This is an open letter to our current President, President-Elect, Congressmen and Senators. It is also addressed to the Financial Services Committees of both Houses.
While I understand the importance of our election that just took place along with all of the other pressing financial issues taking place due to the financial crisis that we have been experiencing over the last few months, I feel pressed to address one key issue facing Americans today that you might not be totally aware of taking place now.
One of the side effects of our financial crisis has to do with credit cards, and specifically the issuers of those cards. Many Americans are being severely effected by this crisis. Two consequences taking place are the sudden elimination or lowering of credit limits and raising of annual percentage rates on our cards. I can only speak for myself, but I have also read many accounts on the Internet and news publications regarding this specific issue.
I also speak to you as an individual who has been in the banking and now mortgage lending arena for almost 38 years………my point is that I come to you with experience.
There has not been one article or Internet column on this subject has addressed how a consumer can challenge the affect this is having on our credit scores. It is devastating, and is only getting worse.
Many in our nation are facing this same challenge. I also have several real estate loan clients who have had their home equity lines of credit frozen or canceled…………many with zero balances. One client has had their payment terms changed from what the original loan documents say when we initially closed their equity loan.
I understand the current crisis. Yet for many who have had stellar credit before, this is drastically effecting their credit since all bureaus have similar scoring models that they use to determine a credit score. I can only imagine the effect that these changes have had with people with lower scores or past credit issues.
Wake up Washington !! Our crisis is and has gone past the sub-prime loan market to effect good past paying citizens. In the meantime, the banks and card issuing companies…many banks or subsidiaries of them, are killing our credit out of fear. They are also taking your bailout handout, and not lending but instead buying other companies or paying bonuses.
This is not getting America going again, but is rather creating an off-shoot of the crisis. If you were not aware of this latest issue, you are now !
Do something about it! You are our leaders that we elected. Please take care of the normal average American for a change before you dole out your next or further bailout to the big-boys on Wall Street or banking communities. Believe me, lenders are afraid to lend. Consequently, small business men and women are facing challenges because of this latest issue.
My God speed you to quick action.
