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Are you feeling the TALF love yet?
The Federal Reserve has released the latest on TALF loan applications – $6.9 billion, up slightly from last month’s $5.4 billion. This is the consumer-related ABS round (though it also includes things like bonds backed by equipment leases, small business loans and auto floor plans), which has been gaining some traction since it was launched earlier this year.
But here’s my question. Is anyone out there seeing this translate into lower consumer financing charges? I’m particularly interested in credit card charges. A good portion of the collateral put forward to get these loans has been for bonds backed by credit card debt. In the latest round it was $2.6 billion. Now ostensibly the program is supposed to have the knock-on effect of lowering financing costs for you and me. But last month, I discovered that one of my credit cards had jacked up my rate by 10 percentage points to 17%. They said it was because of the poor economic climate and through no fault of my own.
Now, I understand that my experience is anecdotal and it may take time for this to filter through but would be interested to hear what others are seeing.