Credit card companies.. Im done with them
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danlo
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You bloody buggers need to get married!
When I worked as a mean ol' collector for Shitybank I asked an interesting question at a training seminar: "When we go out to the colleges why don't we educate the students on financial responsibility and the dangers of credit." They all looked at me as if I were the devil...
When I worked as a mean ol' collector for Shitybank I asked an interesting question at a training seminar: "When we go out to the colleges why don't we educate the students on financial responsibility and the dangers of credit." They all looked at me as if I were the devil...
fall far and well Pilots!
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Loredoctor
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Loredoctor
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Seareach wrote:Loremaster wrote:Are you insane? That would be hell! Sea and I would go into meltdown!danlo wrote:You bloody buggers need to get married!
Besides...
Waddley wrote:your Highness Sir Dr. Loredoctor, PhD, Esq, the Magnificent, First of his name, Second Cousin of Dragons, White-Gold-Plate Wielder!
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Astavyastataa Kadna
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OK ... Here's my two cents.
I used to be President of a Banks Card Services Division. Credit Card, Debit Cards, and Merchant Business (the people who 'sell' merchants the terminals to take credit cards.)
Here are the economics (circa 1994 - 1998). If you pay off your balances every month and spend less than about $2,000 a month the bank LOSES money on your account. Banks make money on high balance revolvers and high spend accounts. In fact 20% of a banks accounts make more than 100% of the profits ... 50% of the accounts are 'break even' and 30% lose money. Also, credit card companies lose LOTS of money to charge offs. In recent years the interest rate and teaser period wars have dramatically eroded profits. [There are a finite number of credit worthy people - and in a saturated market - with switching costs close to $0 - there is a lot of market churn.]
So what?! That means card companies have been pressured to make money every way they can - higher fees; penalty rates; etc. And to combat charge-offs (people who don't pay); they have gotten aggressive at using all sorts of information to assess creditworthiness. While these techniques are statistically correct ... I do agree that the human element is certainly lost.
As to experience with customer service. Large companies often have profitability indicators that examine your ENTIRE relationship and potential relationship. If you do not get accomodating service, they may have determined that your patronage is COSTING them rather than MAKING them money and that the probability of this changing is low.
I do not make a MORAL judgement on these practices. And I speak for ME personally - not for my current company - these credit card issuers are simply operating as a capitalist business - in an environment where margins continue to be squeezed, they make money any way they can.
[BOY THIS LINE OF THINKING TAKES ME BACK!]
[Now ... AK / Creator returns to his usual frivolous self!]
I used to be President of a Banks Card Services Division. Credit Card, Debit Cards, and Merchant Business (the people who 'sell' merchants the terminals to take credit cards.)
Here are the economics (circa 1994 - 1998). If you pay off your balances every month and spend less than about $2,000 a month the bank LOSES money on your account. Banks make money on high balance revolvers and high spend accounts. In fact 20% of a banks accounts make more than 100% of the profits ... 50% of the accounts are 'break even' and 30% lose money. Also, credit card companies lose LOTS of money to charge offs. In recent years the interest rate and teaser period wars have dramatically eroded profits. [There are a finite number of credit worthy people - and in a saturated market - with switching costs close to $0 - there is a lot of market churn.]
So what?!
That means card companies have been pressured to make money every way they can - higher fees; penalty rates; etc. And to combat charge-offs (people who don't pay); they have gotten aggressive at using all sorts of information to assess creditworthiness. While these techniques are statistically correct ... I do agree that the human element is certainly lost.As to experience with customer service. Large companies often have profitability indicators that examine your ENTIRE relationship and potential relationship. If you do not get accomodating service, they may have determined that your patronage is COSTING them rather than MAKING them money and that the probability of this changing is low.
I do not make a MORAL judgement on these practices. And I speak for ME personally - not for my current company
- these credit card issuers are simply operating as a capitalist business - in an environment where margins continue to be squeezed, they make money any way they can.[BOY THIS LINE OF THINKING TAKES ME BACK!]
[Now ... AK / Creator returns to his usual frivolous self!
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The Sorcerer King
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SoulBiter
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All well and fine statistically but they arent hurting any for profits. Matter of fact they are making record profits on their crappy practices regardless of how many people are defaulting and bankrupting.
2006 - Capital one reported fourth-quarter net income of $280.3 million, or 97 cents per share, compared with $195.1 million, or 77 cents, a share a year earlier.
2003 - Through the third quarter, five of the nation's leading issuers, collectively representing more than 54% of the U.S. card market, posted nearly $7.3 billion in card profits for the first nine months of this year. This means the U.S. general purpose credit card industry may produce as much as $20 billion in profits this year. Through September 30th, Citigroup has generated $2.1 billion in card profits, while American Express produced $1.8 billion, MBNA $1.6 billion, Capital One $872 million, and, Bank One $812 million. Even struggling issuers such as Sears and Providian posted healthy profits.
2007 - The credit card industry is the most profitable one in the United States with annual earnings in the $30 billion range. Many people might be surprised to learn that a single credit card issuer -- MBNA -- earned 1.5 times more profit than McDonalds in 2004. Citibank, another major credit card issuer, earns more profit than both Microsoft and Walmart.
Also check out some of the tactics being used to 'maximize profits'
www.bcsalliance.com/x_creditcardtricks1a1.html
2006 - Capital one reported fourth-quarter net income of $280.3 million, or 97 cents per share, compared with $195.1 million, or 77 cents, a share a year earlier.
2003 - Through the third quarter, five of the nation's leading issuers, collectively representing more than 54% of the U.S. card market, posted nearly $7.3 billion in card profits for the first nine months of this year. This means the U.S. general purpose credit card industry may produce as much as $20 billion in profits this year. Through September 30th, Citigroup has generated $2.1 billion in card profits, while American Express produced $1.8 billion, MBNA $1.6 billion, Capital One $872 million, and, Bank One $812 million. Even struggling issuers such as Sears and Providian posted healthy profits.
2007 - The credit card industry is the most profitable one in the United States with annual earnings in the $30 billion range. Many people might be surprised to learn that a single credit card issuer -- MBNA -- earned 1.5 times more profit than McDonalds in 2004. Citibank, another major credit card issuer, earns more profit than both Microsoft and Walmart.
Also check out some of the tactics being used to 'maximize profits'
www.bcsalliance.com/x_creditcardtricks1a1.html
We miss you Tracie but your Spirit will always shine brightly on the Watch 
I'm happy to say that I'm one of those people sticking it up the bank's a$$!Astavyastataa Kadna wrote: If you pay off your balances every month and spend less than about $2,000 a month the bank LOSES money on your account.
Proverbs for Paranoids #3.
If they can get you asking the wrong questions, they don't have to worry about answers.
If they can get you asking the wrong questions, they don't have to worry about answers.
)