Operation Choke point Unfairness by Andrew Phillips Cardflex
In 2013, a new law was made in the United States of America called the operation choke point that was intended to make sure that the consumers were not exploited by using government agencies to discourage the banks from doing business with the listed ones. 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.
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. This unfair law had to be put to a stop by people who had the power to do that and take care of the targeted businesses until it happen.
Sudden notices were issued to these “high risk” businesses from their financial institution that they will no longer be serviced by 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. Some, like the Andrew Phillips Cardflex were sued for allegedly helping a listed company to steal from the consumers accounts. These unfairly targeted businesses that were supposed to be choked out of business had to look for other financial options and we all know that is not easy. Both the financial organizations and the listed businesses are set to incur losses. The losses due to restricted business relations are inevitable.
Apart from people losing their businesses that they use to feed their families, they are being dragged to court due to this law. 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 government should make laws that equate all the citizens. Be considerate to the ones that are unfairly being targeted and they do not even deserve it. These kind of regulations should be eliminated because they go against the very core function of laws.