[h=1]BANKS AND CREDIT CARDS – SO LONG NEVER HIKE INTEREST RATES[/h]
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19 Dec 2014 - 10:26am
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The banks are raising their credit card interest rates to more than 24% per annum and cash advance interest to 28% per annum or more. And the perfect reason to do so: so long never raise, so it is a good justification to raise.
No one is questioning whether 24% and 28% are very high interest rates to pay. Of course these rates are still low compared to the loan sharks. Would anyone be saying cheap, cheap, cheap? Now, on the other hand, the banks are paying their depositors never before extremely low interest rates. Would this be a factor for the banks to lower their rates instead of hiking them? Oh, it is a commercial decision. Or like boh cheng hu. Or would anyone yell cartel or price fixing?
On the other hand, could the consumers tell the banks, so long never cut rates, so it is time to cut some rates? Why must interest rates be one sided, up and up and up when saving rates is down and down and down?
As long as it is a business decision, there is no cause to argue about morality or right or wrong. It is about profits. And the banks can be praised for making the right commercial decision. Now I can understand why Jover Chew and all the rogue retailers are not doing anything wrong. They are only making commercial decisions. It is a business, and profit is the only reason for making such decisions.
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So consumers can expect the banks to keep raising interest rates every few years by claiming that they have not raise rates for a long time. Soon they will be competing with the loan sharks to see who is charging higher interest rates. Using the formula of time as a factor to raise rates, there is no limit to how high the banks can raise their interest rates. And there is no law against it, all perfectly legal.
What is wrong with charging more and collecting more? New morality or self serving morality?
Chua Chin Leng aka redbean
*The writer blogs at mysingaporenews.blogspot.com.
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19 Dec 2014 - 10:26am
<ins id="aswift_0_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_0_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_0" width="336" height="280" id="aswift_0" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
The banks are raising their credit card interest rates to more than 24% per annum and cash advance interest to 28% per annum or more. And the perfect reason to do so: so long never raise, so it is a good justification to raise.
No one is questioning whether 24% and 28% are very high interest rates to pay. Of course these rates are still low compared to the loan sharks. Would anyone be saying cheap, cheap, cheap? Now, on the other hand, the banks are paying their depositors never before extremely low interest rates. Would this be a factor for the banks to lower their rates instead of hiking them? Oh, it is a commercial decision. Or like boh cheng hu. Or would anyone yell cartel or price fixing?
On the other hand, could the consumers tell the banks, so long never cut rates, so it is time to cut some rates? Why must interest rates be one sided, up and up and up when saving rates is down and down and down?
As long as it is a business decision, there is no cause to argue about morality or right or wrong. It is about profits. And the banks can be praised for making the right commercial decision. Now I can understand why Jover Chew and all the rogue retailers are not doing anything wrong. They are only making commercial decisions. It is a business, and profit is the only reason for making such decisions.
<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
So consumers can expect the banks to keep raising interest rates every few years by claiming that they have not raise rates for a long time. Soon they will be competing with the loan sharks to see who is charging higher interest rates. Using the formula of time as a factor to raise rates, there is no limit to how high the banks can raise their interest rates. And there is no law against it, all perfectly legal.
What is wrong with charging more and collecting more? New morality or self serving morality?
Chua Chin Leng aka redbean
*The writer blogs at mysingaporenews.blogspot.com.
:o
