[lbo-talk] Credit Card Loan Delinquencies Reach Record High

[joanna]

I'd have to have a lot more data, but I was in the doctor's office today 
for a routine appt and was leafing through Consumer's Reports. It had a 
long, detailed article with lots of info about how CC companies are now 
gouging as far as the eye can see, in ever more inventive ways: big 
penalties if you don't pay the minimum; minimums so low, you never pay 
off the principal; no justice possible for customers because of 
arbitration clauses; and interest rates that jump from 12% to 30%!!!!!! 
for very dubious reasons. For example, using the CC too much! Missing a 
payment ON ANY CC affects interest rates on ALL CC's. Etc.

Apparently, when the regulations were dropped, the CC companies decided 
to go to town. Keep in mind, this was Consumer's Reports, not the Daily 
Worker. And yet, they were fuming at what's going on.

Joanna

Mark S wrote:


> It's notable that the value of delinquencies relative to outstanding 
> CC debt is fallling but the number of delinquencies is at a record 
> high. Lots of lower-income, lower-debt, card holders must be failing 
> to make their payments all of a sudden. Gas prices finally pushing 
> people over the edge?
>
> http://www.aba.com/Press+Room/092805DBULL.htm
>
> CREDIT CARD LOAN DELINQUENCIES
> REACH RECORD HIGH IN SECOND QUARTER 2005
>
> WASHINGTON, Sept. 28  Credit card loan delinquencies reached a record 
> high of 4.81 percent of accounts in the second quarter of this year, 
> according to the American Bankers Associations Consumer Credit 
> Delinquency Bulletin.
>
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