Will CC offerings improve after Brexit?

SnowTiger

2e0arr wrote: »

the retaillers issues should be with the card companies and their merchants processing the cards . if they don like taking cards send card customers elsewhere.
slimming world franchisees take cards when slimmers pay their weekly £4.95. how much will the merchant take.

What's a Slimming World franchise? A one man/women band similar to Fat Fighters?



I guess they'd use iZettlel, SumUP or similar.

iZettle charges a 1.75% transaction fee; SumUp charges a 1.69% transaction fee.

The fee on a £4.95 transaction would be less than 9p.

Large organisations would pay a much lower percentage.

Chrysalis

born_again wrote: »

More competition in the USA leads to more giveaways.

Also leads to more banks going bust. 4 in 2019......

Do not expect to see a relaxation of financial regulations once Brexit is sorted. If anything expect them to get tougher.
FCA & BofE are very keen to ensure that banks are as resilient to any problems going forward.

EU rules have noting to do with "poor rewards from cards and the lack of 0% cards" Market force and profit is what drives these.

If you ask most people what rewards they want to see it will always be "Cashback"

I dont know anyone personally who cares about cashback, its only going to be of any measurable benefit if you spending 10s of thousands every month on cards.

What people seem to care about most that I know is 0% offers, which have gone to poo poo.

chattychappy

I don't think anything will change. Rightly or wrongly, we're more of a "nanny state" than the US. Had we not been a member of the EU, I'm sure we would have ended up just as regulated.

Section 75, for example, is an entirely home grown piece of legislation which loads a cost onto CCs. I would prefer that it is repealed, but at the very least it needs some reform. I can't see any government doing anything to lessen consumer power against "greedy bankers".

So whilst Mr Smith puts £1 of his £10K double glazing onto a credit card and then makes a s75 claim for £50K when part of his house falls down, Mrs Jones will have to do without her perks.

J_B

Chrysalis wrote: »

I dont know anyone personally who cares about cashback, its only going to be of any measurable benefit if you spending 10s of thousands every month on cards.

What people seem to care about most that I know is 0% offers, which have gone to poo poo.

I disagree.


Most people I know us C Cards for cashback / benefits


Ho hum

eskbanker

chattychappy wrote: »

I don't think anything will change. Rightly or wrongly, we're more of a "nanny state" than the US. Had we not been a member of the EU, I'm sure we would have ended up just as regulated.

Section 75, for example, is an entirely home grown piece of legislation which loads a cost onto CCs. I would prefer that it is repealed, but at the very least it needs some reform. I can't see any government doing anything to lessen consumer power against "greedy bankers".

It can go either way though - as you rightly say, the Consumer Credit Act predated our membership of the EU (and also predated widespread use of credit cards, for which it wasn't intended, as you've observed before IIRC) and I'm not aware of any attempt to harmonise such credit provisions across the EU, but another element of consumer protection, FSCS, was standardised across the bloc, and at a level significantly higher than the UK's prior limit.

Having said that, I suspect you're also right that ultimately it won't matter whether UK or EU rules were originally more or less consumer-friendly, it'll be politically brave to reduce consumer protection regardless!

Chrysalis

If our economy tanks as expected, it is possible the government may ask the banks to loosen up criteria which would increase 0% deals, so from that point of view brexit may help actually.

eskbanker

Chrysalis wrote: »

If our economy tanks as expected, it is possible the government may ask the banks to loosen up criteria which would increase 0% deals, so from that point of view brexit may help actually.

Can't see it myself - there are a variety of levers available to the government and associated parties, such as QE, BoE rate changes, FCA regulation, etc, but direct intervention in commercial decisions is a pretty unlikely outcome....

Chrysalis

eskbanker wrote: »

Can't see it myself - there are a variety of levers available to the government and associated parties, such as QE, BoE rate changes, FCA regulation, etc, but direct intervention in commercial decisions is a pretty unlikely outcome....

They have already done it the other way, not so long ago the banks were asked to tighten up on consumer lending.

born_again

Chrysalis wrote: »

They have already done it the other way, not so long ago the banks were asked to tighten up on consumer lending.

Banks got hammered for to lax lending as the cause of the last financial crisis.

jbryce

At the same time, they banned retailers from charging surcharges for paying by credit card.
In the US, you will find there are all sorts of surcharges added to the ticket price when you pay.
Most people don't have cashback or rewards credit cards, but they did have to pay these surcharges, so I don't think there much support for going back to the old way of doing things.