If you missed it, you need to go watch this Frontline last night on the history of credit card use in the United States.
My libertarian instincts eschew any regulation whatsoever, but it this show and my own personal experiences with credit card companies (inexplicably having my APR jump from 9.9% to 24.9%, when I have not been late or over my limit or anything) leads me to believe that some severe regulation needs to take place. The interest rates being charged in many cases are akin to loan-sharking, and it needs to be stopped.
I often villify Senator Chris Dodd, but he is right on this issue, and has repeatedly sponsored legislation (s. 2755) calling for modest reforms that should be embraced. I often wonder why the Democrats, instead of Quixotic attacks on the President and Republicans on issues they are wrong on don’t rally around issues in which they are right about- like this. It seems like the Democrats think the sole responsibility of the opposition party is to oppose- whether it makes sense or not. Why not offer an alternative with an alternative agenda?
What is more likely to get Democrats elected? Pissing all over the elections held in Iraq, or promoting something that would resonate with voters, like reform of the credit-card industry?
At any rate, it would be nice if the blog world would adopt this issue and push it to the front of the domestic agenda. If all of us start talking about it, linking about it, it will soon catch the agenda setters- mainly those in the MSM. A couple of months of us linking to horror stories and a couple of months of pressure from the people, the media, and the blogosphere might be enough to pressure even Republicans into doing something.
The way I see it, the main obstacle is House Republicans. This administration has shown its willingness to sign bills that it initially opposes, yet has popular support, and then declare victory. The Senate, likewise, would seem to be easier to influence. At any rate, it is worth a try. I would implore people to join me in this little crusade.
BTW- If you think this is a Republican/Democrat issue, you are wrong, and while the banks and credit card companies may not recognize it, it is in their long term interests as well. No one benefits when a third of the nation is defaulting on their credit card bills, declaring bankruptcy, and unwilling or unable to borrow for homes/cars because of bad credit ratings created by bad credit practices by credit card companies.
And, for what it matters, if you agreed with Bush’s rhetoric that no one should pay more than a third of their income to taxes, it seems to me you can also agree that no one should be charged interest rates 3-5 times the prime rate.