Institute True Protections for Consumer Credit
By Ada Fisher, MD
Now that we have bailed out the banks, could it be as Fayetteville, NC conservative talk show host David Taylor suggested that we are letting the auto industry flounder because a car gives you a potential source of equity to borrow against. By making it so that you can only get money through banks which are being socialized whether or not we want to call them such, this talk show host argues that banks and the Federal Reserve are being allowed to drown the economy and consumers in worthless money thereby controlling your access to cash without using a government approved bank.
Interesting theory and the recently revealed words of Treasury Secretary Geitner lend this argument some support. But I’d like to suggest that there are ways to help consumer credit without the impotent consumer credit protection bill being forwarded to President Obama for signature or being as intrusive on our civil liberties as the Obama Administration has begun.
First fix interest rates nationwide to no more than 10% above the prime up to a maximum of 20%. Did you know the Koran and Islam have admonishments against usury? When I was a kid in North Carolina, Credit Card rates were 12%. Sears is up to 31% and bank credit cards originating in Vice President Joe Biden’s home state of Delaware are squeezing consumers dry. Such must be stopped. The Credit Bill puts no limits on what can be charged. With the prime interest rate less than 5% and companies charging over 30% interest that is an unearned source of profit for banking which you’ve bailed out. This must be stopped.
The proposed Consumer Protection bill pimps us in only demanding that we be notified within 30 or more days when we are about to be abused again. We have made credit cards the never repay lender as an alternative to scandalous pay day lenders. Congress needs to get some testosterone and stop this floating credit rate, eliminate charges for people borrowing their own money, and allow folks to repay (including banks) early without penalty. Part and parcel of this must include overhauling the credit rating system by not penalizing folks who responsibly utilize credit, have more than one account or operate on plastic but make their payments on time.
Second, all refunds from the government whether state or federal for overpayment of taxes must be returned within 90 days. Any consideration that they are going to hold on to a taxpayers refund because the government is out of money should never be allowed.
Third, all current federal employees earning more than $100,000 annually should be required to take a 10% pay cut and a Cost of Living Adjustments moratorium placed on their monies. All Congressmen and past US Presidents should likewise be prohibited from double dipping, etc. without the same being given to the disabled whether veteran or not.
No disability payments should be taxed under $100,000. Those receiving such are already operating at less than 60% of their salary. For those who made $30,000 as a federal government employee, that amounts to at most $18,000 the first year and $12,000 thereafter. Insurance payouts should also not be taxed.
Fourth, Social Security payments should not be taxed upon receipt as this money was taxed when it was initially taken out of your checks. This is double taxation without representation. Social Security monies should be maintained in a separate account apart from the Treasury’s General Fund and not used to balance the national budget. The Totalization Agreement which allows payments to Mexico for Social Security payments withheld on illegal immigrant labors should be voided and such monies apportioned to those states with high illegal populations providing social services to them.
Fifth, allow a tax break for purchasing consumer goods made is the USA in critical industries such as housing and automobile with up to 25% deductibility. If we give folks a break, they will buy US made cars which will put folks to work in this nation.
Sixth, allow cost for education past high school to be non-taxable. The President lied. There are no $2,500 grants being offered in the stimulus bill. Tax credits are given but first you have to have the money to payout to get such. Stop this charade for votes. Make $2,500 opportunity grants to all with a 3.0 grade point average on a 4.0 scale who are in the top 25% of their class. Such rightly puts the responsibility on students to make the grades to get the reward.
Lastly stop predatory lending and limit usury on money. Money orders must be redeemable at the place of purchase. Currency exchanges should not be allowed to charge more than $5 on the first $100, $10 up to $1000 and $100 up to $2000 with banks under the Federal Deposit Insurance Corporation system required to cash legitimate checks or money orders with identification. Loans on homes, businesses, etc. from FDIC financial institutions should not be allowed for those having incomes and/ or assets less than 30% of monies borrowed. [Such would have stopped foreclosure properties in not allowing folks to purchase houses they couldn’t afford.]
America Wake Up! Your credit repayments aren’t to be my burden but the government can intercede to insure fairness in lending. Take a hot tardy! Man up and learn the secret of most millionaires– always live below your means and save something for a rainy day.
Dr. Ada M. Fisher is a physician, previous member of a county board of education, licensed secondary education teacher and is the NC Republican national Committee Woman. Contact her at P. O. Box 777; Salisbury, NC 28145; telephone (704) 223-2321; DrFisher@Fishernchousedistrict77.com
I must say this is a great article i enjoyed reading it keep the good work
I’ve been reading along for a while now. I just wanted to drop you a comment to say keep up the good work.