Link: http://jischinger.wordpress.com/2009/04/26/wheres-my-change/

I must say that I don't really have a lot of sympathy for the folks who are hurt by the actions of the credit card suppliers. Credit cards are not a right, there is no constitutional guarantee of access to credit. And anyone who holds a credit account understands that these are the circumstances that they have to deal with to get credit. It’s all spelled out in that little contract that you must agree to in order to get the service. Don’t read or understand at your own peril.

And we have reached a point where anyone with eyes could see that this was the next step. The banks have to do something to preserve capital. I can't say I blame them. They are legally and contractually within their rights to do everything that they do. And they are lawyer’ed up heavily enough to be sure.

That being said, there has been way too much leeway given to the credit industry. They extend credit to anyone who has the ability to sign a form, with no care of the consequences and people will sign anything to get credit. I do not advocate stupidity but there has to be limits.

If the government is unwilling to educate the populous and then allow predatory lending habits to exist. Then the government is complicit in and is guilty of advocating the pillaging of the People . I think that there should be regulations enacted to guarantee that the credit issuing companies are not allowed to change the rules without reasonable notice. Not allowed to set unreasonable time tables for payment. Not write terms in language that the average person can’t understand. Not raise rates to usurers levels based on an implied threat of default. And not allowed to raise rates on existing balances above pre-agreed terms.

These are all changes that have already been dictated by the Office of Thrift Supervision last year. http://www.msnbc.msn.com/id/28294720/ And they will go into action in July of 10.

This is one reason that I ask what the motivation for this action by the administration is aside from some political maneuvering to appear as though they are the folks who thought of it first. I don’t see any fundamental difference between Obama’s plan and the previously announced changes except maybe the timetable. I also think that the timetable is too far out, they should have enacted the changes yesterday.

The Credit Card industry has made their beds and will now be forced to lie in it. They deserve what they get, but don’t blame them to the exclusion of the others involved. Namely the US Government for allowing the practices in the first place and the “People” who refuse to educate themselves and think that this access is a right.

The end product of the whole mess will be less access to credit and generally higher interest rates. Credit will become the premium product that it was in the past and should be in the future.