kos has a good post up about why the credit card companies wanted bankruptcy reform. it wasn't because they were being defrauded by people abusing bankruptcy protection. it was because they wanted to be protected from their irresponsible extension of credit to bad credit risks. the democrats who voted for that bill were handsomely rewarded with contributions from the credit industry.
Wednesday, March 07, 2007
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Credit card companies are evil. As in spawn of satan evil.
I've seriously considered whether it would be possible to become an educational speaker doing the circuit of universities and colleges warning against the dangers of taking on credit. Scary data about the average $ amount of consumer debt that students carry upon graduation. Evil. Evil. Evil.
to flip some rhetoric on its head... credit card companies are a bunch of welfare queens whining for government handouts. how about some personal responsibility in running your businesses, you lazies! :D
they love saddling people with debt because they can earn many more times their original loan when someone pays and pays and pays. i've known people who carried debt for years making 20-50 dollar payments month after month, just barely chipping away at thje principal.
it's very profitable for them if you don't actually pay off your debt. they just want you to keep servicing it without ever paying it off. plus, they jack your interest over 20% if you are ever late with your payment.
the business model of credit card companies today could be classified as rent seeking.
sallie mae is just as turd-ish.
www.studentloanjustice.org
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