Credit Card companies aim to profit from high-credit users

[Canmorite]

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.

With many consumers mired in debt and angry at what they consider gouging by credit card companies, the issue of credit card reform has broad populist appeal. Members of Congress and the Obama administration have seized on the discontent to push reforms that the industry succeeded in tamping down when the economy was flying high.

http://finance.yahoo.com/banking-bud...&asset=&ccode=

That's right, the people who pay their balances off on time and don't miss payments are going to be subsidizing those that do with potential annual fees and shorter grace periods.

More wealth shifting from Obama? What a surprise. Those people got into the mess they're in by over spending. The responsible will now have to subsidize the irresponsible in yet another category of commerce

[G-ZUS]

Guess I will be stop using my credit card and back to paying cash for everything

[Canmorite]

Originally posted by G-ZUS
Guess I will be stop using my credit card and back to paying cash for everything

Which is what many people will plan to do. But then how do you buy something online? Setup a Paypal account? etc etc. CC companies really have us 'by the balls' it seems.

[Xtrema]

Sounds like industry propaganda to me.

I welcome their plan on charging user with good credits. Then all of them will switch to interact. Then all they have left is people who are bad with their credits and have a tough time paying them.

I actually welcome complete removal of consumer credit system. People with good credit shouldn't have a problem. People with bad credit shouldn't have it in the first place.

Originally posted by Canmorite


Which is what many people will plan to do. But then how do you buy something online? Setup a Paypal account? etc etc. CC companies really have us 'by the balls' it seems.

Paypal will probably work without CC if there's enough demand. Tirerack for example actually will accept MO as well. You can work around it.

[Jim Rome99]

What a total BS thread. The bill passed only with provisions to curtail proposed increases in interest rates by the credit card industry. We're talking about a few billionaires being denied the chance to get even richer off the backs of poor people. Cry me a river.

[Canmorite]

Originally posted by Jim Rome99
What a total BS thread. The bill passed only with provisions to curtail proposed increases in interest rates by the credit card industry. We're talking about a few billionaires being denied the chance to get even richer off the backs of poor people. Cry me a river.

Please post a link, I'd like to see that.

[Jim Rome99]

Originally posted by Canmorite


Please post a link, I'd like to see that.

Read the f-cking bill, you lazy bastard.

[Super_Geo]

Originally posted by Jim Rome99
What a total BS thread. The bill passed only with provisions to curtail proposed increases in interest rates by the credit card industry. We're talking about a few billionaires being denied the chance to get even richer off the backs of poor people. Cry me a river.

Off of poor people, or off of lazy/ignorant people?

20% interest rates are ridiculous, but who is forcing you to pay it? No one with one ounce of fiscal sense ends up paying these high interest rates, I can guarantee you that. If you have a rewards card, the credit card company actually pays you to use their card! Now what is so fucking bad about that?

I make sure to pay off all my high interest credit cards in its entirety each month. If you have large purchases that you might not be able to pay off in one shot, get a low interest rate card. Capital One has cards at 5.65% interest... this is dick all, just barely more than what a LOC will charge you.


Billionaires getting rich off of the backs of the poor I have friends who work in banking, and do you know how often people try to steal from the bank?

There are people who will open new accounts, go to the ATM and make a 'deposit' (often just an empty envelope) of say $1000. $100-500 of that is immediately available, they'll take it an run for the hills, never to be seen from again.

Soon they've hit all the banks and can no longer get accounts with any of them.... so they use Money Mart, and get fucked even harder up the ass. Does this sound familiar to you? Like most of your construction buddies, right? That's what I thought. Go cry me a river.

[ZenOps]

Damnit, it couldn't last forever.

Citibank Platinum Enrich was awesome for me. 1% cashback on everything, two 1.9% APR for six month offers, and three 3.9% for six month offers (using mastercheques in regularly given perks)

It was insane that they were lending below prime or giving 1% cash back...

Seriously though - its time for me to pull my credit cards back to the nice socialist Canadian banking system. Ultra-capitalism just does not work for banking, as the US is now finding out.

[Jim Rome99]

Originally posted by Super_Geo


Off of poor people, or off of lazy/ignorant people?

20% interest rates are ridiculous, but who is forcing you to pay it? No one with one ounce of fiscal sense ends up paying these high interest rates, I can guarantee you that. If you have a rewards card, the credit card company actually pays you to use their card! Now what is so fucking bad about that?

I make sure to pay off all my high interest credit cards in its entirety each month. If you have large purchases that you might not be able to pay off in one shot, get a low interest rate card. Capital One has cards at 5.65% interest... this is dick all, just barely more than what a LOC will charge you.


Billionaires getting rich off of the backs of the poor I have friends who work in banking, and do you know how often people try to steal from the bank?

There are people who will open new accounts, go to the ATM and make a 'deposit' (often just an empty envelope) of say $1000. $100-500 of that is immediately available, they'll take it an run for the hills, never to be seen from again.

Soon they've hit all the banks and can no longer get accounts with any of them.... so they use Money Mart, and get fucked even harder up the ass. Does this sound familiar to you? Like most of your construction buddies, right? That's what I thought. Go cry me a river.

Man, I guess we just see the world differently. You're right, there are many stupid and lazy people, many of whom I do work with as you say, that end up having to use Money Mart and giving up fifty or more dollars just to cash their cheques.

This bill was about stopping the ridiculous rates of increase - which bordered on loan sharking - that the credit card industry was proposing. If someone has a 10k credit card bill, for whatever reason, is it really fair to bring in a new $100/year "annual charge" when they have no job or hope of paying off the credit card balance anytime soon? Personally, I think that there should have been much more regulation of the credit industry in order to avoid the problems we're seeing now.

[richardchan2002]

Originally posted by G-ZUS
Guess I will be stop using my credit card and back to paying cash for everything

Cash is never a good idea unless you're getting a deal. No paper trail means potentially less income reported. Which ultimately means that you pay more tax. I only pay cash when it's absolutely necessary.

Originally posted by Super_Geo

[snip]
Off of poor people, or off of lazy/ignorant people?

If you have a rewards card, the credit card company actually pays you to use their card! Now what is so fucking bad about that?

I make sure to pay off all my high interest credit cards in its entirety each month.
[/snip]

If everybody was like you, the CC companies would make no money at all. By paying on time every month, you're getting a free loan plus collecting rewards.

It's not just lazy/ignorant people who carry balances. Some people might have large unseen expenses (medical or similar), or they might need the cash to as a bridge loan when waiting for a student loan or business deal to close, or they just might be poor enough that they have no way of surviving until the next payday.

[Xtrema]

Originally posted by richardchan2002
If everybody was like you, the CC companies would make no money at all. By paying on time every month, you're getting a free loan plus collecting rewards.

It's not just lazy/ignorant people who carry balances. Some people might have large unseen expenses (medical or similar), or they might need the cash to as a bridge loan when waiting for a student loan or business deal to close, or they just might be poor enough that they have no way of surviving until the next payday.

Yes they will. Cash back are usually 1% because they charge businesses who accept cards @ 2%.

I do like your argument of emergency. Unfortunately, most don't use it that way.

[Antonito]

Originally posted by Super_Geo


Off of poor people, or off of lazy/ignorant people?

20% interest rates are ridiculous, but who is forcing you to pay it? No one with one ounce of fiscal sense ends up paying these high interest rates, I can guarantee you that.

HAHAHAHAHA no, this is bullshit. You guarantee that nobody has ever had to pay high interest rates? Do you want to revise that taking into consideration that this is America, where medical expenses can easily force you to use a credit card?

Originally posted by Super_Geo

Billionaires getting rich off of the backs of the poor I have friends who work in banking, and do you know how often people try to steal from the bank?

There are people who will open new accounts, go to the ATM and make a 'deposit' (often just an empty envelope) of say $1000. $100-500 of that is immediately available, they'll take it an run for the hills, never to be seen from again.

Soon they've hit all the banks and can no longer get accounts with any of them.... so they use Money Mart, and get fucked even harder up the ass. Does this sound familiar to you? Like most of your construction buddies, right? That's what I thought. Go cry me a river.

Have you ever considered changing jobs? If you know enough people who do this that you think it's an appreciable trend, it probably has more to do with you knowing some of the scummiest people on earth.

[kaput]

.

[Super_Geo]

Originally posted by richardchan2002
If everybody was like you, the CC companies would make no money at all. By paying on time every month, you're getting a free loan plus collecting rewards.

Well, not really. Visa and MC charge a 2% to the merchant, AmEx charges 3% (which is why fewer places take AmEx).

Originally posted by richardchan2002
It's not just lazy/ignorant people who carry balances. Some people might have large unseen expenses (medical or similar), or they might need the cash to as a bridge loan when waiting for a student loan or business deal to close, or they just might be poor enough that they have no way of surviving until the next payday.

Right, and there's 2 things that have (or should) happen.

1) They need to realize that they're now spending money they do not have, and worse... do not have the means to repay in the short term. Which brings us to...
2) Get a low fucking interest credit card! They're everywhere! You don't need even need a 700+ credit score to get one! With a score in the low 600s you can get a 9.5% TD Emerald. With a good credit score it'll go as low as 5.5%.

Originally posted by Antonito
HAHAHAHAHA no, this is bullshit. You guarantee that nobody has ever had to pay high interest rates? Do you want to revise that taking into consideration that this is America, where medical expenses can easily force you to use a credit card?

See above, 1) and 2).

Originally posted by Antonito
Have you ever considered changing jobs? If you know enough people who do this that you think it's an appreciable trend, it probably has more to do with you knowing some of the scummiest people on earth.

I know the guys on the banking side, not the scamming side. And they say it's a daily occurrence. They just write it off, blackball the guy and move on, it's a cost of doing business... I don't think they even involve the police.

Though, I've also known a lot of people on the other side of the fence as I spent a few summers working construction... started as a digger, then a swamper, and then a fuser. The guys you work with are good guys for the most part, fun the get drunk with and will respect just about anyone with a good work ethic... but they have no fucking clue how to handle money or credit.

Every payday was a trip to Money Mart... and they didn't even think about how much they were getting siphoned off, or cared. A $200 bar tab each night of a payday weekend was a walk in the park.

They get taken advantage of because they are too lazy to become educated about the credit system, not because they're poor.

I know plenty of immigrant families that don't make as much as these guys did, and I'm pretty certain they don't get fucked by the credit system nearly as badly.

[89coupe]

Looks like Canada will be just the opposite.

http://money.canoe.ca/News/Sectors/B...524351-cp.html

[Mibz]

Minimum 21 days is all well and good with me.