June 22,2009
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Who are you kidding?, Pt.2
Think about it?Certainly there are more similarities between the major credit card issuers and the Credit Unions than differences. They both manage financial risk and, when possible, eke out dividends for their shareholders. Ah, but you already know the stark contrast, here. One is for profit and pays taxes, while the other is non-profit and pays no taxes. So could we just assess that those non-profit credit card groups that still pay dividends to shareholders can get by without tactics that trick people and surprise them? Conversely, in order for a lender to pay taxes and show a profit, must they pull sneaky surprises and nail credit card holders to the wall for minor infractions? What doesn't ring, here?
The Credit Unions seem to be doing just fine with the new credit card protection rules. They're not complaining neither do they have to change the way they've always done business. We don't see them sequestering Washington nor threatening to close down our nation's credit system. Without giving away some of the generous perks that the major credit card issuers give out (like free plane rides), the credit unions still manage to keep their credit card holders happy. They're happy and their customers (members) are happy too. What's the problem?
On the other hand, the large banking institutions are balking at the restrictions imposed by the new CCARDA (Credit Card Accountability, Responsibility and Disclosure) law. They will no longer have free reign to make just any kinds of changes they choose, on the fly and without notice. Further, they've decided to punish us (and make Congress look bad) by essentially denying all new credit card requests from American consumers. Is it so bad that they can't do business with us any more? What are some of the things they can't do anymore?