Payback

Every dark cloud has it's silver lining.  Anyway, that's what 'they' always say.

This economic recession perhaps depression (repression?) is certainly one of the darkest of clouds to scud overhead in our lifetime, but so far there haven't been too many flashy linings to speak of.  That is, aside from the minor pleasure of seeing the Bush misadministration get it's well-deserved daily portion of blame for the mess.  But that's a pleasure perhaps not enjoyed by many of Mr. Bush's steadfast supporters - or by shamed conservatives, whether they were in Shrub's camp or not.  

But there was a bit of news this morning that could be a welcomed-by-all silver lining: credit card companies may get spanked for their nasty billing practices.

And about time too.  A few years back, those same companies managed to wrangle a bill through Congress that has made it much harder for people to dismiss usurious credit card debt through bankruptcy.  And they managed this feat without a single inclusion in the bill that would limit the rates they could charge their 'clients'.  Card companies can still lure new cardholders in with low or no interest for initial charges or balance transfers, then, if those clients are late - twice - in a set period of time (usually 6 months), they are free to raise the rates up to 24, 28, even 32 percent.  Then those 'clients' are stuck with finance charges so high they may never be able to pay back their principal.  Most egregious of all, the card companies can do this whether the two times you were late was your fault, the post offices', or the card companies' (lost in internal processing), and whether you were a week or only a single day late.

It's bad enough that banks can normally charge 12-16 percent for credit card purchases when the most you and I can get for a savings account at the same banks is, what, 1.5 percent? Talk about having your cake and getting to eat it too.  

I know, I know.  The card companies claim those high rates are justified by high default rates.  Thing is, those high default rates are encouraged by the lending practices noted above.  Luring naive or overly hopeful cardholders in and then nailing them with usurious rates at the first sign of trouble isn't helping the default situation.

Now, though, it may be payback time.  President Obama wants to 'talk' with the heads of credit card issuers about their practices.  And he's got a nice big carrot, and a nice big stick to use in the 'discussions'.  

Here's hoping a little common sense and fairness results.  It's way past time for this playing field to get leveled.