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We really need better consumer protections. I know there has been more talk that the ability to cancel must be as easy and the same manner as sign up. I'm surpr

We really need better consumer protections. I know there has been more talk that the ability to cancel must be as easy and the same manner as sign up. I'm surprised but glad that Mastercard is helping in this way. It would be great if they also added that other protections that are designed to take advantage of poor and disadvantaged people like 20%+ interest rates and high late fees.

pc86 8y ago
It's important to distinguish between things designed to take advantage of poor people, and completely reasonable penalties/structures that happen to affect poor people more because, not surprisingly, it's hard not to have money. 20% interest is not inherent a bad thing and shouldn't be outlawed out of hand. If you lend me $20 today and in exchange I pay you back plus buy you a beer on Saturday, that's an astronomical interest rate. I co-own a brick and mortar business and we charge the maximum late fees allowed by law because people paying lay absolutely destroys our cash flow. It's not because we actually want the late fees - we'd much rather have people pay on time and be able to accurately plan for less money than have an influx of onerous fees. It's not uncommon for a profitable business to fail because cash flow is a problem.
- craftyguy 8y ago
  20% of $20 has a MUCH smaller impact on someone who is suffering financially than 20% of $1000 so your analogy is not really the same in terms of impact.
  - throwaway98121 8y ago
    Suffering financially has a pretty wide band. If you make $100k but only save $100 or save nothing, I’d say your suffering financially. If you work minimum wage and have a spouse or even just kids to support, 20% of $20 isn’t chump change. You have to make every penny count. You’re in an extremely difficult position.
  - pc86 8y ago
    Instead of attacking the specifics of an example given off the top of my head, try to understand the point I'm making.
- sixothree 8y ago
  I have very good credit and I recently got an offer for a credit card with a 29% interest rate. The reason I know this is because of consumer protection laws. Otherwise this number would have been hidden in the very very very fine print of some page somewhere.

pc86 8y ago

It's important to distinguish between things designed to take advantage of poor people, and completely reasonable penalties/structures that happen to affect poor people more because, not surprisingly, it's hard not to have money. 20% interest is not inherent a bad thing and shouldn't be outlawed out of hand. If you lend me $20 today and in exchange I pay you back plus buy you a beer on Saturday, that's an astronomical interest rate. I co-own a brick and mortar business and we charge the maximum late fees allowed by law because people paying lay absolutely destroys our cash flow. It's not because we actually want the late fees - we'd much rather have people pay on time and be able to accurately plan for less money than have an influx of onerous fees. It's not uncommon for a profitable business to fail because cash flow is a problem.

craftyguy 8y ago
20% of $20 has a MUCH smaller impact on someone who is suffering financially than 20% of $1000 so your analogy is not really the same in terms of impact.
- throwaway98121 8y ago
  Suffering financially has a pretty wide band. If you make $100k but only save $100 or save nothing, I’d say your suffering financially. If you work minimum wage and have a spouse or even just kids to support, 20% of $20 isn’t chump change. You have to make every penny count. You’re in an extremely difficult position.
- pc86 8y ago
  Instead of attacking the specifics of an example given off the top of my head, try to understand the point I'm making.
sixothree 8y ago
I have very good credit and I recently got an offer for a credit card with a 29% interest rate. The reason I know this is because of consumer protection laws. Otherwise this number would have been hidden in the very very very fine print of some page somewhere.