Thursday, December 18, 2008

More Government Stupidity (what else?) this time credit card abuse

Today the Fed took steps to supposedly crack down on credit card
company practices which are so outrageous that they are virtually
fraudulent (and would actually be illegal for them
[as they still are for you and me]
if certain states and the Congress hadn't passed special exemptions
to usury and other laws).

They have outlawed little tricks such as doubling or tripling your
interest rates on existing balances
EVEN IF YOU NEVER MISS A PAYMENT!
Sounds wonderful but the fine print not mentioned in most news
reports is that these laws won't take effect for years!

Long AFTER the current crisis is probably over.

Also, the fine print permits companies to cancel existing cards
and issue new ones with much higher rates –
guess what they are going to start doing. Come ON, take a WAG.

Anyone with an ounce of common sense would know that these
new regulations need to not only go into effect immediatly,
they should be retroactive if they are to have any real benefit.

But, as we all know, there simply is no one in the current executive branch
of government with the slightest trace of common sense.

john

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