In defense of credit card companies
May 4, 2009 | alternatives, federal legislation, industry | Comments (0)We liked tihs column in the Los Angeles Times:
But we routinely berate card issuers for actions that are actually prudent and wise. Certain purported sins, such as raising rates and cutting credit limits for some borrowers, merely ratchet back the loose standards that helped lead us to economic perdition. For years we cursed the banks for showering Americans with easy credit. Now we curse them for tightening up.
Because of their unsavory past, the issuers are unable to make this case for themselves. They remind me of some frat guys at my college who were guilty of only about half the things they were accused of, but what was true was bad enough. From them I learned this tenet of the court of public opinion: Once you’ve been caught firing guns at African American students from the frat house roof, no one will believe you’re innocent of anything.
The whole piece is an interesting read.
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