Obama's crackdown on credit card abuses and why it won't work
President Obama and top economic adviser Lawrence Summers are preparing to take on the credit card industry and its abusive practices -- including surprise rate hikes on on-time customers, at the same time the financial sector is receiving billions in bailout money.But the whole thing is so backwards: Why didn't the White House push for greater consumer protections before it started doling out the government cheese to financial institutions looking to pay billions in bonuses?
"We need to do things to stop the marketing of credit in ways that addict people to it," Mr. Summers said on "Meet the Press." Summers accused the banks of practices that lead consumers to be "deceived into paying extraordinarily high rates that they wouldn't have paid if they knew they were getting themselves into."
The problem with this whole crackdown on abusive credit card practices is that it's in direct conflict with the conventional wisdom that we need to stimulate the economy by increasing consumer spending: If we push banks to stop the predatory lending practices that provide cash to people to buy stuff they don't need, consumer demand will continue to fall. Of course I think that would be a good thing. I don't think we should be looking to bailout the economy with credit-driven purchases by consumers with underfunded retirement plans and no emergency fund.
But for now, the Obama administration seems to want it both ways: a crackdown on exploitative consumer lending practices and an increase in consumer spending. I say you can't have both at once.
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Reader Comments (Page 1 of 1)
4-20-2009 @ 2:29PM
acaiberry said...
Great Obama - acai berry
Reply
4-20-2009 @ 4:13PM
John E Jacobs said...
Wednesday, April 1, 2009
Senator Christopher Dodd
Chairman of Banking Committee
Senator Carl Levin
Chairman of Credit Card Committee
President Barack Obama
U. S. of America
A/G Mike Cox
State of Michigan
Asst. A/G Katharyn Barron
State of Michigan
SUBJECT: MASSIVE ABUSE OF ALLEGED SALE OF CREDIT CARDS BY
THE ISSUER WITH NO LEGAL NOTIFICATION TO THE DEBTOR
Gentlemen/Madam:
All of you have been blessed by Almighty God and given the power of your office to help MASSIVE MILLIONS of his people with “ALLEGED SALE OF CREDIT CARD DEBT”.
I don’t need to tell all five of you that this is the quietest and not talked about subject in our entire NATION.
Senator Dodd, I received an email this morning stating that your Banking Committee had passed everything you wanted. The subject matter of this letter was never mentioned.
I have delivered the following documents personally over the last 2 and ½ years to Senator Carl Levin’s Grand Rapids office. The manager of his G.R. office was very committed to get this shipped to Senator Carl Levin’s Washington, D.C. office.
1-18-07 8 pages
4-16-07 3 pages
6-8-07 7 pages
9-17-07 12 pages
10-11-07 2 pages
1-25-08 350 pages Pres. Obama was also sent
this package as Senator Obama.
I guess CNBC NEWS AND NBC NEWS had their stories correct
as to what is happening in Banks and Credit Card Companies.
CNBC NEWS
This story was on CNBC Power Lunch on Tuesday, March 16, 2004, between 12 p.m. and 2 p.m., a story about how five companies manipulate the public. “ASSET ACCEPTANCE CORP.” was on that list. They went on to also say that these companies leave a lot to be desired about their style, and that they pay nothing really for the credit card balances.
NBC NEWS
Special Documentary on Friday 1/31/03 about Credit Card Files “BEING STOLEN OUT OF CREDIT CARD DEPARTMENTS FROM”---- ““BANKS”” ----and “CREDIT CARD COMPANIES”, and stated that the “MOB” is involved in this “IDENTITY THEFT ACROSS THIS GREAT NATION”.
FROM THE SELLING INSTITUTIONS IN THE STATE OF MICHIGAN AND
ALL OTHERS LICENSED TO DO BUSINESS IN THE STATE OF MICHIGAN
That Comerica Bank sold Account Number 5407-7821-2830-3170 RE: John E. Jacobs to Asset Acceptance Corp, a Corporation existing under the laws of the State of Nevada and doing business at P.O. Box 2036, Warren, MI 48090.
(1) That the amount due from John E. Jacobs at the time of sale was ________________
(2) That they sold this said account with “A NON RECOURSE CLAUSE” back to Comerica Bank.
(3) That the date of sale was on ________________________
(4) That the cash consideration for said sale was _______________
This would protect the debtor from the massive abuse that I under went in this case with all the lies and FRAUDULENT DOCUMENTS perpetrated by scum like Asset Acceptance Corp.
CHASE BANK
The Law Office of Paul J. Coleman is now the sixth alleged owner of this credit card. I have never paid anyone on this credit card. It is now almost 12 years. If I file Chapter 7, by myself, late this summer or fall, I will put them on my filing as a creditor.
A/G Mike Cox, I put the 350 page document into your hands personally on May 15, 2008 at the Safe, Sound and Secure Conference. I also sent you the following emails and letters.
Monday, May 5, 2008
Monday, December 1st, 2008
Monday, February 23, 2009
My life is now in your hands. I sincerely hope and pray that you will do what is right for me and for MILLIONS of GOD’S people in the State of Michigan. We have the largest unemployment in the U.S of America at 12%. Asset Acceptance Corp. will make “MULTI MILLIONS”.
What about the “UNJUST ENRICHMENT LAW” in the State of Michigan. If Asset Acceptance Corp. was to win against me, they would make 80,000% on their 100.00 cost Investment or $79,900.00 CASH DOLLARS. They will never make their intent to Lien this home a success, not in my life time. I’m now 76 plus.
I have been fighting this alleged sale of credit cards for over 12 years. We
are thankful God has seen us thru this time with a roof over our head and 3 meals a day.
Sincerely,
John E. Jacobs
A Child of God and an ENSLAVED DEBTOR to Asset Acceptance Corp., whose ethics are very?
They obtained their Judgment against me by using fraudulent documents, and with the full cooperation of Comerica Bank and CitiBank.
My phone No. 269-342-9590
Address 8307 West D Ave.
Kalamazoo, MI 49009-8820
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