Effect of credit card rate controls on consumers and the economy
Article Abstract:
Some legislators and consumer interest groups are complaining about the high rates charged for credit cards and there is currently legislation being considered which would impose a rate cap. Those in favor of rate cap bills contend that rates are maintained at a high level due to a lack of competition, that a rate cap would bring rates into line with other types of consumer credit, that debt burdens are increased for uninformed consumers due to ease in obtaining credit, and large profits are being made by those extending the credit. Arguments are presented to show that competition does exist in the credit card industry, that the effect of rate caps would be to reduce the availability of credit to those who qualify, that profits being made are not exorbitant, that employment and economic growth is stimulated by the industry, and that the industry does not contribute to consumers overextending themselves with debt.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1986
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Credit: a family affair
Article Abstract:
Credit can cover unexpected expenses and the cost of education, while increasing a family's ability to obtain the goods it needs, but it can also cause financial difficulties or financial destruction if overused. Therefore, it is important that a family maintain a good credit history and make certain the credit does not become overextended. As a rule, it is best to use credit to purchase hard, rather than soft, goods because they do not depreciate as fast as soft goods. Family members should also do comparison shopping to obtain the best value for their credit money and to avoid shopping during times of stress. It is best that all family members be involved in the family financial situation.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1986
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Putting consumers first
Article Abstract:
Visa International is attempting to enhance its competitive position and expand into the consumer payment markets by improving management training, products, and customer service. The firm has implemented a strategic planning process emphasizing both market and consumer segmentation to develop products for profitable niche markets. As part of a risk management strategy, the company also has has established an issuers clearinghouse and set new standards to make sure issuers meet levels of financial stability and integrity.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1989
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