Posted on 11/23/2008 3:54:53 AM PST by TigerLikesRooster
Retailers and credit card lenders at odds in crunch
Fri Nov 21, 2008 11:18am EST
By Alexandria Sage - Analysis
SAN FRANCISCO (Reuters) - The need by U.S. retailers' to sell in hard times has put them at odds with the lenders backing their credit cards. While stores aggressively promote use of their cards, lenders are increasingly wary of consumer defaults.
That conflict of interest, a direct result of the global credit crunch, could fuel escalated risk in 2009 following a holiday season in which more consumers are offered store credit cards that they may be less likely to repay.
"From the retailers' point of view, the more people who open up cards, the better it is for sales," said Laura Nishikawa, an analyst with Innovest Strategic Value Advisors.
But in the midst of the economic downturn, banks are working hard to protect themselves against defaults from existing cardholders, not to mention weeding out consumers with bad credit and maxed out accounts who seek new cards.
(Excerpt) Read more at reuters.com ...
Ping!
I paid off my card last year because it was time to replace my 12 year old car. I get all kinds of "deals" from my credit companies. Thanks but no thanks.
We have one credit card and are NOT charging anything on it. We are paying it off and then we will be free from the addictive drug of expensive credit. You want a horror story? We had trouble paying it with financial problems about a year ago. They raised it to 29% interest. It was like a wake up call. We are now paying big on it to get it paid. Then _______ can put it where the sun don't shine!
“Thanks but no thanks”
It is difficult for me to believe that the vast amounts used on postage could be even close to profitable. I throw the ten to fifteen offers a week away without barely a read. But then, I wasn’t an obama voting idiot. The companies must be getting a return on investment from those nutjobs.
“It is difficult for me to believe that the vast amounts used on postage could be even close to profitable.”
41 cents a pop (or whatever the Post Office last raised its price to)? Sounds like damn cheap advertising to me. Plus, I’m no marketing expert, but I’ll bet it’s harder to ignore something you physically have to throw away as compared to e-mail, tv, or radio ads.
I have retailer's credit card. If my memory serves me correctly, the retailer sold their cc business a couple of years ago to a financial institution. What a stroke of genius or just plane good luck for the retailer
Barack Obama - “Chains we can believe in”
I throw the ten to fifteen offers a week away without barely a read.Read the fine print -- you only need to do this once -- and find the opt-out number. Call the number. Or go to www.optoutprescreen.com
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