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AnneD Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-19-09 01:44 PM
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84. Credit Card Industry Aims to Profit From Sterling Payers
Credit cards have long been a very good deal for people who pay their bills on time and in full. Even as card companies imposed punitive fees and penalties on those late with their payments, the best customers racked up cash-back rewards, frequent-flier miles and other perks in recent years.

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.

It will be a different business, said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nations biggest banks. Those that manage their credit well will in some degree subsidize those that have credit problems.

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, so banks can continue to lift them, albeit at a slower pace and with greater disclosure.

lots more.....

They are working to make themselves unattractive. I remember what it was like before credit cards. I have been without one for some time now and have done well. You really pay to use the card....and if they start charging interest from the minute you purchase an item-what is the benefit to you. I'd rather pay cash and be done with it.
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  -STOCK MARKET WATCH, Tuesday May 19 ozymandius  May-19-09 04:31 AM   #0 
  - Market Observation by Rob Kirby  ozymandius   May-19-09 04:36 AM   #1 
  - Today's Reports  ozymandius   May-19-09 04:38 AM   #2 
  - April housing starts down 12.8% to 458,000 - set new record low  UpInArms   May-19-09 07:39 AM   #44 
  - Housing starts, permits hit record lows in April  UpInArms   May-19-09 07:42 AM   #45 
     - But...but... that guy downthread said the recession is over.  Dr.Phool   May-19-09 08:53 AM   #51 
  - Oil rises above $60 on signs recession easing  ozymandius   May-19-09 04:41 AM   #3 
  - Automakers, Obama announce mileage, pollution plan  ozymandius   May-19-09 04:46 AM   #5 
  - I have to pay $1,300 more to get a car that gets 35.5 miles per gallon by 2016?  fasttense   May-19-09 07:02 AM   #36 
     - Bingo!  Demeter   May-19-09 10:45 AM   #63 
  - Goldman sees oil price 'super spike' - But others are skeptical $105 forecast is reasonable  UpInArms   May-19-09 06:27 AM   #25 
  - The recession has eased more often than al Queda's #3 has been killed.  Dr.Phool   May-19-09 07:09 AM   #37 
  - World markets gain after recovery hopes lift US  ozymandius   May-19-09 04:44 AM   #4 
  - Top bankers more upbeat on recovery; stocks rally  Ghost Dog   May-19-09 04:54 AM   #7 
  - Of course things should look all sweetness and light......  AnneD   May-19-09 09:43 AM   #57 
  - Banks lead stocks higher; oil hits six-month peak  Ghost Dog   May-19-09 04:57 AM   #8 
  - Europe stocks rise as banks add to sharp gains  Ghost Dog   May-19-09 05:00 AM   #9 
     - ZEW sentiment improved; ZEW current conditions terrible:  Ghost Dog   May-19-09 05:03 AM   #11 
  - IMF warns against complacency on world economy  Ghost Dog   May-19-09 05:57 AM   #21 
  - Krugman sees no quick end to US 'depressed economy'  Ghost Dog   May-19-09 06:34 AM   #26 
  - Bet You a Nickel Next Quarter Shows 10% Contraction of the Economy  Demeter   May-19-09 06:55 AM   #34 
  - I'm starting to think that even Krugman  MattSh   May-19-09 11:31 AM   #75 
     - They Wined and Dined Him  Demeter   May-19-09 01:27 PM   #83 
  - When Are the Financiers Gonna Accept the Fact that THERE IS NO RECOVERY?  Demeter   May-19-09 06:53 AM   #33 
     - I guess the past few recessions were turned around with deregulation  willing dwarf   May-19-09 07:13 AM   #39 
     - If You Said "Covered Up", Not "Turned Around", I'd Agree  Demeter   May-19-09 07:20 AM   #40 
        - Well covered up is really more like it  willing dwarf   May-19-09 10:29 AM   #61 
     - I think the decision has been taken, the die cast  Ghost Dog   May-19-09 08:54 AM   #52 
        - ITA GD  AnneD   May-19-09 09:48 AM   #58 
        - China lies at heart of Europe's recovery, says Brussels  Ghost Dog   May-19-09 11:26 AM   #73 
        - Limits to Growth of Profits, I Presume? There Are No Profits Without People  Demeter   May-19-09 10:54 AM   #65 
        - Mmm. Several points.  Ghost Dog   May-19-09 11:10 AM   #69 
           - You Flatterer, You!  Demeter   May-19-09 11:15 AM   #71 
              - Really? You could drive a train?  Dr.Phool   May-19-09 11:39 AM   #76 
              - As Long As It's Lionel, I Could  Demeter   May-19-09 12:00 PM   #77 
              - Hey, my son's an engineer.  tclambert   May-19-09 03:14 PM   #86 
        - While the Would-Be Masters of the Universe Are Practicing "Cloud Economics"  Demeter   May-19-09 11:30 AM   #74 
           - Sounds like a Star Trek episode.  tclambert   May-19-09 03:38 PM   #87 
  - Home Depot Girds for Continued Weakness  ozymandius   May-19-09 04:52 AM   #6 
  - Geithner opposes salary caps for corporate officials  ozymandius   May-19-09 05:01 AM   #10 
  - Credit card reforms up for Senate vote  ozymandius   May-19-09 05:08 AM   #12 
  - And after the bailouts.  Norrin Radd   May-19-09 05:37 AM   #16 
     - Good morning.  ozymandius   May-19-09 05:40 AM   #18 
        - Been lurking for a bit. I appreciate the effort you et al. make  Norrin Radd   May-19-09 05:17 PM   #91 
  - U.S. Needs More Inflation to Speed Recovery, Say Mankiw, Rogoff (WTF?)  ozymandius   May-19-09 05:19 AM   #13 
  - One does start to wonder if any of these people ever knew what they were  KoKo   May-19-09 06:45 AM   #30 
  - Mankiw is batshit crazy - here's a Feb 2004 flashback  UpInArms   May-19-09 06:49 AM   #31 
  - That's just what we need! Higher prices.  Dr.Phool   May-19-09 07:36 AM   #43 
  - Raw materials and oil rising  Loge23   May-19-09 08:00 AM   #46 
  - The more I read this, the more it boggles my mind.  End Of The Road   May-19-09 08:28 AM   #48 
     - Howdy...  AnneD   May-19-09 09:57 AM   #59 
     - You know what the credit card companies really hate? When you always pay the full balance.  tclambert   May-19-09 03:58 PM   #88 
  - Debt: 05/15/2009 11,284,110,407,424.51 (UP 13,563,009,859.87) (Debt's up.)  Festivito   May-19-09 05:24 AM   #14 
  - Debt: 05/18/2009 11,286,593,315,851.04 (UP 2,482,908,426.53) (Debt's down.)  Festivito   May-19-09 09:33 PM   #93 
  - Elizabeth Warren on Bill Maher (Yves Smith wonders aloud what's been mentioned here.)  ozymandius   May-19-09 05:31 AM   #15 
  - Ooooh. This is good. Geithner inspires "no confidence" among staff.  ozymandius   May-19-09 05:38 AM   #17 
  - The Pool Is Open: Place Your Bet on WHEN Geithner Gets a Pink Slip  Demeter   May-19-09 11:02 AM   #66 
  - There are major problems with this article from WP  mrdmk   May-19-09 03:00 PM   #85 
  - Lowe's: "Pressures on consumers remain intense" (puts the pom-pom waving in perspective)  ozymandius   May-19-09 05:48 AM   #19 
  - The recession is OVER.  javelin   May-19-09 05:56 AM   #20 
  - So stock up on your durable goods now  willing dwarf   May-19-09 07:09 AM   #38 
  - You posted that on the wrong thread  Wednesdays   May-19-09 08:17 AM   #47 
  - Sorry, Can't Happen  Demeter   May-19-09 10:41 AM   #62 
     - There are different types of inflation...  MattSh   May-19-09 12:43 PM   #79 
        - Thanks.  Dr.Phool   May-19-09 01:22 PM   #81 
        - Foreign Exchange Inflation Is the Only Kind That COULD Happen Here and Now  Demeter   May-19-09 01:26 PM   #82 
           - ..."are running their printing presses at full speed"...  BelgianMadCow   May-19-09 08:06 PM   #92 
              - I Call It Mass Delusion and Wishful Thinking  Demeter   May-19-09 09:48 PM   #94 
  - dollar watch  UpInArms   May-19-09 06:08 AM   #22 
  - A "Stable" Economy Isn't Fragile. A House of Cards IS!  Demeter   May-19-09 11:04 AM   #67 
  - US banks to lose billions over commercial property  Ghost Dog   May-19-09 06:19 AM   #23 
  - More from Shedlock  DemReadingDU   May-19-09 07:25 AM   #41 
     - So, loans to construct 'apartment complexes' are classed as 'commercial'  Ghost Dog   May-19-09 08:33 AM   #49 
        - Commercial vs residential  DemReadingDU   May-19-09 09:29 AM   #56 
        - I gave up noticing the home foreclosures....  AnneD   May-19-09 12:35 PM   #78 
        - If It's Owned by a Corporation, It's Commercial  Demeter   May-19-09 11:06 AM   #68 
  - Madoff trustee sues Fairfield group for $3.5 billion  UpInArms   May-19-09 06:20 AM   #24 
  - Those Noel Girls are gonna' have to rein in their spending....  KoKo   May-19-09 06:38 AM   #27 
  - hiya KoKo!  UpInArms   May-19-09 06:41 AM   #29 
     - Thanks....  KoKo   May-19-09 06:50 AM   #32 
  - Did Madoff's biggest 'victims' get 950 percent returns?  Robbien   May-19-09 10:46 AM   #64 
     - Holy Moly! Now THAT'S Audacity!  Demeter   May-19-09 11:12 AM   #70 
  - Commentary: Washington needs to address 'shadow banking'  UpInArms   May-19-09 06:40 AM   #28 
  - Deregulation Permitted the Shadow Banks to Suck the Life Out of the Economy  Demeter   May-19-09 07:01 AM   #35 
  - ZeroHedge: The Flagrantly Visible Hand  DemReadingDU   May-19-09 07:34 AM   #42 
  - It's been going on regularly since May 2005  TheMachineWins   May-19-09 08:40 AM   #50 
     - It's all rigged  DemReadingDU   May-19-09 08:59 AM   #53 
        - Hedge funds and Goldman.  Dr.Phool   May-19-09 09:15 AM   #55 
  - Jose-Davidson?  Dr.Phool   May-19-09 09:10 AM   #54 
  - Try one of these?  Ghost Dog   May-19-09 11:21 AM   #72 
  - Harley's customers will probably have the same reaction to driving a Mexican manufactured bike  amandabeech   May-19-09 04:29 PM   #89 
  - Medtronic reports plunge in profits; earnings meet expectations  CatholicEdHead   May-19-09 10:17 AM   #60 
  - BTW, LEAP/E2020: Global systemic crisis: June 2009 - When the world steps out of a sixty-year old re  Ghost Dog   May-19-09 01:11 PM   #80 
  - Credit Card Industry Aims to Profit From Sterling Payers  AnneD   May-19-09 01:44 PM   #84 
  - Speaking of engineers, I recently saw "Flash of Genius," the movie about windshield wipers.  tclambert   May-19-09 04:31 PM   #90 

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