Congress “Fixes” Credit Card Lending- Banks Issue Fewer Cards & Hike Fees Banks Get Picky In Doling Out Credit Cards Congress passed laws to “fix” the problem when banks increased fees on consumers that were bad credit risks (i.e. late with payments, misses payment). The result: all card holders pay higher rates, and fewer poor people get these unsecured lines of credit. Raise your left hand if you didn’t see this one coming.
While I have a problem with it arising from government meddling, I don't have a problem with creditors being more picky about issuing cards.
^Yes, well, tightening up lending standards and issuing fewer cards to low-income consumers was most definitely not in the legislative history. Anyway, I agree. IMO, credit cards shouldn't even exist as a bank 'product.' Wide distribution of unsecured lines of credit makes no sense if you assume consumers are irresponsible (which I do, in general). It's a testament to the free(ish) market system that Smoe Joe could obtain such an easy means to borrow money at will.
I would agree, if it weren't for the vague perception that the lenders were largely protected from the consequences of their practices, while the consumer not only was not protected, but was made to bail out the fucking lenders. The ideal scenario would have had everyone, borrower and lender alike, hanging their asses out in the wind in the transaction.
Yeah, I know, we basically agree on the broad strokes of this stuff. The big problem behind the point you make is that they changed the "rules," after the fact. Bankrupt companies are supposed to go out of business. What the fuck is capitalism supposed to mean if you don't at least keep the threat of bankruptcy? How can you have survival of the fittest if you don't let them die? Etc. etc?
I think this is a great idea. Credit cards are dangerous because there's too many poor dumbasses out there who misuse them. If this keeps them from getting one, well, good. Let them learn to save.
Exactly. Didn't they just agree that it's a constitutional right to have guns? There was a huge decision on this just a couple months ago. I'm pretty sure the issue on gun control isn't the same thing as credit cards anyway. People have a legitimate argument for self-defense. They don't have a legitimate argument for spending tens of thousands of dollars beyond their means. That shit hurts the economy more than any shooting ever could.
Nonetheless, I'd prefer that Government doesn't decide how much credit I should have and on what terms I should get it. I particularly hate those rent-to-own places, check cashing, and all the other financial scams that prey on the ignorant, but I don't want Government meddling in them.
