Are Credit Cards The Next Collapse?

McClatchy:

First came trouble with mortgages, then home equity loans and commercial real estate. Now, banks are starting to worry about credit cards.

As the economy slows and unemployment rises, consumers are defaulting on credit-card payments more often. And though that trend is unlikely to create a crisis in line with the mortgage fallout, it's still a headache for banks that are already hurting.

Read the whole story: McClatchy

Comments

[olephart]

The loan sharks will just get another bailout and we'll be stuck with the bill. What ever happen to just say no when it comes to handing out tax money to criminals? This cuts across Party lines and the Rethugs who were against it caused the problems in the first place with their What Me Worry stance on regulations.

[naschkatze]

Credit cards are economic slavery.

[antiparanoid]

If insurance companies want a bail-out we need to reject their claim.

[Earl]

I think they're subject to a $500 billion deductible.

[olephart]

Executives stealing more than they can carry isn't covered under the terms of their policy.

[texastrixie]

The credit card companies deserve every default they are going to get. They push credit cards on college students, many of whom have no jobs or independent income source. They also (in the past) extended credit to individuals who were already too far in debt. I know of a woman who made $40k a year who had almost double that in credit card bills. They are supposed to check a credit history before issuing a new card. On what basis did they expect to get paid if they saw this woman was already $15k in debt on a $40k salary?

[naschkatze]

Recently they are uping the late charges on people already deeply in debt without any check by a regulating agency, and if the bill gets there 2 seconds late, they come down on the payer.

[msjimmied]

I liked Hillary's idea of a moratorium on interest rates. Why bail out the banks when it is so much easier to ask them not to jack up rates to nose bleed levels? If the banks had not gotten as greedy as they did, and homeowners and cardholders could pay their bills, we would not be in this crisis. How many times has Bernanke lowered rates, and how many times has the banks done so?

The banks has it coming.

[Blue in NH]

America's addiction to debt is a national embarassment--and the legacy of a generation of Republican rule.

---Proudly credit card debt free!

[BPCentrisAmerican]

I hope so, I'm sick of the offers cloaking my mail-box and tying up my voice mail.

[Rog49Thomas]

Anyone out there remember seeing our Congress in action in hearing with the heads of the big three credit card issuing banks- Chase, Citi and BofA.

It was a sight to gladden the hearts of --- well the big three banks.

The context - good ole JPMC had penalty charged some poor guy in Ohio so much that his bill doubled.

At the meetings, one bright congressman asked each bank how much of their credit card income was from penalty fees. None of the three wise men from the banks knew. The "bright" congressman dropped his question. He didn't say. OK gents if you don't have it now, send me a letter. He didn't say, "OK, got a cell phone call your credit card division and have them see if they can give it to you now". He just walked away from the topic.

Nice to see that it's not only political appointees for Attorney General who don't really get pressed on hard questions but also the small business man Carl the Credit Card Issuer.

[SEQUOIABISON]

Lets go back to bartering and sea shells for currency.

[TXfemmom]

Yes, it will be the next collapse. However, the banks have been charging 18 to 24 percent interest when they were paying 4% on CD's and less on other things. There should be a law that all these credit card issuers can only charge 6 to 8 percent more than they are paying on investments, and a little more for those who warrant it because of their payment history.

[MilwaukeeMike]

Yes.

[darthdarcy]

Yes the Credit Card Industry will be the next big collapse and it can't happen soon enough..!

These ghouls of the Credit Card Industry have practiced "blood sucking usery" as Congressman Obey put it for too long...the­y are nothing less than loan sharks and this company RPM that serves as their thugs torments those who are being forced to pay rates over 20% and even as high as 30% which is clearly usery and immoral..

We need usery laws in this nation it is immoral that we do not have them and no Credit Card Company should be allowed ever to charge over 15% and that should be their top penalty rate for those who are the worst of the late payers and non payers..ot­herwise the rate should be between 5-7% most of the time..

The credit card industry is the next bomb that will soon explode in the financial world...

I would love to start a credit card company myself that had these rates and accepted and rolled over all these poor people that our government has allowed these criminals in the banking and credit card industry to destroy and abuse and mistreat, it's a national disgrace..­!

[DXM]

If these loan sharks start feeling some pain, I won't be shedding a tear.

[davesideas]

Do you think...ma­ybe? Is it possible that that's what started the whole financial spiral we're on? For being such an advanced organism, we are dumb as posts...wa­ahooo

[BustMyChops]

Sure credit cards are next. We've had a wall street bank bailout and we're in the process of an insurance company bailout. I smell a credit card bailout! Bailouts should go to all the most profitable private corporations in america! As for universal healthcare and job outsourcin­g.......Pu­ll up your boot straps socialists!