1. Credit card companies are predatory but do not use illegal business practices. Many other businesses prey on the shortcomings of people (such as cigarette companies) to make money. But also there is (obviously) a big market for credit cards, and the companies have to make a profit somehow, otherwise what would be the point?
2. Obama does act to limit their "abuses." However his actions will have unintended consequences. His noble intentions will actually make things worse.
3. When the rules change the credit card companies have to also change their policies to continue being profitable. How can you blame a company for wanting to make as big of a profit as they can?
4. So yes, this is Obama's fault. If he seriously didn't foresee this cause-and-effect situation then it's worrying for what other unintended consequences there will be in his future legislation.
1. While their tactics are not “illegal” their business methods are becoming ever more disturbing. If you’ve ever signed up for a credit card, you’ve undoubtedly seen the massive stack of papers written in a legal language that could make even the most tempered lawyer cringe. The card companies hide the right that they can raise percentages to ungodly amounts for a single late payment or some outside infringement. They are also sending their debt collecting mails at later dates and asking the customers to mail in their payments to facilities at destinations that take days to reach by snail mail. These methods- not illegal of course- are an ever growing problem and have run rampant for quite a period of time.
2. In the middle of a recession when homes and jobs are being lost at a rate of 10% in some places, people are in desperate need for some sort of protection. While I would fault no company for wanting to make a profit, the credit card companies are going over the line and hiking interest rates by double digits during this economic crisis. If the government doesn’t get involved, who’s to say that credit card companies won’t start drafting legislation that would call for hikes of over 50%? Once a customer is locked in, they’re locked in for years.
3. Again, nobody can fault a company for wanting a profit. But this shows a level of greed that has devastating effects. These card companies can only milk the consumer so much. This action also shows just how powerful the card companies are. They hiked the rates in an instant, to the dismay of the average american. What’s stopping them from going even further with this sort of tactic?
4. This is in no way Obama’s fault. The credit card companies are the ones pushing their weight with their lobbyists and power. The companies obviously know there is a recession going on; rather than helping their client base out, they’re only further contributing to the problem. People want change and fairness- companies want money regardless of how many homes they have to destroy. To favor the companies in this situation is both illogical and absurd- unless you work for one of the credit card companies.