Credit Card Practices Under a Microscope
Filed Under (Credit Cards Blog) by creditblogger on 21-04-2009
For too long a few credit card issuers have gotten away with deceptive practices. It seems the current administration and congress is finally determined to do something about it. Barack Obama talked about looking out for the middle class during the presidential campaign, and it seems he is ready to follow up with his promise. Here is what Robert Gibbs had to say about Barack Obama’s take on deceptive practices in this industry:
The president believes that we can increase the transparency involved and cut down on these deceptive practices and ensure that any system involving fees is done in a way that is fair.
Some companies in the financial sector have gained profit by increasing rates on their customers while using the tax-payer’s money to stay afloat. That is really what’s wrong with the industry. You can’t help the financial institutions and expect them not to look for profits. In reality, these companies won’t be able to pay their debt back unless they raise more profits. Is it fair? Absolutely not! That is why I was personally skeptical about the bailouts. But what’s more disturbing than the recent rate increases is how credit card companies are going about doing it. Deceptive practices have been used in the financial industry for too long, but there is now hope that some of these practices will stop in the near future. It would be great if we could close the loopholes as well.
Your take: should the taxpayer money be used to bailout deceptive financial institutions?
