Comments about ‘Consumers could be hurt’

If congress has to choose between pandering to retailers and pandering to bankers, the bankers will win every time.

Frontline on PBS the other night had an excellent documentary about the credit card industry and the games it plays to keep raising rates and "hidden" fees that are largely unregulated. The problem with the industry is that the best customers, where the industry makes its most money, are the poor who can't pay off cards and often are late on payments, as this is where the credit card companies can rack up late payments, increase interest rates, etc.

One of the executives from the industry said that if Congress passed regulations on the industry to curb this practice, all the industry would do is cut back on credit cards being issued.

A consumer advocate then responded that this would be the best thing for society! With more restrictions on credit availability, especially for poor people who shouldn't be given so much credit, perhaps society wouldn't be at the mercy of credit card companies.

Few people realize that our current economic crisis was triggered in part by people using their home equity to pay off credit card debt. This led to people owing more on their homes than what the homes were worth!

Hmm. Let's see...trust a retailer or trust a banker?...Hmm...

I know Kris, and I admire him. But this time, I disagree with him. Credit unions do some good things, but I wonder if credit unions are trying too hard to be just like banks. If that is the case, let's do away with them. They have forgotten their original mission, to help those of lesser means. As much as I hate to say it, Norm D'Amours was right.

Pay Cash, it is usually accepted. If you don't have it, don't buy.

I appreciate your cordial comments. I understand the point that you make and agree, but would like to expand the concept. Maybe decreasing plastic cards would indeed be a good thing. Prior to the plastic card industry, a greater percentage of people lived within their means. As is very evident from State government budgets these days, living within your means is the better way to go. I recognize the loss of revenue that could occur as financial institutions would realize, but am of the opinion that the country would be better off due to the financial stability of the consumer.