Comments on: Credit Card Shock? Blame the Government. http://www.bloggernews.net/122828 High-quality English language analysis and editorial writing on the news. Wed, 15 Feb 2012 11:18:24 +0000 http://wordpress.org/?v=2.3.3 By: yclark http://www.bloggernews.net/122828#comment-1437889 yclark Wed, 04 Nov 2009 17:06:10 +0000 http://www.bloggernews.net/122828#comment-1437889 It's not always about consumer responsibility as we all know that things happen that are not in our control. People lose their jobs or get demoted, or have life-changing events and unexpected expenses. So, if they once had good credit, unfortunately, paying on a credit card may no longer be a priority-thus ruining their credit. Consumer protection in the form of education is preferable but Congress functions under the assumption that the American people as an entity aren't capable of making decisions that are good for them, which is more than insulting. If I make a decision that affects myself and my family, I don't expect the government to intervene unless mal-intent were involved. Congress is so consumed by what their visions are that they completely ignore the possible consequences of their actions. It’s not always about consumer responsibility as we all know that things happen that are not in our control. People lose their jobs or get demoted, or have life-changing events and unexpected expenses. So, if they once had good credit, unfortunately, paying on a credit card may no longer be a priority-thus ruining their credit. Consumer protection in the form of education is preferable but Congress functions under the assumption that the American people as an entity aren’t capable of making decisions that are good for them, which is more than insulting. If I make a decision that affects myself and my family, I don’t expect the government to intervene unless mal-intent were involved. Congress is so consumed by what their visions are that they completely ignore the possible consequences of their actions.

]]> By: jadeddem http://www.bloggernews.net/122828#comment-1437400 jadeddem Tue, 03 Nov 2009 21:31:34 +0000 http://www.bloggernews.net/122828#comment-1437400 I had a great credit score and a paid off credit card. The credit card company just reduced my available credit from 8000 to 1500 on a credit card that I've had for over ten years. All of this help from the credit card company actually lowered my credit score due to no fault of my own. Sometimes, regulation has consequences unforseen by Congress. I'm glad they can protect the people who refuse to be responsible and can put laws in place that punish those of us who choose to be. I had a great credit score and a paid off credit card. The credit card company just reduced my available credit from 8000 to 1500 on a credit card that I’ve had for over ten years. All of this help from the credit card company actually lowered my credit score due to no fault of my own. Sometimes, regulation has consequences unforseen by Congress. I’m glad they can protect the people who refuse to be responsible and can put laws in place that punish those of us who choose to be.

]]> By: Mike http://www.bloggernews.net/122828#comment-1437248 Mike Tue, 03 Nov 2009 17:25:44 +0000 http://www.bloggernews.net/122828#comment-1437248 "Before CARD, consumers faced arbitrary increases in their interest rates and fees. The point, said the banks, was to insulate themselves from credit risk." "Now that CARD has been passed, consumers are seeing….arbitrary increases in their interest rates and fees. The point, said the banks…was to insulate themselves from credit risk." Sounds like business as usual. As much as I loath the government interfering in commerce, contract law is based on the assumption that the contracted parties have equal bargaining power. This is not true with credit card contracts. The banks have all the power except in two circumstances. One is class action law suits and the other is government intervention. Unfortunately both are fraught with the danger of unintendend consequences. At least with government intervention you have a better chance of getting a consistent set of rules. Courts can, and frequently do, make conflicting rulings. “Before CARD, consumers faced arbitrary increases in their interest rates and fees. The point, said the banks, was to insulate themselves from credit risk.”

“Now that CARD has been passed, consumers are seeing….arbitrary increases in their interest rates and fees. The point, said the banks…was to insulate themselves from credit risk.”

Sounds like business as usual. As much as I loath the government interfering in commerce, contract law is based on the assumption that the contracted parties have equal bargaining power. This is not true with credit card contracts. The banks have all the power except in two circumstances. One is class action law suits and the other is government intervention. Unfortunately both are fraught with the danger of unintendend consequences. At least with government intervention you have a better chance of getting a consistent set of rules. Courts can, and frequently do, make conflicting rulings.

]]>