store cards
Banks in the UK Force The Sale of Homes Over Credit Card Debts
Banks and credit card companies are exploiting obscure legal powers to seize the homes of thousands of people who cannot pay their credit card bills.
In some cases, people owing as little as £1,000 have been served with charging orders – the legal instrument enabling a creditor to order the sale of a property.
The practice has [...]
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Should Retailers Verify Customer Income Before Extending Credit?
One provision of the CARD Act requires credit issuers to verify income and debt load before issuing new credit, and the Federal Reserve is now looking at how to enforce that. That’s scaring retailers, who have come to enjoy the benefits of pushing “instant credit” offers at the register. A Macy’s spokesman told the Wall Street Journal, “Instant credit is important because it is another service that we can offer the customer that the customer considers to be valuable.” The paper notes, however, that the real reasons retailers love instant credit is because they can use store cards to track customer habits, and because they help move merchandise: “In the third quarter, more than half of Macy’s sales were rung up on store-brand credit cards.” I instinctively distrust any group that doesn’t argue for its own best interests first before pretending to be looking out for the other guy; if you can’t tell me why something benefits you , without dragging your customer in front of me and venerating him like a Token Special Interest American at a State of the Union Address, then there’s probably something bad that you’re not sharing. To that end, the National Retail Federation warns that verifying income before extending credit is “neither consumer friendly nor does it demonstrably improve the credit-granting process,” which pretty much instantly trips my bullshit detector. Making someone prove he can take on the debt before issuing it to him, and slowing down the credit application process so that rational though prevails, sounds pretty darned consumer friendly to me.
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I Have Eleven Cards I Want to Close Some But Should I? – Ariel
Ariel wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to [...]
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More Bad News For Nordstrom and Target Credit Cards
Store cards in good times are a good source of profit with their exceptionally high interest rates but in down times they can be an anchor around profits.
Not only are store cards generally easier to acquire by people with lesser credit but they are often the first to go unpaid when there isn’t enough [...]
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Charlotte Writes In, “I’m Desperate To Get Out of Debt”
Charlotte wrote to me at GetOutOfDebt.org and asked for free advice and help, which I gladly give. You can write me using the forms on the site.
“Steve,
I owe nearly $20,000 on a loan, a bunch of credit cards and some store cards as well. I’m 27 and I still live with my parents because [...]
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