Posts Tagged ‘cfbp’

Credit Card Companies Milking Consumers: The Number One Reason Why We Need Elizabeth Warren as Director of The Consumer Financial Protection Bureau

An article today in the Washington Post discussed how credit card companies are now charging customers with good credit, who manage their finances wisely by paying off their balances in full every month. Such customers are now finding that they’re having to pay an annual fee, where they didn’t before.

The reason for this is that credit card penalty fee income has been reduced by the new credit card regulations and the banks, not wanting to see sources of profit dry up, no matter how ill-gained those profits were, are now having to charge the only customers they have left: those with good credit who have traditionally never been a great source of profit. As Curtis Arnold, owner of CardRatings.com says “The only true deadbeat customer is someone who has a card and never uses it. Just having good credit alone in today’s market is not enough for that customer to be profitable."

The article goes on to say that this problem illustrates the “challenges” facing the credit card industry, as if the only choice credit card companies have in order to make money is to find new ways to screw people. Really? Why is interest income not enough? Why do they need fee income? They don’t…they’re just greedy, having been accustomed to years of being largely unregulated and able to do whatever they wanted without consequence.

Because the credit card industry and Wall Street in general is so corrupt and so greedy, we need a strong watchdog to lead the newly created Consumer Financial Protection Bureau. Harvard Law Professor Elizabeth Warren is the best qualified person for that job, and if the Obama Administration allows Timothy Geithner and his cronies to place another industry sycophant in that position, then you can be sure that the agency will do nothing more than rubber stamp whatever fee scheme the credit card companies come up with next.

If you don’t want to be charged exorbitant fees, then I suggest you write to President Obama and to your senators and tell them you want Elizabeth Warren to head the CFPB.

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