Democratic VP Worries Credit Card Industry

The upcoming presidential election is giving the credit card industry cause for concern. Industry thinkers are worried about the impact of democratic presidential candidate Barack Obama’s union with Delaware Sen. Joe Biden.

Over the course of his political career, Barack Obama has been a vocal antagonist of the credit card industry. During a June meeting, the candidate has been quoted as saying, “for too long, credit card companies have been using unfair and deceptive practices to trick Americans into signing agreements they can’t afford.” If Obama becomes president, he is likely to push for increased government regulation over the activities of credit card companies.

Given these factors, the industry is especially troubled by Obama’s choice of running mate. Most credit card companies operate out of Delaware, largely due to its lack of state taxes and business-friendly laws. Delaware has especially permissive state regulation over the interest rates financial institutions are permitted to charge on various types of loans.

Some credit card analysts believe that if Biden were not chosen to be Obama’s running mate earlier this week, he could have continued to represent the interests of Delaware’s businesses in the US Senate.  Biden could have been a source of support for Delaware-based credit card companies in the face of the federal pressure to regulate the credit industry that would most likely ensue if Obama were elected president. As Obama’s vice president, however, Biden will be unlikely to try to stop the probable spate of new federal  regulations, these analysts claim.

However, Jared Seiberg, an analyst with the Stanford Group, pointed out earlier today that “credit card issuers were going to face an uphill battle if Obama won regardless of the vice presidential choice.”

Notably, a major credit card company, MBNA Corp, which has been owned since 2006 by Bank of America, has furnished Sen. Biden with one of his biggest financial contributions over the course of his vice-presidential campaign.

Recent Additions:

• Michigan Insurers Can’t Use Credit Scores To Determine Rates
• Federal Government Cuts Interest Rates
• Handle Your Credit Wisely
• Potential Credit Card Laws to Protect Consumers
• Can Your Credit Survive The Economy?

Related Articles

• Credit Card Fraud Increases In California
Law enforcement officers say there's a rise in high-tech crime this year throughout southern California. Criminals are using illegal electronic devices to steal credit and
• There’s No Such Thing As A Free Credit Report
It is a basic law of economics: there's no such thing as a free lunch. Turns out, the same is true for most websites that
• Bottlenecked Flow of Credit Inhibits Growth
The amount of credit that is flowing to the companies operating in America is currently drying up at a pace that has not been seen
• Trends of Declining Credit Card Mail Continue in 2008
The financial research organization Mintel Compremedia reports today that the amount of materials sent by credit card companies to customers and potential customers through the
• Delinquent Payments Can Haunt Your Credit Score
While the economy of the nation is definitely not as stellar as it has been in recent years, the way in which the problems faced