[DannyTN]

"Aren't they shooting themselves in the foot by making it harder for people to pay off their balances? "

Yes, but they don't see it that way. They are going for the quick buck and accounting profits. As long as bonuses are paid this year, never mind that people will file bankruptcy and they won't ever realize their profits.

By lowering the limits, they get to charge over-the-limit fees, and raise rates to 30%.

[supercat]

Yes, but they don't see it that way. They are going for the quick buck and accounting profits. As long as bonuses are paid this year, never mind that people will file bankruptcy and they won't ever realize their profits.

IMHO, credit card companies should be required to maintain separate tallies of principal-plus-baseline-interest and additional interest. Payments would be applied first toward the "additional interest" tally. From a customer standpoint there need not be a distinction, but in a bankruptcy proceeding a credit card company should IMHO not be able to use all its compounded interest to jack up its share of the recovered assets.

[nralife]

Yes, but they don't see it that way. They are going for the quick buck and accounting profits. As long as bonuses are paid this year, never mind that people will file bankruptcy and they won't ever realize their profits.

Okay, that makes cents. Idiots!