CONSIDERED OPINION
By : Mr. Paul J. MacGrabbin, Jr., Chairman and Chief Advocate, Americans for Free & Fair Financial Services, Inc., a For-Profit Advocacy Group Specializing in Lending Issues from the Banker’s Perspective
Credit cards make Americans’ lives easier. They allow people to pay bills when cash runs short. They allow people to buy that special gift for a loved one when there is not quite enough money in the bank to cover the cost. In a word, they allow Americans to make essential purchases responsibly, from education to health care and beyond. Credit cards build upon trust. We trust Americans to be responsible and to pay us back—fair and square. We trust the American people. We believe that Americans are responsible people who deserve respect. Trust is good. Credit cards help Americans keep money moving through the economy. And when money moves freely through the economy, everyone wins.
Credit cards make money available to everyone. Our economy falters when people do not make credit purchases. Stocks plunge when Americans live within their means. Yet not every bank is willing to loan money to every American. We here at Americans for Free & Fair Financial Services, however, believe in the American people. We believe in one important word: Freedom. We believe there is value in credit purchases, and we believe that Americans should be free to buy what they want. In that spirit, we believe that every American should have a credit card to buy things when and where they want them, provided they can make minimum monthly payments subject to the maximum applicable interest rate under State or Federal law. Unlike banks, we trust in the American people’s ability to make payments. If you have a monthly income stream, we will give you credit—guaranteed. We do not need to see assets. We do not need to see real estate ownership. All we need to see is an income and some payment history. If you have an income, you can buy that television today. You can buy those sandals today. You can buy those sunglasses today. And you can finally pay that overdue child support installment today. Isn’t it time to stop letting bank balances rule your life? Worry about the bill later. Enjoy your life. We trust you. Just remember the magic letters:
J-C-I: Just Charge It™.
Credit cards help Americans get what they want. They embody the spirit of independence and freedom that makes America great. Despite this, there are individuals out there who do not trust the American people. They say that “unscrupulous” credit card companies prey on innocent Americans, enticing them to “get into debt over their heads.” They say that credit cards lure Americans into making bad financial decisions, ruining their financial lives. They say that our companies draft unfair contracts and charge unconscionable interest rates, then harass debtors with vicious telephone calls and legal action if they default. Put simply, these party poopers say that credit card companies exploit Americans’ naïveté, gullibility and hunger for quick material gain. And they call on government to “regulate” credit card companies to protect “innocent Americans” from credit card “scammers.”
We reject these criticisms. We are not scammers. We are bankers. We believe in the American people to make wise, informed and prudent financial decisions. We reject the contention that Americans are stupid, naïve or gullible. On the contrary, we believe that Americans make financial decisions only after due and reasonable deliberation. Americans do not use credit cards unless they fully read our rules and disclosures. Nor do they use credit cards unless they know they have the financial resources to pay their bills when they are due. Americans do not charge purchases if they know they do not have the money to pay for the items. Americans are responsible. They are grown-ups. They know what they are doing. They need freedom, not regulation. When government starts telling adult Americans how to spend their money, what’s next? Telling them what color socks to wear? When they should wash their underwear or use the toilet? If we allow government to intrude on freedom, there is no endpoint. Once government intrudes on one freedom, all freedom is worthless. We refuse to allow government to wage war on freedom. We believe in liberty. We trust in the American people; we do not believe they are stupid, naïve or gullible. Nor do we believe they are so weak that they require “special protection” from credit card companies. Far from it: We believe Americans should have more access to credit cards, not less. After all, Americans should have the freedom to make whatever economic decisions they wish without interference. That is American freedom.
Government is hostile to freedom. In recent years, government has forced us to make disclosures to the American people about our financial products. We have to tell them about the interest rate, the default rules, the assignment process and our collection practices. We have to tell them which banks participate in our funding pool, and which State’s law governs disputes. They even tell us that we must print these “facts” and make them “conspicuous,” so that even the dumbest customer could understand what we say. We find these regulations oppressive. We believe that two private parties should be free to bargain however they wish; we find it oppressive that the government forces us to tell our customers certain things that might turn them away or give them the wrong impression about our products. Freedom means saying what you want and selling what you want. These government regulations take our freedom away. And when our freedom suffers, so does the American people’s. When banks lend with fear, everyone loses. When banks are not free to bargain on terms they deem fit, costs increase for everyone. This is the price of government meddling in private contracts. In short, we believe in deregulation because we believe in freedom.
We generally reject government meddling in credit card affairs. Nonetheless, we call upon government to take action against dangerous private actors who undermine freedom and damage contract rights. In recent years, certain private businesses have sought to make a profit on debts owed to us. These so-called “credit card debt consolidators” offer to assume credit card debt from us at a reduced rate, then charge a higher rate to the debtor for a profit. These merciless profiteers seek to capitalize on the idea that credit companies tyrannize hard-working Americans and exploit their stupidity. At the same time, they blackmail us into thinking that our outstanding accounts are worth less than their face value, sell us short, then reserve the profits for themselves. Meanwhile, these ruthless bottom feeders advertise endlessly in print and on the airwaves, telling Americans that they “can overcome credit card debt” and “restore freedom to their lives.”
We find these developments perverse and abominable. For one, we resent the implication that “credit card companies” tyrannize Americans. The opposite is true: We believe in freedom, fairness and economic choice, not compulsion and tyranny. We also resent the assertion that these so-called “consolidators” represent “freedom” against us, the “big, bad credit card companies.” If anyone represents freedom, we do. We stand for free economic choice and unfettered credit opportunities. It is perverse for these Johnny-come-latelys to claim that they stand for freedom, when in fact we have defended freedom since day one. Third, consolidators wage a deliberate war on our contract rights. When we lend money to consumers, we have a right to receive repayment plus interest. It is in the rules. It is perfectly legal. Our consumers read the rules and respect the law; they knew what they signed. To that extent, we have a legally enforceable claim against our consumers for every dollar we lent to them, plus all accrued interest, penalties, fees, costs and collection expenses pursuant to applicable contract provisions under the State law of our choice. Now, consolidators come along and try to buy out our rights for a fraction of their value. What good is freedom if we cannot reap all the legal rewards from our hard work? If a consumer owes us $45,612.19 for purchases made (and accrued interest thereon) between 2005 and 2008, we want that amount, not something less. Yet if payment proves difficult to collect, these consolidators step in and offer us $10,000 for the account and all the rights. We resent this pressure. We want more money, not less. If we sell, we get the $10,000, but the rapacious consolidators run off with our legal right to demand $45,612.19 from the consumer. We would rather have our rights than a measly $10,000. And we believe in the law. Contract rights are sacred. We resent any attempt to steal what we earned through hard work and toil.
Credit card consolidators are dishonorable, profit-hungry thieves. They promise “relief” to “downtrodden consumers” from “vicious credit card companies.” In fact, they are avaricious charlatans who want to pilfer our investments. We created these accounts, not them. Just because we occasionally have some trouble strongarming payments from a few bad apples does not mean we should just roll over and surrender our rights to these carrion-crows. Put simply, we chased the quarry and killed the game; now we want the meat. We will not just fork it over to a bunch of cash-crazed vultures circling overhead. In this country, we reward hard work. Yet consolidators make a living stealing what belongs to others under the pretense of “contract assignment.” We find this contrary to freedom and contrary to everything America stands for. We call on Congress to take action against these nefarious bandits. No longer will we tolerate theft and plunder. No longer will we tolerate slanderous attacks against our good names. Banks provide freedom to millions. We do not unfairly exploit “weak Americans.” To the contrary, we believe in the American people with all our hearts. We believe in freedom for all. And we stand opposed to any effort to label our business “tyrannical.” There is nothing tyrannical about two sane adults bargaining out a fair credit arrangement, no matter what the interest rate may be. Sane adults freely and fairly agree to contract terms. That is all that matters, because that is real freedom.
Take a stand against credit card debt consolidators. They assume that you are weak, gullible and naïve. They say they want to help you, when in fact they merely want to plunder our bounty and make a dollar on your back. In so doing, they raise the costs for everyone, making it more and more difficult for everyday people like you to get credit. You want to buy that new computer, don’t you? Well, unless you tell your Congressman to put an end to the consolidators’ reign of terror against private contract rights, we will not be able to help you. In that sense, it is in your interest to help credit card companies. When you make it easier for us to lend to you, you make it easier to get the things you want, even if you do not have quite enough in the bank to buy them on your own. And you want the computer now, don’t you?
What are you waiting for? Get on the phone right away. Let’s make government work for us. Put consolidators out of business once and for all—and let’s make freedom mean something again.
Showing posts with label Credit Card. Show all posts
Showing posts with label Credit Card. Show all posts
Thursday, April 16, 2009
Monday, January 19, 2009
CREDIT TURNED DOWN? FEELING BLUE?
DON’T WAIT -- GET YOUR FREE COUNTER-CREDIT REPORT® TODAY
Are you sick and tired of credit checks? Do you feel bad when retail stores turn you down for a plasma screen television because you had a bankruptcy in 2004? Do you want to buy a car, but dealers laugh at you because the credit bureau labels your creditworthiness “Very Poor?” Well it’s time to reclaim your financial health. It’s time to set the record straight. It’s time to start buying. And it’s time to feel better about yourself, too.
No matter what the bureaus tell you, credit scores do not define who you are. You cannot go to jail for having bad credit. You may not be able to buy a home or rent an apartment, but no government official can arrest you because you did not pay your light bill in August 1990. In fact, our government would prefer that you go into debt. Our economy depends on people spending more money than they have. Without credit, the entire system would collapse. Yet credit bureaus make it difficult on average Americans to enter into more debt. By branding every American with a “credit score,” monolithic credit bureaus dissuade lenders from giving you money. In America, we can barely afford anything, and the bills keep pouring in. Virtually everyone has missed a payment sometime in their lives. In your hectic life, how can you not miss a payment? Your address changes, the bank sells its accounts to a subsidiary, your dog ate the check, you got sick, the post office did not forward your mail, you died… the list goes on. Your creditors don’t care. When you miss a payment, they call the credit bureau. And your score sinks.
What do your creditors tell the credit bureau? Basically, they call you a no-good dead beat. They say you failed to pay your $45.31 monthly phone bill, and that makes you a lousy bum who doesn’t deserve to get a loan because you can’t be trusted. The credit bureau types your name and social security number into a master computer, which then processes your information through a mathematical algorithm. When the computer is done, a number appears next to your name. You have been branded. You have a score. You are a “Credit Risk,” and you will not be getting a loan. Every time you ask for credit, the lender calls up the bureau. The bureau goes to the computer, pulls up your name and whispers the lender your number. The lender then tells you: “Denied. Have a nice day.”
Credit bureaus tyrannize well-meaning Americans. They say they are just doing “private business,” but in fact they make it difficult for Americans to go into debt. Without debt, you cannot pay your bills. Without debt, businesses fail. When businesses fail, the public suffers. In that light, credit bureaus do much more than mere “private business.” They defame and denigrate countless Americans. They cut down the credit tree before it can grow. They block lending, which in turn blocks interest payments and bank profits. In America, we need more people in debt, not less. Only through debt can retailers, banks and businesses survive. Americans want it all. We say: Give the people what they want. As long as you can show an income stream, you can finance anything.
It is time to stop collusive private credit bureaus. For decades now, three massive private firms have assumed dictatorial power over Americans’ financial lives. For decades now, these three firms have forced countless Americans into self-doubt, despair and poverty. They say they are simply “performing a service for interested creditors.” We say they are waging war on Americans’ self-esteem. How do you feel when the credit bureau says your score is “Poor?” What if you are a very nice person who helps his relatives when they are sick? What if you believe in God and truly wish others well in life? What if you spend your days caring for children and invalids? What if you donate time and money to the Ronald McDonald® cancer research fund? Is your character “poor” because you missed a mortgage payment in Q3 2005? Are you a “despicable, untrustworthy” person because your cell phone bill got lost in the mail in October 2003? Are you a “credit risk” because you did not pay your monthly credit card balance in June 2007?
No! You are a good person, and you should not allow some private cartel to brand you a dishonorable brigand for one financial mishap. You have done good things in your life, too. And you deserve recognition for them.
This is the United States of America. We believe in hearty business competition. Why, then, do we allow three private bureaus to form a monopoly on credit reporting? How have we allowed these monster corporations to tyrannize our financial and personal lives? Today, credit bureaus brand us deadbeats with impunity. They drive us to mental illness and desperation, even if we are fundamentally good people. They reduce us to a cold, impersonal “score” that determines our fortunes. They prevent us from entering into the debt we need to keep this country strong. We must stop the lies. It is time to stop the badmouthing. It is time to stop the bullying and denials. And it is time to start borrowing freely again.
Today, we are proud to offer Americans a solution to credit score tyranny: THE COUNTER-CREDIT REPORT® (CCR®). Unlike a traditional credit report, the CCR tells a positive story, not a negative one. Credit reports focus on all your financial flaws; by contrast, CCRs tell creditors how many bills you have actually paid in your life. Isn’t it only fair that creditors hear how many times you have paid bills, too? Now, they only hear how many times you missed payments. With a CCR, you can balance the scales. You can tell creditors: “Yes, I missed by gas bill in May 1996. But in February 2008 I paid $1,000 in rent, a $456.21 credit card bill, a $431.21 monthly student loan installment, a $212.32 car note, a Sbarro® tab for $5.87, and I paid cash for coffee every single morning that whole month.” Does that not show that you pay bills more than you miss them? Why allow credit bureaus to draw the wrong conclusions about you? Shouldn’t you have the opportunity to show that you have paid thousands of bills, but missed only 5? With a CCR, you can fight back. You can paint a just picture. And with a CCR you can get the loan you need to pay your other bills.
You have a right to be upset with credit reporting practices. Today, three colossal credit bureaus compile scandalous data about you without your knowledge, then disseminate that data to others in order to stop you from buying what you want. Today, credit bureaus paint you a loser, a deadbeat, a vagabond. You deserve better. You are so much more than a “Below Average” credit score. You are an “Above Average” person. You have a family. You care for your children. You go to work. You pay for groceries and rent. Isn’t it only fair that your creditors know the good things about you, too? Let us bring fairness into the credit world. We do not have time for one-sided stories anymore. We deserve a well-rounded picture, not financial caricatures. This is about image. You should care about how creditors see you. With a CCR, you can restore luster to your image. It is time to let your creditors hear about how responsible you really are.
What are you waiting for? Call today for your FREE1 Counter-Credit Report. There is no obligation2. There is no monthly fee3. Aren’t you tired of letting credit bureaus sabotage your life plans by declaring you a deadbeat? Stand up for fairness. Stand up against monopolies. This is about financial integrity, and you know you pay more bills than you miss. Americans do not tolerate one-sided portrayals; they deserve a fair and balanced picture. Bring balance back to lending with a CCR in your hand. You owe it to yourself. You owe it to America. Because without debt, America fails™.
You have a right to tell people that you pay bills, too. In this country, we treasure responsibility. Is it not responsible to pay your bills? Every time you pay a bill, you fulfill a commitment. You satisfy an obligation. That is honorable. You are acting with trust and respect. You should get a good check next to your name for that. With a CCR, you can show the world how responsible you really are. Take a stand for responsibility. Call now.
1 Subject to terms and conditions. Offer variable at Seller’s option. Not valid in all areas. Call Seller for details. Initial payment of $44.99 allows Buyer opportunity for mail-in rebate. Allow 90 days for rebate. Shipping and handling costs to be unconditionally borne by Buyer; non-refundable.
2 Subscribing to Counter-Credit Report® services creates a legal obligation pursuant to Alaska law, unless and until Buyer fulfills applicable Cancellation Agreement terms and conditions.
3 Monthly fee of $9.99 assessed unless and until Buyer fulfills application Cancellation Agreement terms and conditions. See Retailer for Cancellation Agreement details. Failure to pay monthly fee will result in collection action, including reporting to all major credit bureaus. Attorney’s fees and costs to be borne unconditionally by Buyer. Any disputes shall be resolved by mediation. Seller has the right to choose the mediator. Buyer bears all costs associated with appearing before mediator in Anchorage, Alaska. Buyer hereby waives any and all right to a jury trial. Failure to appear shall result in default judgment for Seller.
Are you sick and tired of credit checks? Do you feel bad when retail stores turn you down for a plasma screen television because you had a bankruptcy in 2004? Do you want to buy a car, but dealers laugh at you because the credit bureau labels your creditworthiness “Very Poor?” Well it’s time to reclaim your financial health. It’s time to set the record straight. It’s time to start buying. And it’s time to feel better about yourself, too.
No matter what the bureaus tell you, credit scores do not define who you are. You cannot go to jail for having bad credit. You may not be able to buy a home or rent an apartment, but no government official can arrest you because you did not pay your light bill in August 1990. In fact, our government would prefer that you go into debt. Our economy depends on people spending more money than they have. Without credit, the entire system would collapse. Yet credit bureaus make it difficult on average Americans to enter into more debt. By branding every American with a “credit score,” monolithic credit bureaus dissuade lenders from giving you money. In America, we can barely afford anything, and the bills keep pouring in. Virtually everyone has missed a payment sometime in their lives. In your hectic life, how can you not miss a payment? Your address changes, the bank sells its accounts to a subsidiary, your dog ate the check, you got sick, the post office did not forward your mail, you died… the list goes on. Your creditors don’t care. When you miss a payment, they call the credit bureau. And your score sinks.
What do your creditors tell the credit bureau? Basically, they call you a no-good dead beat. They say you failed to pay your $45.31 monthly phone bill, and that makes you a lousy bum who doesn’t deserve to get a loan because you can’t be trusted. The credit bureau types your name and social security number into a master computer, which then processes your information through a mathematical algorithm. When the computer is done, a number appears next to your name. You have been branded. You have a score. You are a “Credit Risk,” and you will not be getting a loan. Every time you ask for credit, the lender calls up the bureau. The bureau goes to the computer, pulls up your name and whispers the lender your number. The lender then tells you: “Denied. Have a nice day.”
Credit bureaus tyrannize well-meaning Americans. They say they are just doing “private business,” but in fact they make it difficult for Americans to go into debt. Without debt, you cannot pay your bills. Without debt, businesses fail. When businesses fail, the public suffers. In that light, credit bureaus do much more than mere “private business.” They defame and denigrate countless Americans. They cut down the credit tree before it can grow. They block lending, which in turn blocks interest payments and bank profits. In America, we need more people in debt, not less. Only through debt can retailers, banks and businesses survive. Americans want it all. We say: Give the people what they want. As long as you can show an income stream, you can finance anything.
It is time to stop collusive private credit bureaus. For decades now, three massive private firms have assumed dictatorial power over Americans’ financial lives. For decades now, these three firms have forced countless Americans into self-doubt, despair and poverty. They say they are simply “performing a service for interested creditors.” We say they are waging war on Americans’ self-esteem. How do you feel when the credit bureau says your score is “Poor?” What if you are a very nice person who helps his relatives when they are sick? What if you believe in God and truly wish others well in life? What if you spend your days caring for children and invalids? What if you donate time and money to the Ronald McDonald® cancer research fund? Is your character “poor” because you missed a mortgage payment in Q3 2005? Are you a “despicable, untrustworthy” person because your cell phone bill got lost in the mail in October 2003? Are you a “credit risk” because you did not pay your monthly credit card balance in June 2007?
No! You are a good person, and you should not allow some private cartel to brand you a dishonorable brigand for one financial mishap. You have done good things in your life, too. And you deserve recognition for them.
This is the United States of America. We believe in hearty business competition. Why, then, do we allow three private bureaus to form a monopoly on credit reporting? How have we allowed these monster corporations to tyrannize our financial and personal lives? Today, credit bureaus brand us deadbeats with impunity. They drive us to mental illness and desperation, even if we are fundamentally good people. They reduce us to a cold, impersonal “score” that determines our fortunes. They prevent us from entering into the debt we need to keep this country strong. We must stop the lies. It is time to stop the badmouthing. It is time to stop the bullying and denials. And it is time to start borrowing freely again.
Today, we are proud to offer Americans a solution to credit score tyranny: THE COUNTER-CREDIT REPORT® (CCR®). Unlike a traditional credit report, the CCR tells a positive story, not a negative one. Credit reports focus on all your financial flaws; by contrast, CCRs tell creditors how many bills you have actually paid in your life. Isn’t it only fair that creditors hear how many times you have paid bills, too? Now, they only hear how many times you missed payments. With a CCR, you can balance the scales. You can tell creditors: “Yes, I missed by gas bill in May 1996. But in February 2008 I paid $1,000 in rent, a $456.21 credit card bill, a $431.21 monthly student loan installment, a $212.32 car note, a Sbarro® tab for $5.87, and I paid cash for coffee every single morning that whole month.” Does that not show that you pay bills more than you miss them? Why allow credit bureaus to draw the wrong conclusions about you? Shouldn’t you have the opportunity to show that you have paid thousands of bills, but missed only 5? With a CCR, you can fight back. You can paint a just picture. And with a CCR you can get the loan you need to pay your other bills.
You have a right to be upset with credit reporting practices. Today, three colossal credit bureaus compile scandalous data about you without your knowledge, then disseminate that data to others in order to stop you from buying what you want. Today, credit bureaus paint you a loser, a deadbeat, a vagabond. You deserve better. You are so much more than a “Below Average” credit score. You are an “Above Average” person. You have a family. You care for your children. You go to work. You pay for groceries and rent. Isn’t it only fair that your creditors know the good things about you, too? Let us bring fairness into the credit world. We do not have time for one-sided stories anymore. We deserve a well-rounded picture, not financial caricatures. This is about image. You should care about how creditors see you. With a CCR, you can restore luster to your image. It is time to let your creditors hear about how responsible you really are.
What are you waiting for? Call today for your FREE1 Counter-Credit Report. There is no obligation2. There is no monthly fee3. Aren’t you tired of letting credit bureaus sabotage your life plans by declaring you a deadbeat? Stand up for fairness. Stand up against monopolies. This is about financial integrity, and you know you pay more bills than you miss. Americans do not tolerate one-sided portrayals; they deserve a fair and balanced picture. Bring balance back to lending with a CCR in your hand. You owe it to yourself. You owe it to America. Because without debt, America fails™.
You have a right to tell people that you pay bills, too. In this country, we treasure responsibility. Is it not responsible to pay your bills? Every time you pay a bill, you fulfill a commitment. You satisfy an obligation. That is honorable. You are acting with trust and respect. You should get a good check next to your name for that. With a CCR, you can show the world how responsible you really are. Take a stand for responsibility. Call now.
1 Subject to terms and conditions. Offer variable at Seller’s option. Not valid in all areas. Call Seller for details. Initial payment of $44.99 allows Buyer opportunity for mail-in rebate. Allow 90 days for rebate. Shipping and handling costs to be unconditionally borne by Buyer; non-refundable.
2 Subscribing to Counter-Credit Report® services creates a legal obligation pursuant to Alaska law, unless and until Buyer fulfills applicable Cancellation Agreement terms and conditions.
3 Monthly fee of $9.99 assessed unless and until Buyer fulfills application Cancellation Agreement terms and conditions. See Retailer for Cancellation Agreement details. Failure to pay monthly fee will result in collection action, including reporting to all major credit bureaus. Attorney’s fees and costs to be borne unconditionally by Buyer. Any disputes shall be resolved by mediation. Seller has the right to choose the mediator. Buyer bears all costs associated with appearing before mediator in Anchorage, Alaska. Buyer hereby waives any and all right to a jury trial. Failure to appear shall result in default judgment for Seller.
Saturday, September 20, 2008
OESTERHOUDT STRIKES
I do not own a consumer credit card. I buy things only when I know I have the money to pay for them, despite the dozens of solicitations I receive in the mail from credit card companies every month. Of course, that does not mean I am not in debt. My education sank me into more debt than Best Buy or GMC ever could. There was no other way for me to go to school; I had to become a debtor. I did not have $35,000 in cash each year, so I went to the bank and applied for loans. Now, more than two years after beginning to pay back my loans, I actually owe more than the amount I initially borrowed. "How can that be?" you ask. Ah, there is a price to making minimum payments, namely: "accruing recapitalized interest." Basically, it means the interest gets added to the amount you borrowed. And bigger numbers yield more interest per month, so it's an upward spiral. There is no sense trying to fight this. It's all allowed under the fine print contract. And I signed the contract while technically sane, so the law favors the bank. Sure, I needed the money to go to school, but terms are terms. It doesn't matter why you signed; it only matters that you signed. In our system, you can bargain for anything, even if you do not remember--or even really know--what you signed. That's the law.
Still, I prefer not to grant power to a creditor unless I have to. I think my education was a wise credit purchase, even though I will be paying for it until I'm in my 60s. I feel I had no choice but debt in those circumstances. But I do have a choice whether to go into consumer debt, and that is why I don't own a credit card.
Consumer credit card companies are evil. They profit from the worst, most childlike impulses that lurk in human hearts. They encourage people to go into debt by deluding them into thinking they can "get things they want" without actually paying for them. We must not forget that American society is a pervasively commercial society. Every day, we see shiny new things on television. The images burn themselves onto our minds; it is sensory. Human beings respond to what they sense, and that is why we hunger to buy what we've perceived. Advertisers play to our senses. They show us things that excite us on some level; they tell us only good things about them, heightening our excitement. They appeal to our eyes and ears. Their sensory overtures excite our emotions, not our minds. It all adds up to a ceaseless sensory barrage calculated to make you want to buy things, without even really knowing why. Credit card companies provide the means to succumb to the "buying urge."
Credit card companies have completely hypnotized the American public. Most consumers do not realize what has happened to them until it is too late. Dazzled by the sensory parade that led them to the retailer, they do not read the contracts that reduce them to perpetual debtors. Consumers want to sate the commercial lust that advertisers awakened in them; and they will sign anything to do so. To lure consumers into signing obscenely unfair contracts, credit card companies employ a host of tactics. Today, I will address only one: the "free cash back" offer.
It goes something like this: A credit card company tells both existing and potential cardholders that it will "give them $100 free if they purchase more goods with their cards." Consumers, who rarely analyze commercial messages, jump at the chance to "get $100 free." So they run out and charge $1000 on their cards. In return, the credit card company reduces their outstanding balance by $100.
This is not "free money." In essence, the credit card company induced the consumer to incur $900 net debt for a $100 gain. Any ploy that makes you incur more debt will not allow you to make a net gain. The $100 was not "free;" you paid $900 for it. Sure, you might not have to pay the $900 all at once, but it is an interest-bearing kernel that will continue to yield profits for the credit card company for years to come. And if you default, the credit card company will sell your account to someone else; they will get paid somehow, and they have a legal right to every penny. You, by contrast, have no defense at all. So what good is your "free $100" then?
Why does this bother me? It bothers me for several reasons. First, I do not like the fact that credit card companies profit from reducing millions of Americans to financial servitude. This is a debtor nation. It is difficult to see how an economy can truly flourish when millions of people have net worth in the negative figures. That is the opposite of wealth.
Second, I do not like the fact that credit card companies prey on the commercial and sensory weaknesses of American consumers. In this country, people literally lust for material objects. Advertising and continuous sensory bombardment excite consumers into a buying frenzy, even when it is not financially possible for them to buy anything. Credit card companies furnish a means to succumb to this irrational commercial behavior. That behavior, in turn, enriches the credit card company while it reduces the consumer to perpetual debt. In essence, credit card companies make money by exploiting human weakness.
Third, I do not like the fact that credit card advertising conceals the truth. It is exceedingly difficult to ascertain the subtle distortions that underlie any commercial message. Credit card offers for "free cash back" or "no-interest financing" are not what they purport to be. States require advertisers to disclose the negative implications behind any claim, but those disclosures need not be conspicuous or obvious. Credit card companies take full advantage; they never explain that "free cash back" means actually incurring more debt and yielding even more financial control to the credit card company.
Finally, credit card companies enjoy far too much power in our society. There is no equality at all between the individual consumer and the massively powerful credit card company. The credit card company dictates all the terms and enjoys all the legal advantages. Credit card companies know their contract law. They know that contract law shields them from claims that their credit agreements are "unfair" because consumers "voluntarily" entered into them. Yet there is a difference between "legal unfairness" and "actual unfairness." Relationships between credit card companies and individual consumers are "actually unfair," even if the law considers them perfectly valid. It is unfair to saddle a consumer with 18% interest for missing one payment. It is unfair to force him to travel to distant States to attend arbitration in case of dispute. And it is unfair to mislead him into thinking he is making "Free Money" by incurring more debt. Common decency tell us this, not the law. In essence, credit card companies dominate their subjects with legally-sanctioned oppression. They have all the advantages, make all the money and bear almost no risk. And they get away with it because they prey on consumers' commercial weaknesses. It is a form of absolute, private, contractual tyranny.
Do not be a debtor unless you must be a debtor. Credit card companies can only achieve their grip on a consumer if the consumer takes the fateful step to enter the relationship. The problem is that all too many consumers take that step while burning with commercial lust. To avoid the prison of debt, you must use your reason and think critically. Credit card companies dissuade consumers from both. If you understand how credit card companies operate, you can avoid their chains. This is America, after all: We should have the power to resist private tyranny, no matter how much it entices us.
Still, I prefer not to grant power to a creditor unless I have to. I think my education was a wise credit purchase, even though I will be paying for it until I'm in my 60s. I feel I had no choice but debt in those circumstances. But I do have a choice whether to go into consumer debt, and that is why I don't own a credit card.
Consumer credit card companies are evil. They profit from the worst, most childlike impulses that lurk in human hearts. They encourage people to go into debt by deluding them into thinking they can "get things they want" without actually paying for them. We must not forget that American society is a pervasively commercial society. Every day, we see shiny new things on television. The images burn themselves onto our minds; it is sensory. Human beings respond to what they sense, and that is why we hunger to buy what we've perceived. Advertisers play to our senses. They show us things that excite us on some level; they tell us only good things about them, heightening our excitement. They appeal to our eyes and ears. Their sensory overtures excite our emotions, not our minds. It all adds up to a ceaseless sensory barrage calculated to make you want to buy things, without even really knowing why. Credit card companies provide the means to succumb to the "buying urge."
Credit card companies have completely hypnotized the American public. Most consumers do not realize what has happened to them until it is too late. Dazzled by the sensory parade that led them to the retailer, they do not read the contracts that reduce them to perpetual debtors. Consumers want to sate the commercial lust that advertisers awakened in them; and they will sign anything to do so. To lure consumers into signing obscenely unfair contracts, credit card companies employ a host of tactics. Today, I will address only one: the "free cash back" offer.
It goes something like this: A credit card company tells both existing and potential cardholders that it will "give them $100 free if they purchase more goods with their cards." Consumers, who rarely analyze commercial messages, jump at the chance to "get $100 free." So they run out and charge $1000 on their cards. In return, the credit card company reduces their outstanding balance by $100.
This is not "free money." In essence, the credit card company induced the consumer to incur $900 net debt for a $100 gain. Any ploy that makes you incur more debt will not allow you to make a net gain. The $100 was not "free;" you paid $900 for it. Sure, you might not have to pay the $900 all at once, but it is an interest-bearing kernel that will continue to yield profits for the credit card company for years to come. And if you default, the credit card company will sell your account to someone else; they will get paid somehow, and they have a legal right to every penny. You, by contrast, have no defense at all. So what good is your "free $100" then?
Why does this bother me? It bothers me for several reasons. First, I do not like the fact that credit card companies profit from reducing millions of Americans to financial servitude. This is a debtor nation. It is difficult to see how an economy can truly flourish when millions of people have net worth in the negative figures. That is the opposite of wealth.
Second, I do not like the fact that credit card companies prey on the commercial and sensory weaknesses of American consumers. In this country, people literally lust for material objects. Advertising and continuous sensory bombardment excite consumers into a buying frenzy, even when it is not financially possible for them to buy anything. Credit card companies furnish a means to succumb to this irrational commercial behavior. That behavior, in turn, enriches the credit card company while it reduces the consumer to perpetual debt. In essence, credit card companies make money by exploiting human weakness.
Third, I do not like the fact that credit card advertising conceals the truth. It is exceedingly difficult to ascertain the subtle distortions that underlie any commercial message. Credit card offers for "free cash back" or "no-interest financing" are not what they purport to be. States require advertisers to disclose the negative implications behind any claim, but those disclosures need not be conspicuous or obvious. Credit card companies take full advantage; they never explain that "free cash back" means actually incurring more debt and yielding even more financial control to the credit card company.
Finally, credit card companies enjoy far too much power in our society. There is no equality at all between the individual consumer and the massively powerful credit card company. The credit card company dictates all the terms and enjoys all the legal advantages. Credit card companies know their contract law. They know that contract law shields them from claims that their credit agreements are "unfair" because consumers "voluntarily" entered into them. Yet there is a difference between "legal unfairness" and "actual unfairness." Relationships between credit card companies and individual consumers are "actually unfair," even if the law considers them perfectly valid. It is unfair to saddle a consumer with 18% interest for missing one payment. It is unfair to force him to travel to distant States to attend arbitration in case of dispute. And it is unfair to mislead him into thinking he is making "Free Money" by incurring more debt. Common decency tell us this, not the law. In essence, credit card companies dominate their subjects with legally-sanctioned oppression. They have all the advantages, make all the money and bear almost no risk. And they get away with it because they prey on consumers' commercial weaknesses. It is a form of absolute, private, contractual tyranny.
Do not be a debtor unless you must be a debtor. Credit card companies can only achieve their grip on a consumer if the consumer takes the fateful step to enter the relationship. The problem is that all too many consumers take that step while burning with commercial lust. To avoid the prison of debt, you must use your reason and think critically. Credit card companies dissuade consumers from both. If you understand how credit card companies operate, you can avoid their chains. This is America, after all: We should have the power to resist private tyranny, no matter how much it entices us.
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