Last year, banks quickly raised interest rates to record levels and added new monthly fees on credit cards when a Consumer Financial Protection Bureau rule threatened a key revenue source for the industry.
Now, they’re far more reluctant to reverse those steps, even after bank trade groups succeeded in killing the CFPB rule in federal court last month.
Synchrony and Bread Financial, two of the biggest players in the business of issuing branded credit cards for the likes of Amazon , Lowe’s and Wayfair
, are keeping the higher rates in place, executives said in recent conference calls.
“We feel pretty comfortable that the rule has been vacated,” Synchrony CEO Brian Doubles said on April 22. “With that said, we don’t currently have plans to roll anything back in terms of the changes that we made.”
I don’t even know what the rates on my cards are. I just pay them off. I also don’t bother with cards with monthly fees, unless the Costco card counts.
The whole system is stupid though, a tax on the financially illiterate and poor. I wish I could just use debit and cash, but that’s just throwing away free money from cash back on credit cards.
This story right here is the fundamental argument against anything pro-business conservatives and libertarians espouse about the free market. Why would any company lower their profit once they have everyone used to that level of cost? This is the most obvious outcome from the situation.
I just found out yesterday that my wife, who has good credit, has a 32% APR on one of her cards. Republicans that would applaud these free market behaviors but also condemn abortions are complete charlatans. I just searched and came across dozens of Bible verses about how you’re not supposed to lend money with interest.
Republicans and hypocrisy, always
We need to cap these bastards. 25% APRs should so illegal executives face jail time. 15% should be the max, NOT the minimum.
Synchrony is a cancer.
I’ve gone back to using cash for everything. screw these rich assholes.
