{"id":6187,"date":"2009-05-19T20:00:10","date_gmt":"2009-05-20T00:00:10","guid":{"rendered":"\/\/www.askmrcreditcard.com\/news\/?p=6187"},"modified":"2009-05-19T20:00:10","modified_gmt":"2009-05-20T00:00:10","slug":"fud-from-the-nyt-on-card","status":"publish","type":"post","link":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/","title":{"rendered":"FUD From The NYT On CARD"},"content":{"rendered":"

I admit that I am a computer geek who is used to acronyms.\u00a0\u00a0\u00a0 Allow me to translate.\u00a0\u00a0\u00a0 FUD is an industry term for Fear, Uncertainty, and Doubt.\u00a0\u00a0 NYT is of course the New York Times, and CARD is the name that has been given to the credit card holder’s bill of rights, as in the CARD act.<\/p>\n

FUD and the New York Times
\n<\/strong><\/p>\n

FUD, is defined by Wikipedia<\/a> as:<\/p>\n

“…a tactic of rhetoric and fallacy used in sales, marketing, public relations, politics and propaganda<\/strong>. FUD is generally a strategic attempt to influence public perception by disseminating negative information designed to undermine the credibility of their beliefs. … FUD is a manifestation of the appeal to fear. <\/strong><\/em>(emphasis mine)<\/p><\/blockquote>\n

Keep this definition in mind as you read today’s article <\/a>in the New York Times about the supposed future of credit cards.\u00a0\u00a0\u00a0\u00a0 The article is entirely about how consumers will be hurt by this consumer rights legislation.\u00a0\u00a0 Most of the article reads like a transcript of a conversation with bank industry lobbyists.\u00a0\u00a0 Like the letter from the banking industry that I deconstructed<\/a> last week, the banking industry has convinced one New York Times “journalist” that the sky will fall if this bill becomes law.<\/p>\n

He brings up the scary speculation that:<\/p>\n

“Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.”<\/em><\/p><\/blockquote>\n

We have heard this all before.\u00a0\u00a0 No more credit card rewards, huge annual fees, and now immediate interest charges.\u00a0\u00a0 Give me a break.\u00a0\u00a0\u00a0 Are we expected to actually believe that the CARD act will be so punitive that banks will no longer make money from merchant fees, late fees, foreign transaction fees and 29% interest, just because they can no longer change interest rates retroactively?\u00a0\u00a0\u00a0\u00a0 Do you really think most reward card holders, like myself, will keep their card for two seconds after banks charge interest on balances immediately upon purchase?\u00a0\u00a0\u00a0\u00a0\u00a0 If anything, banks will place more of a premium on attracting customers who actually pay their bills on time.<\/p>\n

There are so many problems with this article, I don’t know where to begin.\u00a0\u00a0\u00a0 Let’s start with the title, “Credit Card Industry Aims to Profit From Sterling Payers”.\u00a0\u00a0\u00a0\u00a0 So your saying that an industry wants to profit off of it’s best customers who pay their bills on time?\u00a0 STOP THE PRESSES, this is front page news as no business has ever tried that before.<\/p>\n

Next, let’s look at the analysis of reward card holders, like myself, who pay their balance in full every month: “People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.”<\/em><\/p>\n

So I am getting a free ride by paying my bills on time?\u00a0\u00a0 Actually, it is the merchants who are subsidizing the free ride with the merchant fees. \u00a0 Merchant fees that they pay, if not happily, to speed and ensure their payments.\u00a0\u00a0\u00a0 Furthermore, for every ten people with a reward card who intend to pay their balance in full, I am sure at least 2 or 3 somehow fail to do so, and end up paying interest.<\/p>\n

Thankfully, the writer does make a token attempt at the end of the article to consult an actual consumer representative:<\/p>\n

Consumer advocates say they have little sympathy for credit card issuers, arguing that they have made billions in recent years with unfair and sometimes deceptive practices.
\n<\/em><\/p>\n

\u201cThe business model will change because the business model doesn\u2019t work for the public,\u201d said Gail Hillebrand, a senior lawyer at Consumers Union.<\/em><\/p>\n

\u201cIn order to do business under the new rules, they\u2019ll actually have to tell you how much it\u2019s going to cost,\u201d she said. “<\/em><\/p><\/blockquote>\n

My Conclusions<\/strong><\/p>\n

Any time a banking industry representative tells you that they oppose something out of their interest for consumers, they are lying.\u00a0\u00a0\u00a0\u00a0\u00a0 It is disingenuous and patronizing to think for one moment that they, more than the consumer groups, understand or even represent our interests as consumers. \u00a0\u00a0\u00a0\u00a0 Furthermore, it is repulsive that they are taking the FUD route to express it.\u00a0\u00a0\u00a0 Banks will always try to find new ways to charge you fees and reduce the quantity or value of your reward.\u00a0\u00a0\u00a0 That has always been the case, and it will also be true after the CARD act becomes law.\u00a0\u00a0\u00a0 Now, at least, they will have to play by at least some rules.<\/p>\n

Note To The Banking Industry<\/strong><\/p>\n

Construct your arguments against this bill in terms of your own interests, not mine, and you will at least have credibility, if not agreement.\u00a0\u00a0\u00a0\u00a0 Fear as a political tactic is so over.\u00a0\u00a0\u00a0 It died over the last eight years when our government constantly manipulated us with bogus warnings of WMDs and politically triggered colored alert systems<\/a>.\u00a0\u00a0\u00a0\u00a0 The era of Fear is over, and if you didn’t get the memo, most Americans now respond to the message of Hope and Change.\u00a0\u00a0\u00a0\u00a0 When President Obama signs the CARD act, it will be yet another confirmation of this truth.<\/p>\n","protected":false},"excerpt":{"rendered":"

I admit that I am a computer geek who is used to acronyms.\u00a0\u00a0\u00a0 Allow me to translate.\u00a0\u00a0\u00a0 FUD is an industry term for Fear, Uncertainty, and Doubt.\u00a0\u00a0 NYT is of course the New York Times, and CARD is the name that has been given to the credit card holder’s bill of rights, as in the […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[38],"tags":[],"yoast_head":"\nFUD From The NYT On CARD<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FUD From The NYT On CARD\" \/>\n<meta property=\"og:description\" content=\"I admit that I am a computer geek who is used to acronyms.\u00a0\u00a0\u00a0 Allow me to translate.\u00a0\u00a0\u00a0 FUD is an industry term for Fear, Uncertainty, and Doubt.\u00a0\u00a0 NYT is of course the New York Times, and CARD is the name that has been given to the credit card holder’s bill of rights, as in the […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/\" \/>\n<meta property=\"og:site_name\" content=\"Ask Mr Credit Card Blog\" \/>\n<meta property=\"article:published_time\" content=\"2009-05-20T00:00:10+00:00\" \/>\n<meta name=\"author\" content=\"Jason Steele\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jason Steele\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/\",\"url\":\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/\",\"name\":\"FUD From The NYT On CARD\",\"isPartOf\":{\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/#website\"},\"datePublished\":\"2009-05-20T00:00:10+00:00\",\"dateModified\":\"2009-05-20T00:00:10+00:00\",\"author\":{\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/#\/schema\/person\/18331587d05ff4eaeee29fd913227597\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.askmrcreditcard.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FUD From The NYT On CARD\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/#website\",\"url\":\"https:\/\/www.askmrcreditcard.com\/news\/\",\"name\":\"Ask Mr Credit Card Blog\",\"description\":\"Just another WordPress site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.askmrcreditcard.com\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.askmrcreditcard.com\/news\/#\/schema\/person\/18331587d05ff4eaeee29fd913227597\",\"name\":\"Jason Steele\",\"url\":\"https:\/\/www.askmrcreditcard.com\/news\/author\/jsteele\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FUD From The NYT On CARD","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/","og_locale":"en_US","og_type":"article","og_title":"FUD From The NYT On CARD","og_description":"I admit that I am a computer geek who is used to acronyms.\u00a0\u00a0\u00a0 Allow me to translate.\u00a0\u00a0\u00a0 FUD is an industry term for Fear, Uncertainty, and Doubt.\u00a0\u00a0 NYT is of course the New York Times, and CARD is the name that has been given to the credit card holder’s bill of rights, as in the […]","og_url":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/","og_site_name":"Ask Mr Credit Card Blog","article_published_time":"2009-05-20T00:00:10+00:00","author":"Jason Steele","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jason Steele","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/","url":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/","name":"FUD From The NYT On CARD","isPartOf":{"@id":"https:\/\/www.askmrcreditcard.com\/news\/#website"},"datePublished":"2009-05-20T00:00:10+00:00","dateModified":"2009-05-20T00:00:10+00:00","author":{"@id":"https:\/\/www.askmrcreditcard.com\/news\/#\/schema\/person\/18331587d05ff4eaeee29fd913227597"},"breadcrumb":{"@id":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.askmrcreditcard.com\/news\/fud-from-the-nyt-on-card\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.askmrcreditcard.com\/news\/"},{"@type":"ListItem","position":2,"name":"FUD From The NYT On CARD"}]},{"@type":"WebSite","@id":"https:\/\/www.askmrcreditcard.com\/news\/#website","url":"https:\/\/www.askmrcreditcard.com\/news\/","name":"Ask Mr Credit Card Blog","description":"Just another WordPress site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.askmrcreditcard.com\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.askmrcreditcard.com\/news\/#\/schema\/person\/18331587d05ff4eaeee29fd913227597","name":"Jason Steele","url":"https:\/\/www.askmrcreditcard.com\/news\/author\/jsteele\/"}]}},"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/posts\/6187"}],"collection":[{"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/comments?post=6187"}],"version-history":[{"count":0,"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/posts\/6187\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/media?parent=6187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/categories?post=6187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.askmrcreditcard.com\/news\/wp-json\/wp\/v2\/tags?post=6187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}