Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.
Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.
The expectation is, according to a different business,” said Edward L. Yingling, chief executive of the American Bankers Association, that,
“Those that manage their credit well will in some degree subsidize those that have credit problems.”
That’s the equivalent of “soaking the rich” on taxes. Soak the rich, lose the rich.
I’m one of the people who pay their entire credit card balance in full every month.
Here’s what I’ll do if/when credit cards charge interest immediately:
Cash. What a concept.
The credit card company that will not charge interest immediately will have a huge opportunity; they will attract the clientele with the best credit. There’s money to be made in that.