What is Worse than a Credit Card?
With all the government focus on credit card company operations, the real financial thieves remain untouched. Cellular phone companies have far worse negative impacts on consumers' finances.
According to a 2009 report by ConsumerReports.org, the average consumer spent $600 a year on cell phone use, but families that talk, text, or use other phone features spend upward of $1,800 a year. Dwell on that for a moment. Those amounts are spent merely for communication convenience, not for a tangible purchase. For families that spend up to $1,800 per year on cell phone use, that's more than many families pay in credit card interest charges. Worse, with a cell phone consumers are paying for 'air', versus a credit card that makes 'tangible' purchases.
Let's compare some of the complaints against credit card companies to the business practices of cell phone companies:
Credit Card Account | Cellular Phone Account | Is there a term contract required? | | No | Yes, typically 1 year minimum | Is there a fee for early contract termination? | | No | Yes | Is there a fee for adding another user to the account? | | No | Yes, for a new line | Is there a fee for over-usage? | | Yes, for over-charging | Yes, for exceeding air time | Is there a fee for late payments? | | Yes | Yes | Are there higher rates for certain uses? | | Yes, for cash advances | Yes, for roaming/long distance |
As you can see from the above comparisons, not only do cell phone companies have some of the same business practices which the government deems questionable, they also have other costly fees which even credit card companies do not charge.
So why is it that congress wants to control credit cards, while letting cell phone companies continue their practices which are by far worse? Call your congressman and demand the deregulation of credit cards and to regulate cell phone companies instead.
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