Governor Rounds characterizes the new federal regulations on credit cards as "totally backwards." He frets the regulations will "make it more difficult for people with bad credit to get a card" [paraphrase from AP].
(Never mind the job losses Rounds fears: corporate propaganda from Total Card and Premier Bankcard says they foresee no staffing changes.)
Might I suggest that making it difficult for people with bad credit to get credit cards might actually be common sense? Maybe instead of opening up avenues for predatory lending, we should cut off more sources of easy money for folks with a demonstrated history of bad money management.
If Governor Rounds and other friends of Premier Bankcard are worried that stiffer credit card regulations will drive folks with bad credit to the payday lenders, maybe they should get on board with Rep. Joni Cutler's proposals to regulate the payday lenders (she tried last session, and she's ready to try again).
While I heed Mr. Schoenbeck's warning that the new regulations might hurt "distressed consumers that need credit," it would seem that neither credit card companies nor payday lenders are the best judges of who needs credit. If folks are in bad financial straits, either through bad decisions or bad luck, their credit "needs" might best be determined by their community banks, by real neighbors with a little more interest in their community's welfare. If those community banks decide, under the practices of responsible banking, that a neighbor just doesn't qualify for a line of credit, then that person may just have to live with not getting that new house or new car. That person will then be that much more motivated to work hard, pay off old debts, and save for the future.
Isn't that the personal responsibility my Republican neighbors preach?
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