Wells Fargo Is Losing Millions of Dollars on Its Flashy Rent Credit Card
Wall Street Journal
41 replies (most recent on top)
Ankur Jain needs to be arrested for fraud.
Here is a public commentary on this fiasco.
https://youtu.be/bw3JrvZrIyE?si=K95agHUqSVD9Uvre
@qub+1t5MlssL - Hey, it is pretty clear your button got pushed. Know that the folks who are unable to pay back the CC Debt were all screened and in the target segment prior to getting the card. Your smart underwriters willingly took the risk to approve. Do not pass on the blame to the Consumer. Do your due diligence. I hope YOU are not in the business or operations team. Grow your business sense then offer the plot twist. It is completely on the mismanaged heavy handed cards business team, along with ORBO and LRCC. Shameful.
At the end of the day, this means more layoffs while the executives continue to get their million (even if they are fired due to a contract agreement when they initially signed up for the job). The rich can sc--w up and still get richer, but the poor continue to get poorer no matter how hard they try. What a life!
This is a perfect example of a lose- lose business model! Only CS could come up with this 💩!
Why do my intuition say that the Bilt CEO and the whole start up is a brainchild marketing gimmick of JPMC crew who are sent to take over WF like a disguised corporate coup?
At least take down the apply link to prevent more losses (and I am not the McKinsey guy or hold any elite MBA, just a petty graduate) to save the losses.
I would ask to immediately rescind the contract (hopefully that cost would be less than the recurring loss, else fire the legal team who penned the contract terms) and use that money to keep the experienced US employees.
CS is a grossly overpaid company wrecker! He should be fired! 5 year mark coming up, nothing accomplished, but his pay over $100 million! BOD is sleeping on the job.
I have 1 card because i refuse to use debit. I mostly use cash unless it's online purchase. I pay it off month to month so I never pay interest. It took me years to get out of debt and live like this.
Tip: Can't afford it cash? Don't buy it. Sure, there's emergencies and those are exceptions.
Bottom line is don't live on debt. You just pay more for everything. Watch some Dave Ramsey videos.
Here is the interview with Bilt founder, where the question is raised of who pays for the perks that come with the card.
https://onemileatatime.com/news/bilt-economics-wells-fargo-losing-money/
It's unfortunate that your undeveloped mind isn't capable of having a discussion without pitifully weak name calling. No one here is paying a credit card rate that they didn't agree to. Don't like the rate? Don't sigh up. If you already have the card and the rate goes up, cancel it. It's incredibly simple. Stop pretending that anyone is being forced to do anything and most importantly, stop pretending that wildly irresponsible people don't cost all of us a lot of money. One reason debt costs what it does is because deadbeats don't pay their bills, which means all the rest of the customers have to cover those delinquencies via higher rates. The deadbeat is the immoral predatory party here, getting something for nothing. If a deadbeat walked into your house and stole your laptop, you'd call the police. When they steal your money by increasing the cost of borrowing though, you pretend they are somehow the victim of an immoral plot instead. It's bizarre. I hope you don't do anything important for WF.
@gzx+1t5MlssL, I tend to agree that this type of product is predatory. I have a feeling Wells Fargo will be on the news headline in the near future.
After going through the Great Recession of 2007-2008, I learned that people were not that smart. Another thing I learned is that people never learn.
@mmn+1t5MlssL 100% for industrial capitalism that produces competition for real goods and services.
100% again financial/vulture/crony capitalism that is nothing more than a labyrinthine maze of instruments that when you strip it all away is just a scam/grift.
“it is difficult to get a man to understand something, when his salary depends on his not understanding it.” - Upton Sinclair
BTW, FU
Why don't you package this into asset backed securities, link them to credit default swap and sell them in the global financial market? Don't forget to tap into customers' deposit accounts and shareholders' accounts. I am just curious to see want would happen.
There are big-brain gamers who obfuscate that their “rent” is actually roundtripping to themselves, to the tune of 100k points / yr in free money.
This kind of product could trigger another market crash.
Most people don't get into trouble with credit card debt, just like most people don't get addicted to prescription and other dr-gs.
So how can you blame the credit card, the prescription pill, etc? It IS the person's fault if they get in trouble. And it's not even a moral judgment against the person. We all make mistakes, but it is the person's fault that got themselves in trouble.
Do you really want a nanny state where some govt lackey tells you what you can and can't do? Remember, only the most inept people pursue lifelong govt gigs because it's all they can do. They can't make it in the private sector. Our society doesn't need more low-functioning people telling the rest of us what we can do.
It's strange that someone would work for a major bank while holding strong opinions against capitalism. Capitalism isn't compatible with nannyism.
Financial entrapment.
@xqr+1t5MlssL STFU. its moral hazard plain and simple. its predatory. the MAJORITY developed world doesn't allow the usurious credit card rates that we allow here. You are an idi0t. Your logic is the same sociopathic logic that perdue pharma used when they got people addicted to opi--ds. Those people had a "choice" too. You are a m0r0n. Why don't you sell tricks from your mama on a street corner for five dollars.
You seem to be ignoring that fact that the customer chooses not to pay the debts they have signed a contract to pay, and that's the source of the "lose". It's not "us" doing it to them, it's them doing it to themselves. Also, unless you're interested in working for free, there's always a cost to debt. That's how banks work. No one is required to borrow a penny their entire life, but if you choose to borrow you are making a contractual agreement to pay the money back and if you don't there are financial consequences. Don't like it? Don't borrow. It's really pretty simple. Alternatively, you could start a bank that always loans money out at 0.0% and never charges any fees no matter what you do. Good luck.
@bmh+1t5MlssL - the point is its a zero-sum game. We win when the customer loses. If you are adding value it is a win-win. If you are just a gatekeeper to access to credit than it is zero-sum.
There was a reason the only time Jesus showed anger was when he was in the prescence of money changers. Stop being an sniveling little apologist sc um bag
wfj+1t5MlssL all credit card companies do that. They call people who pay off their balances every month deadbeats.
Maybe, but if there was no negative reinforcement for behaving irresponsibly, then everyone would just do it because they could. No interest and no feeds for late payments? Guess I can just never pay then...
What a miserable business model that depends on people behaving irresponsibly in order to make money. Oh really something to take pride in as a WF slave I mean employee.
They may have been trying to take advantage of people, but at the end of the day the vast majority of card holders clearly used the card responsibly, charged their rent, and then paid off the card before interest/fees were levied. If it was otherwise we wouldn't be losing $10M/month on it.
What garbage leadership. Just shows the utter lack of vision and leadership. Completely bankrupt.
All they know how to do is grift and sc--w people over. They were hoping to lure millennials (who predominately rent) into carrying balances and charging them exorbitant interest rates. Basically make them into debt slaves. So much for creating "value" for society.
And then with their own employees, they are just trying to r a p e and exp1oit us as well. They only care about themselves giving themselves big fat stock grants and using profits for stock buybacks to put their stock. Disgusting. Morally bankrupt. FHY
Charlie Bilt that.
This is hilarious. Perhaps Charlie will see the light and finally fire McKinsey once and for all? But that’d mean he’d have to work…
Charlie should be fired.
Great example of how products are out to take advantage of people during a bad economy vs helping them through it.. WF used to present itself as a responsible lender vs making a buck off people struggling. I think it’s still called predatory lending.
“The bank assumed more than half of all charges on the new cards would carry over from month to month, generating interest.“
😂
Why don't they expand Bilt by having the ability to use it to pay for your mortgage and escrow.
Who pays rent using a credit card?
Those damn customers, refusing to do what Hudson Yards demands. These ivory tower types are complete clowns. They think they control everything, and they lust for that power. They don't control S. All they know how to do is harass their own employees and outsource. Honestly, they don't even know how to outsource, other people do the work for them, they just tell people with actual ability to do things. Unfortunately that disconnect is how we find ourselves flushing millions down toilets like Bilt.
All this press might lead to more card opens, exacerbating?
Hudson Yards just needs to stick to what they are good at. Firing employees, off shoring jobs and destroying morale
They thought people were so stupid they would put the rent on a credit card and then pay interest on it.
In fact, they counted on it.
Charlie should be sacked for that alone.
All that hype from Shart and the baby face CFO about the new credit cards. Only to find out one is dragging the whole business down….