The banks haven't changed, much...
A few weeks back, I was in a Sears to buy some clothes. The person at the register wanted to know if I'd like to apply for a Sears card. Since I'd get a discount if I did so, I agreed. I did tell him that I might not get the card, since a bankruptcy was still on my record; but he said not to worry about it and the register said my application was approved.
Last week, I received two letters from Sears on the same day. One was a credit card. The other was a letter rejecting me for a credit card. Confusing, I didn't have patience and didn't need the card, and so I cut up the card and forgot about it.
I received another letter yesterday. It asked me to call a number to discuss my account, and I just finished that conversation.
It seems that Sears rejected me for a store card but accepted me for a Sears Mastercard. The odds are that it's because the store card issued by Sears and the credit card is issued by a bank in Sears' name. Since the banks were bailed out by our tax dollars without strings and then no regulations were changed, the banks haven't changed. They're not loaning money to businesses and individuals because that might be a risk.
They bribed Congress to change bankruptcy laws a few years back, so that credit card debt is the same as taxes, alimony and child support in most cases, it can't be discharged the way regular loans can be. They can hand out cards to people who shouldn't have them (me...), charge excessive fees and interest, and know they're protected by the new law and the "too big to fail" ignorance. If they gave loans, they'd help the economy, but the loans wouldn't be at as high and interest rate and might cut into executive bonuses and preferred shareholder's dividends.
Since the system hasn't changed, it's much easier and more profitable for banks to continue to do the wrong thing than the right thing. Therefore, I get another credit card. Much to their dismay, I won't be using it unless there's an emergency. The odds are, it'll cost them money to keep the account and then they'll cancel it because I'm not using it. Their choice.
Last week, I received two letters from Sears on the same day. One was a credit card. The other was a letter rejecting me for a credit card. Confusing, I didn't have patience and didn't need the card, and so I cut up the card and forgot about it.
I received another letter yesterday. It asked me to call a number to discuss my account, and I just finished that conversation.
It seems that Sears rejected me for a store card but accepted me for a Sears Mastercard. The odds are that it's because the store card issued by Sears and the credit card is issued by a bank in Sears' name. Since the banks were bailed out by our tax dollars without strings and then no regulations were changed, the banks haven't changed. They're not loaning money to businesses and individuals because that might be a risk.
They bribed Congress to change bankruptcy laws a few years back, so that credit card debt is the same as taxes, alimony and child support in most cases, it can't be discharged the way regular loans can be. They can hand out cards to people who shouldn't have them (me...), charge excessive fees and interest, and know they're protected by the new law and the "too big to fail" ignorance. If they gave loans, they'd help the economy, but the loans wouldn't be at as high and interest rate and might cut into executive bonuses and preferred shareholder's dividends.
Since the system hasn't changed, it's much easier and more profitable for banks to continue to do the wrong thing than the right thing. Therefore, I get another credit card. Much to their dismay, I won't be using it unless there's an emergency. The odds are, it'll cost them money to keep the account and then they'll cancel it because I'm not using it. Their choice.