Operation 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”. This law lost its effect when it included a lot of legal businesses that were considered to be a scam to the consumers and that included the fire arms and ammunition.
This new law also affected a lot of businesses like the Independent Sales Organizations led by Andrew Phillips Cardflex who were accused of helping the scammer drain money from the consumer’s accounts. 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. These notices were a result of the government using its agencies to force the banks and other organizations to terminate their good and long term relationships with their customers. Some, like the Andrew Phillips Cardflex were sued for allegedly helping a listed company to steal from the consumers accounts. The ones in the business have been unfairly targeted and required to make other finance arrangements which lead to a lot of losses because it is not an easy process. So this shows that both the listed and the organizations that are doing business with them are a target. The losses due to restricted business relations are inevitable.
Andrew Phillips Cardflex law saw some businesses closing and others incurring massive losses if they do not end up in court. Anyone who has been in court will tell you that the financial burden that comes with them are usually unbearable. 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. These kind of regulations should be eliminated because they go against the very core function of laws.