Last week, a number of credit card reforms were finalized, regulating a wide range of the credit industry from how interest rates are calculated to how long gift cards last. On January 17th, the Washington Post published an article that provides consumers with some caveats of these reforms. In particular, consumers are told to be conscientious of rebate cards: a type of rebate that is returned to consumers on a card similar to a gift card or prepaid card. While the law requires that expiration dates on credit cards, gift cards, and prepaid cards be at given at least five years out, the law excludes that of rebate cards. Hence, consumers should read the fine print of their rebate cards and spend them before they expire -- usually two weeks to three months. It is estimated that approximately 20 percent of $4 billion in annual rebates go unredeemed by consumers.
The ethical issue is typical: business profits off consumers through deceptive means. Here, information regarding these credit card reforms is left muddled in hopes that consumers will not redeem their rebate. This points to other ethical issues with business, including greed and selfishness. As in Book I of Politics, Aristotle discusses the disposition of artificial wealth getting, in which he states that it stems from “intent upon living only, and not upon living well” (75). Based on the reputation of credit card companies for their unfair rate hikes and hidden fees, such business is testament to how our morals have been perverted by the pursuit of profit. No longer is money an instrument for attaining the good life, but instead it has become fetishized for the good life. Perhaps for Aristotle, our societal affection for money has already jeopardized our morals and may very well prevent us from leading a virtuous life.
On the whole, Aristotle would blatantly disapprove of the credit industry due to their promotion of artificial wealth getting. Their business thrives off the promotion of money and the perpetuation of consumption. Given their foothold in society, in which one is required to partake in their business in order to own a home, the credit card industry could even be considered an enemy of the Aristotle’s idea of art of household making or economy. For example, one is required to accrue credit and own multiple credit cards prior to being able to purchase a home. Furthermore, the industry utilizes usury mechanisms such interest, which Aristotle directly opposes. The credit card industry, as a whole, appears to promote a fetish for money, which in turn promotes the fetish within society.
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It's interesting that you should bring this up...I was actually recently burned on a rebate card from an item I ordered online. I only lost about 20 dollars but I was still a bit peeved.
ReplyDeleteWhile it might be deceptive of companies to not tell you right away, this is where being an informed consumer and reading the fine print does help! I agree with you 100% there.
Aristotle would obviously find this to be an example of usury! Money on the rebate cards would be "gained" back, so to speak, if they were not used.
I completely agree with these statements. This is the credit companies' way of making even more money. They are giving (spending) money to consumers as a rebate which will attract the consumers to keep shopping or using these sources and get that money back. Aristotle would consider this fetishizing money. The companies are using money as an instrument to make more money.
ReplyDeleteGood article!
I agree with this statement, although this is the basic fundementals of how a credit company makes money. Although higly disceptive and immoral the law passed excluding in particular rebate cards. It would be intersting to find out how much these companies payed lobiests to fight for these to be excluded on the new bill.
ReplyDeleteThe act of what the credit card company is doing is highly immoral under the eyes of aristotle, but then the question of is it immoral what the consumer does in his views. By not spending this card in a proper and quick time wouldnt that be considered hoarding money in a sense?
It is interesting that credit card companies profit more when people making mistakes. What I mean by this is that credit card companies make very little money off of the people who are responsible and spend within their means and pay off their bills on time. The only thing they get from these people might be a yearly fee. But on the other hand credit card companies make more money off of the people who let their debt accumulate.
ReplyDeleteI think Aristotle would argue that everything about credit card companies is wrong. He would call what they do usury and you are right about the companies being deceptive also.
Credit card companies make money from money in a sense. They rely on continuous consumption by the people in the economy. The entire economy runs on this consumption. When people stop consuming at a significant level the economy begins to spiral downward. From this logic this economy only works as long as people are indefinitely trying to secure the means of living, which perverts the very meaning of what this is. Aristotle says that their is a limit of supporting one's life but the economy we have works on the exploitation of this limit and pushing it to the extreme. Many companies approach selling a product by not just satisfying a need or want, but by creating one and then satisfying it. This is a direct result of the perversion of money. To gain more money for the sake of its accumulation the ultimate goal of money for which it was intended for also becomes perverted.
ReplyDeleteThis is a really good article. I actually had the same thing happen to me where I got a $50 Visa gift card and was trying to use it after a month since I got it and it was expired. The card came late in the mail and in the small print it stated that it basically has to be used within two weeks upon receival. Unfortunately for me I didn't read it so I never got to use it. Its absolutely absurd that these banks and credit card companies find even more ways to make money off of people. Then again its what they have been doing for a long time and that's how they stay in business. Aristotle would get very mad if he found out how greedy these companies are since they take your money and find a way not to give it back.
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