Thread: fraud will go up with unemployment

To put food on the table I am sure some will resort to claiming their card was stolen and the charges weren't theirs. In the county over from my across the state line in Michigan unemployment is at around 25% now. How many of those residents will start claiming that their cash advances and grocery charges on the bill aren't theirs? I think it will happen and that will hurt the finance sector more.

Throughout history desperate times have always led to desperate actions to survive. Look at credit card companies when more and more people default. To make money so the bank execs can fly in their private jets banks are increasing their interest rates to loanshark levels on even the best of customers.

The credit card division of banks has been the one profitable division during this credit crunch. In turn, many of the bank conglomerates have upped their credit card interest rates in order to pick up the slack from their other divisions which are under-performing.

This is why I do not prefer to use credit cards issued by diversified banks such as Bank of America, Citi, which have consumer banking, commercial banking, mortgages, credit cards, investment banking, and so forth all under one roof. For your credit card it is better to stick with either American Express or Discover since almost all of their revenue is derived from credit cards, they do not need to squeeze customers in order to cover other divisions.