My proposal to Congress to reform personal Credit.
By Daniel at 30 November, 2009, 10:16 pm
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1. As for Credit Card issuers, any Credit Card deemed to be charging Usary rates (including an average APR above 18% or a combination of use fees and APR) shall be barred from reporting to National Credit Agencies. Those engaged in Usary should be treated like pawn brokers or Payday Loan sharks.
America must encourage SUSTAINABLE LENDING that will allow citizens of America to pay debt down, and prosper.
2. Another enhancement to the banking system should be a system of rating a bank either on a point system similar to a personal credit score or an A-F system similar to a Health Dept. Rating on a Restaurant door. In fact, the banks rating, which will be scored by the balance ratio, number of foreclosures and write downs of bad loans, should be posted on every door of the bank, on a month by month basis, to show it’s depositors and it’s borrowers what risks there are in either borrowing from the bank, or making deposits in excess of the FDIC protected limits.
If banks make loans which result in default, they should publicly acknowledge that they are doing so. This public system of a door placard, may just make Bank’s think twice before refusing to work with a customer, in making payment adjustments.
Making the system understandable to the public is important, so perhaps it should read 760 (good credit) A rating, 223 (poor credit) F rating, etc. In California, everyone knows what it means to be eating at a diner that has a C rating, it means there are roaches or rats in the kitchen, and you don’t care about your own health if you are eating there!
- Chris Coonan
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