HR 5244 Credit Cardholders Bill of Rights - Proceed with Caution

By Tim Grubbs
August 11, 2008
Law, Politics

These days, it grows more and more apparent each day that when the government comes forward with some new program to “assist” consumers, it is wise to keep a close eye for the hook. In an article on Sunday from the Washington Post, we learn some details of a Democrat’s proposed bill which has silently and methodically made its way through Congressional committees, “despite significant pushback from the banking industry and top Republican lawmakers,” according to the article.

Of course, it would be no surprise that the “banking industry” would be resistant to any changes in lending practices. After all, why change a policy that can allow for hundreds of billions dollars in losses across said industry without hardly batting an eye, while the average American household would be crippled into bankruptcy by a $10,000 credit bill? As for “Republican lawmakers” who oppose the bill, they see the bill as nothing more than a political ruse - a bill with a catchy name like the “Credit Cardholders’ Bill of Rights,” which does very little in the way of helping the average citizen.

The bill, proposed by New York Representative Carolyn Maloney, is heralded by Democrats as bringing about solid change like limiting unexpected rate increases on existing credit card debt. Actually, all this change would require is that extra “fine print” be included in the pages upon pages the average consumer who is under the thumb of the credit industry never reads anyway. By including the new fine print, the rate increases then become “expected.” How does this help? It doesn’t.

H.R. 5244 would ultimately change nothing at all, except the language in the fine print of credit card offers, and offer absolutely no added protection to consumers. In fact, the language being proposed by Rep. Maloney effectually widens the leverage credit card companies hold over consumers, as long as the leverage is explained in unintelligible lawyer-speak “in such paragraph” of the fine print.

It really is no surprise that Democrats like the bill, and Republicans don’t. First of all, it puts consumers further into a position of relying on the government to run corporations who in turn run government. Secondly, it works to widen the gap between the “intelligentsia” and average citizens. Third, it will ultimately put consumers deeper in debt while having the sense that they are in fact more protected by the government and corporations who are working so dilligently to screw them.

Thank you, Representative Maloney. We’re sorry to hear you missed a payment, had your own credit card interest rate jacked up, and couldn’t weasel your way out of it. If you can afford the lacquer it takes to put your hair that high day after day, you can afford a higher credit card interest rate.