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They could put hunter on the notes
Posted on 04/12/2024 10:43:57 AM PDT by SeekAndFind
When the economy is going well, people buy a lot on credit and keep current with their credit card debt.
When the economy stinks, people still buy a lot on credit but fall behind in their payments. By that measurement, we're in a lot of trouble.
The Federal Reserve Bank of Philadelphia published a study showing that the rate of credit card delinquencies — 30, 60, and 90 days past due — rose to a level not seen since 2012. And it gets worse.
"Fourth quarter 2023 featured the worst card performance in the series," the report said. "All stages of account-based delinquency reached series highs. Only the 90+ balance-based rate was under its series high, set over a decade ago."
Nearly 3.5% of cardholders were at least 30 days past due in December, an increase of 30 basis points from the delinquency rate of the previous quarter. The number of accounts that were 60 and 90 days past due also rose.
Another indication of trouble is that the share of card members making the minimum payment rose 34 basis points from the third quarter.
Banks are reining in their credit card programs while giving out fewer credit line increases and reducing credit lines more frequently. If this trend continues, the record number of delinquencies will turn into a record number of defaults.
The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high right now.
(Excerpt) Read more at pjmedia.com ...
So, Seeing that Americans are struggling to pay their credit card debt on time, Joe Biden is riding to the rescue by putting a cap of $8 on late fees.
See here:
https://www.cbsnews.com/news/credit-card-late-fees-cfpb-biden-strike-force/
[EXCERPT]
The Consumer Financial Protection Bureau’s new regulations will set a ceiling of $8 for most credit card late fees, or require banks to show why they should charge more than $8 for such a fee. The effort will save Americans up to $10 billion a year, the agency estimates.
The push comes a year after President Joe Biden vowed to ban junk fees in his 2023 State of the Union address, calling them “unfair.” Junk fees generate big money for businesses, ranging from airlines to financial services firms, with consumers paying at $90 billion annually in excessive charges, the White House said on Tuesday.
“In credit cards, like so many corners of the economy today, consumers are beset by junk fees and forced to navigate a market dominated by relatively few, powerful players who control the market,” said Rohit Chopra, director of the CFPB, in a statement.
“— rose to a level not seen since 2012.”
...hmmmm. who was the peabrainOFTUS at that time?
This is why I rarely use my credit card and pay off the balance on a timely basis.
How the bleep can Biden “cap” anything?
When will Joe’s face show up on all food items etc etc ,LOL
You still have to pay interest that can be over 25%. That is where they get you.
This is how you win over stupid voters, that is, most Americans. Give them a token, illegal relief from the problem created by the White House Biden handlers, and those voters will stay in your camp.
I didn’t realize that the President had the authority to unilaterally cap fees. Is there a law that was passed which gives him this authority or is this done via executive order with little statutory ground to stand on?
While I understand ALL the arguments against it, an $8 cap is going to be wildly popular and buy China’s puppet emperor votes.
My Exxon card just upped the interest rate to 34.4% for balances not paid.
With this kind of control over businesses, we really are a socialist country.
Interest rate matter little if you are planning to default.
Once Biden's peeps can no longer get credit cards, the banks will be blamed and open the doors to new regulation. All part of the plan.
I haven’t paid a single red cent of interest on a credit card in 3 decades.
You should never use a credit card if you aren’t liquid to pay the charge off. Credit cards are the absolute worst kind of interest the accumulate.
If you do pay the entire monthly debt on team, then the interest rate will never matter.
The only thing he's good at is capping his demented brain
What a curious way to write a stat.
It’s not like the banks are going to collect those fees in some other manner. More vote buying from the dictator-in-chief.
Credit cards should only be used as a cash management tool by those who could very easily pay cash for the transaction, and have the financial maturity to not spend the payoff amount at the end of the monthly cycle on other things.
Otherwise, they should be cut up and destroyed.
“Seeing that Americans are struggling to pay their credit card debt on time, Joe Biden is riding to the rescue by putting a cap of $8 on late fees. Our president never misses a trick to make our life easier, does he?”
Maybe fewer people will qualify for credit cards.
But then…the govt will ride in and mandate that the underserved communities get their share of credit too, won’t they?
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