Recently I received notification from a credit card company that the interest on a card balance will now be 28.99%. I find that amount shocking. How can we allow banks to charge that exorbitant level of interest on loans? In the past, if you paid more than 12% to 14% interest, you were dealing with loan sharks. Banks were not allowed to charge that outrageous amount. Now the banks are charging twice the interest the loan sharks charged.
The income banks make from this excessive interest is on top of the 2% to 3% income they make on every single credit card transaction. We consumers see an increase in purchase prices because of the fees banks charge, and then we have usury-level interest on top of the bank’s already sizable profit.
At one time, banks paid out 4% interest on a savings account. Today, your savings account earns .1 to .2%. It feels as if we are being squeezed by banks both coming and going.
It is time to demand our lawmakers place sufficient regulations in place to protect us from being gouged by big banks. Harrisburg and Washington should develop enforceable banking regulations
Sandy Kremer
Youngwood