Fact Vs. Emotion in the Credit Card Debate

Obama's administration, including many Democrats in Congress, wants to force the credit card industry to cap their percentage rate at a ridiculous 15% (blocked, luckily). However, it looks like the bill they're putting together would reward bad behavior and punish good behavior.

I think the Democratic Congress and Obama are stepping in over their heads, trying to tackle credit card companies during a recession. As this article from the Motley Fool details, there are some major problems when government tries to regulate an industry. In this case, the government meddling and populist backlash against credit card companies will only hurt the industry, and ultimately, all consumers. Even NPR, normally a 'progressive' station, is reporting the regulation could backfire.

The sad thing is, responsible spending and paying attention to your credit card statements, two basic principles of correctly handling a credit card, seem to be lacking in those crying loudest for credit card reform. The example Obama cites for 'unfair practices' is: 

"One... woman saw her credit card interest rate jump to nearly 30 percent because she mistakenly went over the card's limit." (Emphasis mine.)

Okay, so the woman makes a mistake... and it's the company's fault for raising her rate? Somehow this just defies logic.

More personal responsibility and less whining to the government for regulation, please.