Credit Card Reform Act: Who Benefits From All This

By Stephanie Robins on September 1, 2010, 8:13 am Posted in Finance News

The credit card act is designed to benefit consumers. The credit card companies are known for charging outstanding balances and high interest rates. Sometimes the rates can be as high as twenty-seven percent. These usurious rates are bad, but the major problem that caused the reform bill to gain political popularity was companies lowering the balance due to customers that paid on time had their balances reduced because they shopped at Wal-Mart and other discount stores.

Who Benefits From the Program

Ironically enough, with all of his business unfriendly policies, Obama has actually done something that benefits most consumers with this one. The credit card companies have been out of control for a long time and have raised rates on consumers with little oversight from the government. While excessive regulation is not a good thing, there do need to be guidelines in place that determine when credit card companies can or cannot raise rates. The new rules will reduce the fees a person pays to his credit card company.

 

The Credit Card Rules Will Not Help The Democratic Party

The rules may help consumers, but it will not gain or keep any seats for the Democratic party. Even if the credit card companies were engaging in unethical and immoral practices. The bill, no matter what its benefits may be, will not overtake the problems caused by the recession. The public will not forget the arrogance displayed by Obama and Pelosi and all the backdoor deals made to get unpopular legislation passed. Congressional democrats cannot campaign on credit card reform and the few that have been touting Wall Street reform as a good idea have not done well in the current polls. While the economic issues are not always understood, the companies that were in the wrong were the ones issuing high interest credit cards and changing people’s balances for shopping at Wal-Mart.

Related posts:

1. Credit Card Reform: Consumer Makes Bank With New Restrictions
2. Credit Card Reform Act: Does This Actually Do Anything For Anybody
3. The Credit Card Reform Act Might Assist You In Your Financial Struggle
4. Top 3 Dangerous Credit Card Problems Or Mistakes!
5. Interest Rates On Credit Cards Falling