New Credit Card Bill

[oiprocs]

Originally posted by: QueBert

Originally posted by: nakedfrog
Screw that, they collect a 1-5% transaction fee on everything that goes through, if that's not enough, they just won't get any of my money.

and the get he same transaction fees from the people who don't pay their balance off in full every month. Plus another 5 - 20% in interest, I would take the latter every time if I was a bank or credit card company.

BAMF! ANother TimewarP!!

 

[mchammer187]

Originally posted by: QueBert

Originally posted by: nakedfrog
Screw that, they collect a 1-5% transaction fee on everything that goes through, if that's not enough, they just won't get any of my money.

and the get he same transaction fees from the people who don't pay their balance off in full every month. Plus another 5 - 20% in interest, I would take the latter every time if I was a bank or credit card company.

Why take one when you can have both?


If a company is making a billion in interest that's like saying oh I would rather not have an extra 100 million. I'll take an extra zero.

 

[oiprocs]

Originally posted by: mchammer187

Originally posted by: QueBert

Originally posted by: nakedfrog
Screw that, they collect a 1-5% transaction fee on everything that goes through, if that's not enough, they just won't get any of my money.

and the get he same transaction fees from the people who don't pay their balance off in full every month. Plus another 5 - 20% in interest, I would take the latter every time if I was a bank or credit card company.

Why take one when you can have both?


If a company is making a billion in interest that's like saying oh I would rather not have an extra 100 million. I'll take an extra zero.

Dude, TIMEWARP. Didn't you get the memo?

 

[nakedfrog]

Originally posted by: QueBert

Originally posted by: nakedfrog
Screw that, they collect a 1-5% transaction fee on everything that goes through, if that's not enough, they just won't get any of my money.

and the get he same transaction fees from the people who don't pay their balance off in full every month. Plus another 5 - 20% in interest, I would take the latter every time if I was a bank or credit card company.

So instead of getting the money from the latter and the money from the former, you'd just take the latter?

 

[mugs]

I expect that competition will take care of the annual fees, just as it did before. However, I don't doubt that this credit card reform bill will have a negative impact on responsible consumers.

People bitch all the time about the "absurd" overdraft fees that banks charge, or the tactics they use to maximize those fees (i.e. processing transactions in order from largest to smallest). Those people don't remember a time when checking accounts weren't free. These accounts are free because the banks make money off them through fees. Those fees are optional. You don't have to overdraw your account. I say keep the fees, let the people who pay them subsidize my free accounts. Same with credit card fees - I don't pay them, and you don't have to either. Keep the fees, let the idiots subsidize my cashback rewards.

 

[darkxshade]

Adding annual fees to credit cards will come back to bite them in the ass. I'd like to see them try.

 

[ggnl]

Originally posted by: Queasy

Originally posted by: joshsquall
Pretty typical. The people who do the right thing are usually the ones that get screwed by big government.

Yep. This bill effectively uses people with good credit to subsidize people with bad credit. You know, because that worked so well with the mortgage industry...Bass ackwards legislation here.

So you think the CC companies should be able to shaft people with usuroius rates and exhorbitant fees just so you can get your frequent flyer miles and cash back rewards?

The people with bad credit have been subsidizing those with good credit all along. This bill is just restoring the equilibrium. If you don't like it then cancel your cards.

 

[QueBert]

Originally posted by: nakedfrog

Originally posted by: QueBert

Originally posted by: nakedfrog
Screw that, they collect a 1-5% transaction fee on everything that goes through, if that's not enough, they just won't get any of my money.

and the get he same transaction fees from the people who don't pay their balance off in full every month. Plus another 5 - 20% in interest, I would take the latter every time if I was a bank or credit card company.

So instead of getting the money from the latter and the money from the former, you'd just take the latter?

Yes, I'm going to make the transaction fee from the retailer regardless, for every 1 person who carries a balance from month to month it can take 10+ people who pay their bills in full to generate the same $$$ for me. Add in billing and mailing costs, it's not really worth my time as a company to deal with them. Because that 1% becomes .5% or less. Yeah it adds up but I'd rather have 1,000 card holders who are paying me little by little. The paid in full people account for a much smaller % of revenue, and a lot seem to think of themselves as good customers and expect discounts and shit on top of everything else. They're more hassle than their worth.

I would love to have both, but when one is bringing in so much more money the other. I really can't get all that excited about the other.

 

[mchammer187]

Originally posted by: ggnl

Originally posted by: Queasy

Originally posted by: joshsquall
Pretty typical. The people who do the right thing are usually the ones that get screwed by big government.

Yep. This bill effectively uses people with good credit to subsidize people with bad credit. You know, because that worked so well with the mortgage industry...Bass ackwards legislation here.

So you think the CC companies should be able to shaft people with usuroius rates and exhorbitant fees just so you can get your frequent flyer miles and cash back rewards?

The people with bad credit have been subsidizing those with good credit all along. This bill is just restoring the equilibrium. If you don't like it then cancel your cards.

As soon as they start charging annual fees many people will

 

[Aikouka]

I think it's a good idea. It doesn't necessarily say that everyone gets to live on Easy St., but rather if someone messes up once (we're all human, right?) and corrects themselves, the corporations should recognize such.

It sounds like the people complaining about this also don't believe that accidents should ever be stricken from someone's insurance record?

 

[randomlinh]

blah. i hate to say it, but I'd probably pay the annual fee if it were like $30. It's worth it to me not to use my debit card online (yeah, call me paranoid or whatever).

Sadly, my chase freedom reward bonus is ending next month. Luckily, I'm in line to buy a couple of palm pre's and eating an ETF from verizon.. I might reach the bonus threshold before then.

 

[Farang]

I'm more upset at the age limit for getting a card being effectively raised to 21. Plenty of financially responsible young people, like me when I was 18, should be able to get their first credit card and start to build credit early.

 

[CPA]

Originally posted by: joshsquall
Pretty typical. The people who do the right thing are usually the ones that get screwed by big government.

Did we not see this when the mortgage bailouts started coming?

 

[LTC8K6]

I have been paying a $12 annual fee on the same MC, issued by my local bank, forever. Never bothered me and I always pay it off, so the interest rate never bothered me either. It's the only card I have had for a long time. The last time I had more than one card was about 15 years ago and I think that was a Circuit City card.

I don't need the MC though, and I will drop it like a bad habit at the first irritation.

 

[nakedfrog]

Originally posted by: QueBert

Originally posted by: nakedfrog

Originally posted by: QueBert

Originally posted by: nakedfrog
Screw that, they collect a 1-5% transaction fee on everything that goes through, if that's not enough, they just won't get any of my money.

and the get he same transaction fees from the people who don't pay their balance off in full every month. Plus another 5 - 20% in interest, I would take the latter every time if I was a bank or credit card company.

So instead of getting the money from the latter and the money from the former, you'd just take the latter?

Yes, I'm going to make the transaction fee from the retailer regardless, for every 1 person who carries a balance from month to month it can take 10+ people who pay their bills in full to generate the same $$$ for me. Add in billing and mailing costs, it's not really worth my time as a company to deal with them. Because that 1% becomes .5% or less. Yeah it adds up but I'd rather have 1,000 card holders who are paying me little by little. The paid in full people account for a much smaller % of revenue, and a lot seem to think of themselves as good customers and expect discounts and shit on top of everything else. They're more hassle than their worth.

I would love to have both, but when one is bringing in so much more money the other. I really can't get all that excited about the other.

Of course, that person who carries a balance can't be trusted to have a large balance, so they'll top out at $1000 or so, and can't even charge much because of the balance they're carrying, whereas the person who doesn't carry a balance charges $3k per month... meanwhile the balance carrier decides to quit paying you, and you end up having to sell the debt for pennies on the dollar to a collector.
Fortunately, I imagine there will be a company out there that sees there is more money to be made, even if at smaller margins, to take care of the other guy.

 

[Special K]

Originally posted by: Insomniator
Just another form of wealth redistribution. People that actually have money will simply stop using credit cards and the companies will be worse off.

Few people NEED to use a credit card. Checks and cash still exist, just are less convenient.

The problem is that you need to have credit cards in order to build a solid credit history, which in turn enables you to obtain the most competitive rates on loans, insurance, and who knows what else.

 

[blahblah99]

Originally posted by: Riverhound777
Yahoo Article

Anne Flaherty, Associated Press Writer
On Wednesday May 20, 2009, 2:51 pm EDT

WASHINGTON (AP) -- Congress on Wednesday sent President Barack Obama a bill with sweeping new rules for the credit card industry that will affect just about every American.

The House voted 361-64 for the bill on Wednesday. The Senate had already approved the measure by a 90-5 vote on Tuesday.

The new restrictions will protect debt-ridden consumers from many of the surprise charges common in the industry, like over-the-limit fees and a charge to pay the bill by phone. People under 21 also will find it difficult to get a card.

As banks scramble to make up for the lost revenue, cardholders who pay off their balance in full each month could see annual fees become the norm and lucrative rewards programs canceled.

"Many Americans depend on credit cards to get by in this economy, and today they have won a giant victory that ensures they are protected from practices that would drive them further into debt, while also making our economy stronger," said Sen. Christopher Dodd, D-Conn., chairman of the Banking Committee.

White House spokesman Robert Gibbs said Obama looked forward to signing the bill as quickly as possible.

"Obviously this has been something that the president has championed, that the president believes is important to protect consumers," Gibbs told reporters Wednesday. "This is important for people that are represented in this town but don't have a lobbyist. These are important reforms to protect consumers and to bring some commonsense rationality to our financial system."

Some of the changes, including a requirement that cardholders receive 45-days' notice before their rates are raised, are already on track to take effect in July 2010 under new regulations by the Federal Reserve. But the legislation would put these changes into law and go further in restricting when and how banks charge people and who could get a card.

For example, the bill would require people under 21 to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default.

And consumers who see their interest rate skyrocket because they have been late on a payment would get a chance at their older, lower rate if they pay their bill on time each month for six months.

The banking industry opposed the measure and said it could restrict credit at a time when Americans need it most.

The practice of charging higher rates and fees to cardholders with risky credit was devised as a means to protect lenders against the risk of default while keeping costs low for consumers who paid their bills on time, said Edward Yingling, president and CEO of the American Bankers Association, which opposes the legislation.

Yingling says the new rules will limit the card companies' ability to price according to risk. The result, he says, will be that every card holder will have to pay a higher interest rate to cover the cost when other customers default. Lenders also will be more reluctant to issue cards in general, he adds.

"Less credit will be available generally, which means some consumers and small businesses will not be able to obtain credit cards at all, particularly younger people and startup small businesses," Yingling said.

Dodd, who championed the bill, said this argument is absurd and "a little like Chicken Little."

Included in the bill is an unrelated measure by Sen. Tom Coburn, R-Okla., that would allow people to bring loaded guns into national parks and wildlife refuges.

The House approved that provision separately on Wednesday by a 279-147 vote.

Associated Press Writer Darlene Superville contributed to this report.

If there's no grace period on credit cards then I just simply won't use it and they don't make their 3% transaction fee.

 

[TheVrolok]

Originally posted by: randomlinh
blah. i hate to say it, but I'd probably pay the annual fee if it were like $30. It's worth it to me not to use my debit card online (yeah, call me paranoid or whatever).

Same for me. I really dislike the idea of an annual fee and I also pay my bill in full every month. But the kind of fraud / theft protection afforded by credit cards may be worth sucking up the extra fee. Sad as it may be.

 

[moshquerade]

Originally posted by: Newbian
Congrats to the people that pay their bills on time and help the economy.

You are screwing it up for everyone else. :|

argh. do the right thing and eventually you get screwed anyhow. :|

 

[her209]

There is no such thing as a free lunch.

 

[spacejamz]

Originally posted by: Xanis

Originally posted by: spacejamz

Originally posted by: Xanis
That's a load of crap. I know there are a lot of people like my parents who have certain cards because of rewards programs.

Also, hurting the responsible, financially-responsible customers and protecting the idiots seems kind of ass-backwards, don't ya think?

am i the only one who can't tell if my sarcasm meter is busted??

What was sarcastic about my post? I see WHY they would do this, but it doesn't make it right.

EDIT: I was referring to the bolder portion of the OP.

the bolded part...we just bailed out a bunch of idiot in the mortgage industry while the financially responsible payers got nothing...

 

[jpeyton]

Awwwww, look at all the people scared that the big bad credit card company is going to take away their perks and charge annual fees.

Earth to nimrods: if your credit card company changes your terms unfavorably, take your business elsewhere. Instead of groveling at their feet like a bunch of brainwashed serfs, realize that they are selling a product/service just like everybody else, and exercise your power as a consumer.

 

[moshquerade]

Originally posted by: jpeyton
Awwwww, look at all the people scared that the big bad credit card company is going to take away their perks and charge annual fees.

Earth to nimrods: if your credit card company changes your terms unfavorably, take your business elsewhere. Instead of groveling at their feet like a bunch of brainwashed serfs, realize that they are selling a product/service just like everybody else and exercise your power as a consumer.

you always speak so friendly and so eloquently.

here's the thing. the cc companies make money already whenever you charge something they get a fee from the store or wherever. you know how it works.

of course if the cc company i have been with for years starts charging me an annual fee on a whim i am going to look for one that doesn't. this is only logical, and most of us here follow logic. you can take your condescension elsewhere.

 

[nakedfrog]

Originally posted by: moshquerade

Originally posted by: Newbian
Congrats to the people that pay their bills on time and help the economy.

You are screwing it up for everyone else. :|

argh. do the right thing and eventually you get screwed anyhow. :|

Yeah, but you still keep doing the right thing anyway because... well, it's the right thing to do

 

[moshquerade]

Originally posted by: nakedfrog

Originally posted by: moshquerade

Originally posted by: Newbian
Congrats to the people that pay their bills on time and help the economy.

You are screwing it up for everyone else. :|

argh. do the right thing and eventually you get screwed anyhow. :|

Yeah, but you still keep doing the right thing anyway because... well, it's the right thing to do

roger Roger