Part of their proposal is that credit card companies will not be permitted to raise the interest rate on existing balances. While many seem to be thrilled with this prospect and feel that justice will be served, some are oblivious to the backlash that will inevitably occur, namely the elimination of several credit card companies due to their inability of maintaining profitability without the use of such monstrous tactics, and the elimination of credit cards being issued to anyone with less-than-perfect credit profiles.
Over 65,000 consumers have sent in feedback to the Feds on this topic along with stories of the aggressive tactics that credit card companies have taken to maintain profits, and to collect on delinquent debt. Many submitted lengthy stories as well, stories which showed that even a perfect payment history did not protect someone from “unfair” treatment at the hands of the credit card companies. There are an abundance of consumers in all aspects of society who feel they have been mistreated by the credit card companies. So it’s no wonder that this is the most involved consumers have been on any issue with the Feds.
While I agree with the premise of most of the proposals on this matter, there are obviously going to be some privileges that will be revoked with such regulations. One of which being the elimination of small credit card balance issuers who typically issue credit to high credit risk consumers. Many economists are attempting to sway the Feds due to this “downside” but personally, I think it’s GREAT.
This is the first time in a long time that I would find myself able to say this, but I think that both the proactive steps as well as the reactive scenarios are excellent for our economy. While the pill will be hard to swallow on both sides, we have become a society dangerously dependent on credit cards. At what point did we as consumers think that we needed so much more than we could actually pay for? In my opinion, those who are in tough financial times, thus possessing low credit scores, do not truly need the temptation of a credit card—at any rate or any available balance. Whether one is wealthy, middle-class, or poor, one does not truly need a credit card. As a society we have given away too much of our freedom and helped build these credit card companies to the flesh-eating monsters that they are. WE have created this monster. We only have ourselves to blame. I firmly believe that a dose of “tough love” will aid in eliminating some credit card companies and their high credit risk junkies, and that is a very good start.
Copyright 2009 Kellene Bishop. All rights reserved. You are welcome to repost this information so long as it is credited to Kellene Bishop.
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