Obama Administration’s Covert War on Small Business
Several years ago the federal government of the United States announced the launch of an initiative they called Operation Chokepoint. This series of regulations and the actions taken to enforce them had been a deemed a so-called “War against fraud”. However, citing the failure of many small businesses and even individuals suffering under the iron fist of financial regulation, some believe it to be something more harmful. Reason.com, for example investigated and met with many small business owners who lost their accounts because of being unfairly labeled a “high risk” business enterprise. Reason TV also went on to profile two business owners who believe they were targets themselves. Essentially it’s almost as if the government is creating a hit list, and being on it a is deadly. And indeed even as “Operation Chokepoint is Over” according to many media, there are some who say they can still feel the sting of it. While FDIC chairman Martin Gruenberg declared it to be so, there are some who believe it continues to rear its ugly head the Consumer Financial Protection Bureau as the FDIC and DOJ simply pass the buck.
Essentially labeling as a business as high-risk, especially by the feds, is like an economic death sentence for small business owners who are already struggling to compete and stay in the game. Not only are many individuals and businesses suffering from the rigorous standards and arguably unjustified labels, but entire industries are facing eradication because of it. Essentially the regulations are forcing banks to turn their backs on customers from certain industries that fall under this labeling or regulation, essentially leave them to fend for themselves, like a lamb in a den of wolves.
The businesses targeted by these harsh regulations include just about anything from payday lenders to hookah and Ecig dealers, to just about anything you could think of. If these businesses weren’t “high-risk” before they certainly are now thanks to Operation Chokepoint and its continuation through cloak and dagger banking regulations. The only relief these high risk businesses have is that there are services that specialize in helping with high risk merchant accounts, but even they can only do so much with what they have and what they’re up against.
One must wonder if this mobster-like behavior is really a war on fraud as much as it is a war on certain industry types. It seems as though the feds have put themselves in the business of choosing winners and losers with a heavy hand of favoritism forced against business types they may not like. One also has to ask themselves just how good this is for an already struggling economy, and who really benefits in the end. Whatever the case may be, there’s clearly more to this story than meets the naked eye.
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High Risk Merchant Account LLC
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