Credit "Deadbeats"

Credit Card Industry Aims to Profit From Sterling Payers

Robert Hammer, an industry consultant, said the legislation might have the broad effect of encouraging card issuers to become ever more reliant on fees from marginal customers as well as creditworthy cardholders — “deadbeats” in industry parlance, because they generate scant fee revenue. “They aren’t charities. They have shareholders to report to,” he said, referring to banks and credit card companies. “Whatever is left in the model to work from, they will start to maneuver.”

I’m glad that people that pay their bills on time and keep a low balance are considered “deadbeats” behind closed doors, while they whined and complained about people that max out their cards and declare bankruptcy to avoid payments back in 2005 when the bankruptcy laws were changed.

The credit industry already pissed off people when they cranked everyone’s rates through the roof and chopped everyone’s credit lines down to the bone (sometimes below the balance that they were carrying), not to mention that if you got sick of their games and paid off your balance and closed the account, your credit score would get hammered.

It’s all a bunch of baloney.