>What they get is a business that's about twice as profitable as other
>lines of banking business, even with the high default and bankruptcy
>rates. Borrow money at 6%, lend it at 16% - and add onto that
>merchant and late payment fees - and you can take a loss now & then.
>
>Doug
Wow. this should all be discussed in a book--ever thought about it, Doug? Providian, issuer of credit cards to the highest risks, is being sued in CT, I believe, for selling people credit insurance they did not need under false pretexts, as well (I believe) not informing people of interest rate changes on outstanding debt. As for late payments, it seems to me that many may not know that by paying up every two months, they are only covering the late payments. It's a horrendous situation. One would imagine that the lobbying fees of credit card companies are far from marginal. Yours, Rakesh