Recession and the Ultimate Measure of a Business

However, how we cope with the problems of today will dictate how we thrive or fail in the future. As Henry Clay said: “ Of all the properties which belong to honorable men, not one is so highly prized as that of character.” Our character and reputation can only be blemished by hard fiscal times if we allow it to be. As consumers, we can choose to meet our credit obligations, even if that is $1.00 at a time. Likewise, creditors and businesses can choose to operate in an ethical and humane manner.

I recently received a letter from Lowes informing me that my credit had been “randomly examined” by a third party. As a result, my credit limit was reduced significantly. I was perplexed, especially since I have always made payments on time, paid more than the minimum payment, and been a card holder for over ten years. The letters did say that the credit limit decrease was not a reflection of my history, but rather a result of my overall current credit.

First of all, the company, much less a third party hired the company, did not have my permission to “randomly examine” my credit. Second, my credit history elsewhere shouldn’t overshadow how I paid my account. It didn’t matter that my account didn’t have so much as a late payment after charging thousands of dollars over the years. It didn’t matter that my overall credit had only declined because I have a handicapped child with mitochondrial disease and hundreds of thousands of dollars in medical debt.

Of course, all companies offer credit based on their own discretion. Many creditors are also worried about credit card holders defaulting as the unemployment rate rises and the recession worsens. But, put the right or wrong of lowering credit lines without just cause aside. It simply isn’t “smart business” to treat loyal customers like an unworthy risk. How can any business expect consumers to buy from them if they cut off credit, disregard loyal patriotism, and insult consumers?

Martin Luther King Jr. stated: “”The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy.” The same is true for business. America’s current fiscal challenge is a businesses ultimate measure, and will directly testify to their true character. Many of these businesses are showing that they only stand by customers as long as the balance of risk and profit grossly favor them. However, they seem to forget that consumers will remember how we are treated in times of challenge, and we will base spending in moments of comfort accordingly.