Corrente

If you have "no place to go," come here!

It's always feeding time for the banksters!

[I like this image so much I'm going to sticky it. --lambert]

crochand

Via Mark Ames. Here's the Latest example of how the lizard backbrains of our ruling banksters confuse a reflex action with a thought process:

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.

Must... Eat...

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.

They're sure doing their bit to revive consumer spending, aren't they? Let's all pray to The God(ess)(e)(s) Of Our Choice, If Any, that the recession is only L-shaped.

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 [Thanks, Democrats!], so banks can continue to lift them, albeit at a slower pace and with greater disclosure.

People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, [said David Robertson, publisher of the Nilson Report], 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.”

So, getting a break because you pay your bills on time is the equivalent of "Cadillac health insurance," eh? Can't have that!

It's all about the fees, baby!

NOTE Link to Ames via Economic Populist.

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Submitted by jawbone on

Bizarro Big Health Insurer World: having to pay anything for the insured persons = Loss.

Well, people who pay cash tend to buy less. I would imagine those who pay off their credit card bills on a monthly basis will either revert to paying for more things in cash, use debit cards, or will buy much less on credit.

Might adversely affect on line sales...but not rummage sales!

DCblogger's picture
Submitted by DCblogger on

seriously, that image may be appropriate, but it is freaking me out.

oceansandmountains's picture
Submitted by oceansandmountains on

Grossed out! Yeah, yeah, yeah the looting of the country should be freaking us out the most, but...is that a real arm???

Davidson's picture
Submitted by Davidson on

I remember reading about it a couple years ago. The National Geographic covered it. The man survived and the hand was reattached.

With regards to the credit card business: I have great credit only because I use it as basically a debit card thanks to auto withdrawal. I don't know what more I can do than just keep on with that plan and use the card sparingly.

thebewilderness's picture
Submitted by thebewilderness on

I'm guessing what the answer will be for those 50 million free riders.
Debit!
Getting rid of a third of their customers will go a long way to improving their bottom line, eh? Criminy!

Zolodoco's picture
Submitted by Zolodoco on

I closed my credit account last week. I can create extra checking accounts for free, so I set one up as a debit/automatic withdrawal account where I transfer just enough to cover its use.

a little night musing's picture
Submitted by a little night ... on

is to build a credit rating. For which I have to, y'know, actually use the card and also pay it off in a timely fashion.

Because of the power of credit ratings, you can't even rent an apartment many places here without one.

Other than this, my credit reports are a big fat blank.

I freakin' hate these people. Evil! Hate them!

TreeHugger's picture
Submitted by TreeHugger on

I've already decided if they raise my rates or eliminate grace period I will go straight to using my debit card. Period. Folks who can afford to pay off their credit bill monthly are using credit intelligently for cash back, miles, grace period etc.

I'll bet I'm not the only one who will switch and I doubt they will find it very profitable to pursue that brain dead strategy.

splashy9's picture
Submitted by splashy9 on

From the retailers every time someone uses their credit card, so these banks are whining about not getting as much, not that they aren't getting anything.

They want to charge everyone they come in contact with, that's for sure.