Thanks Obama for the credit card interest rate hike.

[TheRealMafoo]

txrattlesnake said:

TheRealMafoo said:

txrattlesnake said:
What he needs to do though is put a retroactive clause in his bill that says that any rates that go into effect as a response to his plan will be immediately thrown out when the bill passes.

 

You can't do this. The interest rate is there revenue, and it's based on there costs. If Obama is going to change the rules, so there costs go up, you can't penalize them by not allowing them to adjust there income.

 

Well if they drive up a person's rates and they have no way to be able to pay then they should probably just take bankruptcy.  it only affects their credit score for seven years (and most likely some company will still send them a credit card offer in that time, so if they buy small things on that one and pay it off they can still improve their credit score quicker), and there haven't been debtors prisons in the US since the 1850s.

I am not sure your position here. Is it that this law should pass, forcing higher interest rates for everyone, and those who fall into the category of not being able to pay, just file bankruptcy?

Not really how I would run things.

And to those that think this is going to save americans from predatory lenders, they are wrong. The same amount of people who are in financial trouble today, will be in trouble after this law, they will just be in trouble with an extra TV in there house, or new rims on there car.

The problem is how people use credit. That's not going to change. Another quote from the great man:

All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation. - John Adams