Have you heard about the credit card, so called "consumer benefits," legislation your congress has passed for you? They have imposed new restrictions on the interest rates your credit card company can do to you. I am so relieved. My government is watching over me. But wait. Who wrote this bill? The Banks did. But don't they issue the credit cards? They sure do. Hmmmm! Now the "Fed" and the banks have known about this legislation since February of 2008, they become effective February in 2010-two years after the making.
By the way, you young people entering law school and worrying about jobs for graduating lawyers. Don't worry! For example, the credit card bill was -- 1150 pages, single spaced, small print, no pictures-- long. If you were to read all the earlier versions it would be a 50,000 page novel. It would take you a few years to read all the versions, but that is neither here nor there. The documents were written by and only understood by lawyers. It is one of the shorter pieces of legislation.
But back to the credit card issue. What have your banks been doing since February 2008? Why changing the rules on your credit card, of course, to slip into the legislation's "exceptions," legal language otherwise known by the more popular term "loopholes." Most likely you have been receiving letters from your credit card company for the last two years with seemingly harmless documents that your credit card terms---that is the language printed in very small print and written by lawyers, of course, in language anyone can understand---have been changed. Sure!
Hey, Mr. Naive they did not go to Law school to write plainly, that is journalism school. Law school trains lawyers in the language of obscurity, at least, that is the way it seems to the average Joe used to reading People magazine. Me too and I don't read People. I am not a neophyte and I have to use a magnifying glass to read credit card term changes. By the way, if you wish to have some sadistic fun and walk into the world of the frightened, read every word of your credit card terms. Take notes. Then try and summarize what you read. Good luck.
What is the point? All the credit card legislation is voided, in other words, the credit card companies can pretty much do what they want--regardless of the 1100 pages of new legislation-- if your credit card interest rate is "variable." And guess what? You guessed it. Embedded in the language in those seemingly innocuous letters you have been receiving, is the language that changes you to a variable interest rate. Enter the Loophole. So when the legislation becomes effective in February it will be meaningless to most of us. Do you get it? They have had almost two years to switch you to a variable interest rate, thus denying you the benefits intended by your hard working congress.
What can you do about it? Pay cash. Let's put the credit card companies out of business.
If that happens, do not be surprised if they pass legislation, requiring you to pay extra for paying cash because it increases the Bank's cost of doing business in a digital world. Impossible huh? Read your history again.
Pass this around.
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