Remember that law that President Obama signed last May to shields credit card “users from sudden interest rate hikes, excessive fees and other gimmicks that card companies have used to drive up profits“? Guess what? It’s not working out as planned.
During the past nine months, credit card companies jacked up interest rates, created new fees and cut credit lines. They also closed down millions of accounts. So a law hailed as the most sweeping piece of consumer legislation in decades has helped make it more difficult for millions of Americans to get credit, and made that credit more expensive.
You see, credit “companies had nine months to prepare while certain rules were clarified by the Federal Reserve. They used that time to take actions that ended up hurting the same customers who were supposed to be helped.” Kind of what always happens when private companies prepare to shield themselves from federal laws designed to “protect” consumers from market forces.
No, the world wouldn’t be perfect if the government got out of the way, but, well, when it does try to help, it only ends up making things worse, much worse.