A question for the Do-Gooders in Washington who pick on those “greedy” credit card companies. Along with commentators in the media who fulminate over those “outrageous” charges and fees.
Bad debts incurred by the companies generally run close to 10%. The companies in the business are losing money, so they are attempting to earn fees where they can. If they cannot get it from the relatively few deadbeats, they will receive it from the many customers who pay their bills on time.
If the business is so great, why aren’t so many more banks running to get into it?
In fact, many credit card companies are losing so much money on their credit card operations, they are are cutting back on card issuance.
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