With a report like this, it doesn’t seem likely that credit card reform will even be discussed in Washington.
Just today I got 5 offers for credit in my mailbox. I would be a very high risk and they know it! In fact,,, they love it! This is all so disgusting.
I read that report and I truly believe it is a falsity. Creditors don’t make sure an individual can repay… why would they offer lines of credit to students who barely earn anything while in school full time? It’s crazy. But the only ones who can be to blame are ourselves, knowing upfront what we can afford in the first place. Credit card reform would be better off to be replaced by better education to kids and very young adults before they have an inopportunity to make detrimental financial mistakes in their early adulthood. When I charged up my first $3000, I knew full well I could not afford it. If I had better budgeting skills I could have saved that money faster than paying it back! Oh well, no use getting into that. People make mistakes, they live and they learn. The creditors use that to their advantage, I think.
I agree that education is essential. But credit card reform is also necessary. Many of the victims of the credit card companies’ power are not people who spent unwisely and got into a mess. I agree so very much that everyone needs to be educated about credit and to be alert and aware. But the burden of responsibility should not be completely on the consumer’s shoulders – grant it, we all need to be more informed and protect ourselves more than ever before.
For instance, it is not fair that the credit card companies can practice universal default—are allowed to raise an interest rate on one of your accounts simply because they checked your credit report and found that you were late on some other creditor’s account. That should not be allowed, and needs to be the first and most important issue in credit card reform. It’s things like that that scream for reform.
But you’re right, since it is accepted and allowed, then we must take on the task of educating ourselves and guarding ourselves from the risks.
It doesn’t have to be one or the other. Educating people about finanaces is needed, but so is credit card reform.
Also, I thought a certain level of interest was legal up to a point, when it becomes ‘USERY’ and illegal in some states. Am I wrong here that 26.5 and up % is cutting it close to the edge?