The Credit Card Changes
How about those credit card companies, always changing the fine print, the rates, the fees, and the rules. Congress and Obama have certainly changed the way credit card companies will operate. Credit card annual fees will likely go up for everyone, credit limits will likely be reduced for almost everyone, fewer people will even be able to obtain a new credit card. These are but a few consequences of what the new legislation will do in my opinion.
What gives Obama or Congress the right to dictate terms of private contracts? By the way, these are voluntary private contracts. Nobody forces you to accept the terms credit card companies offer. Inability to obtain credit from any other source does not entitle you or our government to dictate ANY of the terms of credit you may need or want. Our government now believes it needs to interfere in economics at almost every level, on behalf of workers, consumers, anybody that breathes and may have a vote. This is mass rule that completely ignores contract law, individual rights, and property rights. This administration has already ignored contract law in the Chrysler ‘bailout’ and appears to be doing the same in the GM ‘bailout’, so passing a law that dictates many terms for credit card companies seems like just the next step. These are dangerous steps for our personal freedom, property rights, and ability to limit government intervention in our lives.
I didn’t like many of the terms credit card companies imposed, but I chose to accept them and do my best to minimize the cost. Our government has done many of the same practices recently, i.e. changing rates, changing fees, changing contract law at their whim, making changes retroactive. A big difference, however, is that the government has the big stick we can’t ignore. Who is more dangerous to our future, credit card companies or our Federal government?