http://econ4u.org/blog/2009/05/22/new-credit-laws-put-even-responsible-payers-on-the-hook/ Wed, 21 Dec 2011 04:03:26 +0000 hourly 1 http://wordpress.org/?v=3.1.3 http://econ4u.org/blog/2009/05/22/new-credit-laws-put-even-responsible-payers-on-the-hook/comment-page-1/#comment-411 CRHOME Sat, 06 Jun 2009 22:52:47 +0000 http://econ4u.org/blog/?p=729#comment-411 Better credit disclosures should help consumers make more informed financial decisions. However, the credit issuers may try to obscure the important facts with a profusion of information filled with confusing industry jargon. Better credit disclosures should help consumers make more informed financial decisions. However, the credit issuers may try to obscure the important facts with a profusion of information filled with confusing industry jargon.

]]> http://econ4u.org/blog/2009/05/22/new-credit-laws-put-even-responsible-payers-on-the-hook/comment-page-1/#comment-398 Richard Edward Noble Fri, 29 May 2009 12:12:09 +0000 http://econ4u.org/blog/?p=729#comment-398 I don't believe it either, Joan. But if that is the end result, frugal folks like me will go back to our check books and cash money. I don't HAVE to use my credit card. It's convienient but I can do without it. I don’t believe it either, Joan. But if that is the end result, frugal folks like me will go back to our check books and cash money. I don’t HAVE to use my credit card. It’s convienient but I can do without it.

]]> http://econ4u.org/blog/2009/05/22/new-credit-laws-put-even-responsible-payers-on-the-hook/comment-page-1/#comment-377 Joan Fri, 22 May 2009 20:36:12 +0000 http://econ4u.org/blog/?p=729#comment-377 I don't believe it. Low risk borrowers are already a profit center for credit card companies, else they wouldn't compete to get their business. If the low-risk borrowers were loss leaders, subsidizing the high-risk borrowers, as it states in the article, why wouldn't the credit card companies just stopped offering their business to those customers and increase their profit margins. I think this is a scare tactic to get public opinion against the law, but it's not at all a realistic expectation now that the regulation has passed. I don’t believe it. Low risk borrowers are already a profit center for credit card companies, else they wouldn’t compete to get their business. If the low-risk borrowers were loss leaders, subsidizing the high-risk borrowers, as it states in the article, why wouldn’t the credit card companies just stopped offering their business to those customers and increase their profit margins. I think this is a scare tactic to get public opinion against the law, but it’s not at all a realistic expectation now that the regulation has passed.

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