Banks push to use utility bills against Citizens

[Guest guest]

This is just another outrage!! Who hasn't been late, once or twice?

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http://disc.server.com/discussion.cgi?id=149495;article=92948;show_parent=1

 

Cheryl Seal

Banks Push to Use Utility Bills against Citizens

Wed Oct 5, 2005 13:05

205.188.117.14

 

BANKS WANT TO USE UTILITY BILLS TO TRACK CITIZENS

 

I just love the way this press release from the

Natinal Credit Reporting Association (which, of

course, is joined at the hip to the world of

banking/credit cards) is worded.(see link below) It

makes it sound like they're trying to " help " US

consumers with this great new idea! Such a deal!

 

Here's the plan: they want to add phone, lights, rent,

and other bill payment histories to your credit

record. Not only will this increase the capacity of

the banking industry - a major tool of the Bush

administration - to track citizens by having access to

records of basic services, it is a brilliant plan for

sticking it to the American consumer financially.

 

Here's how it works. If you were late on your light or

phone bills a few times for any reason, from being

laid off, sick, etc., even if you have never been late

before or missed a credit card or bank loan payment,

your credit is screwed. As the banks know (believe me,

they carefully research these things, many consumers

who are struggling with financial woes will push

phone, lights, and medical bills ahead in order to

make bank/credit card payments because they know these

payments count directly on their credit histories. In

short, they rob Peter to pay Paul to keep their credit

histories intact and interest rates low.

 

But now, the banks will get the last laugh - i.e., the

guy that paid his VISA on time every month for years

will find his interest rate skyrocketing or find

himself denied a home loan because he pushed his light

bill ahead one too many times to keep his " reported

debt " clear.

 

It will also penalize the poor even more, especially

the young and the elderly, many of whom do not credit

cards and thus have a " blank " but not negative credit

history. These people may suddenly find their car

insurance doubled because they were late on the phone

bill.

 

Think that's ridiculous? Insurance companies like

MetLife are already basing consumer auto insurance

costs more on credit history than on driver safety.

These companies now bump drivers with spotless records

from coverage by jacking up their rates beyond

payability because these folks had less than perfect

credit. I personally know a guy to whom this happened:

He hadn't had so much as a parking ticket in 20 years

but got laid off and then fell behind in his bills for

a few months. When he went to renew his car insurance,

it had doubled due to credit history.

 

Yes, there will be a few people that the system could,

theoretically help - those who want to borrow money

but have no credit cards. But you can be sure that the

banking industry will find a way to screw these

people, too because they know that sooner or later, a

high percentage will hit a rough patch - unemployment,

family illness, etc. and be late with a bill or two.

And boom, they get a double screwing.

 

This whole scheme goes hand in hand with the new

bankruptcy laws. While it's OK for corporations to go

bankrupt and default on all monies owed and then be

bailed out with government handouts, American citizens

will now be hung out to dry. If you lose your job or

health, it's all down hill from there under the Bush

administration.

 

First you lose your health insurance, then your credit

history, with no chance of a clean slate through

bankruptcy. Then all of your " credit-based " bills like

car insurance skyrocket, so you lose the right to

drive legally, too. No car? Well, there goes about 3/4

of your employment options because there's no decent

public transportation systems most places in Bushland

- the funding, always too little, has been slashed.

Then you lose your house. Then you apply for welfare

and foodstamps, but find out these safety nets have

been cut back so much that they won't cover the cost

of an apartment because the rents have skyrocketed

most places due to unchecked real estate speculation

and the failure of the government to make affordable

housing (ie, leaving you enough $ to at least eat!) a

US citizen's right.

 

End result, more citizens will join the ranks of the

homeless (whose numbers have climbed under Bush,

little wonder), while others who are luckier will

simply find themselves paying 23% interest on their

credit cards and triple-rates for car insurance

because they were late on two phone bills.

 

Welcome to life under Bush, where the poor are

guaranteed to get poorer and the rich laugh all the

way to the bank.

 

Will anyone defend citizens from this scenario? Alas,

our clueless clowns in Congress will no noubt

rubberstamp this proposed change in the credit

industry to " help " their constituents (yeah, right,

their constituents in the banking industry). And, like

the PR folks at the NCRA, these same Congressional

clods will try to convince us that it's " for our own

good. "

 

http://releases.usnewswire.com/GetRelease.asp?id=54412

 

 

" When the power of love becomes stronger than the love of power, we will have

peace. "

Jimi Hendrix