Feds Want Tougher Rules For Retailers Who Want To Sell Us Credit – About Time!

‘Would you like to save $20 on today’s purchase? Just sign up for one of our easy to get credit cards.’ I don’t know about you but this gets old when you just want to buy something and get hit with this from a clerk. I just came in to buy the item and not fill out a credit application. This may change soon if the feds have their way.

According to one article it states that:

Some big retailers are balking at federal proposals that would make it a lot tougher for them to dole out instant credit at the cash register.

The restrictions, if enacted by the Federal Reserve, would force retailers to gather more financial information from customers— including how much they earn— before giving them credit.

That would endanger at least some popular cash-register pitches, which often echo one from apparel retailer Talbots Inc. to “get 15% off today’s purchase” by opening a charge-card account on the spot.

This is the line I enjoyed reading the most:

“Instant credit is important because it is another service that we can offer the customer that the customer considers to be valuable,” said Jim Sluzewski, a spokesman for Macy’s, which like the other retailers has lodged gripes with the Fed. In the third quarter, more than half of Macy’s sales were rung up on store-brand credit cards. Macy’s operates more than 850 department stores in 45 U.S. states.

A service for who? What a crock. These are legal scams that bilk the consumer and put more dough into the pockets of those that deserve it the least. The article goes on to state that these retailers bundle up these credit cards and sell them to banks.

Isn’t this the same thing that happened to our housing industry? Bundle up bad credit loans and sell them to investors? Wasn’t this the same bunch of banking crooks that we had to bail out?

I sincerely hope that the Federal Reserve implicates these changes. We can no longer afford to bail these jerks out with our hard earned tax money.

Comments welcome.

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I have been writing for Lockergnome for eight years.