Article by Matthew Maillet
Banks have been given a two month grace period before new laws are formally enacted. The Congress opposed a bill presented by the House that would have made new banking restrictions enforceable on December 1st, 2009 as opposed to February 22nd, 2010. Thus, banks are reacting aggressively by taking advantage of the last few months before new laws come in to affect. While the banks’ dissatisfaction is mostly caused by lawmakers, many companies have attacked their own customers—while ignoring consumers’ credit scores and payment histories in the process.
By banks unjustly attacking consumers with 20%-30% rate increases in recent months, many companies have risked losing their core base of customers. Any consumer with decent credit has the opportunity to switch banks if he or she pleases, thus there is great risk in these tactics. Those Americans with poor credit history however are faced with the threat of default. This domino-effect has all come in response to government measures that were originally put in place to PROTECT the consumer, not BANKRUPT the consumer.
The blame should be directed towards Congress. The vast majority of banks facing the new 2010 laws in the near future are in fact prepared to meet these new regulations today. However, Congress has ignored the best interest of the American consumer while siding with the banks.Source 1