Credit Card Lifeline for Those facing Difficulty

exel1966

http://news.bbc.co.uk/1/hi/business/7778218.stm

How effective these measures turn out to be though ?

fermi

I'm in a cynical mood today, so maybe the phrase "too little too late" applies?

SheffGruff

By limiting the credit card company's ability to charge more for higher risk customers it basically forces them to start squeezing their profit margins out of people like me who can actually manage their accounts properly. Frankly its annoying - if banks can't make money out of people who fail to keep their end of the contracts it means they'll start making it out of people who manage their finances properly. Where's the fairness here?

Neillgb

SheffGruff wrote: »

By limiting the credit card company's ability to charge more for higher risk customers it basically forces them to start squeezing their profit margins out of people like me who can actually manage their accounts properly. Frankly its annoying - if banks can't make money out of people who fail to keep their end of the contracts it means they'll start making it out of people who manage their finances properly. Where's the fairness here?

Fully agree.

Government not able to understand how business works so your point will go straight over their head.

nickmack

SheffGruff wrote: »

if banks can't make money out of people who fail to keep their end of the contracts it means they'll start making it out of people who manage their finances properly.

Hopefully, if interest rates are kept under more control as in these proposals, less people will 'fail to keep their end of the contracts', as they will be able to repay the debt in full with less likelihood of defaulting.