Finance

MasterCard Needs Money : Charges Customers for Oversea’s USD Charges

Written by: juicebox

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The practice probably isn’t new to you, but after a transaction with istockphoto.com on my paypal account garnered a 3% foreign transaction fee, you can bet the word pissed, wasn’t any way to begin describing it.

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Finance

The Recession Backlash

Written by: Emily Ferreira

We’re all feeling the painful impact of the current economic recession in one way or another…. I mean gas prices are now high enough to make you feel sick!  But what’s even more ridiculous is when you take a step backwards and look at the bigger picture.  Looking at the 2008 recession from a macro-perspective shows just how many facets of human life are feeling a severe blow below the belt….
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Finance

Craigslist: A Barometer of the US Economy?

Written by: Emily Ferreira

Who would have thought that what was once a young entrepreneur’s hobby would turn out to be a significant barometer of the US economy?   

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Finance

GDP: Gross Domestic Product Fails as an Indicator of Economic Welfare Part 2

Written by: Gaurav Bhola, MSM, Managing Editor & Community Manager

Gross Domestic Product has been incorrectly used as an economic indicator of the economic health and wellness of a nation and its citizens since World War II. GDP is used extensively by economists worldwide as the only and true measure of the health of an economy. As it has abroad, so has it at home, ill-served the American people by giving them a false sense of economic security. Its importance as an indicator for the standard of living has limited utility. Herein, over the years criticisms of GDP’s utility as a measure of an economy’s health and wellness are coming to the forefront.

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Finance

How the Economic Stimulus Package Places the Burden upon the American People

Written by: Gaurav Bhola, MSM, Managing Editor & Community Manager

Is the US economy in trouble? If it is how long will the crisis last? Will the elected representatives and traditional news media tell the American people the truth or hide

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Finance

How the Current US Economy Parallels Past Financial Crises

Written by: Gaurav Bhola, MSM, Managing Editor & Community Manager

Is the US economy in trouble? If it is what can be the extent of the damage? What is unique about the subprime mortgage crisis? Will the elected representatives and traditional media tell the American people the truth or …
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Finance

Federal Government Seeks to Prevent Economic Recession

Written by: Gaurav Bhola, MSM, Managing Editor & Community Manager

The housing market corrections of 2007 may well continue into 2008. The government is scrambling to forestall any further market adjustments. The government wants to be proactive in avoiding any severe downturn in the economy. There is a feeling that the government needs to be doing more than the Bush mortgage rate freeze plan for certain subprime adjustable rate mortgages.

Recently, the Bush Administration announced that…
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Finance

Credit Card Companies Target College Students - Part 3

Written by: Gaurav Bhola, MSM, Managing Editor & Community Manager

The credit card companies have ensnared the college and university system in their web of exploitation of college students. The schools have contracted with credit card companies in affinity programs that undermine students interests. An affinity program is a contractual agreement between a credit card issuer and a university in which a card company can market to the students, faculty, and alumni their cards exclusively; in return the university gets money.

The money in return for exclusivity can run into multi-millions, much needed funds for many universities. However, this comes at a steep price, with colleges forgoing their responsibilities to students. An inherent conflict of interest arises with these affinity programs; as the college overlooks student interest for sake of credit card company interest.

Affinity relationships can be worth more than $15 million, depending on the university. Usually, the affinity agreement includes the school partnering with a credit company to issue a co-branded card, a school logo card. Bank of America has majority of the exclusive deals with colleges, with 900 agreements. Chase has 40 affinity partnerships with schools nationwide.

Also, the schools can earn annual royalties, in the millions. In return for payments, card companies get access to entire student, faculty, and alumni lists. They also can market at school events, such as sports events and more.

So, what is the harm, some say? The affinity programs pose a direct threat to the schools responsibility to students benefits. The colleges when tempted with easy funds will not shy away from scrutinizing the credit terms or their marketing activities.

Chase’s wonderful credit card terms included double-cycle billing, which according to the General Accounting Office is a method used by one-third of credit card issuers. A double cycle billing example: I have zero balance and I purchase something for a $100. I make my payment on-time of $75 and carry over a $25 balance into the next statement. When I get me next statement, under the double-billing method I would be charged interest on the full $100, rather than the $25 balance alone. This is one of the most audacious, loan shark like, weasely, and reprehensible things credit card companies do.

Imagine, exploiting financially innocent students this way, let alone general consumers. Unless, there is grassroots uproar against the cozy nexus between the colleges and credit card companies, such practices will continue. The only ones to suffer will be students and their families.

Part 4: Coming soon…

Finance

Credit Card Companies Target College Students - Part 2

Written by: Gaurav Bhola, MSM, Managing Editor & Community Manager

In the world of credit card companies, anything and anyone is fair game, until the laws say otherwise. The targeting of college students is well researched and positioned. Like other predatory business, such as payday loans, credit card issuers also prey upon the weak, the financially unsavvy. Like cigarette companies, card companies want to hook consumers to their product at a young age. In their quest for business perpetuity, card companies have expanded their innovative marketing efforts to the halls of higher education.

The aim of credit card companies on campus is to get college students to fill out completed applications. With the full acquiescence of the college and university, college students are recruited by card companies to solicit their fellow college students to apply for credit cards.

A credit card college representative provides the initial training to a group of students interested in making easy money, commission sales. A student card salesman can earn upto $15 for every completed application. In return for completing an application, you get a free shirt or some other trinket. That seems like a fair trade, your personal information for a t-shirt.
So student salesmen play the role of enthusiastic credit card pushers; while their prey, fellow college students may end up as credit card addicts. This is a clever strategy, hiring college students to seek out their circle of influence (friends) and then walk the corridors of their university to target other unsuspecting students.

Students are employed to target students because they come off as non-threatening, as being one of their own. Certainly a middle aged person would have less success marketing to young college students, than another student. The student salesmen are provided training by the card reps on how to approach students, giveaway free gifts, and most importantly, how to overcome objections.

Some of the objection handlers are, “Once you get the card, you dont have to use it, you can cut it up,” “Once you get your dream job after graduating, you can easily payoff the card,” “If you start building your credit history now, youll have great credit right out of college,” “Can come in handy when youre strapped for cash,” “Show your college pride by getting your very own college logo credit card,” and more.

In addition to college campuses, card issuers use high traffic strategic locations around campus to market to students. They put up their flee market tents in these areas, and start doling out trinkets in exchange for completed applications.
However you look at it this is exploitation of financially unsophisticated students for profit. Where is the corporate conscience, doesnt corporate citizenship extend to putting an end to such abhorrent marketing practices?

Part 3: Coming Soon

Finance

Top 10 Reasons Santa Needs a Payday Loan

Written by: Richard Smith

To all,

This morning, my dear friend and colleague (who will remain nameless) provided me with a Lettermen-esque Top Ten list of reason why Santa needs a Payday Loan. If you find this post either offensive or non-sensical, just chalk it up to…this is what happens when programmers try to be marketers!

Happy Holidays!

Top ten reasons Santa needs a Payday Loan

1. He’s broke! I mean, the elves only get paid once a year
2. He rents the factory at the north pole, shouldve bought when North Polean real estate was cheap, might have a chance if the real estate market continues to suck.
3. His elven accountants suck - They cant depreciate goods longer than a year
4. He hired an expensive PR firm to spin the scandal of being caught trying to save money by buying cheap Chavez heating oil
5. Reindeer gas more expensive since the corn prices have gone up due to ethanol demands rising
6. He really wants to buy the snazzy Apple iSleigh
7. He has to pay hefty legal fees resulting from fighting the US government that awarded the toy bid to Haliburton
8. He has a surplus of toys since he has to give fewer to politicians since so many were bad this year.
9. Higher costs for raw materials to make toys for all the new illegal immigrants
10. Court fees trying to block latest Tim Allen movie, “The Santa Clause 17 - Vegas Vacation“

Surely we can keep adding to this list! Leave a comment with yours and if we like we’ll add yours to the list.