MEGEGEME
United States of America#2Consumer Suggestion
Fri, December 18, 2009
The answer to this one is simple. You were a good customer yes? Probably rarely if ever had any late fees or incur finance charges? No? The harsh reality is the credit issuer isn't making any profit from you as a customer.
I see this all the time in my profession. Your credit limit was small, but multiply it times 1000 people like yourself that are/were "excellent customers".
That would be $650,000. What the company will do is lend this money to new customers with the hopes that approx 90% of them will have occasional late fees and incur finance charges. Then their profit grows exponentially.
Now multiply the above figure by 5 to 10 million customers across the board. Get the picture?
MEGEGEME