Chuckie knows best

So, how’s that credit card reform working for ya? About as well as one would expect when the credit card companies are being faced with restrictions on pricing and other rules that prohibit setting credit terms based on the borrower’s individual risk profile.

Banks such as Chase, Bank of America, Capitol One, and Citigroup are doing everything from raising balance-transfer fees and expanding who gets hit with a penalty interest rate to establishing higher minimum APRs and raising card rates for certain borrowers.

Of course, Senators Charles Schumer (pictured) and Chris Dodd are shocked, absolutely shocked that banks would attempt to recoup potential losses in anticipation of tightening down revenue streams that will take effect in February of 2010. They have been unsuccessful to date in getting federal regulators to impose an “emergency freeze” on rate increases.

In a statement Monday, Schumer slammed issuers for trying to "wring more dollars out of their customers." Some of the changes in card terms, Schumer says, are "against the spirit of the law and ... just plain wrong."

In Chuckie’s fantasy world, the Banks will tell their board members and shareholders that they are voluntarily accepting a cut in revenue and profit margins because “it’s in the spirit of the law…. and is the right thing to do.”

This represents another example of counter-productive congressional meddling into affairs in which they have no business. It’s the law of unintended consequences that will dictate the cost of protecting bad credit risks being borne by the proverbial little guy who is a responsible credit card holder.

Look, we fully realize that credit card companies haven't exactly behaved like angels in this whole affiar, so as ones who have managed a very solid middle-class lifestyle here in San Diego without the assistance of a credit card for 12 years… we highly recommend it.