?". What're they going to do, ruin your bad credit?
And being from Texas, here's where the Ghosts of Gonzales come in.
A little bit of Texas history: In 1835, the town of Gonzales had a cannon for defense. The Mexican government wanted the cannon back and out of the hands of the Anglo settlers (who were Mexican citizens). Given the unrest that was brewing, this wasn't going to happen. The reply given to the Mexican authorities was "Come and take it!"
Thus, today we have the obverse and reverse side of the Seal of the Great State of Texas:
On the reverse is the Lone Star of Texas, the six flags that have flown over Texas, a depiction of the Alamo, the "Come and Take It" Cannon of Gonzales, and Vince's bridge, which was destroyed in order to prevent Santa Ana's army from escaping the Battle of San Jacinto.
Texas is a homestead property state. Which means that no creditor can take your home unless they are a secured creditor for the purchase or improvements to your homestead or a home equity line of credit. Credit card companies have no legal interest in your home.
And that leads me to the point of saying to these companies: If you won't treat us right and abide by the original letter and intent of the agreement, then I guess the agreements that we had to repay are now null and void, so you can "Come and Take It!".
What do you think? Too far over the top, or the ground-swell of a financial revolution? And noone is to blame but the financial institutions who have their snouts in our pockets with the bail outs AND in our private pocket books. Thank you Congress, the Obama Administration and the whole DC mentality.
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If you want more history on the Gonzales "Come and Take It" cannon, you can find it here:
http://www.tshaonline.org/handbook/online/articles/GG/qvg1.html
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