A number of people are pointing to this article about hard times in the credit card industry:
For the banks, the economics of the credit card business are increasingly troubling. As the recession has dragged on, cardholders have sharply reduced spending. New customers with strong credit histories are increasingly hard to find.
When I read it, I really wondered about its timing -- given the moves to end abuses by the credit card industry in the Congress and the subject of Obama’s address on Saturday.
Beyond that, I was struck by the fact that this doomsday scenario seemed to consist entirely of industry spokesmen — no consumer advocates, no neutral parties. All you hear is that the credit card industry is losing billions.
So my reaction was, what a load of rubbish. Here we have a lawless industry using any excuse to perpetrate fraud against consumers. Why believe them?
If you pay your bills, they'll raise your rates; if you don't pay your bills, they'll raise your rates; if you're up to your limit, they'll raise you rates; if you don't use your card, they'll raise your rates. Every week, it's something new -- 'instant rules' all the time.
This has nothing to do with consumers going bankrupt and everything to do with consumers who pay on time. They're the victims here -- both as unwilling taxpayers and as customers.
