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As credit card holders play it safe, issuers increase non-penalty service fees

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posted on Jul, 22 2010 @ 01:27 PM
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As credit card holders play it safe, issuers increase non-penalty service fees


www.washingtonpost.com

After the recession forced credit card companies to purge their rosters of the riskiest loans, the industry is facing a new problem: customers who are too good.
Card issuers have long found their bread and butter in penalty fees and high interest rates paid by consumers who carry a balance. But that business model has been upended by the legions of consumers who were overwhelmed by debt when the recession hit, forcing the industry to write off billions of dollars in loans. In addition, new federal laws limit how much card companies can charge risky customers.
Now, frugal-minded consumers a
(visit the link for the full news article)




posted on Jul, 22 2010 @ 01:27 PM
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Now with all that goes on and I carefully read this article, I am a bit confused at the attitude of the banking industry and those who would issue a credit card. When the housing and banking markets crashed, taking hits and requiring billions in bailouts, the main reason is because people were living beyond their means, often using one credit card to pay for another, just barely making ends meet. In short, robbing Peter to pay Paul. People went bankrupt and banks lost millions from people not paying for the use of the credit. Now that things are settling down, the new regulations, as we are told, are out to protect the consumer and the lender, so that means no more predatory lending and no more bilking a customer for extrobiant fees. Banks, like any company are there to make a money, but at the end of the day, they have to balance their books. It should not be where people who only use credit for emergencies or pay off their balance on time to be punished. Those are the kinds of customers who are showing that they are responsible for their financial well being and should be rewarded. To punish the a good customer, in the long run will only back fire against those kinds of institutions as most people have been burnt already and are not wanting to be burnt again.

www.washingtonpost.com
(visit the link for the full news article)



posted on Jul, 22 2010 @ 03:36 PM
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The only Reason I swipe my (debit) card four to five times a day is the convenience factor. If they want to make it a more difficult and penalty plagued endeavor, I can just as easily hit up a cash point or go flirt it up with the bank teller to get my cash. I hate when companies come under the mindset that people HAVE to use their services, it can make the employees stop caring about the customer and that is almost always a sign of bad management.



posted on Jul, 22 2010 @ 03:54 PM
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I got hit with one of these weird fees not long ago.

I have a credit card I keep in my bug-out-bag. If my house burns down or my street gets sucked into a sinkhole and I need a motel for a weekend or something.

So I've never used it. Not once in I dont know how many years. The only times I had ever even seen it were when it expired and my replacement came in teh mail.

So out of the blue last month I see this email from the issuing entity.

Whoa! There's a $75.00 balance on that thing.

I check up and down looking for some fraudulent charge or something. Turns out I got charged for not using card. According to the issuing entity this was mentioned in my last statement. Statements I dont receive. Granted I should have gone online and read it. Never using the card I never had a reason to log into the online service thing so I just never bothered.

That cards gone now and that account has been closed.

So keep your eyes peeled folks.



posted on Jul, 22 2010 @ 03:57 PM
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in the long term, this is actually a good thing.

Most responsible American's won't pick up a card that has stipulations like this...and those who have cards who've been turned into this will simply get the damned thing paid off and cancel it.

To hell with the credit industry. They did all of this to themselves, which wouldn't be criminal...except they've drug everyone else down with them.

Let them die. The world doesn't need wooden wheels any more.



posted on Jul, 22 2010 @ 04:07 PM
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Only one credit card to my name and I only use for Gasolina.

I still have debt, but I am just concentrating on paying that off and not accumulating it again. I had such impulsive habits before
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posted on Jul, 22 2010 @ 04:15 PM
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Perhaps the banks could reduce salaries at the executive level to bring them in line with the new fiscal realities?

Or are only unions and low ranking employees expected to take a pay cut for the good of the business?



posted on Jul, 22 2010 @ 04:15 PM
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It just goes to show that these banks are nothing but crooks.

The sad thing is there is no one to call when you have been robbed by a bank.

There was a time when you could go to the Better Business Bureau and get something done about these fraudulent banking practices, but that was all ended under the con of the free market. The fed should be actively prosecuting these fraudulent banking practices. Since Newt's contract on American, it has gotten far worse.



posted on Jul, 22 2010 @ 04:26 PM
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The usurers and leeches are always going to find something to feed off. Wasn't one bit surprised when I heard this this morning.

High rates for those who are behind adding insult to injury
High rates for those who pay their balances off and do it on time
High rates for those with high balances making minimum payments.

How are those exemplary credit scores working out for ya? And the worthless, do nothing Congress does...well nothing. Didn't they pass a bill preventing some of this? To take effect a few years from now? Or did I dream that?

[edit on 7/22/2010 by ~Lucidity]



posted on Jul, 22 2010 @ 04:56 PM
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reply to post by sdcigarpig
 


I think the problem here is that many of you do not understand something: bad customers are more profitable than "Responsible" ones. You can charge them high fees and interest. Most of them don't save money so they have no choice but to pony up for credit cards. You know why bankrupt customers can still get loans and cards after the discharge? Because they will invariable be stupid enough to take it. The statistics bare it out every time. There is only two ways to win the credit game: Never use it or Pay everything on time (and have a ton of accounts).

The truth is credit is a snake and when you play with snakes you will get bit one day.



posted on Jul, 22 2010 @ 07:15 PM
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Originally posted by Snarf
in the long term, this is actually a good thing.

Most responsible American's won't pick up a card that has stipulations like this...and those who have cards who've been turned into this will simply get the damned thing paid off and cancel it.

To hell with the credit industry. They did all of this to themselves, which wouldn't be criminal...except they've drug everyone else down with them.

Let them die. The world doesn't need wooden wheels any more.


I tend to agree with you and I hope you are right but I have a sinking feeling it will go down like this:

1) Responsible people bail from the credit card debacle.
2) Only idiots continue to rack up debt beyond their means (and we all know the world is full of idiots)
3) The "system" crashes even worse than '08 and guess who gets tapped to bail out both the deadbeats and the vultures in pinstripes who feed off them -- yes, you guessed it, the responsible people who saved and have resources and actually pay their taxes unlike about half the nation.
4) Throw in something horrific like a tax on cash savings or the banning of paper cash transactions altogether just for chuckles...you know its coming down the line, I give it five or ten years at the most.



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