More of Obama's Change

on Tuesday, May 19, 2009

Are you a financially responsible adult with good credit? Congratulations! Now you get to be penalized for it:

Credit cards have long been a very good deal for people who pay their bills on time and in full. Even as card companies imposed punitive fees and penalties on those late with their payments, the best customers racked up cash-back rewards, frequent-flier miles and other perks in recent years.

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”
In Obama's ideal world, those of us who did things right with our financial investments the first time are labeled as "selfish" and asked (or forced) to pay the tab for those who wanted the 6-bedroom house and new Audi on their $50K a year salary. And since we're already paying for the loser's mortgages anyway, why not take on all their credit card debt too. 3 cheers for financial responsibility!