We used to say the company that gets a union deserves a union. On Friday the President outlined the reasons behind the new credit card legislation and I can’t say that I disagree with many of the things he says here … whacking people who pay on time with higher rates to boost profits may be legal but clearly … knowing the Democrats were in charge … likely not smart … leading to tougher rules. It is pretty outrageous on the part of the banks.
But there’s an easy solution and that’s putting away the cards and telling the banks to take a hike. That though, is not going to happen … so the Feds ride to the rescue and the banks get what they deserve and what they should have expected. More regulation.
The banks says they will retaliate by eliminating rewards and charging fees to their most credit worthy customers and offer feweer cards to less credit worthy.
I say fine. My guess is the market will step in an offer some competition and the banks will continue to push cards on … welll everyone and the dog. What do you think? Take the poll.
And as an aside … notice how Obama introduces Senators Dodd and Shelby … using the phrase “partner in crime”. Ha!