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Credit Card companies to lose profit

This web site is not about [tag]personal finances[/tag], for which I would recommend reading A Personal Finance Guide for example. However yesterday I have seen a short sketch on [tag]Fox TV[/tag] regarding the House of Representatives passing a bill to protect [tag]consumers[/tag] against fine prints. It was interesting presentation of [tag]credit card companies[/tag]’ arrogance. I was stunned about it and I have to comment this issue.

In the video Shepard Smith introduces the new [tag]bill[/tag] passed by the House and introducing some new [tag]rules[/tag] from the proposed bill. Then he discussed the bill with Jonathan Hunt, who said that by passing the bill, the credit card companies would loose ten billions of dollars a year and there fore they are not happy and supportive of such bill. Obviously! They say, it will hurt [tag]credit[/tag] industry and the entire [tag]economy[/tag], because this bill would prevent them from [tag]lending money[/tag] just when Government wants credit companies and banks to lend more to support economy recovery.

Well, let’s put this into better perspective. Recently many clients were experiencing slashing their [tag]credit limits[/tag], rising their [tag]interest rates[/tag], mostly retrospectively on debt, which was made before interest rate change. All this caused people change their spending behavior as Visa (V) reported, that this happened for the first time in history that people were using [tag]debit cards[/tag] more than [tag]credit cards[/tag]. Good for Americans, bad for credit card companies.

It seems to me that credit card companies already hurt credit market and economy well enough. Seeing them “crying” that the new bill (preventing them from all baddies they already did to their clients) would hurt the economy even more, looks to me as a great example of arrogance.

Let’s continue using debit cards in lieu of credit cards. Maybe it would teach them a lesson.

You can see the video here.

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One response to “Credit Card companies to lose profit”

  1. Susan says:

    Greetings from the Gold Coast, Australia. I think the credit card companies are greedy enough, so they deserve some cut don’t they?

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