|
Posted on 04/24/2009 9:27:51 PM PDT by Tailgunner Joe
Next up for the federal government: the credit card industry. Having already thrown trillions in taxpayer dollars at the banking sector, and having moved to nationalize several of the nation’s largest banks by buying up preferred shares of stock, the Obama Administration now has the credit card sector in its sights.
In a closed-door meeting on April 23 with executives representing the credit card industry, President Barack Obama made it clear his administration intended to impose new requirements on the industry, eliminating allegedly deceptive fine-print clauses and other things that impede transparency. “I trust that those in the industry who want to act responsibly will engage with us in a constructive fashion, and that we're going to get this done in short order,” the president said after the meeting. Credit card officials had little to say publicly.
Issuers of credit cards have been blamed for raising interest rates whenever they wish, and for imposing confiscatory late fees. But credit cards are the riskiest form of debt. They offer unsecured lines of credit to people who are generally not known in person by the credit card issuer. They charge higher rates of interest to cover the much greater risks involved in providing credit of this sort.
Americans, who like to complain about rascally credit card companies, nevertheless revel in their availability. More than 80 percent of all American households have a credit card, and the average credit card debt per household was $10,769.00 at the end of 2008.
The proper way to deal with credit card issuers is to take the time and the responsibility to read the fine print, and to keep card balances low or, better yet, zero. But most Americans, addicted to easy credit and unwilling to take responsibility for their own financial choices, are probably content to let the Obama Administration protect them from themselves.
Until Americans become reacquainted with the wise principle of laissez-faire capitalism, caveat emptor, the Federal Government will be only too happy to continue enlarging its power under the pretext of doing for Americans what they should be willing and able to do for themselves.
I wish the Credit Card CEO’s would tell King Obomba to go POUND SAND....unless, of course they’ve taken money from the government. C’mon...guys....have some B*lls!!!
|
Credit card issuers, in some cases, have arbitrarily and without warning lowered customer credit lines below their current balances as an excuse to default them.
More regulation of credit cards will only make it harder to get credit.
Bring back the usury laws.
Didn’t the major credit card companies say that the changes in the bankruptcy laws would make rates go down?
Too much credit helped us get into this mess in the first place.
Too much regulation got us into this. It just happened to be regulation forcing banks to give credit to risky borrowers. More regulation won’t solve the problem regulation caused.
The next year could get nasty...
Wanna bet which candidate they supported for president?
Also when you hear Polosi talking about the culture of corruption in the ‘R: Party... she is referring to the Republocrats agreeing to let Cold Cash Jefferson (D-LA) slide if he would vote for the banks vs. credit card defaulters in the Bankruptcy Reform Act.
He did of course and not one Pubbie ever mentioned him or his corruption publicly.
Even Limbaugh commented on it.
The government didn’t force them to give credit cards to everyone with a pulse - they did that to themselves with no outside help.
The fine print on the back of credit card application is purposely intended to be difficult to read and understand. The lettering is small often with low contrast. The language has a lot of legalese that probably most high school grads cannot understand fully. It is true that most people do not know what they are signing. Is this the intended purpose? Probably. While it is the fault of the signer that does not understand why and how his rate tripled, in the future it should be made easier for the average person to understand what he is signing.
credit card debt per household is $10,769.-——WOW!!!
People need help alright ...not asistance against credit card com.
They need a training class in WILLPOWER and abstinance... from using it.
See : Here They Come To Save The Day: credit card fees Peter Schiff
That’s exactly what’s going to happen as soon as their unemployment benefits run out: they’ll have no choice but to run up their credit cards...until they reach their limits, of course, which won’t take long.
Then all Hell will break loose.
Obama will screw up credit cards and further kill the consumer economy. That will close more retail stores and collapse the commercial real estate market. The GM and Chrysler bankruptcies should start rippling through the economy over the next few weeks.
THIS is very scary. I'm not criticizing. I'm warning!
Card companies are scared to death right now of massive defaults from the unemployed and the cash strapped. If they cut back on available credit again, GDP will go down the tubes. Recession extended (hopefully until 2012 so we can throw his sorry butt out of the White House).
It’s inevitable, especially if large numbers of angry Americans “go Galt”. The unemployed will remain unemployed, and when they reach their credit limits, guess what will happen...
I would argue that massive defaults are as certain as the next sunrise.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
