Is There Really a Credit Card Crisis?
I don’t dispute that some card issuers engage in bad behavior and frankly there have been times when I’ve been furious. But there is a lot of market discipline for this; if you threaten to switch cards the issuers back off. Proponents of legislation point to anecdotes of bad behavior. There is, however, no systematic evidence that there is a credit card crisis. Check out Is There Really a Credit Card Crisis? and tell us what you think.
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Payments, Regulation, Technology, consumers, Economics
A very good and well balanced article, it will be interesting to see whether any of the Obama stance on the credit card companies is picked-up by Brown in the UK, where there is already tight controls on transparency of fees/charges. I agree that many credit card companies are serving a vital function within the economy assisting both private consumers and small business with short term cashflow problems. With charge-off rates increasing and the Card Schemes being squeezed to reduce interchange rates its not a great time to be sat within the credit card business !!!