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PIRG’s “Consumer Advocacy” Threatens Credit Card Benefits
The U.S. Public Interest Group (PIRG), an organization founded by Ralph Nader, testified last month at a Congressional hearing of the House Antitrust Taskforce. Incredibly, the testimony advocated for increased government regulation of credit cards.
After a thorough analysis of the PIRG testimony, it is obvious that the statements made by the organization’s representative were politically motivated and amounted to a baseless attack on consumer choices.
PIRG’s statement advocates for a government-imposed cap on interchange fees - the amount that retailers and merchants are charged for credit card transactions. These fees are simply a cost of doing business just like paying rent on a storefront or paying the phone bill. Instead of letting the market set the tone by allowing businesses to negotiate amongst themselves, PIRG is presenting only one side of the issue in an attempt to rig the system to benefit retailers under the guise of “consumer advocacy.”
PIRG’s testimony glossed over the fact that many of the benefits that we enjoy as credit card users – everything from 0% interest rates to frequent flyer rewards programs – will be eliminated under this dangerous bureaucratic intervention.
Despite the statements made by PIRG’s representative, unnecessary government regulation will provide little gain for consumers. In fact, expert opinion and past experience shows that we have a whole lot to lose. Our credit card fees will increase, the rewards programs that let us give back to our communities and get cash back will disappear, and the low interest rates that let us pay down our debt will become nonexistent.
Read more about PIRG’s efforts to be a “consumer advocate” - in reality, their plan would only hurt consumers.
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