Comments on: What would you do as a Credit Card Company?

By: Mike

Mike — Mon, 06 Dec 2010 09:24:28 +0000

“they should not issue another card to a person who was approved by the other company.” — Each one has an approval process. If a person was approved by another credit card company, then it’s sasfe to assume that he/she went through the screening process of that company. And passed. If the same person satisfies all the requirements of other card companies, then there’s no reason to deny a new card to them. — This merely proves that screening of CC companies are more focused on checking a prospective holders capacity to pay. CC companies check only requests the last 2 billing statements from a prospects existing CCs which in now way assures a person’s capacity whether or not he or she is a delinquent or not. If it’s possible, why not check a prospets savings/debit account instead (of course with due permission from the prospective creditcard holder).

“They should give chances to a person who fails to pay but agreeing to re-strusture payment cheme.” — I could personally tell you that, yes, they do give chances to re-structure payments. — Question is, who qualifies for restructuring? The issue is not that the CC company issue restructuring or not. The issue is that the CC company sees restructuring as a last resort to absolved defaulters (after numerous calls, collection agencies and imaginary court hearings) whereas the CC company should be able to predict that at least the holder is starting to dafault just by looking at his payment method and terms. When this happens then restructuring should already be offered just to make the holder pay his/her existing debt.

By: sugarplanter

sugarplanter — Sat, 02 Oct 2010 16:04:56 +0000

if i were the cc companies, i would be more encouraging to the defaulters (90 days or up). Those defaulting, i wouldn’t ask for total amount (if they can’t pay the minimum, how can they pay the whole amount)? I will ask give them the option of a payment scheme and once fully paid, they can use the card again. Those that are in the collection agencies (those that are years in default), I would give them incentive by fixing the total amount due payable by installments and upon last installment paid, they can use the card again. In that way, cardholders will have an incentive to pay their arrears rather than feel hopeless (since i have nothing to lose, so why should i pay?). If I were the cc company i would be careful that the delinquent cardholder will not fall into a sense of “nothing-to-lose-if-i-don’t pay”. I will encourage him to try to pay, and once the account is fully settled, he can use the card again. More often than not the cardholder will be more careful

By: Ta Bertha

Ta Bertha — Thu, 12 Aug 2010 07:18:57 +0000

If I were a credit card I would definitely do my best to help the defaulter and restructure. A lot of the blogs of the defaulters are that the willingness to pay is there. The credit card has earned from the account triple plus tax rebates.So restructuring the account with say a minimal interest rate waiver or at least reduction of past due interest rate and other fees will be a win win situation for both the defaulter and the defaulter.

Most credit card holders are turned off by the collection agents who harass and their scare tactics.

The credit card users must be protected too..

By: card holders

card holders — Fri, 30 Apr 2010 17:37:36 +0000

If i were in a credit card company, i will change the set of criteria and make things clear and understandable, and be more careful in other applicants. money can change anything, including people.

By: nautangan

nautangan — Tue, 02 Feb 2010 07:45:37 +0000

Credit card companies have the power to limit to put a cap to the credit line of customers. A prudent person should not give a big credit line to a person who he knew only from the submitted records which most often do not reflect the financial standing and spending habits of the client-customers.

In the collection part, CCs should not hire those law firms which bully, threaten clients with imaginary criminal prosecution and issuance of warrants, and to the extent of humiliating clients before his/her employer, peers and neighbors. What a disgrace this law firms have become.

CCs after referring the uncollected debts to law firms or lawyers should write them off instead of passing it again to another law firm or lawyer for collection. As stated by banker above, they charge this as a loss and lower their taxes. I suspect this CCs are repeatedly referring uncollected debts to different lawyers so they can repeatedly claim it as a loss once they get a certification from the lawyers that the debt is uncollected.

In the end, everyone must act responsibly so the order of society be not imperiled.

By: bubblegum0719

bubblegum0719 — Mon, 28 Dec 2009 03:04:06 +0000

Credit Card companies are earning much! Despite thousands of defaulters nationwide they continue to be aggressive in approving credit card applicants. Credit card business is a high earning business! So who’s to blame???

By: banker

banker — Fri, 18 Dec 2009 02:06:14 +0000

CC companies are not in business to lose.
Although its operation is too complex to
a non-finance man, let me just point you
some insider assessments:

If Cardholders pays in full monthly, they
earn “brokerage” commissions.no sweat.
Unpaid debts over 180 days are classified
as “loss” and 100% provision is required
against it. The accounting process enable
the company to “charge” these and subsequently
lower their tax payable.
The exorbitant charges enables them to recoup their
exposure and operating loses.

CC business is quite different from a regular bank credit operations.so, I wont change those CC policies.

By: ms hopeful

ms hopeful — Fri, 27 Nov 2009 03:00:10 +0000

i just wonder, despite the defaults, the credit card companies are still very aggressive , giving perks to cardholders. they must be earning much from those who are paying minimum amount due with the 3.5% interest rate , other finance charges and late fees not to mention the annual membership fee.

By: Estate Taxes

Estate Taxes — Fri, 20 Nov 2009 03:33:02 +0000

If I were in the shoes of these credit card companies, I would be more careful in approving credit care privileges. i would set up higher standards. This is business and we cannot afford to lose big amount of money because of the irresponsible people.

By: Atty.Fred

Atty.Fred — Wed, 04 Nov 2009 02:08:35 +0000

Journey Man, you’ve raised great points, some of which are similar to that of warrior (so my reply there would also apply here). Again, to take the other side for the sake of argument:

“Now who will be BLAME for the rising cases of DEFAULTER? Is it the person or the credit card company also?” — Could we say that a credit card is just like, say, food. Some eat a lot, but don’t get fat because their metabolism is fast. Some spend a lot, but they have tons of money so they could pay. Some have no control over what they eat, and they grow obese and probably die, Some overspend, without checking if they have the capacity to pay for it at the end of the month. (I must say, though, that we all go through a point when we have no choice but to use a credit card for emergencies. In these times, you hardly think whether you’ll be able to pay at the end of the month).

“They should give chances to a person who fails to pay but agreeing to re-strusture payment cheme.” — I could personally tell you that, yes, they do give chances to re-structure payments.