Apr 19 2009
Credit Card Companies New Motto: “Bait and Switch & Unjustly Enrich”
One bailout is not enough. Unjust enrichment for banks is their self imposed bailout. Their new collective motto should be: “Bait and Switch & Unjustly Enrich”The banking industry and credit card companies have been raking in huge profits for years. During all the good times did they reduce their customers’ credit card rates, because the economy was good … when they were making bank? Of course they didn’t. Now, due to the declining economy, due in large part to their shady practices of seducing consumers, misleading them and giving credit to those who were not creditworthy, they have been losing money, going bankrupt and went crying to the government to bail them out. Congress and our President caved in and agreed to bail them out of the mess they created with our money; saying it had to be done. Did they ask us? The decision to bail all of them out was too hasty and not well thought out. However, it’s like Pandora’s Box. Once opened, you can’t shut it and expect the evil go back in. So, we got bait-and-switched twice. Once by the banks for lending money at one interest rate, then after money was borrowed at that rate, they arbitrarily raised the rates, to their sole benefit and enrichment. Second, by out elected officials who said they would represent their constituents. Although the banks and credit card companies got themselves into this mess and should be bearing the burden themselves, they gave themselves a second bailout by raising interest rates on credit card holders, after the fact. They claim they have to do this because they are losing money (based on their long term greed and short term thinking). They didn’t lower credit card interest rates when times were good, so there is no justified basis in raising interest rates on those who have been making timely payments because the economy is bad.
Credit card companies have lured consumers in with lower interest rates for several years. Once the consumers take advantage of the offer of credit, the banks should not then be allowed to raise the consumers’ respective interest rates. Unless you have an ARM, when you bought your home your interest rate didn’t change six months, or six years later. When you went down to the auto dealer and bought your car, you were given an interest rate for the loan. Three years into the loan, the rate didn’t change. It is not legal for anyone else or any other business to be unjustly enriched. It should not be allowed for banks to be given carte blanche to arbitrarily use bait-and-switch tactics to create an environment for self-serving unjust enrichment. They extorted and swindled the American Taxpayers via the Congress and the President; and without any apparent regulation on the activity they engage in. Instead it appears they have been given unfettered discretion to operate on an un-level playing field with all other businesses in the nation. Recently, there has been talk about a Credit Card Bill of Rights. We the people need to make sure this Bill of Rights gets passage with some teeth in that law. This of course, presumes for sake of argument, that the Credit Card Bill of Rights addresses the issues and makes it to a vote in both houses.
