In May, President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act into law.  The White House ballyhooed the bill as the triumphant victory of the little guy over the massive credit card company.  This was your bill of rights to ward off those nefarious credit card companies with their sneaky fine print and “hike the interest rates whenever we want” mentality.  Now,   the real world impact of the Credit Card Accountability, Responsibility and Disclosure Act goes into effect this week for millions of Americans and “surprise” it isn’t what was promised.   In fact, it amounts to a government sanctioned tax to be levied on credit card users and account holders everywhere in the U.S.

In our mail at home yesterday we received our first proof of how Obama’s sweeping new legislation would drive out the robber baron credit card companies and pull us poor beleaguered debtors off the tracks of financial ruin.  I opened my bill from Dell Computers.  There, as the reform promised, in easy to read language (lest my feeble middle class brain not be able to absorb it) was the notice that after reviewing our credit history and account with Dell our interest rate was being raised.  Our one and only course of action if we don’t like the new rate is to cancel our account.

Okay, the account will be canceled.  Let’s get that out of the way upfront.  But now let's look deeper into this. 

I like Dell Computers.  We own a few. I’m writing this article on a Dell Computer.  We publish and produce The Cypress Times using Dell Computers.  I have no problem with Dell, but now I’ll never do business with Dell again.  They just lost a lifelong customer.  

My wife orders her ink diligently from Dell, choosing to deal with their insanity at making it difficult to get their products.   No problem, she’s been fine with that.  No more.  When we run out of Dell Ink, the Dell Printer will go in the closet and I’ll pull out an old printer that works great and whose ink is available at any Office Depot or Walmart.

To close out my issues with Dell, let’s discuss Dell’s review of my account history and what they found.   What kind of customer have I been?  That review showed that we opened the account a few years ago.  It showed that we’ve bought a couple of computers, a printer and lots of ink.  It showed that we’ve never been late for a single payment, never missed a payment, usually pay the balance in full, and when that's not the case, pay far more than our minimum balance due. Overall, it showed a very high credit rating for both Stacey and I.  

Most business owners would classify my wife and I as “good customers”.  I know when people do long term repeat business with The Cypress Times we do everything we can to foster and grow our business relationship, not squash it beneath a jackboot of inflated fees and penalties assessed as punishment for being loyal.   But maybe we’re doing this all wrong, maybe that’s why The Cypress Times doesn’t have a corporate jet.

Let’s go deeper.  Dell isn’t the one that actually holds and manages our credit account.  It is Citibank.  Ahh, good old Citibank.  I know them well.  I have one of their Visa cards, so I’m looking forward to that packet arriving in the mail this week, too.

Prior to the first stimulus Citibank received a $20 billion dollar bailout.  In the big stimulus package Citibank received another $300 billion or more, depending on who’s doing the math.  So, that’s over $320 billion dollars that Citibank has received in U.S. taxpayer dollars since late 2008.  By my calculations that is my money.  In fact it’s my children's money, and perhaps some of their children’s money.  Now, on top of that, Citibank needs more from me.

With the aid of the slickest highwaymen this side of Jesse James, the Obama Gang, Citibank has already stuck its hand into our collective pockets to the tune of $320 billion dollars.   Nice.  Now they need more, and since you won’t tolerate more in the form of taxes and bailouts (not those identified as such anyway) the Obama Gang comes up with this sweeping change to get credit card companies under control and what happens?   More money is coming out of my pockets.

I can either pay the Dell rate increase or cancel the account.  Neither of which are options I asked for nor would have requested.   Either way, I am being penalized for having paid my bills, for keeping my promises and upholding my financial commitments responsibly.

Meanwhile, when Citibank received its stimulus money, one of the first things they wanted to do (with your money) was to stimulate the French economy by purchasing a $45 to $50 million dollar jet for Citibank executives.   One must assume the old jet was looking raggedy and hey, when you’re broke and taking handouts you want to look your best, right?  Remember, beggars can be choosers if they align themselves with the federal government.

The greed and gall of Citibank and its ilk do not stop there.  Nor does the collusion between credit card companies and both federal and state governments, who apparently have now decided to just wait for us in the dark and mug us at every opportunity.  What's the difference between a mugger and someone from the government?  A mugger can only steal what you have on you, the government can take your money before you earn it, after you've already paid it in taxes, and prior to you ever earning more of it. 

Take for example what is being done to the unemployed as one of the most unique forms of theft every seen in the U.S.

As unemployment in this country now jumps above 10% and millions of Americans are relying solely on unemployment benefits  to survive (benefits they’ve paid for already during their careers), around 30 states have decided to let Citibank, Bank of American, JP Morgan Chase and others handle the payment of unemployment benefits in the form of bank-issued debit cards. 

You get your unemployment payment.  It comes to you as a debit card with the Citibank Logo or perhaps a Skull and Cross Bones emblazoned on the side.  It’s your way to gain access to your unemployment benefits.  An account is established and for so long as you are receiving unemployment benefits, and you can use that card just like a debit or credit card.  Make direct purchases.  Go to the ATM to get cash.  Awesome.  Convenient.  Smart.  Laden with fees.  What? 

Every time you use the state approved, big bank-issued debit card you’re charged a fee.  Even if you’re just checking the balance to see if you have enough money to pay a bill or to throw your money away on frivolous stuff, like food. 

Is this right?  Does any of this make sense to you in any world?  Can I try and recap?  Citibank (solely as an example) receives over $320 billion in your tax dollars.  Regardless of how you slice it and dice it, ultimately it will be your dollars.

Citibank's first impulse for exhibiting a newfound reponsible financial policy was to try and spend $50 million to buy a French Jet.  Their next impulse is to raise fees on your credit cards and accounts through third parties like Dell, but only after securing the legal blessing of the President of the United States of America and the “sit down, shut-up and take what we give you” Congress.   

If you’re unemployed the majority of individual U.S. states want you to have to pay fees to access dollars that you’ve added into an account for unemployment benefits you paid for already, and they want the big gun credit card robber barons to do the dirty work.   Huh?  How many dips into my pocket is that adding up to?

What do you, the financially responsible, hard working, bill paying American citizen get out of all of this? 

If you are among those who are solely dependent upon unemployment benefits, you’re in trouble.  If you’re among those whose benefits have run out and you must rely on your credit cards to put food on the table, you’re really in trouble. 

Whether by the trillions or by constant nickel and diming, Washington D.C. has its hands so far down our pockets that we don’t even have any lint left in there. 

Obama called it “Change You Can Believe In”.  The only change I’m seeing are the nickels and dimes that I can no longer hold on to because apparently even that isn’t too much for the government and big banks to wrench from my hands, and the mouths of my children.   “Change You Can Believe In?”  How about, “Brother can you spare a dime?”