Re:Credit Scores Can Run – and Ruin – Our Lives
by Retric on Thursday May 26, 2022 @10:57AM
(#31519118)
Marginal costs can be deceptive, yes sending a debt card in the mail is cheap and you don’t need extra staff or locations for a single customer. However, the infrastructure need to support a million additional customers is expensive even if a single customer doesn’t seem to add any significant cost.
Re:Credit Scores Can Run – and Ruin – Our Lives
by clairity on Thursday May 26, 2022 @01:06PM
(#31520802)
it's tricky but not deceptive. raising that point in this context indicates you've fallen for form of the sunk cost fallacy via conflating two separate business decisions (the investment decision with the pricing decision).
we need to say no to these unsubstantiated, regressive fees, full stop.
Re:Credit Scores Can Run – and Ruin – Our Lives
by Retric on Thursday May 26, 2022 @01:37PM
(#31521184)
I don’t see how acknowledging the truth is somehow supposed to support a bank argument. I would happily ban these fees until the industry adapted to a new normal.
That said, don’t let your views blind you to the truth. Unscrupulous actors will often drive an industry into predatory practices, it’s correctable but only when people understand the dynamics involved.
Re:Credit Scores Can Run – and Ruin – Our Lives
by clairity on Thursday May 26, 2022 @02:08PM
(#31521574)
> "don’t let your views blind you to the truth....correctable but only when people understand the dynamics involved."
indeed.
those sunk costs don't matter in this context, which is why they were originally, and should continue to be, excluded. it's extraneous, obfuscating, and most damningly, apologetic.
that's simply not true. the marginal cost of a checking account is on the order of a dollar. the breakeven on that is on the order of holding (and otherwise using) a deposit of a $100 for a month or two. banks are not losing money on the balance of their checking deposits in any conceivable way.
that's a just-so story told and retold uncritically to convince the gullible that fees are "necessary". they're not. they're pure profit, and borne of pure greed. no bank requires fees to function profitably.