NewsWhore
04-14-2011, 05:50 PM
Credit cards have made credit readily available for anyone who is issued a credit card. But in today's Diario Libre, Alejandro Fernandez Whipple again makes the point consumers are being abused by the banks. Interestingly, he makes the point the banks take care of their own.
Writing in today's Diario Libre, Alejandro Fernandez Whipple reveals that the estimated 25,000 commercial banks employees in the DR enjoy the best average credit cards rates. These rates are not available to the general public.
Fernandez says that the rates drop to a low of 15% for bank sector employees, who represent 1.5% of all credit card holders. Fernandez recently reported that with few exceptions of other companies that offer their employees credit cards, the annual credit card bank rates hover over an average of more than 80% a year.
The worst off are those that have the lowest limits on their cards that are the majority.
He writes today that as of February 2011, 435,000 credit cards were in use with monthly credit limits of RD$5,000 a month. Another 288,000, or 20% of the total, had limits of RD$5,000 to RD$10,000. He says that the average annual rate for those cardholders is 77.2%, according to the Superintendence of Banks, and 88.4% for the Central Bank.
Rates are also lower for platinum credit card holders.
For example, the Banco Leon charges an annual interest rate of 104% for its standard (Classic) card, while offering a 78% interest rate to its premium Platinum cardholders, who can request a 38% annual rate for deferred credit. Banco Leon charges its employee credit card holders a high annual interest rate of 52%, Fernandez reports today.
Fernandez observes that the interest rate on commercial personal loans rates is at around 21%, but nevertheless, the average Dominican was more likely to use a credit card than take out a banking loan.
Fernandez writes: "I think that with credit cards, the banking industry should not follow the example of some politicians. They are the same in that they rely on manipulating reality with headlines. Abusing the ignorance of the people, who have kept silent. Or granting privileges to the few (they themselves) at the expense of the majority.
More... (http://www.dr1.com/index.html#4)
Writing in today's Diario Libre, Alejandro Fernandez Whipple reveals that the estimated 25,000 commercial banks employees in the DR enjoy the best average credit cards rates. These rates are not available to the general public.
Fernandez says that the rates drop to a low of 15% for bank sector employees, who represent 1.5% of all credit card holders. Fernandez recently reported that with few exceptions of other companies that offer their employees credit cards, the annual credit card bank rates hover over an average of more than 80% a year.
The worst off are those that have the lowest limits on their cards that are the majority.
He writes today that as of February 2011, 435,000 credit cards were in use with monthly credit limits of RD$5,000 a month. Another 288,000, or 20% of the total, had limits of RD$5,000 to RD$10,000. He says that the average annual rate for those cardholders is 77.2%, according to the Superintendence of Banks, and 88.4% for the Central Bank.
Rates are also lower for platinum credit card holders.
For example, the Banco Leon charges an annual interest rate of 104% for its standard (Classic) card, while offering a 78% interest rate to its premium Platinum cardholders, who can request a 38% annual rate for deferred credit. Banco Leon charges its employee credit card holders a high annual interest rate of 52%, Fernandez reports today.
Fernandez observes that the interest rate on commercial personal loans rates is at around 21%, but nevertheless, the average Dominican was more likely to use a credit card than take out a banking loan.
Fernandez writes: "I think that with credit cards, the banking industry should not follow the example of some politicians. They are the same in that they rely on manipulating reality with headlines. Abusing the ignorance of the people, who have kept silent. Or granting privileges to the few (they themselves) at the expense of the majority.
More... (http://www.dr1.com/index.html#4)