Dear FRONTLINE,

I thought I was informed about credit cards and how to use them. I am quite familiar with the FICO score and I check on mine regularly.

I am shocked to discover that there are no laws or regulations in place to "cap" late fees, finance charges, over-the-limit fees, etc. As a nation, America is already looked down on for the "capitalist" views it exudes, it seems as though the credit card companies should not be taking advantage of the consumer.

One day we may see interest rates equivalent to those of the "Rent-A-Center" types of businesses. This is a travesty.

Las Vegas, Nevada

Dear FRONTLINE,

While the credit card issues Frontline touched on are a source of irritation and concern for many people, I think the problem that you only hinted at is the real nightmare waiting to happen, and should have received more focus. That danger is expressed cogently on the first page of your viewer comments, "When everyone is charged up beyond any hope of repayment no amount of legislation will make them pay money back."

A year ago the American Payroll Assoc. reported, more than 63 percent of America's workers would experience financial difficulties if their paycheck was delayed even one week. Credit cards, like Insull's cheap electricty in the home, were a great boon to society when first introduced. Despite chairman Greenspan's reassuring words that consumers have learned how to mangage this debt level, I am convinced that Bill Janklow will one day be forced to flee the country just as Samuel Insull did after the stock price of his electric utilities collapsed and helped bring on the Great Depression.

Dick Griest
Nashville, TN

Dear FRONTLINE,

I found the Credit Card Program very informative but would have bnefitted by knowing how US practices compare with other countries. Does anyone have information on the practices in Europe for example?

Thanks, David Abineri

David Abineri
Cincinnati, OH

Dear FRONTLINE,

Congradulations on presenting the revealing insightful report on the American Credit Card industry. Your program has provided a valuable public service by forewarning consumers of the pitfalls and traps awaiting to spring on them when they bite on the "too good to be true" bait on some credit card offers.

I strongly advise that your audience also check out the links on your web site. The "Credit Card Ratings" site is an education in and of itself.

On that site I found out that a credit card that I had recently charged several thousand dollars on has a unusual and creative practice of double cycle interest billing on any balances carried over to the next billing cycle i.e. even though the first month is paid off the interest charged on the second month includes the already paid off first month.

I had just, by dumb luck, transferred the entire balance, before the second billing cycle, to a second 0 % introductory for a year APR card. I then culled out the potential "gotchyas" from the reviews of the second card(of which there were several).

As they say "forewarned is forearmed".

Again thanks for the guided tour through the credit card mine field.

Belleville, IL

Dear FRONTLINE,

I have just seen your segment on credit cards. While I commend you for showing the "shady" side of the consumer credit card industry, I wonder why you failed to mention the alternative-your local Credit Union. Credit Unions offer low (not as low as a bank) rates, and with an added benefit--it is actually fixed, your limit is not usually increased without your requesting (another way that the banks get you to charge more), and there are typically low late/over limit fees.

Ideally, we should all pay our balances in full each month, but for those that don't, reading and understanding ALL of the fine print would save an unbelievable amount of money.

Thank you again for your report, I only hope that enough people watch PBS to have gained this powerful insight.

Michelle Rohrbacher
Rochester, NH

Dear FRONTLINE,

I am a combination "deadbeat" and "gamer".

"Deadbeat": Since 1975 I have pd my cards in full each month. For many years, I've had autopay arrangements to draft the account in full each month. Autopay virtually eliminates the chance of a payment getting forgotten or lost. I've had very few problems, and have always resolved them in my favor. I've had to go to the 3rd level of customer service on 2 occasions, but prevailed each time. I believe the key is to stay calm and rational (& a sense of humor doesn't hurt). I view my credit cards that I use for everyday purchases as 30-day interest free loans, plus a great convenience.

"Gamer": I recently pd off my 6.75% mortgage with a prime-minus-.26 Home Equity Line of Credit. As long as prime stays <7%, I'm ahead of the game. I pd no fees for setting up the HELOC through Bank1. Credit card companies started offering 0% cards, so I took a some of them and paid off the HELOC. Now my mortgage is essentially financed at 0% on 3 credit cards. If the 0% well ever runs dry, I'll pay them off, either from the HELOC or by liquidating other assets. In the past year, I've saved over $1,500.00 in interest. By paying the same amount to the credit cards that I was to the mortgage company, I've reduced the payoff time by nearly 2 yrs.

My point is that credit cards aren't necessarily evil. They are tools that can be used wisely or foolishly. It's too bad that you didn't have time to do a segment on the right way to manage credit card accounts. Your discussion with the panel regarding their decisions to not pay off their cards, even though they had money in the bank to do so, was a good start.

Joe Spratt
Sanger, Texas

Dear FRONTLINE,

One element that may have been overlooked in the credit card policies( which I thank you for reveling) is that of the Retail Stores refusing personal checks. It appears that banks may encourage the retailers to accept credit cards in place of checks because the card fees are more profitable and prehaps easier to collect.

I would also suggest that the Consumer Protection Agencies look into the Wireless Phone industry,which are closely allied to credit cards for payments. The small print problem with cancellation of contracts has high expense cancellation fees that maybe added to credit cards.

Santa Rosa, Ca

Dear FRONTLINE,

Great show but only began to touch the surface,

I agree with some other readers, credit is not a substitute for a job and that credit card comapanies are in danger of killing the 'golden goose'. When everyone is charged up beyond any hope of repayment np amount of legislation will make them pay money back.

I am reminded of Grandmother's advice, don't borrow unless you really need it, and then only borrow the littlest amount and pay it back as fast as you can.

Francisco Donaldson
San Antonio, TX

Dear FRONTLINE,

One thing that somehow failed to be included in the focus of this report is the cyclical nature of credit card company profits. Even if the banks make 'record profits' in a given year, there is no guarantee that these profits will continue indefinitely into the future. In fact, history says they won't.

We live in a society where people can declare bankruptcy and leave the bank with the ability to collect cents on the dollar, if that. When there is a sudden shift in the economy (and history is full of sudden shifts), the level of bankruptcies will suddenly escalate - leaving the banks with large amounts of uncollectible debt. This is not a matter of 'if' - it is a matter of 'when'. And when this happens, the banks will have negative earnings on their credit card divisions - which will average together with the current more profitable years.

Eddie Facey
Las Vegas, Nevada

Dear FRONTLINE,

I was surprised and alittle appalled to watch otherwise seemingly intelligent interviewees reveal carrying loads of credit card debt at truly usurious interest rates while maintaining savings accounts that earn a comparative pittence.

Maybe our schools should start early teaching of basic cash management prinicples. We might call it, "No child left holding the bag," or something.

In meantime, it would be useful for an independent entity to publish a website which compared and rated the various cards in layman's terms. That would go a long way in cutting through the denseness, making the market more efficient. Maybe I'll do that. I suspect the honest ones might even welcome the idea.

Uniontown, OH

Dear FRONTLINE,

For the consumer advocates on your show to complain that credit card terms are deceptive and unscrupulous is laughable. Everybody in America knows that, just like tobacco smoking is harmful to your health, carrying a large balance on your credit card is the equivalent of financial Russian roulette.

As one of the millions of Americans who uses his credit responsibly, I was offended by your show's blatant anti-corporatism. Your show could just as easily have been about the vast number of Americans who choose to lead irresponsible, spendthrift consumption-oriented lives, saddling the rest of us with credit defaults that are passed through in the form of higher prices, more needless government regulation to solve a non-problem, and higher long term taxes.

Derek Chan

Dear FRONTLINE,

One of the most indefensible practices of the credit card companies is described in the small print on "applying payments". This is expecially egregious when dealing with cash advances.

For example:

If you get cash from an ATM when travelling using your credit card, the only way to pay-off that advance is to prepay your entire credit card amount. That means if you get $50 from the ATM and you have $1000 due at the end of the month and $500 of current charges that will come due next month, the ONLY way to pay-off your $25 cash advance so that you do not have to continue to pay interest on it, is to pay $1525. This is because if you pay just $25 the credit card company will not apply it to the cash advance unless there is no money owed on the card.

Citibank is the only one I have found that has set up a process because of all the complaints they have received where if you follow a specific procedure (not well publicized) they will allow you to apply the $25 to the cash advance when you designate it.

All other banks I have experienced follow the letter of their small print and apply your payments to other charges first.

This is very deceptive as they advertise cash advances as a feature and you only find out later how expensive they really are.

Howard Blaine
Los Altos, California

Dear FRONTLINE,

Dear Frontline:

Your program on credit cards was very insightful. A few observations:

1) What was the outcome on Providian? (We had a $200 Providian credit line balloon into $1,400 in payments -- and got off lucky.) Has the company been penalized, or forced to change its policies -- or is it business as usual?

2) The program limited itself to BANK credit cards -- a journalistic choice -- thereby ignoring the procedures of numerous STORE credit cards such as Sears and J C Penneys. They, too, have outrageous fees for late payments -- and unlike some bank cards, NO grace period. Get a bad reputation and your interest rate can soar from 16% to 29%. Phone payments can be a fee-saving convenience -- but Sears won't accept on-time payments over the phone (only late payments).

3) There are a burgeoning crop of debt services out there (AmeriDebt being the most advertised), offering to "solve" your credit problems. Of course they charge fees for the service. You should inform people that in many cases, lower rates and lower payments can be negotiated directly with the company. No intermediary or service fee needed. I once turned two $40 monthly payments into a $12 and a $25 payment, at ZERO interest. This is often a "temporary" program (6 months to a year) but it can save your rating and prove your good faith.

In sum, my brother once said, credit is like fine china. Beautiful but expensive, and endures as long as you don't use it too often. And once broken, it's never the same.

Pat Spaeth
Auburn, Washington

Dear FRONTLINE,

I've read several comments posted here and will only add that to those wagging their fingers about personal responsibility, I respond:

There is nothing scarier than to be in a "no way out" situation, and loan sharks thrive on desparate circumstances. Life can turn on a dime for anyone. No one pays more dearly or deeply at the hands of these preditory credit card companies than those who have the fewest survival choices.

Credit card companies are still only companies afterall. They are not entitled to more power than human beings... are they?

Seattle, WA

Dear FRONTLINE,

God Bless President Lincoln and may he rest in peace. If, however, he became aware of Ms. Julie Williams and the OCC, the agency she claims was started by him, I believe he would roll over in his grave.

Ms. Williams is a joke, as is the OCC, which has ceased to be funny. All over this country people are losing their jobs, and somehow she has managed to keep hers? Both the OCC and Ms. Williams should be long gone - it would be a wonderful Thanksgiving gift!

George Moriarty
Wooster, Ohio