crisis my ass

Well it’s be awhile since I’ve enjoyed (or you have endured) a good old rant…so here we go.

Once again the champion of personal irresponsibility, Sen Chris (where’s my drinking buddy Ted Kennedy) Dodd of Connecticut has put the screws to the banking industry, even more surprising as he is Chairman of the Banking Committee.  A bill was passed which President Obama is slated to sign on Friday, that prohibits credit card companies from protecting their interests and their good, fiscally responsible customers.  What this bill does is restrict the CC companies from charging premiums for high risk customers and dis-allow over-the-limit fees.

“This cements a victory for every American consumer who has ever suffered at the hands of the credit card industry,” said Sen. Christopher Dodd, D-Conn.

Am I the only one that has a problem with this?  Look, I am not completely without compassion, especially now with a suck-master economy and unemployment through the roof.  I know that sometimes doing frivolous things, like buying groceries, forces the plastic to come out, especially when there is no income.

But, ‘suffered at the hands of the credit card companies’?  Come on.  I would hasten to say, and this is just my opinion with no proof to back it up, the vast majority of people in credit card trouble are not in such straits due to hard economic times. They get there from the hit of just buying…buying without cash and spending beyond their inherited means.

So in order to bail out the materialistic goons, those of us in good standing are going to pay the price and if you think the CC companies won’t pass on the additional costs to conform to this goofy legislation then you’ve been smoking the drapes a bit too long.

What I would propose is a system that continues to penalize the debt-ridden based on a sliding scale of their net income.  If Muffy or Biff make, say, a combined 200K and are mortgaged to the hilt with 6 maxed out MasterCards – it’s off to debtors prison with you…I’m sorry, this has taken on a Dickensian tone…but you get my drift.  This scenario is just meaningless spending to keep up with the Scrum-Finchleys next door.

If there is no income where once there was (obviously – only the most callous of credit companies issue cards to the unemployed or the family pet or….oh…never mind), and mere survival is being waged through use of the cards, I think these folks should get a break – to a certain extent.  At least not be penalized.  They do remain responsible for their debts.  As should the aforementioned Muffy and Biff and the tedious Scrum-Finchleys.

And while we’re on the subject of horrid Government, have you noticed the goings on in Britain’s House of Parliament? Officials are spring-boarding out of Parliament like vermin off a sinking vessel; seems there are all sorts of juicy financial scandals coming to the surface for our stiff-upper-lipped MPs.  So much so, that a local newspaper stand in London has posted a new sign stating “Only two MPs at a time.”  Jolly good.



Filed under economy, government, politics, soapbox

6 responses to “crisis my ass

  1. What they are trying to prevent happening is the insane rate increases the companies are inflicting on people that are making their payments. There should be a cap on how much interest they can charge. They are making it so that anyone that’s carrying a high balance can NEVER pay it off if they are paying the minimum allowed.

    This is why I try to carry balance I can pay off within the month or in only a few months anymore.

  2. Good rant buddy~ I can’t say that I agree with you more.

    I have noticed some of my cds’s sending me notices that they are going to increase my interest rate. But like Andrea, I don’t keep a large balance on any of them~ mostly just what I buy on line and have to have shipped to someone’s house as a birthday, mothers day, etc. gift. Got too much Scott in me I guess… thrifty is what I call it. Also, the ones that hiked the rate, I don’t use anymore.

    It’s all screwed up. Average Joe being the first in line as usual. That’s all right, that’s all right. I know Joe quite well and he knows how to tighten his belt better than most ~

    Saying all that, Joe will reach into his back pocket and pay for everyone to eat steak while he eat beans with no bacon or even a damn ham hock; for Pete’s sake… 😉

  3. mssolitaire

    As long as those who make nearly enough and had a bit of financial trouble therefor maxing out their card but is able to make the minimum payment a month, I don’t think they should get charged a crazy interest rate! It’s horrid. Same with a car loan! Ugh! (Ok, so I’m totally speaking about me and my woes, but sheesh!)

    The economy and government are screwy and we the people are unfortunately along for the ride where those in office are doing their “best” for us… BAH!

    California is $21.3 B in the red… yeah… it’s a sh*t-storm!

  4. I was expecting ranting (along with its attendant raving about the grandbabies…)

    There are some abuses by the credit card issuers which needed to be stopped. For instance, raising a cardholder’s interest rate even if the account is being paid on time if his or her credit rating goes down. Most people are not aware that a cancelled credit card or line of credit, even from lack of use, results in an immediate drop in the credit rating which ripples across all of their accounts in the form of potentially higher interest rates. I also agree with requiring 21 days from sending the statement till the due date – some issuers have shortened this period dramatically to get more people to miss the due date and incur added interest charges, penalties and fees.

    But I am concerned that much of the bill is more of the same – to make the responsible pay for the costs generated by the irresponsible.

    Some credit card issuers have already begun to say there may be no grace period in the future, that interest charges may begin at the moment of the purchase, or there may be more or higher annual fees. We may all end up paying for this if competition is unable to keep issuers from implementing these changes.

    And most college students will not be able to get a credit card except through their parents. I hope those who voted for change like this one.


  5. cooper

    All – thanx for the thoughtful responses. I guess I’m just old fashioned in thinking that having a credit card is a not necessarily needed luxury, and the card companies are just offering a service. I guess since more and more companies/agencies/whatever are relying on a credit card as proof of identification it’s become more of a necessity.

    ms. solitaire – i see the news reports of The Terminator sitting smugly at Obama’s news conference and I want to smack him. Ronald Reagan he ain’t.

  6. I wish all of the politians made the measly $$ we did and have to pay the bills we pay. I see it as ALL political parties are to blame. ALL POLITIANS ARE LIARS AND THIEVES……pfffft! The sad part about it, WE are the ones that put these morons into office….

    How are the grandbabies ;o)

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