Credit cards have long been a very good deal for people who pay their bills on time and in full. Even as card companies imposed punitive fees and penalties on those late with their payments, the best customers racked up cash-back rewards, frequent-flier miles and other perks in recent years. Full Story »
Posted by Kaizar Campwala
Informative report on new credit card practices under consideration by industry and legislators, which could raise costs for people who pay their credit balances on time. This article cites factual evidence from multiple sources and provides helpful context about this important public issue, which could affect over 50 million credit card customers.
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This article didn't really provide much new information. With all due respect - the story reads muck like a Middle School Book Report and it distinguished by its lack of initiative and point. The story fails to mention how the mass bundling of debt, not unlike the mortgage business, has become much more difficult market. This is the portion of the debt business that in some cases partners collection agencies and law offices to uncollected bill payers - by selling the debt for pennies on the dollar. The fall back position on a debt-portfolio. The article also fails to connect the dots between the "dead-beats" as Hammer is quoted, and their abuse which has become a major 'condo' industry for law offices across the US, and the ... More »
Considering that we have a term in the current lexicon - 'Predatory Lenders' we should welcome credit reform with open arms. There was plenty of profit to go around and fuel economic growth and sustainability - yet greed won - and this industry marketed itself as a protector when it is merely the 'company store' in a more convenient form.
Many retailers are angry at the high fees and plan to pass them on to shoppers once the Congressional legislation takes effect. More »
The article does seem to present a 'dilemma' faced by the credit card industry, and looks at ways the industry may use to protect revenues. Apparently it's based on discussions with industry representatives, and on looking at changes currently in the works.
Okay,increased by $ a billion a year, and they made $20 billion last year (or is it this) by clobbering customers, and really feel that this is justified. So they have to figure out ways to keep it up. What's wrong with this picture???
Bankers may need to lower their profit expectations commensurate with today's economic realities. Gouging those who consistently pay on time is a pretty dumb business practise. The banks already charge the vendors big fees for providing credit purchases, so they are not losing money on good paying customers who in effect pay credit fees up-front.. The bankers should be smart enough not to bite the hands that feed them.
Mostly just a quick analysis of a series of press releases, with only a cursory look at the history or economics of credit cards.
This isn't a problem - truly frugal consumers will likely ditch credit cards in favor of credit union-run debit cards, and the annual fees imposed will end up making the credit card business a slightly less regressive income-redistribution device.
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