I’ve written a few articles on the banking sector as it relates to the current foreclosure crisis. Now I figured it was time to turn my focus over to the credit card issue. I also decided I’d be the perfect test subject for this article. I’m a small business owner who has used credit cards to fund my day to day efforts. I’ve always had good credit. I’ve been affected on several fronts with the current real estate and mortgage crisis. I jumped into these low interest, balance transfer offers just like the rest of America.  I’ve always been prompt at keeping my accounts current, understanding that we all run into issues from time to time that cause the occasional late payment.

So, I open up one of my credit card statements this week from a major bank that we all know very well and see that my new interest rate is almost 20%! That’s right. 20%!  I was completely shocked. I have been a great customer of this bank for a long time. I decide I’ll call them, this is surely some kind of a mistake.

After spending 5 minutes going thru their automated system, I finely get thru to a live customer service representative. Right of the bat they admit that I have been a great customer and have a good credit ranking. Obviously, I throw down my guard knowing that they will surely take care of me now. So I politely ask them to reduce my rate back down to levels that I could presume to get from Tony Soprano. That’s when it got ugly!

“Sorry Mr. Roberts, although you have been a great client, we are not showing that a lower rate is available to you at this time. We will be happy to review your account again in six months.” Excuse me? Six months? You expect me to pay this ridiculous rate for 6 months?

For the next 90 minutes I bounce around three different departments talking to everybody they tell me to, of which it seems not one of them has the power to make a decision that isn’t already flashing on their computer. One rep actually told me in a tone that I was not thrilled about when I asked again to speak to a manager, “my manager, their manager, their boss cannot make the decision to reduce your rates. It has already been made.”  Made by who?? The CEO himself? Not one manager in the whole company can make a decision on specific client account? Sounded like there were way to many managers up the chain, none of which had any power to resolve the situation.

It got much worse too. I explained that I was in the real estate business and things were very slow for everybody. That’s no secret right? I simply asked if they would drop my interest rate back down to where it was after my initial teaser rate of 9% so that my company could continue to make the payments and remain on their ‘good’ customer list. Isn’t that better than running from my responsibility and declaring bankruptcy? Does the concept of ‘working with your customer” in bad economic times instead of throwing them to the wolves actually a stance that shareholders want to adopt?

Let me sum up my thoughts:
•The bank was all over me month after month begging me to borrow money at very low interest rates to expand my real estate business.
•They also use these policies and lend money to housebuyers who have absolutely no business buying a house, but hey, it’s the right thing to do.
•The mortgage business collapses because of this policy taking down world economies to boot.
•Small business owners just like me feel like a train has driven over them and enter ‘survival’ mode in order to get thru the downturn.
•The government signs a massive bailout package in order to help this very bank stay afloat.
•Because of a payment that trickles in just one or two days late, the bank jacks up the rate to punish me for what really is their mistake.
•Instead of working with me to ensure that we both get thru this economic cycle, they take the hard line and basically give me no reasonable option to resolve the situation.

We see this with our www.sellmyhouse.com business. Everyday we get hundreds of distressed homeowners who contact us and get the same strong arm tactic over their house. It now translates to the credit card issue. I’m lucky enough to be able to deal with this problem by moving my account to another bank. However, most Americans are not in that position. They are stuck and are thrown into a situation that could absolutely be avoided by the bank.

It is a vicious cycle. You have good credit but because of something that is no fault of our own, now face tough times. In order to keep your good credit you have to keep paying their ridiculous rates. Mind you, now your payment is much higher than it was in the past and money is much tighter than it was when you took our the loan.

In tough times we are taught to tighten our belts and whether the storm by cutting expenses. How fair is it that the banks don’t also have to do that? Do their shareholders really want the clients of these institutions to stop making payments altogether or worse yet, declare bankruptcy? No Way! I’m one of those shareholders. This kind of thing drives me crazy. Do the people that they are treating like this really need to now bail them out with our tax dollars? I'd love to have this discussion with a national news outlet. Nobody likes to talk about this. Why you ask? Guess who also spends big bucks advertising with these media outlets!

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Jason K Roberts is the President of SellMyHouse.com, Americas's leading portal for real estate information and service. He is an expert real estate investor and sales company with over 20 years of experience in all facets of the business. SellMyHouse.com is a consumer advocate company that was created to help foreclsoure victims resolve their situation. Jason can be reached at 888-557-2772.