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Yes they should. And do you know why? Because we all have a stake in this. Credit cards have boomed because anyone can get one, whatever their circumstances. The irresponsible citizens among us can then live a champagne lifestyle while earning a Budweiser salary, or no salary at all. When reality kicks in and they can't pay their bills, they'll whine that they are victims of the Big, Bad Credit Card Wolves, and they'll find a way to get most of their debt set aside.

The credit card company won't lose out, because they've already made squillions out of these Minimum Payment Mikes, and they'll just hike the interest up a couple of percentage points to cover their 'losses.' Thus everyone with a credit card - and that's most of us - ends up paying for the profligacy of the few.

There must be more stringent checks on applicants, both before issuing cards and before increasing credit limits. I am on a disability pension which gives me an income of only 6000 a year, yet my credit card limits total 28,000! Not once have I asked for an increase, but they keep coming. I did go a little silly with my cards a while back, but my spending is under control now, and I am gradually reducing my balances by paying as much as possible towards clearing the debt and switching around for better deals.

How can card companies justify their interest rates, which are far higher than bank rates? Most credit cards are either an offshoot of one of the big banks, or an internet-based business. The only credit card company I can think of that has its own premises is American Express, and their offices are also Exchange Bureaux and Travel Agencies. So these companies have lower overheads than most, yet their interest charges and penalties for transgressions are much higher than any bank. We know that companies have to make a profit to function, but there is making a profit and there is profiteering. Unfortunately, the credit card companies are profiteers. Jack Sparrow and Dick Turpin are appearing at a bank or website near you, and they are taking no prisoners.

All governments should step in and shorten the leash on these big beasts. There must be an independently agreed formula for issuing cards, setting credit limits and charging structures. Any company failing to comply should be hit where it hurts most - in the balance sheet. And if a heavy fine does not serve to curb their greed, their credit license should be revoked. We need legislation with teeth to curb this credit bonanza, and we need it sooner rather than later. Otherwise, we may find ourselves in a modern Depression which could be far, far worse than the tribulations of the '20's and '30's.

Learn more about this author, Sandra Piddock.
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