OT - Bank of America Credit

I'm not dense, we're just talking about different things. Nowhere heretofore was it said "after this" and "after that". I am, of course, talking about "before this" and "before that". IOW what's happening in the real world and the reason why Congress tightened up the bankruptcy laws and all.

Perhaps you were trying to be funny (and failing I might add) but many of the things listed above are illegal. You do know that don't you?

No business does this. Why should CC companies?

But extremely difficult to find in the real world. Name another company that does what you propose as opposed to simply raise their prices and I'll show you a company that will soon be out of business...

Banks, Car companies and their associated loan arms, contractors, plumbers, doctors, lawyers, department stores. In short any business extending credit. Granted you never know if they really can't or won't pay their bills just as you don't really know ahead of time that the eventual CC deadbeats can't or won't pay their bills.

Reply to
Andrew DeFaria
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That isn't the profit to the CC company. That is the profit of the transaction processor. They are the ones the merchant hires to send the transaction off to the customers bank. What's in it for the bank that issues the card? Or don't you know how many hands pass a credit card transaction around before it gets on your statement.

Oh and think about this for a second, commercial paper [bonds] is about 8 to 10% So they have to borrow the money to cover your charge. What's their profit again?

Reply to
Golden California Girls

After slogging down one of the longer threads (OT, no less) in this NG, I sort of lost track of Who's on first, What's on second and so on.

HOWEVER,and with much trepidation lest this starts another cascade -

1) whoever (Steve Scott?) said - in effect - that what can't be retrieved from the deadbeats should come from the CC companies' profits and not from the rest of CC holders, seems to miss the point that the CC companies' profits come from the rest of CC holders: US!

2) whoever commented negatively on BoA for issuing CCs to non-citizens/non-residents/undocumented folks/illegal aliens, might ponder the difference between use of CCs in the USA issued by BoA in the USA to these people VS. use of CCs in the USA issued by BoA to those same people in their home countries before they somehow made it over the border and stayed.

INCOMING!!

Jay .

Reply to
Jay M Apple

Jay:

You're a better man than I. My eyes glazed over A LONG TIME AGO ;-)

Bob

Reply to
Bob Wang

Very plain except it doesn't make any sense. It is already coming out of profits. The product is priced with the target demographics in mind.

Reply to
David Smith

Static thinking. Business is dynamic.

If the profit dimishes, the owners or investors will make the necessary changes in policy to regain the optimum position. In the case where there are too many defaults, the company may try to raise the interest rate on the remaining customers. When the customers move their business to a more rate-friendly competitor, the company will take other steps.

If the company is large enough, one of those steps will be to influence legislation.

Reply to
HeyBub

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