25 Jan Capital One's Revenues Are On A Slippery Slope Downward
Capital One reported a loss of $46 million for 2008 which has started their slide down a slippery slope. The “What’s in my wallet” attitude has helped lead our current economy into a depression and nothing but moths in our collective wallets. It is only fitting that the same debtors that Capital One has taken advantage of to line their own pockets has returned the favor by finally restructuring their spending habits, either willingly or unwillingly to cause the $46 million dollar loss.
Capital One is seeking to cushon their expected ongoing losses which may lead them to request money from the government in order to survive. Who pays the bill? You and I do. Capital One raised the interest rate on your credit card to the point where you could not pay. Capital One’s move to raise the interest rate was at the encouragement of the OCC. This in turn adds to your mounting debt that may already be out of control. You call and request that Capital One or most any other credit card company to cut the interest rate or even eliminate it. The representative in India or even stateside laughs at you and says a resounding “NO!”
Now anyone with any basic economic understanding sees that if one could not pay the bill at the current interest rate should realize that when you hike up the interest rate it is not going to make it easier to pay. However, Captial One and others have a crazy idea that they if they keep increasing the interest rate than the they can fleece your bank accounts to the breaking point. Congratulations credit card industry you have collapsed the American economy!
We are all at the breaking point and the credit card companies have been the Pied Piper that have helped lead us to this point. Our last administration did not help either with the regulations issued by the Office of the Currency Comptroller and Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 approved and signed by President Bush. Sure Capital One did not hold a a gun to your head but they paid dearly for a marketing campaign to ensure that your spending habits included credit card spending without reservation. So if Capital One refuses to limit their interest rates or totally eliminate it in an attempt to mitigate their loss, why should they receive funds from the government which will in turn increase taxpayer liability? In my opinion they should not unless a complete restructuring of the company takes place.
What can you do? You can do nothing and hope that it will all go away. You can contact the White House and let President Obama know how you feel. You can contact your Sentator and bend their ear. You can learn to take financial responsibility and change your spending habits. Additionally you can pray for change and accountability.
Proverbs 13:22 A good man leaveth an inheritance to his children’s children: and the wealth of the sinner is laid up for the just.. I just can’t help but wonder if the credit card industry, Madoff, AIG executives and similar others are considered sinners in God’s eyes. If this is true I can only hope that the individual wealth of these people obtained by less than scrupulous means will be redistributed to those who have lost everything.
Remember that knowledge is power and it is never too late to rebuild your financial house.
Written by Kansas City Bankruptcy Attorney, Rachel Lynn Foley