FRONTLINE and The New York Periods take a look at how the credit rating card industry became pervasive, lucrative, and politically highly effective. (Aired 2004)
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Thousands and thousands of American households use their private, normal-intent credit rating cards to make ends satisfy. With no federal rules on the sum of desire or service fees that can be charged, credit history playing cards have become the most financially rewarding sector of the American banking sector.”] In “Secret Background of the Credit rating Card,” correspondent Lowell Bergman uncovers the procedures employed by the business to gain document gains and get individuals to acquire on more credit card debt. Some authorities argue the profitability of credit history cards started when the banking market properly removed a crucial restriction: the limit on the desire charge a financial institution can charge a borrower. Deregulation, coupled with a revolution in engineering enabled the almost actual-time monitoring of private monetary data and the emergence of nationwide banking, facilitated the widening availability of credit score playing cards throughout the financial spectrum. But for some, the price of credit score is normally significantly greater than it appears.
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