Credit-Card Scrutiny Hits Lenders And Threatens to Damp Spending August 19, 2002 â?? A federal crackdown on credit-card lending is squeezing some lenders even before proposed guidelines take effect, and threatens to pinch consumer spending, The Wall Street Journal reported Monday. The new scrutiny is aimed at reducing a rapid rise in consumer debt and defaults. It tests the so-called subprime credit-card business that caters to customers with poor credit or low income, which grew quickly during the booming 1990s and is seeing its first economic downturn. Already, the government's attention has pushed some credit-card companies specializing in the subprime market â?? estimated by one credit bureau at as much as 37% of credit-card loans â?? to move toward increasing their reserve funds and change accounting and lending practices. http://biz.yahoo.com/djus/020819/200208190006000003_1.html
That's why the rates are jumping around. I saw that article a couple of days ago somewhere else. Charlie
