Official Obama Derangement Syndrome Blog

Obama Exposure

May 23, 2009 at 9:17 am

Obama’s Credit Card Bill—Will it Help? Not!!

» by ODS Expositor in: -Banking, -Economic Policies, Congress, Obama Policies

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The banking industry is complaining that the legislation and new credit card regulations will actually deal them a financial blow on top of what they are already experiencing with the recession.

Some will say, so what –what does that mean to me? It’s hard to feel sorry for the banks.

Here’s what it will do you–Industry experts say that the bill will:

1. Make it harder to get credit cards

2. That the banks will extend less credit—the credit limits on cards will be far less than they have been.

3. The nation’s largest banks involved in the credit card business have warned that they will charge higher interest rates once the new rules are passed.

4. The banks say that they will begin to cancel the cards that aren’t regularly used.

5. They will also cancel many more that they consider as ‘credit risks’. It will be much harder for poor folk to get a card in the future.

6. Bonus, reward, and rebate programs will probably be suspended. There will no longer be enough profits in cards to support such programs in the future.

The end result is that as companies struggle to find new ways to remain profitable in the restricted environment, those with less income (poor and middle) and with lower credit scores will find it increasingly difficult to get credit cards and even keep the ones that they do have.

Remember to thank Pres. Obama and the Congress for their misguided ‘help’—but remember there are mid-term congressional elections coming in 2010!