Now that he has signed a perfectly useless “credit card holders rights act” into law, President Obama can take comfort in the knowledge that he still ranks first for the Google query failure in the White House, and this time he deserves the designation (rest assured, I voted for Obama).
Why is he a failure in the White House? 2 reasons.
First, Google — despite being told about this query many times — has neglected to fix the “failure in the white house” query. It was a secondary effect of the infamous “miserable failure” link bomb that Democrats conducted against then-President George W. Bush. Now Democrats can take pride in the knowledge that they have ensured Obama will be known as a “failure in the White House” for the rest of his term.
Secondly, today Obama signed into law the miserable credit cardholders’ rights act that accomplishes nothing toward protecting consumers against the usurious practices of the banking industry.
Keep in mind that I’m not standing in the ranks of people who have fallen behind on their credit card payments. I am one of those people who has paid the bill faithfully every month. I’m supposedly in “good standing” with my credit card.
Nonetheless, I and millions of other credit card holders was told in March that our interest rates would be tripled come May (and millions more accounts will see interest rates rise in June).
When angry consumers complained to Congress and the President about this outrageous rate hike, we were assured that our elected representatives would take immediate action to protect consumers against further bank abuses.
I’ve been alarmed ever since, as I realized all too quickly that President Obama and Congress lacked the political will to demand that the banks which took Federal bailout money rescind their unjustified rate hikes. Sure, the banks complain that they have seen an increase in defaults on credit card accounts.
Well, here’s a clue, President Obama: You’re about to see a LOT MORE DEFAULTS on credit card accounts before your stupid, useless law takes effect in nine months.
Many consumers announced they would immediately cancel their credit cards. After all, when the banks announced their rate hikes in March they gave everyone the option of closing their accounts. Problem is, when you do that you reduce your available credit and THAT is taken into consideration when your credit score is calculated.
So if you cancelled your credit card in April and now cannot obtain another one, guess why. Your credit sucks just enough to keep you from qualifying for a new credit card.
The trick, of course, is to get a new credit card with a lower interest rate and transfer the balance from the old card. But most consumers didn’t realize they needed to do that.
President Obama, having absolutely no knowledge about the situation, went ahead and supported the law so that people could carry guns into national parks — I mean, so that consumers would not have to worry about interest rate hikes being enacted against them individually (the law does nothing to prevent future mass rate hikes).
So consumers lost out three ways today:
First, the March-2009 announced rate hikes remain in place. Everyone who still has a credit card from those companies (J.P. Morgan, Citibank, and Capital One for sure) will still have to pay triple interest on new purchases.
Second, consumers who cancelled their cards with existing balances and who cannot now obtain new credit cards will take months, perhaps years to rebuild their credit.
Third, consumers can look forward to more interest rate hikes on their credit cards because the new law didn’t even impose a limit on credit card interest rates.
Aren’t you glad you voted for Obama? I sure am.
He is today’s “failure in the white house”. Hey, Google — did you get the message THIS time?
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