Responsible credit-card users to “subsidize” deadbeats now

[red states rule]

First responsible home owners subsidize those who should be renters - now Dems are doing the same with credit card holders

Obama's idea of "remaking America" is you just shut up and pay everyone else's bill, while you struggle to pay your own.

How is that hope and change going for you?



Credit Card Industry Aims to Profit From Sterling Payers

snip

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

As they thin their ranks of risky cardholders to deal with an economic downturn, major banks including American Express, Citigroup, Bank of America and a long list of others have already begun to raise interest rates, and some have set their sights on consumers who pay their bills on time. The legislation scheduled for a Senate vote on Tuesday does not cap interest rates, so banks can continue to lift them, albeit at a slower pace and with greater disclosure.

http://www.nytimes.com/2009/05/19/business/19credit.html

[chloe]

“There will be one-size-fits-all pricing, and as a result, you’ll see the industry will be more egalitarian in terms of its revenue base,” said David Robertson, publisher of the Nilson Report, which tracks the credit card business.

People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.

“Despite all the terrible things that have been said, you’re making out like a bandit,” he said. “That’s a third of credit card customers, 50 million people who have gotten a great deal.”

http://www.nytimes.com/2009/05/19/business/19credit.html?_r=1


What a load of crap, I've seen people who are 6 months delinquent get on a program direct through the credit department where the interest was zero for 60 months. Then when the deadbeats still couldn't make the payments they got to settle the debt for 30% of the balance. Yet when someone is in good standing pays there balance off there is no discount. The ironic thing is I've seen the same deadbeat people who settle there debts for less then the balance owed turn around and get another credit card with the same company within a year.

[red states rule]

“There will be one-size-fits-all pricing, and as a result, you’ll see the industry will be more egalitarian in terms of its revenue base,” said David Robertson, publisher of the Nilson Report, which tracks the credit card business.

People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.

“Despite all the terrible things that have been said, you’re making out like a bandit,” he said. “That’s a third of credit card customers, 50 million people who have gotten a great deal.”

http://www.nytimes.com/2009/05/19/business/19credit.html?_r=1


What a load of crap, I've seen people who are 6 months delinquent get on a program direct through the credit department where the interest was zero for 60 months. Then when the deadbeats still couldn't make the payments they got to settle the debt for 30% of the balance. Yet when someone is in good standing pays there balance off there is no discount. The ironic thing is I've seen the same deadbeat people who settle there debts for less then the balance owed turn around and get another credit card with the same company within a year.


As usual with liberals, personal responsibility is tossed under the bus and no lesson will be learned. Those that lived beyond their means and refused to read the contract are being condiered victims.

These "victims" get to enjoy the rewards of their irresponsibility, without suffering the consequences. Why is it that liberal Obama supporters are OK with people not having a sense of responsibility and do not see the irony in Obama and his crew referring to them as "victims"?

Soon our piece of crap government is going to drive away anyone who isn't a complete reject on society with their crap.

[glockmail]

First responsible home owners subsidize those who should be renters - now Dems are doing the same with credit card holders

Obama's idea of "remaking America" is you just shut up and pay everyone else's bill, while you struggle to pay your own.

How is that hope and change going for you?



Credit Card Industry Aims to Profit From Sterling Payers

snip

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

As they thin their ranks of risky cardholders to deal with an economic downturn, major banks including American Express, Citigroup, Bank of America and a long list of others have already begun to raise interest rates, and some have set their sights on consumers who pay their bills on time. The legislation scheduled for a Senate vote on Tuesday does not cap interest rates, so banks can continue to lift them, albeit at a slower pace and with greater disclosure.

http://www.nytimes.com/2009/05/19/business/19credit.html

If I have to start paying for a credit card I'll just start paying with cash or set up a debit card.

[red states rule]

If I have to start paying for a credit card I'll just start paying with cash or set up a debit card.

Make plans to do it Glock. Obama and the libs will do to the credit card industry what they did to the auto industry

[Noir]

If ever there was a reason not to use credit cards.

I don't see why they were so popular in the first place, greed I guess, anyways maybe the silver lining in all this is people waiting until they can afford something until they buy it with real money.

[Gunny]

If ever there was a reason not to use credit cards.

I don't see why they were so popular in the first place, greed I guess, anyways maybe the silver lining in all this is people waiting until they can afford something until they buy it with real money.

Back in the early 70s it was hard to get a credit card. You actually had to qualify. Greed on BOTH sides of the coin changed that. The banks took more risks and people saw credit as a means to have now what they had not earned the money to purchase.

Such lending and borrowing practices are the root to the problem with our economy right now. It started with gas prices skyrocketing last year. People living on the edge suddenly were in the red, and worse, were using credit to buy gas they could no longer afford. I took about 6 months for that to come due and our economy tanked.

Unless of course you want to believe the mindless answer: It's Bush's fault.:laugh2:

[April15]

“There will be one-size-fits-all pricing, and as a result, you’ll see the industry will be more egalitarian in terms of its revenue base,” said David Robertson, publisher of the Nilson Report, which tracks the credit card business.

People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.

“Despite all the terrible things that have been said, you’re making out like a bandit,” he said. “That’s a third of credit card customers, 50 million people who have gotten a great deal.”

http://www.nytimes.com/2009/05/19/business/19credit.html?_r=1


What a load of crap, I've seen people who are 6 months delinquent get on a program direct through the credit department where the interest was zero for 60 months. Then when the deadbeats still couldn't make the payments they got to settle the debt for 30% of the balance. Yet when someone is in good standing pays there balance off there is no discount. The ironic thing is I've seen the same deadbeat people who settle there debts for less then the balance owed turn around and get another credit card with the same company within a year.

And the bank has no culpability in this churning?

[April15]

If ever there was a reason not to use credit cards.

I don't see why they were so popular in the first place, greed I guess, anyways maybe the silver lining in all this is people waiting until they can afford something until they buy it with real money.Total instant gratification!

[hjmick]

If I have to start paying for a credit card I'll just start paying with cash or set up a debit card.

Then they'll start charging a "transaction fee" on every debit card purchase...

And a fee for withdrawing cash...

[red states rule]

Then they'll start charging a "transaction fee" on every debit card purchase...

And a fee for withdrawing cash...

The credit card companies offer their services for a PROFIT. Obama and the Dems made it harder for them to make that profit - so now everyone who uses their services will be affected

Obama and the Dems are casting off personal responsibility.

The terms of a credit contract are the terms of a credit contract. If you opt to accept terms without reading them, that is your fault. If the print is too small to read, do not accept the terms

But as usual, the left decides to blame those that offer the service, not those that sign without reading or understanding the terms

Credit card companies allow for purchasing when you will have the money later in the month, but many decided to use it with the hope they will have the money

Now we all pay for their lack of personal responsibility

[cubfan]

Like so much of what is going on these days, nobody seems to have thought about the unintended consequences of legislation such as this. It will certainly lessen the use of credit by those who use it responsibly. Cash is king now...

[red states rule]

Like so much of what is going on these days, nobody seems to have thought about the unintended consequences of legislation such as this. It will certainly lessen the use of credit by those who use it responsibly. Cash is king now...

The good news is the credit card companies won't fail. They will simply be taken over by the govenrment just like they are doing banks (which they drove into bankruptcy in the first place) and the car companies

[mundame]

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

As they thin their ranks of risky cardholders to deal with an economic downturn, major banks including American Express, Citigroup, Bank of America and a long list of others have already begun to raise interest rates, and some have set their sights on consumers who pay their bills on time.


Yes, the Wall Street Journal covered this story, too, and agrees with the position described here ------- the credit card companies will go after the good credit risks.

And why?????

BECAUSE THAT'S WHERE THE MONEY IS. They can't get blood from a turnip; they have to go after people who actually HAVE some money.

It's the same deal with taxes: the rich pay ALLLLLLLL the income taxes in this country, because they are the people with the most money.

There are a lot of silly efforts to try to justify all this sort of thing "ethically," but the reason is actually very simple and has nothing to do with ethics -- Predators go after people who have something they can take, that's all.

[chloe]

And the bank has no culpability in this churning?

If my bank gauges me in fees when Im a very upstanding customer I can choose not to bank there. However, if the fees are only in certain instances i will be sure to use cash for my transactions. I don't use atm machines anyway.

[April15]

If my bank gauges me in fees when Im a very upstanding customer I can choose not to bank there. However, if the fees are only in certain instances i will be sure to use cash for my transactions. I don't use atm machines anyway.Absolutely correct.