Do US banks have default insurance on credit card accounts protecting the banks from loss? related questions

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Do US banks have default insurance on credit card accounts protecting the banks from loss?0Stephanie2012-05-10 05:56:20
Is there any evidence of banks in the U.S. have a safe default for each credit card bill to protect the edge of the loss, as they may have in Germany? (See link below ) ( Consumer credit insurance protects banks and financial service providers of the risks involved in credit lines and installment loans , credit cards and electronic cash . Replaces the precautions taken so far to compensate default risk of both existing customers and new customers. All debts due under its retail banking business are covered by the policy. ) I am told that the U.S. banks do not suffer any loss when a customer defaults in payment of his credit card account with a balance because the bank is secure by default on each credit card account , which reimburses the bank in case of default , protecting the bank from loss. If this is true , where can we find evidence of this insurance default assumption underlying each credit card account created which reimburses the bank in case of default by the account holder credit card ? Sincerely , Robert -----------------------
Is there evidence of banks having default insurance on each credit card account protecting the bank from loss?1Ramona2012-06-03 01:09:49
I am told that a bank does not suffer any loss when a customer defaults in payment of his credit card account with a balance because the bank is secure by default on each credit card account , which reimburses the bank in case of default , protecting the bank from loss. If thi is true , where can we find evidence of this insurance default assumption underlying each credit card account that you created reimbuses the bank in case of default by the account holder credit card ? Sincerely , Robert
Can banks insure against credit card default0dromedary2011-12-22 17:58:33
Can you insure against banks defaulting on credit cards
I don't care about my credit, I don't care about banks, I don't care about the government, and we're not free?0ahmede2012-07-15 13:04:02
You know I know this may violate Yahoo Answers TOS but I apologize in advance. I'm really tired of hearing about people who believe in this country and are so complacent when it comes to acceptance of the financial and economic "system?" that we are currently operating. My political leanings are Libertarian but I'm sort of an individual thinker. I don't care about my credit score and I don't care about the Fortune 500 or what happens to them. I certainly pay my utilities and my rent because I like not being homeless and whatnot. Couple of years ago I have about 500,000 of credit card available credit. I spent it all. Dressed my life up nice. Put away money for my children's college and gave quite a bit to charity. I live in a pretty nice townhouse and don't own so they can't take a lien out on me. My wife and I both became permanently disabled on our jobs so we don't work. Both of our families are quite wealthy. We will never want for anything. But, guess what? I'm never, ever, going to pay those credit cards. I don't own a bank account so they won't get it from there. I'm not going to declare bankruptcy, so they can forget that angle. I keep my gifts of cash from my family in that form and never deposit them anywhere. Since I don't work, they can't get the money from anywhere. I'm kind of happy about doing that and I'm kind of happy about telling people I did. Great thing about America. Not illegal to not pay your debts (most kinds anyway, especially unsecured credit!) I don't agree with the bank bailouts and I've completely had it with the free market capitalism in this nation. I'm proud of the half a million dollar chunk I took out of the banks. Even though I know their insurance will just repay them. I did a good thing for my family and a good thing for the charities I helped. And I got back to what it should be about in this country. Caring for your children, family, and fellow citizens. Not caring about your corporate masters. If I've made you angry and you don't like me then know right now that your anger delivers happiness to me because you are either envious or ignorant and I wouldn't care about someone like you or your opinion anyway. If you attitude is rock on then I love ya! I'm sure we'll see each other at the next Occupy event. Let's take back America. And lets twist it a little deeper on these new plutocrats and their groupies! Peace, love, and progress brothers and sisters!
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What fees do banks pay for FDIC insurance0⿴ 亼 said _X Ba 2012-01-07 17:10:36
What fees banks pay for FDIC insurance
Does investing on stocks have insurance like banks?1Bea2012-07-28 21:49:59
Banks have insurance right? so when the bank is bankrupt may claim up to a certain amount of money deposited again. So when you invest through a company ( ie / Coca -Cola) through actions and suddenly became bankrupt (because of meybe better tasting drink ) can you also get atleast part of their money back ? (If never managed to sell their shares at the time ) normal businesses have insurance to protect investors in a bankruptcy ?
Why do I get phone calls from banks and insurance companies?0TB2012-06-26 21:14:02
I'm only 15, and never associated with those companies. I received calls from JP Morgan Chase and recently an insurance company based in Georgia. Usually I say that I am only 15 and when I say the person they are looking for are not even close. How can a company get a wrong number ?
What banks buyout whole life insurance plans?0Tang Love Ya 2012-06-05 03:15:15
I have a plan for $ 2mil a lifetime. And pay about $ 500 a month. I am middle aged. And I'm looking for a bank that buys the shares of all life and write about the final payment to them while they pay for coverage. It's out there and spend a lot . But just can not find a bank that does openly.
What insurance information do the banks need when you are buying a home.?0Janice2012-07-26 01:35:02
What has happened to the Investment Banks/Insurance Companies?0desha2012-08-06 10:45:03
I understand what investment banks/insurance companies do, but I don't understand how these companies got in the mess they are in. I know that they had bad investments with mortgage backed securities and collateralized debt obligations, but were their portfolios so top heavy with these things that they couldn't stay afloat. This is hard for me to believe, where were the "smart" people that work in these firms or the SEC when all of this was happening? We should not be bailing these people out. Also, it is my understanding that these conglomerates obviously have subsidiaries, i.e. American General with AIG. How does an "umbrella company" work in terms of the actual company being traded on the DOW. I understand how investment banks work, they help government and corporate entities to raise capital by either taking them public with an IPO or issuing debt securities. Once they figure out how many shares at what price, or how much interest to lure investors they then buy the shares from the company and receive the money themselves from shareholders. Apparently a large portion of this has went into MBS's and people haven't been able to pay their mortgages back to the bank and therefore these investment banks have defaulted on their investments. Did they put everything they had in these MBS's? I just don't understand how these companies have gotten to this point. Also, we need to be careful with these government bail outs, let's remember that we are paying for this with our hard earned money...we need to wise up as a society and realize that this is what big government does.

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