Mexico rebels against credit card rates
March 27, 2009 | alternatives, industry | Comments (0)From the Associated Press story:
Congressmen, grass roots activists, one of the world’s richest men and even the Roman Catholic Church are now rebelling against the rates, some of the world’s highest and equal to 10 times the top rate banks pay out on deposits.
“Banks are acting with irresponsible voracity, demanding extremely high interest rates which in the end, people won’t be able to pay,” the Catholic Archdiocese of Mexico said in December. Banks’ “insatiable greed” is speeding an economic crisis that may spark social unrest, the Church warned.
So great is the anger that Mexico’s conservative governing party has argued in favor of following in the footsteps of leftist Venezuela, which caps credit card interest rates at 33 percent.
The Payday Pundit is against rate caps, but we don’t understand why competition isn’t keeping credit card rates lower in Mexico. The story alludes to the fact that many customers are high credit risks.
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