Most Americans carry more than one credit card. Hopefully these businesses do, too.

And my bet is that this is not the beginning of an avalanche but is just a small rock tumbling down the hill.

Thanks for the heads-up, interesting article.

Yep, more privately run prisons, that's the answer...with minimum wage untrained guards no less.

We could use them to warehouse all the folks who are defaulting on their credit card bills.

What was the question again?

Martin, this sounds like they are declaring bankruptcy, without going through the formalities- am I wrong in that?

If so, I figure it is only a matter of time before one of the larger issuers folds. *shrugs* As much as I might miss the opportunity, I'm more convinced than ever that they just aren't worth the hassle.

No they are NOT going bankrupt, they are simply stopping the credit card issuer business - in an effort to stave off any further losses from defaults.

OK, so they aren't telling their customers "so sorry, we're done", they are just not taking on new customers?

There is a difference between closing and/or No Longer Issuing new credit, and Bankruptcy

Bankruptcy means they are not paying back THEIR creditors, which it sure looks like they are planning on doing

I know the difference. *grins* I just had missed the part about them paying back their creditors, and you can't do that without business. It had sounded to me like they were just shutting down.

MIGHT MEAN? The first time a business is not paid for having accepted one of these cards it MIGHT MEAN A FLASH FIRE!

The first time businesses are not paid by credit card companies will be the end of plastic as we know it.

I will jump for joy!

If you want to get real paranoid, think, just who is the largest creditor for a credit card company?

Not to kick a dead horse, but this quote from the Philadelphia Inquirer caused me some distress.

http://www.philly.com/inquirer/front_page/20090512_Advanta_Corp__suspends_credit_cards.html

The quote of interest in the article is -

"Advanta, the nation's 11TH LARGEST CREDIT-CARD company, is unusual in that it does not offer personal credit cards.

Advanta's percentage of loans written off as uncollectible, at 20 percent on March 31"