Why don't credit card companies cut their interest rates?

lisyloo

I would guess that high risk borrowers are going to be here for a long time so using your scenario there will never be a drop in credit card standard rates.

You seem to be making generalisations.
There will be a lot of scenarios in between the best and worst cases.
It isn't black and white.

but with the loans once the cash goes to the punter it's gone and as you know these can be taken out over seven years, plenty of time for people to have problems

Not everyone will have problems.
The majority will pay off their bills.

Don't forget that with credit cards, the retailers also make money from vendors as well.

I don't personally think that dropping rates 0.5% will stop many people going bankrupt.

You are prefectly entitled to discuss to you hearts content, but the fact is you won't acheive anything here because none of us are influential to credit card companies, so I'm not sure what you expect to acheive here.

Bismarck

CC Companies will do what suits them best - they're after making money and the punter is their cash cow.....if you're a high risk, they'll charge you because your group is more at risk of default so the ones of the group that can pay get fleeced.

If the CC companies have no customer to milk then they have to drop their rates to get them through the door.....at the moment there is no shortage of people facing difficult times so there is no incentive to lower rates.

Any

Alx_B wrote: »

However, I wouldn't be surprised if part of the govt's bail out deal involved the banks dropping rates, at some point in the near future, in line with the BoE cut. I would like to think that the govt applied some leverage on the banks while it was busy spending my tax money on the bail out. :rolleyes:

I know what you mean. I am hoping the same. They were ripping us off for ages (ref bank charges) and now they want our tax money to save themselves. I do hope that Gordon did put something into their "contract" or however you want to call it.
I would fraze it: "you are no longer to take advantage of your customers (our taxpayers) as you can only thank them because their money are going to get you out of this s**t. Would you even try to take advantage of them all your main managers will be hanged up by their willies in a public place and people can throw rotten tomatoes on them"
What do you think??:rotfl: :T :rotfl:

Any

Alx_B wrote: »

I think you're letting them off a bit easy, but not a bad point to start from *grin*

Do you think we should be allowed to throw potatoes instead? I was thinking about it as soon as I posted that and I think it might hurt them better:rotfl: :T :rotfl:

Any

Alx_B wrote: »

Given the austere times that are, apparently, ahead I think it would be wasteful to hurl foodstuffs which might get damaged in the process. However, something sturdy, like a coconut, would be an entirely different matter...

NOoo, I like coconuts to eat. How about going back couple of centuries and throw stones??:rotfl: