What the depression in Australia would do to apt, page-51

I agree this with:
"If the well being of the CC holder was actually being taken into account, they would be re-designed so that you are required to clean down your CC to a zero balance every 3 or 6 months."

I don't agree with:
"Hence the profitability of the product in an overall sense is being subsidized by a small subset of users who are generally the most vulnerable - this is classic predatory behavior."

Take insurance companies for example. My premium is higher than what it should be given my risk level because insurance companies cannot accurately differentiate me from someone who would hoon or partake in insurance fraud. Hence you can argue that I'm paying for those people that do. The same goes for credit cards where the limit can be changed depending on risk profile but not the interest rate which is based on risk-adjusted performance measures that would include people who don't pay their debt.

Regarding your comment that banks make their profit from people that don't pay their cards off every month is rather obvious and so is the fact that banks aren't there to look after the "well being of credit card holders". Banks aren't budget direct, you apply for a credit card, banks look at serviceability and lend this product to the consumer at a predetermined interest rate that is priced so that the bank makes an Economic profit.

Nothing more and nothing less. The view that this is "predatory" is normal given people don't understand how products are priced in banking.

Anyway lets agree to disagree and get back to APT. As someone who works in a bank I'm used to the usual bank bashing.