... as it was first broadcast in 2004, the year before the personal bankruptcy laws were made punitive in the United States. Because mandatory credit counseling is really going to help you if you owe a bunch of money because you got cancer. But we don't talk about that in this country, and I digress.
This episode goes back to about 1980 when there were usury laws that, because of the sharp rise in interest rates at that time, meant that credit card companies paid 20% on the money they borrowed but could only get 12% or so from their customers. This all changed when South Dakota first eliminated their usury laws, followed by Delaware.
So, little by little, court cases that went the way of creditors and just the pure cheek of the banks caused them to be able to take advantage of unsavvy customers and customers with bad credit history. When I first graduated college I couldn't get a credit card until I bought a home although I had a good steady job. Within five years they were handing out credit cards like they were candy on college campuses to students with no full time job or credit history.
There are plenty of interviews and, as always, Frontline's high production values pull you into the documentary.
This episode goes back to about 1980 when there were usury laws that, because of the sharp rise in interest rates at that time, meant that credit card companies paid 20% on the money they borrowed but could only get 12% or so from their customers. This all changed when South Dakota first eliminated their usury laws, followed by Delaware.
So, little by little, court cases that went the way of creditors and just the pure cheek of the banks caused them to be able to take advantage of unsavvy customers and customers with bad credit history. When I first graduated college I couldn't get a credit card until I bought a home although I had a good steady job. Within five years they were handing out credit cards like they were candy on college campuses to students with no full time job or credit history.
There are plenty of interviews and, as always, Frontline's high production values pull you into the documentary.
