Today the Senate passed their over-regulation, over-bloated, big government bill to curtail credit card companies from "unfair" lending practices.
There is no doubt, credit card companies have used their ability to lend to less credit worthy folks as a profit center. They have preyed on borrowers who can't keep their accounts current or that are less desirable debtors. They raise rates and charge fees at the drop of a hat, for any excuse.
On the surface this might seem like a good idea-get the big bad credit card company. It's important to understand a few things though. First, if a borrower is too intelligence impaired to know how to work a credit card, that is not the fault of the general population. Next, thanks to the folks who do pay their accounts properly and do understand how to read and do math above a high school level, the other 95% of borrowers have been allowed to have credit cards at all.
Now, not only will fewer people get credit, but those who do will no longer enjoy benefits like no annual fee, or lower rates. Thanks to these ridiculous rules and regulations small business can kiss affordable credit good-bye. Once again this administration proves in order to save the "few", the "most" must be sacrificed.
Again here we go again backwards as usual. We always reward and help those that abuse the system and don't do the right thing. If I don't want to be compliant about paying my bills shame on me and charge me so. That's why I like cash.
ReplyDeleteBut then again because no one wants to save for that house or car or big purchase lets lower interest rates every quarter. Hey I do want to save and with banks giving 1/2% it forces us to save in money markets and the stock market who's watching who. I tell my girls always keep money in your pocket not borrow from someone else's.