Procedure of Choke Point Unfairness by Andrew Phillips Cardflex
The government of the USA in 2013 made a new law that used its agencies to discourage the banks from engaging in business with the “high risk businesses” that were believed to be exploiting the consumers. The program was made to choke out, as the name depicts, the businesses that were referred to as the “high risk”. There are so many businesses that were choked and among them were the guns businesses that are actually legal.
Not only did the law affect the businesses alone, it also had some financial organizations like the Andrew Philips Cardflex cornered due to some allegations that they had done business with a listed company. This law is unfair to those people that are being choked out of their business yet they are doing legal businesses. As was expected, this was met by a lot of resistance by congress who were trying to put an end to this “operation “until it was allegedly over.
When this law was instigated, the banks were forced to block the listed businesses from their services and that led them to sending notices to these businesses telling them that they will not be able to work with them. This was because the banks among many other businesses were forced to terminate long term relationships with these listed companies that they had no problem with. A company like the Andrew Phillips Cardflex are in court because they engaged in business with a company that had been listed with the “high risk”. When you get a notice from your bank then you have no other option than to make other financial arrangements that will not only inconvenience you, but also cost you. Both the financial organizations and the listed businesses are set to incur losses. The losses due to restricted business relations are inevitable.
This kind of law affect where people get their income and some having to face legal procedure. The courts are accompanied by lots of fines, bails and even a lot of money that is used to hire lawyers. As much as it is believed to have been ended, the business people are still feeling the effect of this unfair law. The work of the government is to protect the citizens at all cost but that “all cost” should be limited up to where the law hurts other people. We should think of those people that depend on the businesses that were listed as “high risk” to feed their families. Such a law should be buried and forgotten because it is just out of order.