- Frank McNamara and his partner (lawyer) Ralph Schneider
created Diners Club; presented small, cardboard card at Major's
Cabin Grill, New York City restaurant; signed for the purchase;
known as the "First Supper"; May 13, 1950 -
Diner's Club issued first credit cards to 200 people, most of
whom are personal friends and acquaintances; 14 New York
restaurants agree to accept the card; 1949 - had
had dinner, left wallet in another suit; wife paid, resolved
never to be embarrassed again.
- Donald McCullough launched Finders Services, first credit card
service in Britain; 1962 - merged Credit Card
Services to become Diners' Club.
October 1, 1958
- American express introduced travel-and-entertainment charge
card (paper printed with purple ink to resemble Travelers
Cheques; 1959 - introduced plastic cards;
1966 - launched Gold Card.
- Yasuo Takei founded Takefufi Corporation, consumer credit
company. June 2006 - Forbes.com ranked Takei
second richest man in Japan, worht $5.6 billion (behind
Masayoshi Son, CEO of Softbank, worth $7 billion).
September 12, 1997
- A Federal Deposit Insurance Corp. (FDIC) report announced that
the country's annualized losses on bank credit cards had
ballooned to its highest level in 14 years. According to the
Federal Deposit Insurance Corp. (FDIC), which issued the
findings, the losses accounted for 5.22% of every $100 charged
to the nation's credit cards; bankruptcy amounted to roughly
half of "bank credit card charge-offs."
January 14, 2008 -
Evidence that consumer spending has begun to slow sharply
(personal consumption accounts for 70% of U. S. economy); growth
in rate of spending by 52 million American Express cardholders
fell 3% in December 2007 (13% to 10%), first slowdown since 2001
recession; since 1980, consumers have cut spending in only five
quarters (total of 15 months), most of them in depths of
recession (2001 recession - no cutback in consumer spending);
once before, in 1980, consumer spending fell during
presidential election year.
September 2008 -
Credit card solicitations have slowed (biggest mailer of card
offers - Chase, followed by American Express, Bank of America).
October 29, 2008 - Lenders wrote off $21 billion
in bad credit card loans in first half 2008, 5.5% of credit card
debt outstanding (2001 - reached 7.9%)
December 7, 2008 -
America launched BankAmericard in Fresno, CA in 1958 (bank had
unusually high market share there); first nationally accepted
bank credit card, card for the common person; introduced
innovative "revolving credit" feature - pay the bill in full or
carry a balance over several months (vs. pay in full each month);
estimated 65,000 Fresnans had card by late 1958, 3,400 called
the bank wanting it; 1976
- renamed VISA; 2008 - went public;
2007 - Americans used debit cards in
sbout 21% of all transactions (about 19% for credit cards;
source The Nilson Report).
Hugh Barty-King with a foreword by Sir Gordon
The Worst Poverty: A History of Debt and Debtors.
(Wolfeboro, NH: A. Sutton Pub., 214 p.). Consumer credit--Great
Britain--History; Debt--Great Britain--History.
Lendol Calder (1999).
Financing the American Dream: A Cultural History of Consumer
Credit. (Princeton, NJ: Princeton University Press, 377
p.). Consumer credit--United States--History; Consumption
(Economics)--United States--History; Consumers--United
Jack Cashill (2010).
Popes & Bankers: A Cultural History of Credit and Debit from
Aristotle to AIG. (Nashville, TN: Thomas Nelson, 259
p.). Banks and banking -- History; Credit -- History; Usury --
History. Creative tension between "pious restraint", "economic
ambition" through annals of human history; from Plato to payday
loans, from Council of Nicea to Al Qaeda Reader, from Shylock to
Hitler's Mein Kampf, from Aristotle to AIG, from Shakespeare to
Salomon Brothers, from Medici to Bernie Madoff - story of credit
and debt, usury and "the sordid love of gain."
Laurie Essig (2010).
American Plastic: Boob Jobs, Credit Cards, and the Quest for
Perfection. (Boston, MA: Beacon Press, 240 p.).
Assistant Professor of Sociology (Middlebury College). Credit
cards --United States; Credit --United States; Surgery, Plastic
--Social aspects; Surgery, Plastic --Moral and ethical aspects.
Culture, economics, cosmetic surgery industry; how plastic
surgery has become “the answer” for many Americans; how access
to credit, medical advances, pressures from image,
youth-obsessed culture have led to unprecedented desire to “fix”
ourselves; 465% increase in cosmetic work over last decade, $12
billion spent annually on procedures (liposuction, face-lifts,
tummy tucks, boob jobs); estimated that 30% of plastic surgery
patients earn less than $30,000 a year; another 41% earn less
than $60,000; 85% of patients assume debt to get work done
(average cost of cosmetic work is $8,000).
David S. Evans and Richard Schmalensee (2005).
Paying with Plastic: The Digital Revolution in Buying and
Borrowing. (Cambridge, MA: MIT Press, 367 p. [2nd ed.]).
Vice Chairman of LECG Europe; John C. Head III Dean and
Professor of Management and Economics at the Sloan School of
Management (MIT). Credit cards--United States; Bank credit
cards--United States; Electronic funds transfers--United States;
Electronic commerce--United States; Consumer credit--United
Margot C. Finn (2003).
The Character of Credit: Personal Debt in English Culture,
1740-1914. (New York, NY: Cambridge University Press,
362 p.). English prose literature--History and criticism;
Economics and literature--Great Britain--History; Consumption
(Economics)--Great Britain--History; Finance, Personal--Great
Britain--History; Consumption (Economics) in literature;
Credit--Great Britain--History; Debt--Great Britain--History;
Economics in literature; Debt in literature; Great
Britain--Economic conditions. Ability to get credit depended on social status.
Garet Garrett (2008).
A Bubble that Broke the World. (Whitefish, MT: Kessinger
Publishing, 178 p. [orig. pub. 1932]). Credit; Debts, Public;
Economic history --1918-1945; United States --Economic
Charles Geisst (2009).
Collateral Damaged: The Marketing of Consumer Debt to America.
Bloomberg, 288 p.).
Professor of Economics
(Manhattan College). Consumer credit --United
States --History; Saving and investment --United States
How America turned from
nation of savers into nation of consumers addicted to debt; used
by Wall Street to create "toxic securities" that threaten to
bring about collapse of global economy; how America can get
fiscal house in order.
Louis Hyman (2011).
Debtor Nation: The History of America in Red Ink.
(Princeton, NJ: Princeton University Press, 378 p.). Consumer
credit -- United States -- History -- 20th century; Debt --
United States -- History -- 20th century; Loans, Personal --
United States -- History -- 20th century.
United States --
Economic conditions -- 20th century; United States -- Economic
policy -- 20th century. History of personal debt, consumer
credit practices in modern America; how little loans became big
business; evolution of debt over 20th century, from fringe to
mainstream (federal policy, financial innovation, retail
competition); origins of car financing to creation of subprime
lending; lending money to facilitate consumption became more
profitable than lending to invest in expanded production.
Lloyd Klein (1999).
It's in the Cards: Consumer Credit and the American Experience.
(Westport, CT: Praeger, 155 p.). Consumer credit--Social
aspects--United States; Consumer credit--United States; Credit
Scott B. MacDonald, Albert L. Gastmann (2001).
A History of Credit and Power in the Western World.
(Brunswick, NJ: Transaction Publishers, 314 p.).
Credit--History; Finance--History; Finance, Public--History;
Power (Social sciences)--History; Political science--Economic
aspects--History; Economic history; World history.
Lewis Mandell (1990).
The Credit Card Industry: A History. (Boston, MA: Twayne
Publishers, 176 p.). Credit cards--United States--History;
Consumer credit--United States--History.
Robert D. Manning (2000).
Credit Card Nation: The Consequences of America's Addiction to
Credit. (New York, NY: Basic Books, 406 p.). Credit
cards--United States; Consumer credit--United States.
Consumer Credit in the United States: A Sociological Perspective
from the 19th Century to the Present.
(New York, NY, Palgrave Macmillan, 272 p.). Lecturer in
Sociology in the School of Applied Social Studies (The Robert
Gordon University, Aberdeen, UK). Consumer credit -- Social
aspects -- United States; Consumer credit -- United States. How
emergence, growth of consumer credit in United States have
always been subject to shifting regimes of control, regulation
(from early antecedents in 19nth century salary lending and
Sean O'Connell (2009).
Credit and Community: Working-Class Debt in the UK since 1880.
(New York, NY: Oxford University Press, 305 p.). Consumer credit
-- Great Britain -- History; Debt -- Great Britain -- History;
Working class -- Great Britain -- History. History of consumer
credit, debt in working class communities;
arrangements declined as more impersonal forms of borrowing
emerged during 20th century.
Martha L. Olney (1991).
Buy Now, Pay Later: Advertising, Credit, and Consumer Durables
in the 1920s. (Chapel Hill, NC: University of North
Carolina Press, 424 p.). Durable goods,
Advertising--United States--History; Consumer credit--United
Jesse Rainsford Sprague (1943). The Romance
of Credit. (New York, NY: Appleton-Century-Crofts, 253 p.).
James D. Scurlock (2007).
Maxed Out: Hard Times, Easy Credit, and the Era of Predatory
Lenders. (New York, NY: Scribner, 248 p.). Consumer
credit--United States; Debt--United States.
Enormity of consumer debt in
society, its consequences; Americans' use, misuse of
credit; very real, potentially disastrous systems, policies
that are consuming millions of Americans.
Ceri Sullivan (2002).
The Rhetoric of Credit: Merchants in Early Modern Writing.
(Madison, NJ: Fairleigh Dickinson University Press, 217 p.).
Credit--History; Merchants--History; Rhetoric--History.
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