EconomyInCrisis.org is the website and news blog for Concerned Citizens, an organization dedicated to educating legislators and the American public in regards to the destruction of our country's industrial base, the impact on national and economic security, and the effect on our standard of living. We publish critical but overlooked facts and figures, keeping our readers up-to-date with daily articles regarding the U.S. economy.
We compare what led to American industrial and economic world leadership with current policies and the present crippling of our industries. We then objectively extrapolate the near-term outlook and risks for our country, businesses, and individuals. When possible we offer solutions to our weakening economic condition. Concerned Citizens does not support any political organization or corporate interest.
Out of concern for America's deteriorating economic condition, the Concerned Citizens responsible for EconomyInCrisis.org donate their expertise and time. Concerned Citizens does not support any political organization or corporate interest. Concerned Citizens has recently applied to become government authorized 501(c)(3) tax free organization.
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The U.S. should bust up its megabanks and impose strict laws curbing the size and complexity of financial institutions, a top Federal Reserve official told the Huffington Post.Click to the above link to the actual "Huffington Post" link for the full story, including audio archive.
In a 45-minute interview this week, Federal Reserve Bank of Kansas City President Thomas M. Hoenig, who's emerged as one of the few influential voices calling for a fundamental redesign of a broken U.S. financial system:
* Lambasted the tilted playing field that benefits Wall Street banks over Main Street banks;
* Called the idea that the U.S. needs megabanks to compete globally a "fantasy";
* Said Congress should mandate simple, easily understood and enforceable rules -- rather than guidelines -- so regulators can restrain financial firms and rein in the financial system;
* Prodded the Senate to get tougher on permanently ending Too Big To Fail by enacting laws that would take away much of the discretion currently held by policymakers (who bailed out financial firms when confronted with these decisions in late 2008);
* And criticized the Federal Reserve's ongoing policy to keep the main interest rate near zero because it "guarantee[s] a spread to Wall Street", enabling unearned profits and "encourag[ing] speculation."
Hoenig's criticisms echo those made by reformers pushing to remake a financial system that melted down in 2008 after years of excessive risk-taking and loose regulation finally took its toll, causing the worst economic collapse since the Great Depression and costing the nation more than 8 million jobs.
MBNA was one of the companies mentioned on a 2004 Frontline PBS special about unfair business practices by credit card companies[7]. Some industry practices which MBNA possibly engaged in previously[weasel words] included doubling or tripling of interest rates, shifting billing due dates/payment cycles monthly, and raising rates for customers whose payments were a day or two late which earned it the sobriquet, Misrepresentation Bank of North America. MBNA have been found to be one of the leading implementors of Rate-Jacking or what has also been termed the "Great MBNA Interest Rate Escalator Trick". For further information and links, see Credit Cards.
After the MBNA / Bank of America deal of January 1, 2006, a number of MBNA executives were dismissed from the Bank of America board of directors due to their fears that their unethical practices could result in criminal charges against them under a number of statutes including the Sarbanes-Oxley Act.[citation needed]
As of 2009, complaints to regulators by consumers concerning MBNA's unfair and predatory practices have been made with allegations of fraudulent construction of "valid" credit agreements (in the U.K.), abusive and threatening debt collection practices, and a practice of offering attractive balance transfer deals with rate increases that trap customers into debt they can never hope to repay.
If you use your MBNA credit card to pay for good or services and use NOCHEX and the goods or services are not delivered MBNA refuses to allow refunds under section 79.
MBNA records all telephone numbers used to contact them and then those numbers to contact their customers, particularly to chase debts, without regard to the privacy of those customers - for example, if a customer uses a neighbors or work telephone to contact MBNA at some time, that number will remain on MBNA's database and is likely to be used for debt chasing purposes. MBNA call centre staff also reveal the reason for calling to whoever answers the call, which may be the customer's boss, neighbor, friends, and family. A great deal of complaints in US and UK consumer forums has revealed this particular violation of privacy is a common activity of MBNA.
U.K. Trading Standards in the Chester area, where MBNA Europe Bank is based, have been contacted by numerous customers of MBNA, warning of the company's behaviour, but the standards agency, responsible for upholding customer complaints, has so far failed to engage in any meaningful communication with those customers despite being in "regular contact" with MBNA for unknown reasons.[citation needed] MBNA Europe Bank is the largest employer in the Chester area.
In Ireland, MBNA was accused of calling consumers up to eight times a day who are behind in making payments, which prompted the state debt advisory service to publicly state that harassment is outlawed. Affected people were advised to complain to the relevant authorities.[8] The company in December 2009 admitted overcharging 500,000 Irish consumers up to €18 million.[9][10]
MBNA has also been criticised for its practice of having two 0% deals on the same credit card of different lengths which can lead to consumers' balances being 'trapped' and accumulating interest.[11]
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