Consumers waiting for positive changes within the credit card industry should know that not everyone supports restrictions on credit card practices. The President and Congress support regulations which would protect consumers from the heavy handed practices that are currently taking place. Not surprisingly banks are resisting the idea of forced regulations within their industry. Various government officials continue to push for changes that protect consumers.
Don't expect changes to happen overnight or without more resistance. Banks argue that they will get paid one way or the other. In fact without restrictions in place now they (banks) could easily raise interest rates higher than they are currently and decrease available credit across the board. It is painfully clear that consumers and their financial well being is not a point of concern for banks. That realization on it's own is enough to anger Americans who have lost jobs, homes and their life savings in the last year. Now when you remember that many big banks have received bailout money to support their business, it is almost unbelievable the lengths they are willing to go to avoid regulation. While bank executives and government officials argue over unfair practices consumers remain at the mercy of the credit card giants. To offer consumers some level of protection, Senate Chris Dodd and Senator Chuck Schumer have proposed an immediate credit card rate freeze. The House of Representatives is also considering legislation (Credit Cardholders' Bill of Rights Act) which also contains provisions which prohibit credit card practices that punish responsibly customers.
Banks may be threatening restricted credit as a result of regulation however they also know they are very vulnerable right now as well. When it comes right down to it, that is what banks should have been doing for the past several years. Americans have become accustomed to instant credit regardless of your actual ability to pay off your debt. It may take some time to readjust that mindset but changing the way we think about money and debt is long overdue in this country.
Hopefully the banks and government officials can hammer out an arrangement that can benefit all parties involved, especially cash strapped consumers. In the meantime credit card holders who are barely hanging on financially will have to wait for relief. Take this time to learn more about responsibly credit use, debt elimination and money management skills that can help guide you through this period of your life. Remember our economy has gone through valleys and peaks before and will again. Consumers should remember the treatment they have received at the hands of their lending institutions and use that lesson to avoid becoming indebted in the future.