Archive for Finance
Banking Regulations – Where Are They?
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Here in the US, the banking industry has declared open season on consumers as they rush to beat the upcoming government reforms and regulations.
Of course the banking industry is fighting tooth and nail against any such reform, and understandably so. You’d be upset too if you were suddenly being threatened with the suspension of your license to steal.
These institutions pay big money to lobbying firms to fight decent regulations and much of this money used against the consumer, was supplied by the consumer in the first place.
This shell game of sorts is exactly what has been going on for far too long and the US government has been slow to move on this. In the meantime, the gouging continues.
Is Washington really listening to the consumers or the lobbyist?
Congress is well aware of this issue and have decided to do something about it, but the timeline is too long and the banking industry is taking full advantage.
The doubling and tripling of credit card rates, without cause, is nothing short of legalized loan sharking. Of course the banks will tell you that you have a right to close your account, translation: pay me all that you owe now and take a hike.
In the meantime, the race is on, and the banks are gouging the consumers with impunity. There is no penalty for these actions and to be honest, these greedy banking Executives just don’t care.
Now keep in mind, many of these banking institutions would have likely had to close their doors were it not for the American taxpayer bailouts of a year ago. So look at the gratitude for saving their operations. This is disgraceful behavior and the banking industry is shameless.
Have a look at this video report from MSNBC.
Visit msnbc.com for Breaking News, World News, and News about the Economy
As you can see, this is totally unfair to the consumer and the people that were sent to Washington to represent you need to step it up and freeze rates or institute some regulations with some teeth to protect the American taxpayer.
What’s your take on take on this?
You may add your comments below.
It’s in the Cards – The Sudden Rise of Credit Card Rates
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Being a sporting type of man, I have always enjoyed a sociable game of Poker, Pinochle, Black Jack and Bid Whist. Today there is suddenly a new game arriving at kitchen tables across America as the banks have shuffled the deck to their advantage. Yes, those banks that the American taxpayers bailed out to keep from going under.
For your kindness and generosity Mr. and Mrs. Taxpayer, the banks are now dealing from the bottom of the deck. They plan to pay back the taxpayer bailout money with, of all things, taxpayer money. You gaveth and now they will taketh away.
This new game of raising credit card rates for any reason under the sun has began in earnest and unless our government rides to the rescue, many will be in deep trouble. The teaser rates are gone and yeah, you’re paying 7% or 8% today, but there is a need in the minds of the greedy to raise your rate to a more profitable 20% , 22% and beyond. It was already going to take you years to pay off your balance, now they want to put you on the hook for decades. The housing shell game has closed out, so now a new means of gouging the public is on the rise.
Clearly the time has arrived for our elected officials and lawmakers to bring forth some legislation to halt this unarmed robbery of the people. Is this the bankers answer for stimulating the economy?
Credit card practices and the regulations governing them have long been in need of an overhaul, and this may finally get the job done. The American people will not stand for this type of treatment. Tricks like lowering a person’s credit limit, so that they are now over their limit and must now pay a higher fee is nothing short of a scam. Raising someone’s rate because they have been laid-off, although they have continued to pay on time, is really piling on. These companies can turn a decent profit without gouging the public. At a time of economic stress where many are struggling to make ends meet, the last thing that is needed is a doubling and in some cases tripling of credit card rates.
A friend of mine just had their rate raised, although they’ve never been late and never missed a payment. She got pissed and went to her credit union, secured a lower interest loan and paid the card company off.
So where is the government while all of this is going on?
Washington has already started to formulate some bills to address this issue and surely some form of regulatory overhaul will be in the works. If any bill put forth accomplishes nothing more than the removal of the small print it will be a success.
Look for much bellyaching in the meantime, as there will be those on “The Hill” who will be opposed to any form of decent regulation. That’s because they’ve been lobbied and paid by these companies.
Unlike most card games, this one provides no fun and leaves a nasty taste in your mouth.
