[jyl]

A lot of the consumer finance industry is based on screwing people by not quite enough for the screwed to take action. People are busy, they make it confusing and a hassle, and the dollar amount is just small enough that you just give up.

There is very little regulation of this, and the industry is blatant about evading what there is. Remember Congress imposed limits on raising credit card interest rates, and the companies rushed to jack up the rates on anyone with a balance, before the law took effect. They didn't care that they were doing it in the teeth of a deep recession, when people were struggling.

Edit: they put my neighbor in BK that way - his business was down badly in the recession and he'd had some major health problems, resulted in him being vulnerable with a bunch of credit card debt - the card companies rushed to jack his rates for zero reason, he was current - and that put him under. Tough for a 70+ guy to go BK. All has ended fine, the BK judge loved him (my neighbor presented a plan to pay all his debt), and he's recovering, as the economy does.


After the restrictions went into effect, the companies jacked up fees for everything, and are making their money that way. Similar with checking accounts. Fees for ATM withdrawals, balance inquiries, overdraft protection (and many banks sign you up for overdraft protection by default), are all high. The card companies also raised merchant fees, but that got them a legislative backlash, because they made the mistake of going after other businesses. Business is poltically organized, business gets what it wants in Washington. Consumers are not and usually do not. Business loves the "smaller government / less regulation" stuff, because then they get to go after individual consumers with no restrictions. Between, say, Bank of Anerica and Mrs. Joe, it isn't much of a contest.

By the way, does M even run it's own store card? These are often outsourced to GE Capital etc.