Do the Credit Industries Mold Social Policy for Their Own Greed?

Has the increasing willingness AND ABILITY of the credit industry to influence legislation molded social polices in America to the detriment of American Consumers?

The Credit industry in America wields tremendous powers over economic facets of society. Consumer credit enables consumers to drive industry output, itself dependent upon the financing markets to be able to produce the demanded output. Consumer households, depending on how you count the numbers, average $2,250 to $10,000 in credit card debt, all across the county.

See for example the Federal Reserve Board Statistical Releases, which state in May 2007, the revolving credit held by American households neared $900 Billion. This translates to over $7,000 per household.

The profitability of credit products, however, has not yielded enough for these businesses. The highest credit card profits are late fees, over limit fees, expanded interest charges, and annual fees. The credit card holder that pays off the bill every month is simply not profitable. The CREDIT CARD industry convinced Congress to pass the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, after massive lobbying (seven prior attempts failed.)

In this University of Iowa study, it's pointed out that while the Act was sold as preventing 'immoral' American families seeking protections under bankruptcy, in fact Credit Card companies seek these families out AFTER BANKRUPTCY:

Rather than eschewing them as profligates, the lending industry treats families who seek bankruptcy relief as a lucrative
source for profits. The widespread marketing to families after bankruptcy provides a powerful example of the credit industry’s willingness and ability to profit from financially distressed and vulnerable consumers. The law shapes creditors’ marketing and lending decisions to recently bankrupt families, but this effect was hidden during the past decade of bankruptcy reform.