by Kateryna Patskovska

Created on: November 06, 2009   Last Updated: November 07, 2009

Should the government regulate the credit card industry?

Absolutely!

There is nothing but chaos, especially now in the tough economic times. Let us look at the current situation in a credit card industry.

First: the percentage that the credit cards charge. These percentages range from 10.99 to 30.00 percent! Here is more bad news if you are one of those people who always pays your minimum amount due religiously every month-you can get and will receive the highest percentage possible. Why? Simple according to one credit card department :" you have received this increase in your percentage because the other debtors have failed to pay the money back." Oh, yes it is true. Still don't believe me? Look at your credit card statement and see that yes you can also be a victim of a ridiculous amount of 27.99 percent on one credit card. Now no one has only one credit card. That is where the second problem lies.

Second: the credit card companies target everyone. The age ranges from 17 years old and on. Yes if you have a 17 year old child and you as a parent have a good credit, your child will receive a credit card in their name. But here is the icing on the cake you need to co-sign with your teenager, so that in any event if your dear loving child will go on a shopping spree you as a responsible parent will pay the money back. What does this create - more debt. The bad part is the credit company still gets its money! This brings me to the third problem.
Three: even if you do not pay the money that you owe to the credit card company, they still able to utilize the government when filing their taxes and write your amount owed as a charge off and get a portion of that money back. While you still feel desperate to repair your credit report and increase your credit rating. Let us of course not forget that you still have to deal with the collection agencies that keep harassing you day and night.

Now you tell me that government can step in this crazy world that the credit companies have created and finally help the regular middle class worker. I say: " It is about time!"

I believe that by allowing government to control the credit card industry: it will levitate at least some of the above discussed problems that exist in the present credit card industry.

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