Greedy Creditors and the Abuse of Consumers Essay -- essays papers

Greedy Creditors and the Abuse of Consumers ï » ¿ Society is rapidly leaning on credit cards. More consumers prefer to carry plastic instead of cash. Moreover, the privilege of holding a line of credit is convenient and useful in today’s world. From hotel reservations and apartment rentals, to ordering online products, families are relying on credit as a time saving devise. As the importance of credit soars, money hungry creditors are taking advantage of the public’s reliance on credit cards. Credit cards are essential for the escalated pace and demands of today’s society. Consumers are increasingly using credit cards to simplify their spending. In addition, carrying cash is more dangerous than carrying credit cards and cash is more difficult for record keeping. In Fact, Hickey (2000), states that cards are safer than cash and necessary for online shopping. In regards to record keeping, reasonably, 45% of the consumers feel comfortable with using cards for the purposes of daily living (â€Å"Using Credit,† 1998). In short, because most families are busier than they used to be, limited time necessitates credit card usage for accurate records and time management. Credit card companies are creatively abusing the American consumer. Robert Heady (1999), founding publisher of Bank Rate Monitor, contends that creditors are making substantial profits from various unfair practices. Heady identifies the strategies as late charges, over limit fees and inaccurate account information. For example, one consumer states that his creditor claims that it takes th irteen days for the company to post the payment, resulting in a late charge, but the creditor sends the bill without adequate time to pay thirteen days in advance (Heady, 1999).... ...ge Students aren’t ready for plastic. BusinessWeek Investor [Online] . Available: http://access.barry.edu Business Week Online. [2000, September 25] . â€Å"Using Credit† (1998, November). Using Credit Cards for Daily Expenses.(brief article) USA Today [Online] . Available: http://www.findarticles.com [1998, Nov.] Heady, R. K. (1999, July 5) . Some Credit Card Firms Play Dirty Ball. Sun-Sentinel Company [Online] . Available: http://access.barry.edu:2061/research/edata.htm Weber, J. & Palmer, A. T. (2000, February, 14) . Finance: Consumer Debt: The Perils of Plastic. Vol. 3668, Business Week. P.27 Vickers, M. (1999, March 15) . A Hard Lesson on Student Credit Cards. Businessweek Online [Online] . Available: http://access.barry.edu:2150/search/search.htm Koretz, G. (2000, January 10) . Plastic Puts the Door at Risk. Economic Trends vol. 3663. P.36.