Don't Credit Card Issuers Deserve Protection?

Includes: AXP, DFS, MA, V
by: Mark J. Perry

The Credit Card Act of 2009 provides a lot of protection for cardholders:

  • Cardholders Deserve Protections against Arbitrary Interest Rate Increases
  • Cardholders Should Be Protected from Due Date Gimmicks
  • Cardholders Who Pay on Time Should Not Be Penalized
  • Cardholders Should Be Protected from Misleading Terms
  • Cardholders Deserve the Right to Set Limits on Their Credit
  • Card Companies Should Fairly Credit and Allocate Payments
  • Card Companies Should Not Impose Excessive Fees on Cardholders
  • Vulnerable Consumers Should Be Protected From Fee-Heavy Subprime Credit Cards

But given the fact that the charge-off rates for credit card loans (data here) have more than tripled from about 3% in early 2006 to 10.24% in the third quarter of 2009 to a record high 10.24% (see graph above), don't the banks and credit card issuers deserve some protection against reckless, irresponsible cardholders and record-high delinquencies, defaults and charge-off rates?