I think you have hit a nail on the head there with the suggestion that people do not read their terms/contracts.
Back in the 80s/early 90s, I had a lot of credit (and money), and I would read every word of the contract with my credit instruments (Am Ex card, Visa, Lines of Cash Credit, etc.) as I would then know where they could get me, and where I could get them. For instance, I discovered that many Am Ex accounts, at that time, came with credit insurance as a standard item. And, all it would take was a call to a Dr. to have a late payment deferred so that no increase in credit charges would occur (this would be for their Optima Card and the Lines of Credit).
I believe that it is a case of inadequate information that causes many of the problems with the credit industry and the fact that no one really knew what to do about it when confronted with their own dilemmas. I also favor Gov’t intervention in this case, as most people are not capable of handling their own affairs (who have been taken in by credit card companies offering them lines of credit that the people really shouldn’t have taken). This is true especially for people who come from social classes where handling money was not something they had much of a choice about. People whose only choices are to pay their bills when they are able, and hope that they have enough to cover them. It is only when people have a disposable income that they tend to pay attention to such things, as they do not want to be just throwing their money out of the door.
When one has no disposable income, it is doubtful that a person will ever learn how to manage money beyond immediate payment of bills, or running away from debt.
It is this group of people who have mostly contributed to the debt crisis (and housing problem), when they were offered terms that looked fair, but in reality were too complex for these people to understand.
As for the OP… I am really not sure what the issue is. It seems to be a complaint about the Gov’t having to step in to legislate against companies doing unfair things (exploiting the ignorance of the masses).
I think you have hit a nail on the head there with the suggestion that people do not read their terms/contracts.
Back in the 80s/early 90s, I had a lot of credit (and money), and I would read every word of the contract with my credit instruments (Am Ex card, Visa, Lines of Cash Credit, etc.) as I would then know where they could get me, and where I could get them. For instance, I discovered that many Am Ex accounts, at that time, came with credit insurance as a standard item. And, all it would take was a call to a Dr. to have a late payment deferred so that no increase in credit charges would occur (this would be for their Optima Card and the Lines of Credit).
I believe that it is a case of inadequate information that causes many of the problems with the credit industry and the fact that no one really knew what to do about it when confronted with their own dilemmas. I also favor Gov’t intervention in this case, as most people are not capable of handling their own affairs (who have been taken in by credit card companies offering them lines of credit that the people really shouldn’t have taken). This is true especially for people who come from social classes where handling money was not something they had much of a choice about. People whose only choices are to pay their bills when they are able, and hope that they have enough to cover them. It is only when people have a disposable income that they tend to pay attention to such things, as they do not want to be just throwing their money out of the door.
When one has no disposable income, it is doubtful that a person will ever learn how to manage money beyond immediate payment of bills, or running away from debt.
It is this group of people who have mostly contributed to the debt crisis (and housing problem), when they were offered terms that looked fair, but in reality were too complex for these people to understand.
As for the OP… I am really not sure what the issue is. It seems to be a complaint about the Gov’t having to step in to legislate against companies doing unfair things (exploiting the ignorance of the masses).