Saturday, May 03, 2008

The Fed thinks about biting back

at PredatorCards.

Even better, a few Congresspersons --- Senator Chris Dodd and Representative Carolyn Maloney are mentioned --- are saying that the rules need to be even more stringent. 

Predictably, there's some whining:

"This is a very aggressive regulatory intervention in the marketplace that will lead to higher prices and less credit options for everyday consumers," said Ken Clayton, senior vice president of card policy at the Washington-based American Bankers Association. "It basically says that we can't price for risk and we can't in a cost-effective way provide these low-cost options like balance transfer opportunities at zero percent interest because of the way they're mandating how these loans get paid back. We won't be able to make the loan."

Umm, dude... you're not pricing for risk now, and nothing you have on offer is low-cost.

No comments: