Decision 2012 and credit cards - Jon Huntsman and Barack Obama

Posted On : January 19, 2012 by Richard Barrington

The reformers

For better or worse, these candidates seem willing to take positions directly contrary to those of large financial companies:

Jon HuntsmanJon Huntsman

Ambassador and former Utah governor Huntsman dropped out of the GOP race on Jan. 16. He opposes Dodd-Frank on the objection that it creates a safety net for big banks. Instead, Huntsman wants to break up big banks, and put in measures that would limit the size of banks and discourage risk-taking.

 

Barack ObamaBarack Obama

The Democratic Party incumbent has presided over major financial reforms such as the Credit CARD Act of 2009 and the Dodd-Frank Act of 2010, and recently took the bold move of making a recess appointment of Richard Cordray as head of the Consumer Financial Protection Bureau.

 

Supporting financial reforms would seem to put these candidates squarely in the corner of credit card customers, right? Not necessarily. Some would argue that an excess of regulation forces credit card rates higher, and/or limits the availability of credit cards.

For example, if you have good credit and pay your bills on time, you may end up paying for measures designed to protect people whose bad credit and payment habits have exposed them to high credit card fees and interest rates. So, whether or not restrictions on credit card companies are good for you depends on what type of customer you are.

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