The problem is not the credit card companies, the processors, or them giving too much credit to people. The problem, is that the average American is a spoiled brat who "wants what they want, right now", and will sell their soul to get it, rather than wait until they can afford it.
And when the consumer is ready to sell their soul they can apply for a 19% interest auto loan or a $29% interest credit card and if that doesn't work out there will be a pawn shop owner or pay day loan specialist to assist them with their endeavor.
And if they wait long enough the financial district might get deregulated enough, again, so that when a guy making $12 an hour walks into their office he can get a loan for a $500,000 home...that the bank will gladly take off his hands once the payment has increased, the home owner loses his job and defaults on the loan...which they will then gladly rent it back to him for what his mortgage payment was...after the bank uses tax dollars to get their feet back on the ground.
