Comments on: More free goodies from credit card companies? http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/ A slice of lime in the soda Fri, 24 May 2013 18:36:44 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Heather http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-5649 Heather Wed, 19 Aug 2009 00:25:27 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-5649 today RBS sent a letter to me raising my interest rate on the Master Card to 19%, I had paid off the balance and used the card when the rates were very low to pay off Dental bills that were very high. I closed my account right after I told them that I have had the card since 2001 and am now being penalized because I paid off the balance. They (and I am sure all the others will follow suit),are using not the US APR now but the Global one from London. Now for the real damage they are inflicting. The small business owners who for one thing participate in trade shows and put $3,300 on a card for a show. Now they will be hit with an additional 19% or more when they are watching every dollar they spend. Is this what our President has done..and I supported him. Heather today RBS sent a letter to me raising my interest rate on the Master Card to 19%, I had paid off the balance and used the card when the rates were very low to pay off Dental bills that were very high. I closed my account right after I told them that I have had the card since 2001 and am now being penalized because I paid off the balance. They (and I am sure all the others will follow suit),are using not the US APR now but the Global one from London.

Now for the real damage they are inflicting. The small business owners who for one thing participate in trade shows and put $3,300 on a card for a show. Now they will be hit with an additional 19% or more when they are watching every dollar they spend. Is this what our President has done..and I supported him.
Heather

]]> By: BankVibe http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1809 BankVibe Thu, 21 May 2009 19:21:05 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1809 There is NO point in opening any credit card with an annual fee. Brad and Ken's point are dead on (and hilarious). The only point in having it is to be able to whip it out in front of people in the hopes they will think you are a baller. The metallic shine wore off?!?! $495/year for some lamination doesn't sound like a good deal to me! There is NO point in opening any credit card with an annual fee. Brad and Ken’s point are dead on (and hilarious). The only point in having it is to be able to whip it out in front of people in the hopes they will think you are a baller.

The metallic shine wore off?!?! $495/year for some lamination doesn’t sound like a good deal to me!

]]> By: jim http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1769 jim Thu, 21 May 2009 00:39:48 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1769 Yes. I'm fairly sure that AmEx loses money on me. It's a second card (my main card is a rewards card) that I charge something on every other month or so (and pay off in full). The interchange fees that AmEx gets from the merchants can't possibly cover the marginal cost of administering my account: just sending me a statement every month must cost them on the order of $40-$50 a year. So it wouldn't surprise me if AmEx tries to push me out. Yes. I’m fairly sure that AmEx loses money on me. It’s a second card (my main card is a rewards card) that I charge something on every other month or so (and pay off in full). The interchange fees that AmEx gets from the merchants can’t possibly cover the marginal cost of administering my account: just sending me a statement every month must cost them on the order of $40-$50 a year.

So it wouldn’t surprise me if AmEx tries to push me out.

]]> By: keith http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1760 keith Wed, 20 May 2009 20:31:34 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1760 all my credit cards have already hiked the fees before the selfish polititians in washington could make up their mind on how to do something too little too late once again! that is typical of our great leaders all my credit cards have already hiked the fees before the selfish polititians in washington could make up their mind on how to do something too little too late once again! that is typical of our great leaders

]]> By: Gretchen Denver http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1755 Gretchen Denver Wed, 20 May 2009 19:41:20 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1755 And yesterday, I received a notification from Capital One that my account (held nine years with no late payments & carries a balance) would have a change to it. They said my rate would change to around 19-20% above prime, putting the total around 23-24%! That's over a 10% hike--without any negative activity on the card. Nice way to slip it in the random percentage hike before the President's action. Geez. Can't win for losing. And yesterday, I received a notification from Capital One that my account (held nine years with no late payments & carries a balance) would have a change to it. They said my rate would change to around 19-20% above prime, putting the total around 23-24%! That’s over a 10% hike–without any negative activity on the card. Nice way to slip it in the random percentage hike before the President’s action. Geez. Can’t win for losing.

]]> By: Ken http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1752 Ken Wed, 20 May 2009 18:56:44 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1752 Brad, I think you've hit it. The price is strictly social signalling, where the whole point of having the card is to show that you can afford to have it. It's not different from the now-withdrawn $1000 "I Am Rich" iPhone app, or a $5000 Gucci purse, or even Eliot Spitzer's $4300 bill for one night with a prostitute. Brad, I think you’ve hit it. The price is strictly social signalling, where the whole point of having the card is to show that you can afford to have it. It’s not different from the now-withdrawn $1000 “I Am Rich” iPhone app, or a $5000 Gucci purse, or even Eliot Spitzer’s $4300 bill for one night with a prostitute.

]]> By: Brad http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1749 Brad Wed, 20 May 2009 17:56:54 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1749 It's funny. When I got my first credit card out of college, it was a stupendously crappy one. $500 limit, secured. Couldn't be less prestigious. But it was a "titanium" card with a metallic finish, and the bank's logo was screen printed across it with cheap ink. I scraped the logo off with a coin in about 10 seconds and just had a blank, gray Mastercard. I was quite amazed at the reactions this provoked among the many people who assumed it must be something quite exclusive. It was a conversation starter and I could've leveraged it into a few dates, I'm sure. For certain people the $495 fee might be well worth it. It’s funny. When I got my first credit card out of college, it was a stupendously crappy one. $500 limit, secured. Couldn’t be less prestigious. But it was a “titanium” card with a metallic finish, and the bank’s logo was screen printed across it with cheap ink. I scraped the logo off with a coin in about 10 seconds and just had a blank, gray Mastercard.

I was quite amazed at the reactions this provoked among the many people who assumed it must be something quite exclusive. It was a conversation starter and I could’ve leveraged it into a few dates, I’m sure. For certain people the $495 fee might be well worth it.

]]> By: Nick http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1746 Nick Wed, 20 May 2009 17:19:14 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1746 Yesterday I received an updated disclosure notice from Chase. "In order to remain profitable, my interest rate must be increased". I didn't get a bailout, haven't been late, usually keep a small balance on the card. Will this be allowed under the new legislation? Yesterday I received an updated disclosure notice from Chase. “In order to remain profitable, my interest rate must be increased”. I didn’t get a bailout, haven’t been late, usually keep a small balance on the card. Will this be allowed under the new legislation?

]]> By: Mike http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1744 Mike Wed, 20 May 2009 16:51:19 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1744 One thing I have not been able to find out is what effect the legislation will have on those millions of consumers who are currently suffering as the victims of unfair practices by the credit card companies. Does anyone know if the legislation will apply to current accounts, or just new accounts/charges that are made after the bill is signed into law? One thing I have not been able to find out is what effect the legislation will have on those millions of consumers who are currently suffering as the victims of unfair practices by the credit card companies. Does anyone know if the legislation will apply to current accounts, or just new accounts/charges that are made after the bill is signed into law?

]]> By: CBam http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/comment-page-1/#comment-1739 CBam Wed, 20 May 2009 15:32:16 +0000 http://blogs.reuters.com/felix-salmon/2009/05/20/more-free-goodies-from-credit-card-companies/#comment-1739 On the subject of credit cards... a glossy application arrived in the mail this week for something Barclays is pushing called the 'Black Card'. It is a Visa card with a $495 annual fee (plus another $195 for additional users. Claims to be an exlusive offering. The website says the carbon infused plastic is 'a more unique card'. Who the heck is signing up for that annual fee? On the subject of credit cards… a glossy application arrived in the mail this week for something Barclays is pushing called the ‘Black Card’. It is a Visa card with a $495 annual fee (plus another $195 for additional users. Claims to be an exlusive offering. The website says the carbon infused plastic is ‘a more unique card’.

Who the heck is signing up for that annual fee?

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