The Consumer
“Among other consumer protections, the law limits how and when banks can hike interest rates and fees on credit cards.
Analysts have predicted banks would make up lost revenue by charging annual fees more frequently on credit cards and checking accounts, even for customers in good standing.
“We are making this change in response to market conditions, new federal laws and regulations, and the increasing costs of providing unsecured credit,” states a letter sent to a Bank of America credit-card customer and obtained by The Associated Press.
New regulations often protect people from a risk that has already burned them in exchange for a new levy on some other aspect of the business relationship, even if that levy effects consumers who have always been prudent. In the end the consumer always pays: free cards with rates that can adjust at any time are traded for subscription fees on cards with less risk of unexpected reset. Will it create a more responsible consumer? Who knows. All we know is that the business is maneuvering in such a way to protect itself. They’re going to find the money to survive the new regulation somewhere, and that somewhere is the consumer. The consumer’s choice? Accept it …or find a new place to do business.
