Now the consumer crunch: falling credit limits, rising interest rates
Monday, November 17th, 2008
Can’t happen here – or can it?
CBC News
November 17, 2008
Canadian companies are taking extra precautions to protect themselves, dropping credit limits and increasing interest rates for late payments in response to the growing credit crunch.
Art Thornton, an Ottawa-based bankruptcy trustee, said credit changes — such as TD’s decision to raise interest rates on late payments by five percentage points — will put pressure on consumers.
“The banks have shoveled out credit religiously to lower- and middle-income people — and they’re the ones who are going to bear the brunt of the change in credit policy,” he said.
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