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Do Credit Card Companies Screen for Behavioral Biases?

posted by cmn32480 on Wednesday September 07 2016, @07:55AM   Printer-friendly
from the thieving-bastards dept.

An Anonymous Coward writes:

There are substantial differences in the credit card offers that banks extend to different potential customers. Less-sophisticated borrowers receive offers with more back-loaded and hidden features, as well as more upfront rewards, visual distractions, and fine print at the end of the offer letter, according to Hong Ru and Antoinette Schoar in their new study, Do Credit Card Companies Screen for Behavioral Biases? (NBER Working Paper No. 22360). Banks also ratchet up these hidden features when their cost of funding increases, and when the credit risk of consumers is lower, which reduces the risk for the banks that customers default once they are hit with the unexpected charges. Hidden fees go up when state unemployment insurance benefits become more generous.

https://www.nber.org/digest/sep16/w22360.html

One more way in which Big Data is used against Little Guys.

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  • (Score: -1, Flamebait) by Anonymous Coward on Wednesday September 07 2016, @08:30AM

    by Anonymous Coward on Wednesday September 07 2016, @08:30AM (#398618)

    Is anyone here truly surprised that jews are jewing in current year with their usury scams? They'll do anything to screw us gentiles over.

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  • (Score: 0) by Anonymous Coward on Wednesday September 07 2016, @11:18AM

    by Anonymous Coward on Wednesday September 07 2016, @11:18AM (#398647)

    Oh no, you can't get free money because you're a bigot.

    • (Score: 0) by Anonymous Coward on Wednesday September 07 2016, @12:02PM

      by Anonymous Coward on Wednesday September 07 2016, @12:02PM (#398655)

      Fairly advertised, low interest credit isn't free money you idiot.

    • (Score: 2) by Pino P on Wednesday September 07 2016, @01:47PM

      by Pino P (4721) on Wednesday September 07 2016, @01:47PM (#398686) Journal

      Is the software used by the payment card industry free to use, share, and improve? No? Then it's not free money [gnu.org], unlike major cryptocurrencies.