Universal Default Rates and Credit Cards
January 22nd, 2008As you may have already known, credit card issuers have been hitting card-holders with a universal default rate when the consumer’s credit score drops. All the major banks and card issuers have been doing this for quite some time now. However in recent times, big banks like Citibank and Chase have distanced themselves from this practice.
This is due to congressional hearings which are putting pressure on the credit card companies to stop the use of universal default rates. While some card issuers are listening, some are still continuing business as usual. Institutions such as Bank of America and Discover still increase interest rates on card-holders who experience a dip in their credit scores.
February 14th, 2008 at 5:14 pm
It’ll be good if banks should be fair in dealing with their customers.
February 16th, 2008 at 2:37 am
Someone need to say something about this issue because it affects all of us directly or indirectly.
February 26th, 2008 at 1:31 pm
I agree - banks should maintain a fair rate of interest for all banks rate should be the same….