Do you realize that the banks are paying us back for the bail out with our own money?

Bank of America, Goldman Sachs, Citigroup, and JPMorgan Chase announced second-quarter profits totaling $13.6 billion. This money is coming directly out of your pocket with higher fees and interest rates.

Like many of you out there, my interest rates were all doubled and almost tripled shortly after we rescued the banks with the bailout. I called each of my banks that did this to see why it happened. I was told it had nothing to do with my credit rating or my payment history with the bank. They said it was a “business decision” that was applied across the board to everyone. A customer rep told me that the law allowed the bank to do so, and that was all the justification it needed.

So what did happen to the 10% Usury Law? Well in the 1980s the federal government preempted state interest rate controls on all first lien mortgages. This enables predatory mortgage lenders to make seemingly affordable loans, like adjustable rate and interest-only loans, that lead to foreclosure for many.

During the Bush years, many states and cities try to protect their citizens by adopting state statutes and local ordinances to curb predatory lending, but preemption claims by the federal government impede their efforts. Numerous bills are introduced in Congress to protect consumers in a wide range of transactions, including rent-to-own, credit cards, payday lending, and predatory mortgage lending, but none of these bills made it to a hearing thanks to a Republican control congress.

It’s disgusting that banks are able to borrow money from the federal government (ie. yours and my money) at record low rates, yet they are charging us 24% – 28% for that same money.

Write your representative in congress and let them know that you are sick of being ripped off. You can find the contact information for your representative in Congress right here.

http://www.usa.gov/Contact/Elected.shtml