Why Credit Card Companies are so Mean

[Neil]

3- Card issuers must deliver the bill at least 21 days before the due date.

What utter nonsense.

[DGuller]

I fail to see the parallels with credit cards.

In both cases, the industry can make the most money by actively screwing the consumer.

The fact that both are intangible products may be what leads to this...

Ok, gotcha.  Well, the insurance industry is heavily regulated, and in cases where insurance is sold to individuals, it is assumed they are not sophisticated consumers.  Therefore regulations require policies to be written clearly (there is actually a way to measure that), and any possible ambiguity in the language is resolved in favor of the policy holder.  It doesn't work perfectly, of course, but at least there is an acknowledgement of the limitations of the lay people in making informed decisions.

[DGuller]

3- Card issuers must deliver the bill at least 21 days before the due date.

What utter nonsense.

IMO that's one of the best parts.  For my first credit card, the company liked sending the bill just a week before it was due, to make it easy to accidentally be late on it.  At that point they would charge the late fee with no grace period at all.  It was obviously designed to facilitate the late payments.

[crazy canuck]

I wouldnt mind my children having to obtain my signature before they get a credit card.  I am going to be the one paying if they cant after all.

Even when they are no longer children?

Why end it at 21?

Good point.  Parents are always potentially on the hook.

[crazy canuck]

3- Card issuers must deliver the bill at least 21 days before the due date.

What utter nonsense.

IMO that's one of the best parts.  For my first credit card, the company liked sending the bill just a week before it was due, to make it easy to accidentally be late on it.  At that point they would charge the late fee with no grace period at all.  It was obviously designed to facilitate the late payments.

So you think that consumers should get at least 21 days of free credit?  Interest is only charged on late charges so all this does is increase the total cost of carrying a card which will be put on the backs of others.  Likely the merchants who pay the facility fees which will in turn increase the cost of all goods and services.

Just peachy.

[jimmy olsen]

3- Card issuers must deliver the bill at least 21 days before the due date.

What utter nonsense.

IMO that's one of the best parts.  For my first credit card, the company liked sending the bill just a week before it was due, to make it easy to accidentally be late on it.  At that point they would charge the late fee with no grace period at all.  It was obviously designed to facilitate the late payments.

So you think that consumers should get at least 21 days of free credit?  Interest is only charged on late charges so all this does is increase the total cost of carrying a card which will be put on the backs of others.  Likely the merchants who pay the facility fees which will in turn increase the cost of all goods and services.

Just peachy.

My card already sends the bill about 3 weeks early.

[DGuller]

So you think that consumers should get at least 21 days of free credit?  Interest is only charged on late charges so all this does is increase the total cost of carrying a card which will be put on the backs of others.  Likely the merchants who pay the facility fees which will in turn increase the cost of all goods and services.

Just peachy.

Compared to the alternative?  Yes.

[crazy canuck]

My card already sends the bill about 3 weeks early.
[/quote]

Then this is good evidence that this kind of regulation is not necessary.  DGuller and others are concerned about getting notices with relatively quick response requirments then they have another alternative in the market.

[crazy canuck]

Compared to the alternative?  Yes.

What alternative.  People are not organized enough to pay their bills as they come in.  I have little patience for that kind of excuse.  Especially since people can now easily check their balances and payment dates online and pay online.   If you are really concerned that you might miss a payment you can even prepay.

Remember its not your money.  You borrowed it the second you made that purchase.

[katmai]

Adding CC and berkut to kick in nuts list-check

[DGuller]

Then this is good evidence that this kind of regulation is not necessary.  DGuller and others are concerned about getting notices with relatively quick response requirments then they have another alternative in the market.

Just because there are reputable alternatives doesn't mean that disreputable practices shouldn't be clamped down upon.  Another reason that the kinds of issuers that do such dirty tricks typically have consumers who don't have a lot of alternatives.  Typically it's the low end providers that engage in the most disreputable practices, regardless of the industry.

[Caliga]

My card already sends the bill about 3 weeks early.

My card never sends a bill at all, because I pay the bill online and usually 3-4 times a month.  I don't know or care what my actual billing cycle is.  Internets = WIN.  Stop failing at the Internets, Amerikkka. 

[Ed Anger]

My card already sends the bill about 3 weeks early.

My card never sends a bill at all, because I pay the bill online and usually 3-4 times a month.  I don't know or care what my actual billing cycle is.  Internets = WIN.  Stop failing at the Internets, Amerikkka. 

I wish the Internet would crash and burn

[Neil]

3- Card issuers must deliver the bill at least 21 days before the due date.

What utter nonsense.

IMO that's one of the best parts.  For my first credit card, the company liked sending the bill just a week before it was due, to make it easy to accidentally be late on it.  At that point they would charge the late fee with no grace period at all.  It was obviously designed to facilitate the late payments.

In that case, guarantee that a bill will be mailed by a certain date.  Let's remember:  People who don't make their payments are deadbeat scum, whether they got a bill or not.  Even a late payment is a sign of foolishness.  It's not like they don't know that they spent the money.  The creditor should not be responsible for the delivery of a bill, merely the sending of it.

[DGuller]

In that case, guarantee that a bill will be mailed by a certain date.  Let's remember:  People who don't make their payments are deadbeat scum, whether they got a bill or not.  Even a late payment is a sign of foolishness.  It's not like they don't know that they spent the money.  The creditor should not be responsible for the delivery of a bill, merely the sending of it.

That's probably what the requirement that the bill be sent on the same day every month is for.