On Thursday Senator Sheldon Whitehouse’s proposed measure that would have forced credit card companies to abide by the state of issuance’s credit card interest rate rules (for a detailed explanation of how the law is currently set up then read our in depth guide to credit cards and usury) was shot down in the senate by a 35-60 vote with 21 Democratic Senators joining Republican Senators across the aisle to shoot down the measure.
As we mentioned in an earlier post about some of the negatives of the CARD Act and how the CARD Act will likely leave many people in even worse position than they were prior to the CARD Act it’s very rare to see any type of arbitrary outside regulations help consumers without hurting them in some way, shape, or form at the same time.
One example would be that if there were more intensive caps placed on credit card interest rates then of course we all know what would happen:
A) Credit cards would be harder to get approved for
B) Credit card limits would be decreased for many
C) Credit card rewards would be reduced
And on it goes – thanks to many well meaning (sometimes) politicians that want to exert more control over every situation they come across rather than simply getting out of the way to allow people to make their own choices and live with the consequences of their actions (oh, the horror!) – both good and bad.
I am 100% for getting rid of abusive and deceptive marketing practices but as mentioned in negatives of the CARD Act article:
CARD Act Regulations for Transparency in Credit Cards = Clear Understanding of Credit Card Features and Options = GOOD!
CARD Regulations for Forcing Companies to Cap Fees/Interest Rates and Underwrite Credit in a Certain Way = Less Options for Consumers = BAD!
What do YOU think?
- Will regulators ever cap credit card rates?
- Chris Dodd Indirectly Wants to to Make it Harder to Get a Credit Card
- Harder to Get a Credit Card? New Bank Fees? Thanks Uncle Sam!
- Why are some credit card companies reducing credit limits?
- Can you use your credit card to pay your mortgage payment?
- Will the CARD Act Turn Credit Card Users into Payday Loan Users?
- Regulation X