Dear FRONTLINE,

Although this program will serve all viewers with better information I found it interesting that the program did not address the "mechanism" of credit cards as compared to the mechanism of a bank loan.

On the point of "default rate" changes I thought to myself that this is perfectly understandable when you consider that each transaction you use a credit card for is a separate loan from the company. The credit limit is not a pile of money waiting for me to use it -- the limit is a liability limit of what this company is prepared to lend me.

If rate changes are made (with the 15 day notice) it will come into effect the nex time I use the card. The next time I "borrow" money from the card company.

Debit cards make much more sense because they have a natural limit of money in place in order for it to operate. You run out of money -- you can't use the card.

Everyone should be told that each time to pull out the credit card you are negotiating a loan with that company.

I did think the "penalty fee" discussion was very useful in clarifying how the business of lending credit is changing and, for this, Frontline should be commended for keeping the public informed about these changes and their implications.

Dave Trautman
Edmonton, Alberta

Dear FRONTLINE,

It's sad that the banks that issue credit cards to consumers feel they should be able to charge their customers whatever they want to, change the terms at any time, and pile on the fees in order to extract the most profit out of very people who keep them in business. It's almost like asking the proverbial fox to guard the henhouse. I always pay off my balance in full each month; I even keep track of the closing dates on the credit cards I do have and try to post charges after the closing date in order to get the longest float possible on the bank's money. I am what the industry considers a deadbeat since they do not make one cent of interest or collect any late fees since I mail my payments 10 days prior to the due date. The banks made lots of money off of me in the 1980's when I was laid off from my job and out of work for 6 months. I vowed then that once I got my debt paid off I would never carry a balance on a credit card again, and I haven't. I rarely get offers in the mail for more credit cards; I guess that is due to the fact that I handle my finances wisely and the banks can't make obscene amounts of money off of me because I pay off the balance each month. Instead, the banks continue to "troll the waters" so to speak and bombard people with credit card offers who already have a debt load they cannot manage and try to suck them in so they can make the most profit from the very people who can least afford to pay it. We have become a society of instant gratification where we are encouraged to get it now and worry about how to pay for it later-but American consumers have had a great lead to follow since our own government is guilty of the very same thing and is putting a huge burden of debt on citizens that haven't even been born yet. How's that for irony? Consumers cannot expect the government to protect them from greedy credit card issuers since our government itself is drowning in debt. Where does it end?

Ann Moriarity
Gerald, Missouri

Dear FRONTLINE,

Thank you so much for the wealth of details not normally known to the average consumer. I for one will become a "Deadbeat" and payoff my no fee/10.99% card every month and use it just for the free points which yields me 20-30 dollars in gasoline every month. To bad more people just can't do this and are at the mercy of the Goliath industry. Your report does however leave me wondering why, if a good consumer bill is introduced and is defeated by the "Industry", then who really owns Washington ??

Jon Herrera
Denver, CO

Dear FRONTLINE,

The interview mentioned a couple times pre-emption of state laws and regulations by The Office of Controller of the Currency to favor the National Banks.

One area that has been pre-empted is real estate. The states, all 50 states, laws and regulations that regulate real estate transactions do not apply to National Banks. The banks are permitted to make their own rules without oversight of the states real estate commissions, or consumer affiers. Banks do not have to meet consumer protections, advertising, etc.

The OCC has put the banks in a position that is unfair to real estate professional that are required to operate under state laws, and regulations under a state regulator.

I am sure there are other businesses affected by the OCC pre-empting of state laws. This is not good for consumers or the public at large.

Richard Taylor
Rockwall, TX

Dear FRONTLINE,

I have become all to familiar with the credit challenge's consumers face due to my job. I'm a manager for a large automobile dealership.

It's quite apparent that American's choose to live WAY beyond their means without evidence of even a thought of the long term effects of their actions. I have been in the business for a good amount of time & I never thought that people's credit would get so far out of control. I now see customers that are as much as $25,000 upside down in negative equity due to high APR's as well as Credit Card debt eating them alive.

A FICO score (AKA. Beacon) is so much more important than people realize.

Here are a few of the impacts they have:

It determines the APR. on your home mortgage, auto, credit cards, bank installment loans, etc...

Your score even impacts the insurance rate your given on your auto & home.

The nasty part to this game is simply this.

The credit reporting agencies & Fair Isaac will not divulge the formula or how they derive at any given credit score. The same score that determines how much a lender charges me for good's & services. It seems as though they would have to disclose the scoring method that makes up the financial well-being of our lives, But no such luck.

Unfortunately, Revolving credit card debt is a necessary evil on a credit report. There's just no way of getting around it. What gets us is this:

Fair Isaac won't say how much is TOO MUCH & how little is TOO LITTLE.

Nor will they explain how much installment debt is TOO Much or TOO Little,

But that we must have both track record's to determine credit worthiness.

What I think is sad is that the credit card companies are getting filthy rich while Americans are starving to death over small print.

Dale Schwartz
Edmond, Oklahoma

Dear FRONTLINE,

Thank you for the interesting report on banks and credit card practices. While I enjoy “deadbeat” status and agree with many posters who advocate consumers taking more responsibility for their debt, I was in college once and understand just how easily one can slip into debt. However, the temptation to spend drops greatly when you realize that a $100 item actually costs $200 when one considers fees, interest, and lost investment potential. Therefore, education represents the only way to stop America's credit happy society.

Fort Hays State (my alma mater) recently placed a personal finance class among those required for most students. If more colleges (or even high schools) would implement such simple programs followed quickly with investment education, college students would think twice before a wild weekend with the credit card. My brother and my high school accounting teacher taught me much about early investment and the power of saving and helped turn me into the “deadbeat” I am today.

Additionally, does anyone see the similarity of America's credit card system with the "debtor's prisons" of England where those who did not pay were thrown in jail? How exactly is one to repay his/her bills while in jail? The same principle applies today, how is one to repay his/her bills when paying 25 to 35% interest plus a $40 late fee?

Jaron Weese
Russell, KS

Dear FRONTLINE,

That was an absolutely great report. I have used credit cards all my life, of course. Lately, I have allowed myself to be lured in by the flood of offers that come to me in the mail. As a result, I find I am carrying higher balances, which do in fact lead to higher credit kubes. I especially liked your help in understanding the marketing tricks, (zero rates) and that information about universal default. I had no idea about that.

I plan to take money out of my savings account, which I can do, and pay off my credit cards. It's fortunate that I can do that. But what can we do to make this situation fair for American consumers. It's like these financial giants have become pariahs in our culture and our voice as consumers is effectively blocked by these modern day Scrooge corporations.

bob cooper
Scottsdale, Arizona

Dear FRONTLINE,

Thanks for a great program. Borrowing money is not at all a bad thing, we need to borrow for many big ticket items, cars, homes etc. The deceptive practices that these institutions must be stopped and law makers and regulators must do this.

I was somewhat perplexed by your four reasonably intelligent looking and sounding credit card holders suggesting that it was better to have money sitting in a bank account than to pay off a credit card balance. The logic escaped me.

Instead of a credit card I carry a debit card and a line of credit at my community credit union, a floating rate but only charged when I need money. Simple and sweet.

Jo Mulder
Vancouver, Canada

Dear FRONTLINE,

Thank you for airing your very informative critique of the credit card industry. In reading other letters, many seek to castigate consumers for their materialism and lack of personal responsibility.

I agree with these ideas to a certain extent. I just don't think people spend much time thinking about the consequences of their actions, and are quite comfortable living in denial. For example, I think the average American has a pretty good idea that paying the minimum balance on their credit cards will result in long-term debt. Even without doing the math, I think most people understand that paying $15 a month on 10K worth of debt will take a long time to pay off if they take the time to really consider the debt they are carrying. Asking the credit card companies to print debt pay schedules on bills is silly, and seeks to shift responsibility away from the consumer.

But there is plenty of blame to go around, and the OCC and credit card companies share much of that blame. What I found the most egregious of all facts reported was the legality of changing interest rates on debts which consumers had taken on previously. I don't have a major problem with credit card companies raising their rates per se, but it should only apply to future debt. Allowing credit card companies to significantly raise interest rates on current and previous debt is tantamount to legal loan sharking. A consumer can change their spending habits in response to a higher interest rate, but they cannot undo the past. And raising interest rates on consumers perceived to have greater risk instead of simply lowering their credit limit is a shameful move toward avarice by any means necessary.

The OCC appears to be nothing more than a rubber stamp for the industry, much as we are seeing play out with the FDA. I cannot express how much respect I have for the Elliot Spitzer's of the world who fight the good fight on a daily basis, protecting the average consumer in the face of tremendous industry pressures.

I fervently hope that a balance can be struck between consumer responsibility and corporate honesty on this issue. This Frontline piece is a good start in that direction.

Edison, NJ

Dear FRONTLINE,

Thank you for bringing to light the dubious practices of the Credit industry. I was aware of most of the issues you highlighted, such as having issues with other creditors can cause them to raise your rates with creditors you have been faithfully paying.

It appears that the credit industry enjoys priviledges that other businesses are prohibited from practicing, contract law doesn't seem to apply with them.

Schools are teaching ethics now in business schools, I am a recent graduate and wonder when the public will recognize the industry's behavior as unethical. This industry rarely works with the individual to keep them as a loyal customer, because they know their competitors are operating under the same codes. Greed...eventually they will go to far and will be regulated, how well the regulations will protect the consumer remains unknown. If they want to avoid regulation they should start allowing the free market to determine what we the consumer are willing to pay for their services.

I was unaware that anyone in congress was even trying to pass regulations to assist consumers. How can we support Congressman Dodd's bill? Can you post his information on your website?

Lynn r
dallas, texas

Dear FRONTLINE,

I was very interested in the story you did on Credit Cards. My story started about 7 years ago when I opened up a credit card with a 7.99% interest rate. Like alot of people, I used my card to combine and pay off some other cards. A few months ago the credit card company raised my interest rate to 28.74%. I have never been late or missed a payment. They claim that they have performed an updated credit check and my new debt to earnings ratio caused the increase. Amazing isn't it?

Mark Pezzella
Fayetteville, NC

Dear FRONTLINE,

The end of the program spoke of an impending disaster and collapse of the credit card industry, and what needs to be done about it. Well it seems that the credit card industry has not been blind to this, and pending legislation being pushed by the industry is bent on saving it. The legislation, if passed, would prevent credit card debt from being erased after an individual files for bankruptcy. It should be noted that an individuals right to bankruptcy is outlined and protected in the Constitution. The legistation is expected to pass with an overwelming majority. It is horrible to see that the credit card industry is so imbedded in our national government that it is not only able to block legislation that would require them to merely disclose practices to consumers, but they are also able to tweek to Constitution in their favour. After the great stock market crash, federal banking regulation was passed to protect the consumer. Now we are seeing the building of an equally disastrous financial collapse, and the industry and many lawmaker and federal regulators seem hell-bent on protecting the business.

Jason Krueger
Coralville, Iowa

Dear FRONTLINE,

A great report, but you missed one very important point or recent development. Recently, many card agreements have been including an Arbitration Clause which basically prevents the individual from pursuing civil action in court either individually or in a class action. Class action suits in particular, are a great deterrant to most businesses. With this deterrant removed the credit card companies can truly do as they please.

Robert Cofer
Wappingers Falls, New York

Dear FRONTLINE,

The credit card companies through their double speak and Orwellian strategies have found a way to bilk the American consumer. It appears that the federal government is conspiring with them to make sure nothing changes. I almost lost my dinner listening to the Saccerine representations of the Acting Director of the Office of the Comptroller of the Currency. Does the American Bankers Association pay her salary? Why are the states attorneys general having to fight with our federal government just to protect consumers from the outrageous and incredibly greedy practices of the credit card industry? Why is it the federal government does nothing or very little while credit card companies rack up the complaints at Better Business Bureaus and other consumer protection watchdogs. Have they become a government unto themselves? Another great Frontline.

Patrick Sheehy
St. Paul, Minnesota

Dear FRONTLINE,

Many practices of credit card companies are deceptive, for example, the practice of changing the minimum payment from month to month, which makes it impossible to set up a regular electronic payment - thereby avoiding late charges if you are the forgetful type. Another tactic my bank uses is to change the due date of the minimum payment - in some cases by up to ten days - each month.

But the low minimum payments are not at all deceptive. The account balance is clearly visible on the bills. We've invested a mint in education in this country and if people can't add up their payments and subtract them from their balance, that hardly seems like the bank's responsibility.

Jim Harvey
Bissett, Manitoba