>>And before Bill jumps in asking if I'm un-American because I don't think these bank/business/lending institutions should make a profit, I'll go ahead and state now: I don't mind you making a profit, but I DO mind you making an obscene profit.
>
>I remember long time when we bough our place we got naturally little bit squized financially. So credit cards balances went high up
>I missed few payments and then after couple of months I extracted statements. You should see charges on various 'events'.
>
>Non executed standing order = A
>Late payment fee = B
>Interst on arears = C
>Statement printing fee = D
>Loan Insurance = E
>------------------------------------------------
>+ Interest
>
>What particularly got me mad, was that they charged me for a letter that informs me that my loan did not get paid
>in a given month. (Good morning Columbus!)
>It was charged I think 9 pounds (20-25USD) So when I finally went to the bank, I asked my account manager.
>
>'Why I am being charged 9 pounds for a - letter!!'
>'This is bank policy Ser'
>Ok I understand that is bank policy, by why it is 9 POUNDS ?' What makes it to be 9 pounds, whereas you could charge me
>say 90 Pounds, or more close to the cost of the letter ... say 90 cents ??
>
>Guy is stearing at me obviosely in lack of 'manual' for answering question like this.
>So finally I smiled and said 'Ok, I know it is not your fault' and we proceeded on next item
>
>So what I realised is that only thing that forms that 'price' is basically their perception of 'what they can get away with'.
>But that is still Cyprus conservative banking system. A+B+C+D+F and that is it !
>Elsewhere bankers 'moved on' long time ago!
>
>Nowdays we are withnessing high ends of that greed story;
>When A+B+C+D+F++ is not enough to make solid yearly profit (which it is!), there comes much more complex and
>creative formulas for profit making. Formulas get so complex, almost like our programs; with PROCS, IF's, DO CASE and all that,
>so they give them 'code names' ! Like... 'High Grade Performance Hedge Badge Ultimate XXX Fund' ! And sell that canned creativity out ! So based on names, people get a glimpse of power, perofrmance and security of their investments ... and buy!
>Nobody cares for details. Program works! Stocks are rising! Everyone is making profit , it is obviosely win/win...
>
>Well, up to the point when they can 'no longer get away with it'. and then k-boom ... 'Blue Screen'
>Then chief architects come out and say;
>
>...Uuups! Sorry ! There was a 'flaw' ! ;0)
>(but we are going to fix it in no time !! )

The next wave of consumer pain in the U.S. is going to be credit cards. Onerous terms like you describe are old news, and now that defaults on credit card debt are at a high the card issuers (i.e. banks) are limiting credit. Fewer people will qualify for credit cards, they will be given lower limits, and the cards will be canceled quicker if they are not used. The root of the problem is the same as with the housing crisis -- consumers being given "loans" they can't necessarily repay and lenders willing to give them enough rope to hang themselves with. Both sides are guilty IMO. It's just that the lender has more power, and now that times are tough for them they aren't being shy about using it.

Even though I am currently unemployed I still pay off my credit card balance in full every month. It would be stupid to pay the bank interest of ~20%. That is basic money management, something to always do if it's at all possible.