IS IT REALLY JUST BUSINESS???

[GEORGE]

Hopping Mad Tue, Oct 6, 2009 By Michael McKinstry, CardTrak.com

A new survey shows 21% of consumers said they were treated unfairly by card companies and 32% have paid off and closed a card since January 2008. The research also found that half of those that canceled did so in direct response to the actions of credit-card issuers, such as cutting limits, hiking rates, or imposing fees. Consumer Reports says its poll reveals only 41% said they were highly satisfied with their card issuer, making credit cards one of the lowest-rated services the firm covers. The survey also found that 45% of respondents say they are charging less, 43% say they are spending about the same, and 11% are charging more than they did a year ago. The surveys found that one-third of Americans say they don't own a credit card. Of those Americans who use them: 54% pay their balances in full each month; 13% carry balances over $10,000 (median $17,366); and 33% carry balances up to $10,000 (median $2,554). The report is available at www.ConsumerReports.org or in the November issue.

 

http://www.cardtrak.com/news/2009/10/06/hopping_mad

[Enjay]

Yes, it really is.

[BobWang]

The surveys found that one-third of Americans say they don't own a credit card.

[ademas]

So 68% of that 21% of consumers did not pay off and close their cards, and half of the 32% (of the original 21% of consumers) who did close their cards did not do it as a direct response to the actions of credit-card issuers.

 

Yep. Sounds like "it's just business" to the vast majority of rational consumers.

[prudent]

What else could it be if it's not "business"? It's not like the issuers really know any of their cardholders personally so they could launch a vendetta against certain customers. We're all just numbers to them, fed through a computer program which determines who gets canceled, who gets CLDs and who is not messed with. Sometimes the computer program helps itself to the database, sometimes calling Customer Service alerts the computer program to take a look at you.

[GEORGE]

There has to be a point where the BANKS can't continue on the track they are on

 

(CLD/TOTAL CLOSURE/APR JACKAGE/2% MIN--->5% MIN/HIGHER FEES)

 

Be it people who left

 

or

 

People they canceled

 

or

 

People who just stopped using their cards

[GEORGE]

As with all surveys...THEY DIDN'T ASK MILLIONS OF PEOPLE TO ANSWER IT

[hurricanesfans27]

its business and if ya dont like it then vote with your feet

[flacorps]

My math indicates the majors are all going the way of Advanta ... and according to Reggie Middleton the 5 biggest banks hold 97% of the derivatives risk. It's like 5 exhausted guys treading water and promising each other life rings they don't have (and would keep for themselves if they did have them). They have either got to have Washington redefine the water level, or they will need to ratejack the poor dumb consumer into oblivion. The problem is that if they do that they will destroy the retail sector, just shifting credit card losses into losses on loans to retailers and commercial shopping center real estate.

 

Banks are screwed and so are we. Sooner rather than later.

I've actually cut a couple of short videos on the subject and put them on YouTube. Look under DebtNavigation.

[TrevorHere]

The surveys found that one-third of Americans say they don't own a credit card.

 

That drags down the average credit score...

[BobWang]

http://en.wikipedia.org/wiki/Prisoner%27s_dilemma

Multiplayer dilemmas

 

Many real-life dilemmas involve multiple players. Although metaphorical, Hardin's tragedy of the commons may be viewed as an example of a multi-player generalization of the PD: Each villager makes a choice for personal gain or restraint. The collective reward for unanimous (or even frequent) defection is very low payoffs (representing the destruction of the "commons").

[GEORGE]

My math indicates the majors are all going the way of Advanta ... and according to Reggie Middleton the 5 biggest banks hold 97% of the derivatives risk. It's like 5 exhausted guys treading water and promising each other life rings they don't have (and would keep for themselves if they did have them). They have either got to have Washington redefine the water level, or they will need to ratejack the poor dumb consumer into oblivion. The problem is that if they do that they will destroy the retail sector, just shifting credit card losses into losses on loans to retailers and commercial shopping center real estate.

 

Banks are screwed and so are we. Sooner rather than later.

I've actually cut a couple of short videos on the subject and put them on YouTube. Look under DebtNavigation.

TREADING WATER JUST FINE (example willing to pay 9.99% always on time)

 

Here add these weights around your neck (20 lbs)

 

YOU ARE NOW AT 29.99% AND CAN'T KEEP YOUR HEAD ABOVE WATER

[ViCyniC]

Bad business is still business. It's not like they're making fun of your mom or anything.

[BobWang]

Bad business is still business. It's not like they're making fun of your mom or anything.

Let's not get into footwear.

[AboveAverage]

The surveys found that one-third of Americans say they don't own a credit card.

 

Over two years ago, that was true for me....didn't own one for about 10-12 years because I was a moron...

[spikedup]

It is just business. But they're making a lot of bad decisions towards the consumers for their mistakes.

[Uncle Leo]

Being treated unfairly and it being "just business" are not mutually exclusive.

 

One can be treated unfairly, and in your case specifically George, I don't doubt that you were. However, that does not mean that the card companies know you as anything more than a number, so it's still "just business" as far as they're concerned.

[centex]

Yes, it is still JUST BUSINESS.

 

You can either agree to continue doing business with the bank or you can go elsewhere. It is no different than box stores that have crappy local practices...if you don't like the way things are done, there are other options. Most rational people will vote with their figurative feet and go to a different option, not simply sulk and whine about the state of current affairs.

[nothingtolose]

Although I'll be the first to admit I have developed a certain fondness for the slightly scratched, germ-ridden bit of reward-generating plastic currently lodged in my wallet, I've gone from card to card in the past to get better rewards/terms and replenished the SD with other cards without too much nostalgia. So no, it's not a matter of loyalty or relationship with my CC (okay, that sounds weird), just business .

[Jen23514]

Yes, it really is.

 

+1

[flacorps]

I've cut a YouTube Video on the subject:

[hegemony]

Yes, it really is.

 

+1

 

 

+1,000

 

who sang the song "stop making sense" (or was that the name of an album by some band? ) I forget.

[centex]

Yes, it really is.

 

+1

 

 

+1,000

 

who sang the song "stop making sense" (or was that the name of an album by some band? ) I forget.

 

ahh...a Talking Heads fan in the house

[TrevorHere]

If it isn't business, what is it?

 

It's a biz "relationship" so either party accepts new terms or "walks".

[more credit less cash]

No businesses shoud be personal.