June 15,2009

• Ya Better Watch Out, Pt.3
    Some interesting findings.

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  Some 85,000 types of credit card use has been compiled by major credit card lenders in the U.S. To drop just a few names we have B of A, Cap One, JPMorgan/Chase/Wamu and AmEx. Allegedly, they do not trade info. Covering a sample set of 100,000 credit card holders, they inference that 4% (around 4,000) will default on their credit cards on an average of four times per year if they place charges in establishments which have pool tables. However, only four tenths of the sample (only 400) will miss other bill payments four times a year.

  Comparing those who pay with credit cards at dental clinics are four times as likely to pay their bills as those who charge drinks at a bar. Those who use credit cards for protecting and preserving furniture or flooring or for home maintenance requiring hard work are found to be more sincere. They are found to be more social responsible when it comes to paying bills and hate to be late. People who pay shrinks with credit cards, on average, tend to be less stable then those who don't frequent shrinks. People who 'chase checks to the bank' (on-line monitoring at unusual hours) or who develop readily expanding spending habits typically reach a point where they're in financial trouble. Shock anyone? Not rocket science, really. Just a lot of research to discover what most of us already know. Did you know that if you buy the cheap antifreeze or motor oil you raise a yellow flag?

  It’s all there in the fine print. At least what they can do externally. As far as what they do with internally...well, that’s not considered publicly disclosed information anyhow. It's also not governed by the law, with few exceptions. Those would be things like government-controlled purchases and fraud investigations.

  Used properly, purchase monitoring is not illegal. The lender is strictly barred from releasing any of their findings to anyone outside of the company. Is it new? Well, it's about as old as credit cards themselves. Just a little more sophisticated today.

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