MACY'S: ".. “we experienced an increased rate of delinquencies .. the speed at which the increase occurred for us and the broader credit card industry since our first quarter earnings call was faster than planned. .. We're working closely with our bank partner Citibank to mitigate the rising bad debts by adjusting underwriting strategies."
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Had an older lady come in today that I had helped to open an account earlier this year. She was frustrated to the point of tears about the crazy interest rate charges she has to pay. She explained she was retired and on a fixed income and didn't realize how high the interest was on her Macy's card. We helped her to figure out how to use another much lower interest card to pay off her Macy's bill and recommended the bronze option instead.
32% interest rate is insane.
We have a new DVP who makes us be on calls every Monday if we don't make our credit goal. He tells the store manager and sales managers that making credit is all about our expectations and hints at threats if stores don't make goal. We are now doing daily interviews with any associate that doesn't get someone to open an account. His big threat is that if we don't start making credit he will stop visiting the store. We almost laughed when we heard it. 32% interest and we are threatening our people with coaching and being written up if they don't make goal.
I don't know how this company thinks that people are going to open credit cards at 32 percent interest. Its just not sustainable for most families living paycheck to paycheck. Many people coming in pay the minimum payment which depending on their balance will take forever to pay off. I've already decided im not buying Christmas gifts this year and I'm sure I won't be alone. I can't in good conscience push people into credit cards. I ask them and if they say no I move on.
banks are bracing for people not paying bills macys uses amex and chase and other banks this will hurt macys overall performance
Whats coming
No, that's what happens when people don't have the money to pay bills.
That's what happens when you raise consumer interest rates.