Obama's Credit Card Legislation May Need Fine Tuning!
President Obama's credit card legislation, although welcomed during these times of harsh economic woe, unfortunately will probably fall just short of what every American has been screaming out for, a strong leash on the credit card industry.
Legislation to regulate the credit card companies from imposing financially sapping interest hikes and reducing credit lines without warning, will shortly be announced, and not a moment too soon as a battle weary American public continually strive to recover from what has been a financially devastating two year period.
President Obama's credit card legislation is intended to help people avoid higher interest rates and therefore avoid further financial difficulties, there is also many that believe that this plan will help Americans keep their homes as the interest payments that the credit companies would have pursued would then be used to fend off foreclosures.
This will be fantastic news when it arrives, no longer will credit card companies be allowed to do as they please in the pursuit of increased profits, no longer will they be able to play with peoples' lives in pursuit of an easy dollar, but...
As with every piece of legislation, especially a piece as important as this, there is always much debate and speculation for weeks or even months prior to it becoming law and unless you were deaf, dumb and blind you would certainly make sure you were prepared for any negative impact that may affect you.
The problem lies herein, if credit card companies know that their abillty to make changes to interest rates, credit lines, charges etc is going to be severly limited why would they sit there and accept it?
The answer, in short, is that they will not. Credit card companies have already started increasing interest rates, cutting credit lines and increasing penalty charges, and you can't really blame them.
They have been given notice and are acting out of self preservation which is natural, and those of us who are affected by these changes have no choice but to swallow these changes and suffer.
The only hope is that the legislation contains something that has not been mentioned publically - are the limitations to be imposed upon the credit card companies by the legislation to be based upon the levels of interest and charges at the time of the legislation being made law or will these limitations be based upon levels experienced prior to all the recent hikes and changes brought on by the pre legislation discussion?
The bottom line is, Obama's Credit Card legislation is a welcome and much needed tonic to an American public that now carries a $960 billion credit card debt burden but any legislation will need to take into account the recent behaviour of certain credit card companies before setting any industry limitations.
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