The Wrong Time To Make Changes To The Credit Card Rules.
By John M. Gerena
At a time that credit card defaults are at an all time high and Bank card profits have disappeared, Congress is looking at ways to make it tougher for Credit Card Issuers to make a profit. Although it is true that in the past the Banks have made good profits issuing cards, now is not one of them. Banks are very concern about increasing defaults in their credit card portfolios and these fly by night companies that tell consumers that they can wipe out their credit card dept and end up hurting both the consumer and the Banks. Congress needs to focus on other things that will increase spending, not ways that will make it more difficult for Banks to approve more cards. The American people need their cards in these tough times and Congress wants the Banks to cut credit limits even lower.
We need to stimulate the economy and credit cards today for many Americans are their only source of credit. If Congress passes these new rules many credit card companies will tighten their credit underwriting even more and lower credit limits even lower to existing cardholders. I sometimes don’t understand these idiots on Capital Hill. They give Billions of Dollars to Wall Street Banks without any conditions to lend it to Main Street and then create more obstacles for the Banks to give credit to the little guy. (I sometime wonder if this some Great Conspiracy to hurt the Middle Class)
If Congress wants to make a change that will be a positive affect on all Americans and the economy, remove the Mart to Market Rule, this will help stimulate the Banks and create a better atmosphere for Banks to lend again. Speaker of the House Nancy Pelosi needs to pass laws that will stimulate lending not stifle it.
Email: johngerena@wbcsmail.com
By John M. Gerena
At a time that credit card defaults are at an all time high and Bank card profits have disappeared, Congress is looking at ways to make it tougher for Credit Card Issuers to make a profit. Although it is true that in the past the Banks have made good profits issuing cards, now is not one of them. Banks are very concern about increasing defaults in their credit card portfolios and these fly by night companies that tell consumers that they can wipe out their credit card dept and end up hurting both the consumer and the Banks. Congress needs to focus on other things that will increase spending, not ways that will make it more difficult for Banks to approve more cards. The American people need their cards in these tough times and Congress wants the Banks to cut credit limits even lower.
We need to stimulate the economy and credit cards today for many Americans are their only source of credit. If Congress passes these new rules many credit card companies will tighten their credit underwriting even more and lower credit limits even lower to existing cardholders. I sometimes don’t understand these idiots on Capital Hill. They give Billions of Dollars to Wall Street Banks without any conditions to lend it to Main Street and then create more obstacles for the Banks to give credit to the little guy. (I sometime wonder if this some Great Conspiracy to hurt the Middle Class)
If Congress wants to make a change that will be a positive affect on all Americans and the economy, remove the Mart to Market Rule, this will help stimulate the Banks and create a better atmosphere for Banks to lend again. Speaker of the House Nancy Pelosi needs to pass laws that will stimulate lending not stifle it.
Email: johngerena@wbcsmail.com
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