Government Intervention – FAIL – A Personal Story
Despite my political philosophy, I have not been the most responsible person when it comes to money – I am 24 years old, and unfortunately I didn’t really understand the way credit or money works, so I have some rebuilding to do when it comes to my credit and a lot of student loans to pay off.
Needless to say, it’s nearly impossible for me to get a credit card, which I am perfectly fine with. I have made a decision that I will not live on credit, If I use credit cards, I will be sure to have the money to pay them off at the end of the month and I will resist using them unless it’s an emergency. It’s awful I’ve I didn’t use my money the right way, but in some ways I’m very thankful that I have learned the lessons that I did.
So with that in mind, I was thrilled to find out that my bank – Chase – offered a Debit card that allowed you to accumulate airline miles from United Airlines. This was great for me – I couldn’t get a credit card, and frankly I didn’t want to, but Chase made it possible for me to still collect airline miles through my debit card linked to my checking account so that I could go and see my family in New York at a discounted rate through the year.
Well, I got a letter from Chase yesterday informing me that because of the Durbin Amendment, I would no longer receive airline miles on my debit card.
The Durbin Amendment caps the amount of profit banks can make from debit card transactions because Sen. Durbin and his liberal supporters couldn’t stand the fact the banks made “excessive” profits on debit card transactions. You see if a bank can set charges, it makes money, and it can create rewards programs for using debit cards. The bank pays out the rewards but at the end of the day it more than makes it back by charging a minimal fee (the article I read said Chase charged 1.3% of the total transaction.) if the government can
cap their profits on this, why should they offer rewards?
So, thanks Sen. Durbin, I am now unable to take advantage of getting discounted flights to see my family in New York on a less than $40,000 salary in Southern California.
Government Intervention – FAILED.