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No on is gouging consumers.
You pay a penalty for not being fiscally responsible with your money.
So, would you be OK with a late fee of $50,000? How about a late fee of $100,000?
The credit card issuers are being whiny here. It certainly doesn't cost them$25 when a card holder is late with a payment. And that's ignoring the games they play with properly crediting your payments. Before online payments, I got to the point where I sent every payment with proof of delivery requested, because a couple of cards couldn't get payments processed timely and were charging late fees on payments they received on or before the due date.
So, would you be OK with a late fee of $50,000? How about a late fee of $100,000?
The credit card issuers are being whiny here. It certainly doesn't cost them$25 when a card holder is late with a payment. And that's ignoring the games they play with properly crediting your payments. Before online payments, I got to the point where I sent every payment with proof of delivery requested, because a couple of cards couldn't get payments processed timely and were charging late fees on payments they received on or before the due date.
Why not ? You went over your limit and are now borrowing money from the bank to cover you overdraft.
It's not forced on anyone...you did it to yourself.
And it's not $50K...it's more like $30 per transaction.
Limit it to $8 will only serve to incentivize going into debt.
What will end up happening if this goes through is that you won't get overdraft privileges....your card or check will be rejected right there on the spot.
That's what happens to people with really bad credit.
I think banks are doing OK financially, why gouge consumers ?
All regulatory costs, taxes etc. ultimately find their way down to the consumer eventually in every industry.
The word "gouge" around here generally is associated with people that don't understand the topic.
Now if you are talking about specific events like monopoly power like the creep did to insulin then that is gouging and is often illegal and short lived.
P.S. You should restate those numbers to a % of revenue to get a clearer picture. Also, this very thread shows why industries need to be involved in political donations...or they get run over by other interests.
"Last May, the American Bankers Association and other lobbying groups representing Citigroup, JPMorgan Chase, Wells Fargo and Visa warned that the policy would force them to limit the perks they offer cardholders." https://archive.is/SySGU
That's it, just may have to reduce some perks.
Will still be making bank on processing fees and interest.
Get a clue. They're talking about perks like overdraft protection. How is that a perk? That's spending more money than you have and essentially taking a loan from the bank.
Well, when banks can't recoup that in fees, they'll no longer offer that service. No money in your account means exactly that = no money. You can't buy food to feed your family, sorry. The bank can't front you money anymore because they lose money on that deal.
Get a clue. They're talking about perks like overdraft protection. How is that a perk? That's spending more money than you have and essentially taking a loan from the bank.
Well, when banks can't recoup that in fees, they'll no longer offer that service. No money in your account means exactly that = no money. You can't buy food to feed your family, sorry. The bank can't front you money anymore because they lose money on that deal.
Well now they can go get a "payday loan" at 400% interest.
So, would you be OK with a late fee of $50,000? How about a late fee of $100,000?
The credit card issuers are being whiny here. It certainly doesn't cost them$25 when a card holder is late with a payment. And that's ignoring the games they play with properly crediting your payments. Before online payments, I got to the point where I sent every payment with proof of delivery requested, because a couple of cards couldn't get payments processed timely and were charging late fees on payments they received on or before the due date.
"The credit card issuers are being whiny here" you seem to be talking about yourself. People entered into a contract, everybody knows what happens when you fail your part of it and the penalties involved. Grow up and take personal responsibility. It sucks, sure, in my younger days i would end up paying these fees as i just wasn't paying attention to paying my bills on time. But after having to pay multiple late fee's on my first card it eventually sunk in and I made dang sure I always paid on time and learned not to spend what I could not pay. And if an emergency caused an issue, any fee's were well worth it for having that Card to deal with that Emergency.
You do know if those fee's are limited, you will very likely have a lot less people whom will be able to get Credit because of their lousy history of not paying?Right now Card companies know they will make money on people who pay late and are willing to take the risk of giving them Credit. Why would they take such a risk if the profit is not there?
Get a clue. They're talking about perks like overdraft protection. How is that a perk? That's spending more money than you have and essentially taking a loan from the bank.
Well, when banks can't recoup that in fees, they'll no longer offer that service. No money in your account means exactly that = no money. You can't buy food to feed your family, sorry. The bank can't front you money anymore because they lose money on that deal.
No, this is talking about credit cards.
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