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Credit Card Industry Aims to Profit From Sterling Payers


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#1 Fireball77

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Posted 20 May 2009 - 10:35 AM

I am putting it here because I think it will likely turn political. I think it's bad business to shaft good customers in favor of bad customers. It costs money to collect debt. When you encourage the worst customers to do more business with you, you will be paying more to collect the debt because there will be more debt. So their making more money by discouraging the responsible spenders isn't a given. On the other hand, it may create a lot of entry level collection jobs! My company was one B of A purchased and I believe that it was purchased simply for the credit card side of the business to eliminate the competition. They then proceeded to ruin that part IMO by eroding some of the reasons my company's credit card business was such a strength: customer service and lending to the most credit worthy customers. We always looked with pride on our industry wide lowest default rate, and it was another big reason the company was successful. Heaven knows, the interest rates were far form competitive. Perks/rewards given due to the affinity groups the cards were issued under were another reason the company was successful. http://www.nytimes.c...s/19credit.html

#2 Davidson Deac II

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Posted 20 May 2009 - 12:02 PM

You didn't mention the why.

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.


Government moves to limit the damage that credit card companies can do to borrowers in default, so they look for other ways to make money. For every government action, there is a equal and opposite reaction, either from the consumer or the private company.


Of course, for people with great credit, there will still be some deals out there, just not as many.

#3 Carolina Husker

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Posted 20 May 2009 - 12:26 PM

So you're saying that now is a good time for me to start paying my credit card bills?

#4 Davidson Deac II

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Posted 20 May 2009 - 12:34 PM

So you're saying that now is a good time for me to start paying my credit card bills?



Just the opposite. Now is a good time to not worry about paying your credit card bills. No need to have good credit anymore. :)

#5 MyDrunkardNC

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Posted 20 May 2009 - 01:04 PM

“The card industry is giving the argument that if you didn’t want to be carjacked, why weren’t you locking your doors or taking a different road?” Mr. Goolsbee said.

That's a good quote and accurate, too. Especially when it comes to Bank of America -- they are crooks when it comes to their credit card business. I even got a BOA customer service rep to admit as much when I was battling one of their deceptive practices.

#6 Davidson Deac II

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Posted 20 May 2009 - 01:09 PM

“The card industry is giving the argument that if you didn’t want to be carjacked, why weren’t you locking your doors or taking a different road?” Mr. Goolsbee said.

That's a good quote and accurate, too. Especially when it comes to Bank of America -- they are crooks when it comes to their credit card business. I even got a BOA customer service rep to admit as much when I was battling one of their deceptive practices.


I have had a credit card with them for years, and have found them to be one of the easier companies to deal with. Everything has been pretty straitforward.

#7 Kurb

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Posted 20 May 2009 - 01:17 PM

I pay my bill on time and don't carry more than a couple 100 at any given time.
What do i get!!??

#8 MyDrunkardNC

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Posted 20 May 2009 - 01:19 PM

I have had a credit card with them for years, and have found them to be one of the easier companies to deal with. Everything has been pretty straitforward.


I'm glad for you, but that wasn't my experience -- and it had nothing to do with payments, as I always paid on time. It was another issue. Even so, I was amazed by the employee's admission. I hope the call wasn't being recorded, or he might have lost his job.

#9 Murph

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Posted 20 May 2009 - 01:22 PM

I pay my bill on time and don't carry more than a couple 100 at any given time.
What do i get!!??



Sounds like they will hit you up for higher fees, higher rates, etc.

Come on Kurb, you know it is our social responsibility to help out those who don't manage their credit wisely. :(

#10 thefuzz

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Posted 20 May 2009 - 01:22 PM

I pay my bill on time and don't carry more than a couple 100 at any given time.
What do i get!!??



The Shaft.

#11 MyDrunkardNC

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Posted 20 May 2009 - 02:21 PM

I have had a credit card with them for years, and have found them to be one of the easier companies to deal with. Everything has been pretty straitforward.


A Google search of BOA's credit card practices reveals a lot of angry customers. Here's one site full of negative reviews.

http://www.my3cents....Bank of America

And it seems BOA is deceptive even with their banking practices.

http://www.mymoneybl...settlement.html

#12 Carolina Husker

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Posted 20 May 2009 - 02:47 PM

Just the opposite. Now is a good time to not worry about paying your credit card bills. No need to have good credit anymore. :)


Sweet! This is perfect timing to coincide with my sudden burning desire to upgrade every conceivable electronic and appliance in my house!

#13 Snake

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Posted 20 May 2009 - 03:12 PM

I pay my bill on time and don't carry more than a couple 100 at any given time.
What do i get!!??




It seems like we are gonna get finance charges every month or year depending on how much money they lose. Sounds great dont it. :smilielol5: Thanks for paying off your dept oh and to show our thanks you owe us 20 more dollars.

#14 Davidson Deac II

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Posted 20 May 2009 - 03:41 PM

A Google search of BOA's credit card practices reveals a lot of angry customers. Here's one site full of negative reviews.

http://www.my3cents....Bank of America

And it seems BOA is deceptive even with their banking practices.

http://www.mymoneybl...settlement.html



Bank of america has millions of customers, it stands to reason that there would be a few disgruntled ones. Even a thousand would be a relatively low number.

Now I am not saying they don't sometimes use deceptive practices, just that my experiences with them have been positive.

#15 MadHatter

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Posted 21 May 2009 - 10:47 AM

Just the opposite. Now is a good time to not worry about paying your credit card bills. No need to have good credit anymore. :)



nice attitude....another person who sees nothing wrong with not paying their debts and wanting more free handouts.

How about personal accountability. You spent the money...you have to pay it back.


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