Some credit card companies squeeze most responsible customers

[marmar]

from the WaPo, via TampaBay.com:




After the recession forced credit card companies to purge their rosters of the riskiest loans, the industry is facing a new dilemma: 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 of loans. In addition, new federal laws restrict how much card companies can charge risky customers.

Now, frugal-minded consumers are charging less on their credit cards, paying down their balances and steering clear of penalty fees — steps that are financially responsible but have the industry scrambling to find new ways to make money.

"The only true deadbeat customer is someone who has a card and never uses it," said Curtis Arnold, who runs the credit comparison site CardRatings.com. "Just having good credit alone in today's market is not enough for that customer to be profitable."

A new study by the Pew Charitable Trusts found that annual fees and service fees have increased over the past year while penalty charges — which are subject to the new federal regulations — remained largely unchanged.

Meanwhile, some cards are encouraging customers to charge more by offering enhanced rewards, allowing the issuer to capture "swipe fees" paid by merchants. One issuer even allegedly threatened to reject consumers with high credit scores because they didn't boost the bottom line. .............(more)

The complete piece is at: http://www.tampabay.com/news/business/personalfinance/some-credit-card-companies-squeeze-most-responsible-customers/1112232

[hatrack]

1. Awwwwwwwwwwwwwwwww!!!!!!!!!!! Poo widdah credit card companies!!!

Fucking tragic, I tell you!

:nopity:

[hobbit709]

2. When Chase tried to screw me, I cancelled the cards.

Just before the new law took effect, they upped my interest to 31.99% from 17.99%. I had never missed a payment, been late, always paid more than the minimum, never exceeded 50% of my limit. The one had a balance of $150 so I paid it off, the other had about $800 so I transferred the balance to my new credit union card with 0% for a year-it will be paid off before then so no interest.
Chase tried to give me the song and dance about cancelling my cards would lower my credit score. My response was "I'd rather have a lower score than pay loan shark interest rates."

[marmar]

3. Chase is the worst.....I used to have a VISA with them. ..... Pure hell.

nt

[tsuki]

4. Chase tried to screw my mother, and I reported them to the BBB.

Did you know that the BBB has a special address to report Chase to? They have that many complaints.

[Donnachaidh]

7. so what did the BBB do to Chase?

Not to knock your report, but the BBB in my area is totally worthless when it comes to going after these companies. I'm curious to know if anything substantial came out of the report?

[tsuki]

13. Nothing. But to have a special address where all Chase complaints

go, I found that significant.

[pipi_k]

12. I have a Chase card, and like you

I've been diligent about keeping the balance below 50% of my limit..actually below 35%...pay in full, on time, every month, etc.

They've never done anything shitty to me, but that doesn't mean they may not in the future. I've read enough online so that I don't trust them, so I applied for a card through my local bank and I have another through Pentagon Federal.

I'm not going to cancel the Chase card, but I will put it away and only drag it out for a minor purchase maybe once every six months or so, just to keep my "available credit" vs "credit actually used" ratio good.

At this point, having a good credit score is important to me since we're trying to sell our home so we can buy another closer to civilization.

[lunatica]

5. It's time for the big boys to push away from the banquet table

[ejpoeta]

6. my hubby and i were talking about credit cards last night.

it's a racket what you have to go through to have decent credit. it's like a game. we now have several credit cards sitting in our safe. we need the credit to have a good credit rating, but that doesn't mean we have to use the cards. it's like a little game. when we use the card, we use enough to have the no interest and then pay more than the minimum . we don't always do that. sometimes you use it and then pay it off in a couple months or something. they will get a little interest that way. sure they need to make money, but they ARE making money on good credit risks. they know they'll get paid back and will get some interest. when they get poorer risks they can charge more, but there is no guarantee they'll get their money back either. it's ridiculous to try to make the good customers pay for the fact that they lend to high risks and act surprised that they end up not getting paid back.

Maxed out is a good movie to watch. It talks about how the industry has played their little games.

[rhett o rick]

8. I get great cc service from my local Credit Union. nm

[rurallib]

9. I have one card and I can do without it if I have to.

When I think of freedom, I think of being free from people who want to own you.
These fuckers want to own you. I know I am an odd person, but I do not need nor want all that crap.

[Donnachaidh]

10. this is the irony -- even those cards that offer the carrot on a stick - points, etc.

I don't get how the dumbasses think *points* or other goodies are worth the hassle of credit cards. Sure, *they* may get something of a little bit of value, but they are accepting pittance from companies that are strangling the rest of the card owners out there. Are we THAT self-involved and selfish that we refuse to look at the big picture, because we want what amounts to frigging TRINKETS?

Credit card companies know the trifling, greedy attitudes of some (those ads about taking vacations on points plays right into this) and they work these people like puppets. We need to wake up and stop feeding these beastly companies and start fighting back.

[edhopper]

11. Here's the fucking crime of it

When you cancel a card, when you tell a card company to stick it.
You're credit rating goes down.
So now those of us who seldom use their cards and never leave a balance will have to pay or get hit in our credit score.
Nothing more than extortion

[L0oniX]

14. I assigned a different credit card for each monthly utility bill to keep them active.

That's all they get used for. one for water, 1 for phone, 1 for insurance, 1 for Brinks, 1 for gas ...etc. Fuck them!