Confusing, coercive and corrupt financial contracts

Our President is making a concerted effort to reform credit card issuers. Emphasis mine.

Obama Seeks Reform of Credit Card Firms’ Practices
By Michael D. Shear and Nancy Trejos
Washington Post Staff Writers

…”So that if somebody gets a credit card, they don’t find that their rates go up exponentially on a certain day based on fine print in a contract that no one is ever going to read, [like TARP?] or that we find out that certain fees — you know, interest is charged, [like on the National Debt?] an interest rate is charged on certain fees involved in a credit card,” [press secretary Robert] Gibbs said.

“He’s going to outline and go through some principles of what he would like to see and that he believes Congress can get done [Congressman Rangel could pay his taxes?] in order to protect the American people,” Gibbs added.

Obama pushing for credit-card reforms
By Ruth Mantell, MarketWatch

…Obama laid out four core principles:

  • Banning unfair rate increases, fees and penalties
  • Providing transparent and easy-to-understand forms and statements [like the IRS?]
  • Providing easy-to-access contract terms [ditto] to enable simplified comparison shopping for consumers
  • Creating more accountability in the system, with stronger monitoring and enforcement [like Secretary Geithner’s tax evasion?]

Tough talk at WH for credit card execs
By CAROL E. LEE & EAMON JAVERS

…In Thursday’s meeting, Obama discussed four principles that he’d like to see included in any legislation. According to a White House statement, they included:

  • “Strong and reliable protections for consumers — protections that ban unfair rate increases and forbid abusive fees and penalties.
  • “All the forms and statements that credit card companies send out have to have plain language that is in plain sight. No more fine print, no more confusing terms and conditions.
  • “Requirement that all firms make their contract terms easily accessible and provide consumers with the information they need to go online and do some comparison shopping. It also means requiring firms to offer at least one simple, straightforward credit card that offers the strongest protections along with the simplest terms and prices. [like a flat tax?]
  • “Increased accountability in the system, so that we can hold those responsible who do engage in deceptive practices [Rangel, Geithner and many others] that hurt families and consumers. [like inflation?] This will require beefing up monitoring and enforcement, and also penalties for any violations of the law.” [Not Rangel, Geithner or any other members of the Administration, however.]

If these rules make for better credit card companies, wouldn’t they also make for better government? I mean, I’d really like to go online and compare alternatives.

My credit card agreement, for example, is the very model of transparency and simplicity when compared to the tax code. No contest. And I don’t remember any stories about Congressmen, Treasury Secretaries, et. al., having difficulty with their credit card payments, just their taxes.

Never mind that this “evil corporations” rhetoric will substantially reduce the availability of consumer credit and damage several recipients of TARP funds – the exact opposite of what TARP is supposed to be doing – the burning question is why can’t these same principles be applied to the IRS, an organization intended to be regulated by the general government?

And where’s my advance notice and opt-out form from Obama concerning the fact that my tax rates are going to go up “exponentially” (I don’t think Mr. Gibbs actually knows the meaning of the word exponential.)?

I am a creditor of the general government and I think we need to rexamine the contract.

1 thought on “Confusing, coercive and corrupt financial contracts”

  1. “I don’t think that word means what you think it means.” – Inigo MontoyaIt seems inconceivable to me that a White House Press Secretary can be as clueless as Gibbs.

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