Originally Posted by ArkansasHunter
Is this B.S true......Did I misinterpret the information contained within the Credit Card Bill,consisting of a clause implying persons with excellent credit,would be surcharged in order to pay for people in default?
A surcharge for excellent credit !!!!! If thats the case I'll miss a month LOL
This is what will happen -- part of the way lenders make money is to lend to folks who can't pay all the $$$ back and charge higher interest rates to mitigate the risk. Lenders don't make a great deal off of fiscally responsible people because they are good credit risks and won't pay high interest rates--the market makes this happen on its own and gov't action just screws it up.
It's kind of strange--no one ever forced me to get a credit card or a loan. It was always my choice. I must live in a different place than many people.
People who act responsibly will pay somewhat more, but you can shop around and get the best deal. I don't think this will affect those who don't carry a balance (i.e. use the cards as a charge or cash card by paying it off each month which is the best thing you can do) in that if a company charges an annual fee you can cancel and look elsewhere. You will see the lowest interest rates (for those with good credit) rise to make up for this, and the companies will continue to make money. This is how the game works; it'll just take the new rules and adapt to them which will penalize those who pay. Just like the mortgage and all the other bailouts. See a pattern here ? We use the law to force the private markets to redistribute wealth as well while we nationalize other assets. How about GM and Chrysler--that worked well too !
Funny, I have credit cards and have somehow managed not to get hit with either high interest rates or finance charges because I pay attention and pay off the card. If I had a card which acted poorly with service or charges, I discontinued doing business with the company. Pretty simple, but I guess some are lost on pretty simple things. Likewise, some folks must still be wrestling with the concept that you can't get something for nothing and if something seems too good to be true it probably is. Guess we needed big brother to "help" us, but this money comes from somewhere and will result in either not extending credit, hiking interest rates for "good" risks to subsidize the irresponsible, or both.
The ONLY thing which was justified in the bill for the credit card portion is requiring labels to inform cardholders exactly what their terms were in plain English (although the information was always there if you bothered to read your agreement contract, which I guess most folks don't do) -- kind of like the disclosure forms for mortgages and loans which have been pretty good for some time but some folks seem to continue to be able to screw up even after all the protectionism.
I'm glad the carry in parks portion passed, so we get the good with the not so good. But it looks like the Admin is trying to stonewall the carry in parks portion until next year (maybe to get anti-gun judges in or thinking they can start their restrictive legislation or Gun Grab by then).