It’s Been A Long Time Coming, But A Change Is Going to Come: The Credit Card Reform Bill

Today, I am playing some Sam Cook in the Barber Shop, because of what the Obama administration and Democratic Majority are doing to protect consumers.

Folks, its just like the great Sam Cook said, “It’s Been a loooooong time coming, but a change is going to come,” and it’s come to the credit card industry. Yesterday, in his weekly presidential You Tube address, President Barak Obama talked about one of the major causes of the “Debtorization” of America; credit cards. Yes, credit cards, those flat plastic instant happy bills that we all carry in our pockets and try to pay the minimum balance at the end of the month are going to become consumer friendly.

I loved how the President emphasized responsibility for paying for your bills and living within your means, but this is my favorite line; “Americans have a right not to get ripped off by sudden fees and pay hikes from credit card companies.” Now anyone who has discovered or been late discovering their bill can relate to that statement.

I want everyone to take a minute and look at what the President is saying in that statement, because its important as it shows the difference between the former Republican administration and Congressional majority, as opposed to the current Democrat administration and Congressional majority. The legislation that the President wants and the House has passed is not some divisive issue that will have Americans drawing red and blue lines in the sand, looking into people’s bedrooms, arguing over who has the right to marry whomever they desire, or fighting a long-lost culture war. No, this legislation is something that helps the entire middle class, which is the heart of our economy. The proposed legislation will break the chains of debtor hood, by doing the following three things: (1) putting protections that will stop kids from being shacked to student loans and credit card debt when they graduated; (2) requiring companies to give at least a 45 day notice before an interest rate hike becomes effective; (3) increased enforcement against companies that try to take advantage ( I hope that includes collection agencies); and, (4)credit card companies to write credit card companies to write card applications in plain English and in legible print that people can read.

Wow, this legislation is something new to Washington; in few words, it is relevant. It’s been a long time coming.

The proposed legislation shows that the current administration understands the reality facing everyday people, who may not be able to buy a house, car, or even in some cases get a job because of a low credit score. The credit card industry says that more protections may put credit out of reach for some, which is BS—how many people do you know with bad credit who get 7-8 or more credit card offers a week? Money is green folks and they want it. I personally do not feel sorry for them, because they have been riding high on the power to make someone’s life miserable by ruining their credit.

I do understand the counterargument, one should live within their means, and I will retort by saying, that is why the President wants to stop credit card companies from granting kids under 17, who have no means, credit cards. Heck, even If you were being responsible, the company without notice to you could raise your interest rate and limit. Alternatively, if the company made a mistake it can take 2months for them to remove the black mark off your credit report, and years to remove it from all the myriad of credit reporting agencies. A worst-case scenario is you have to deal with shady collection agencies.

Well, like I said its been a looooong time coming, but I know a change is going to come.