Cap The Credit Card Interest Rates!

Image by Public Citizen via Flickr

TARP funds are being dispursed to financial institutions today.

I just reviewed a story which addresses Washington State's proposal to pass a bill which would limit the interest rate on credit cards to 12%.

House bill aims to cap interest rates

My thoughts on the subject were expressed in my comment to the story:

It should be a FEDERAL LAW and the rate be "X" above the PRIME or lower. The law should also stipulate that only "x" amount of LATE and OVERLIMIT charges be allowed, and that after that, any unpaid balance would accrue interest at "x" above Prime.

If the government gives all this money to bailout the banks, they should pass laws to help head off the rising amounts of BANKRUPTCIES. Laws that would actually help the consumers pay their debt down, instead of allowing the banks to BURY THEM in interest and fees.

Why do we allow the banks to push the populace further in the hole? People get behind in their responsibilities, and the "swindlers" come in with their huge interest rates and continuous fees, which knocks the person further into debt, until their only option is bankruptcy.

Don't think the banks don't sell that debt to the next tier of "swindlers", for less, and then this tier adds another fee on top of the original balance. They then continually harass, attempting to collect the original amount plus the added "Collection Fee". These entities are called Collection Agencies.

The system is broke. Capitalism should not be fueled by those who would take advantage of the taxpayer, and then ask the government for a bailout.

They are effectively asking that same taxpayer to foot the bill when the banks and finance companies are "losing" money, because of their cheating business practices.

Wheww!!! I'm finished. Thanks for reading.