[Bill,
May 20, 2009]
New Credit Card Bill
Oh, I get how it's gonna be under Obama.
I understand the new incentives in our Brave New World. The incentives are pretty clear.
I understand passing a law to get rid of gouging. But then to turn around and screw your best customers ... um, we're the ones with options. Including not doing business with you.
“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”
I understand the new incentives in our Brave New World. The incentives are pretty clear.
Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.
I understand passing a law to get rid of gouging. But then to turn around and screw your best customers ... um, we're the ones with options. Including not doing business with you.
If the credit card industry could charge their best customers more right now, why wouldn't they? Why will capping rates on the worst customers change how much the credit card companies can gouge their best customers for? It's not really a sensible argument to me.