Biden Administration Cuts Credit Card Fees

[probinson]

As a general principle, I am opposed to the idea of the "nanny state" that would limit free enterprise transactions between a willing borrower and a willing lender. The remoteness of the governing entity to the particulars would cause a "broad brush" approach effecting more damage than good imo.

I mostly agree with this. Usually when the government gets involved, things get worse.

However, I am somewhat torn. Predatory lending is a very real thing. In either taking advantage of people's ignorance or desperation, many people find themselves drowning in a pool of debt from which there is no escape.

 

[o_mlly]

I mostly agree with this. Usually when the government gets involved, things get worse.

However, I am somewhat torn. Predatory lending is a very real thing. In either taking advantage of people's ignorance or desperation, many people find themselves drowning in a pool of debt from which there is no escape.

It is unlikely that a credit card issuer would extend, or continue to extend, credit to one whose debt load is unsustainable as their credit score would reflect the imbalance.

As we do not jail debtors, do you not think the bankruptcy laws are a viable escape? Not only does a declaration of bankruptcy provide relief to the debtor it also gives the creditor a tune-up, as in, don't lend to overextended persons.