Visa Speaks Out About Credit Card Reform

The chairman of Visa Inc. Joseph Saunders spoke a couple of days ago about what the credit card reform act legislation will mean not only to his company but to the credit card industry as a whole. Nothing groundbreaking here, but there were a few interesting statements that Saunders made.

Saunders believes that the credit card industry as a whole needs to take a good long look at itself and the way it does business. I think he is wise enough to realize that in the court of public opinion, credit card issuers are not very well liked or respected by the American people.

Now there’s nothing new about that, but what is new is the fact that credit card companies are now hurting for business and therefore will need to fight for the hearts and minds of their customers. Gone are the days of taking cardholders for granted.

As more and more Americans face unemployment and mounting debt, the credit card companies are also losing money due to rising defaults. They’re also seeing that many Americans are changing their spending habits and using their credit cards sparingly if at all.

When the economy does recover, and it will, it will be very interesting to see how aggressive the credit card industry markets itself. It was just a few short years ago when you couldn’t turn on the television or open your mail without being inundated with credit card advertisements.

It was quite interesting that Saunders made the statement that because of the credit card reform legislation credit card issuers would be offering fewer people lines of credit in the future. You can take this to mean that in order to qualify for a credit card the consumer better have an excellent credit history.

Only time will tell how that scenario plays out in the future. It is our belief that when everything is said and done and this current economic recession is in our collective rearview mirror, we Americans will go right back to spending like drunken sailors. It’s as though we can’t help ourselves.

Related Information:

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