Yup, Today is a day for Piss and Vinegar
I have a couple of credit cards with allowable balances that are so low they
are only good for buying a book or two and Amazon or paying for a year of
Anyway. We have lost the damn payment envelopes once or twice. Stuck them into the wrong pile and now and then have been a day or two late on the payments. These cards have absurd latefee charges. Most often the latefee exceeds the balance due.
Now, we can't really blame the assholes that run credit card ripoffs from doing it if our congressmen and senators let them get away with legalized robbery. Our congressmen and Senators campaign as if they are going to solve all the WORLD'S problems and they can't even control egregious credit card ripoffs and SPAM e-mail.
So, just to help these children in charge, here is a suggestion. The federal government should not only limit these late fees, but also charge a tax that is 100% of the late fees less the amount of reasonable extra interest which might be due if the payment is actually late. Let us say our representatives in Washington wake up some morning and decide, "Hey...today I'm actually going to do something for the constituents who voted for me and my opponent that isn't actually a camouflaged gift to a special interest such as a bank, credit card business, insurance company, pharmacy chain, or ...well you get the unrealistic drift here...
So, let us say our Congressmen in a fit of wisdom set late charges based on amount due. Let us say, $5.00 plus interest due if amount due is less than $50 plus current postage for one ounce letter such as 39 cents.. Joe Blow buys a spiral-sliced gourmet ham for $30. He would then pay $5.00 plus interest if he is late. Interest based on 30 days reasonable interest which might be set at 1% per 30 days just for illustration here. So, the total late charge would be $5 plus 39 cents plus 30 cents interest. Total due if late $30 plus $5.69. The government tax is immediate with no exemptions and the $5.00 is due within 30 days to our fine government. Credit card co still has the late fee hammer to stimulate payment, but does not benefit egregiously from it. They get the payment actually due plus 69 cents in this case.
I suspect this approach will cause the credit card to get reasonable in their late charges.
It is about the least our congressmen and senators should do for us for putting up with them. I'll give them a little more time to work on SPAM even though it also aggravates me.
Stay tuned to a weblog near you even if blogger is too soft on Congress.. )))) Doug Wiken..