There's a bill in Congress to rein in the giant monster mega-banks and their abuses of the public with credit cards. Credit card bills are often due "net 30," which means 30 days after the date the bill was posted. The credit card companies, which are mostly owned by the giant monster mega-banks, have found that they can generate massive late fees by shortening the amount of time you have to pay. Some companies even have it down to net 15 just so they could post late fees of up to $40! Unless you pay electronically, you can't prove timely payments.

Clark was recently talking to a man in Austin who electronically made a credit card payment the day before it was due. The company received it on time, but waited 48 hours to credit his account. They then charged him a $35 late fee and raised his interest rate 15 points. Clark thinks that's despicable. This industry is missing any morality and doesn't care about treating people properly. The federal regulators, meanwhile, only act as the industry's protector. This new legislation would require you be given 25 days to pay your bill; it's ridiculous this has to be done by Congressional act. The legislation also wants to make it so you get 45 days notice -- instead of the current 15 -- that your rates are going up. Clark thinks they're addressing the wrong problem with that latter measure.

The real problem is that the credit card companies are hoodlums because they agree to make a loan to you, get you hooked and then raise the interest rate on loans you already took out. If Congress wants to help the credit card companies, they should allow them to raise the rates on future charges -- not on amounts that are outstanding. It's been said that people love their credit cards, but hate their credit card companies. This is true with any addiction. Credit card debt as a way of life used to be a uniquely American experience, but the international financial press is reporting the same story around the world. The sad thing is that the banks give so much money to Washington D.C. that Clark doesn't foresee anything changing. So you've got to be responsible for getting your balance paid off. Don't carry a card if you can't control yourself. Also, try carrying a check register to subtract your charges from your savings or checking balance so you know when to stop charging.