Not only limits on debit card transactions, but free checking as we know it, gone. Rewards, gone. Why? Because banks like Bank of America took a $10.4 billion projected loss of revenue due to the Durbin amendment.
As far as free checking, obviously it was 'subsidized' by overdraft and interchange fees. However, it's hard to muster an argument in favor of the cost-shifting to responsible middle and lower-income consumers.
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Originally Posted by mynameisjim
lol. This is just more pushback tactics by industries that don't want reform. It's a warning to leave them alone.
When health care laws are passed, the health insurance companies raise rates and send out a press release about it to make sure everyone hears about it. Who sends out a press release when they raise rates 30%?
Same here, they are trying to prove that they will turn any sort of reform into a hassle for consumers. So next time anyone brings up reform, they can point to this example.
Old ass tactic and it's a way to make Americans adverse to reform. This is why compromise style reforms never work, because it leaves loopholes.
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You're exactly right and it explains precisely what is wrong with the current administration. You can argue it's well intentioned, but it comes at a complete disregard to the consequences of attacking capitalism in America.
For example.
Obama passed the 'Credit Card Accountability, Responsibility and Disclosure Act'. A bill that was well intentioned, it was against abusive credit card company practices. Sounds 'fair' right?
It was regulation that backfired against consumers. Credit card issuers prepared ahead of time for the new law by raising interest rates to 10 year highs and then cut average lines of credit by 13%.
What was the end-result? Obama made it financially harder for consumers to use their credit cards in the midst of a deep recession when businesses were struggling to get Americans to buy more. It also affected millions who couldn't afford to pay higher rates on credit card balances.
Then we have the health care overhaul that will cause every single person to see a rise in premiums until the law has taken effect in it's entirety. My rates went up this year, and I'm sure they will continue to rise. Again, it's due to regulation taking away from their bottom-line.
Now you have Obama desperately pushing a cap and trade bill that would tax businesses to pollute. I don't think I have to explain what would happen if such a bill were passed.
Gas prices are already going over 4 fucking dollars.
My opinion is it's 100% a product of this administration's overzealous goal to curb greenhouse gasses.
We heard a lot of people asking, 'Why is Obama to blame for the current unemployment rate?' Obama forced a regulatory nightmare for American businesses shoving regulations and government mandates down their throats.
What was the end result? Massive downsizing. Increased costs for consumers. You take away from a companies botton-line and as you said, they will do whatever is necessary to get it back up. Call it greed, call it unfair, call it whatever you want, but it's how America works.
Anyways, the smart American voters who actually knew the situation took action last fall. Obama and the democratically controlled congress were on a warpath against Capitalism in this country. People recognized whether it was well intentioned or not how extremely destructive it can be.
I think a lot of the big companies and corporations gave a big sigh of relief last fall. Up until then, they were in fear of a bureaucratic nightmare of regulations and mandates.