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A Congressional panel is expected to approve legislation…that would curb high credit card fees and penalties assessed by many banks that have benefited from the federal government’s financial bailout program.
The pro-consumer bill, which would mean sweeping changes for banks that issue cards, is an important test of the political will of Democrats who are pushing for U.S. financial regulation reform…
“It’s a new era in Washington,” said Rep. Carolyn Maloney, a New York Democrat and chief sponsor of the House bill. “It’s taken three years of hard work, but I’m delighted that we’re on the brink of real protections for consumers.”
Her proposed legislation would halt credit cards from imposing arbitrary rate increases and penalties and certain billing practices on balances with different rates. It is expected to win approval by the committee, and later by the full House.
But it remains unclear whether Democrats in the Senate can muster the 60 votes needed in that chamber to advance controversial legislation amid stiff opposition from the banking industry. The Senate’s version of a credit card reform bill includes tougher language…
U.S. lawmakers have expressed anger that the same banks such as Bank of America, Citi and Chase with big credit card operations, charge excessive interest rates and fees while getting U.S. government bailout from the taxpayers who use these credit cards.
There was a time in this land when usury was illegal. States had laws generally prohibiting interest rates higher than 18%. Now, between payday loan sharks and the greediest banks on Earth, interest rates that blow through that old ceiling – are the rule. This bill could begin a turnaround.
Keep an eye on the vote in Congress on this one – and you’ll see who is owned by the banks.
Lets start by burning down your local pay day loan shop.600 percent interest is common and they are owned by these same banks.
Ahem….so far the count of votes FOR was 89 Dem, ONE Republican. Please…this is a good idea, and I can’t understand why it’s up to the Demo’s to do the heavy lifting.
Personally, I find it funny that people are worried about it in the first place.
If you don’t like the terms, don’t get a credit card. How hard is that?
I had to read all the way to #37 to find the comment I was expecting: yes, credit card rates are usurious, yes, their practices are outrageous. But no one forces people to own the cards or run balances from month to month. “If you don’t like the terms, don’t get a credit card.”
As usual, the LIE-bertarian idiots on this blog fail to understand/accept that they are members of a SOCIETY!! When A & B contract with one another and they disagree and go to court, it is the contract under LAW that gets enforced/interpreted.
Back you asinine stupidity up to: If the credit card companies don’t want to be limited to Prime Plus 4 Percent, they don’t have to issue a card.
Idiot social darwinists are a pox mark of humanity.
#39 This bill is small stuff. BK laws that were changed is where the big $ are involved. Let’s see if this congress will tackle real issues like that…
#37 & #38 – you are of course correct BUT…
Your credit score goes down if you don’t have a card or two and some history with it. Credit score affects what kind of mortgage you can get. Most of us could get by without a credit card, but only the evil rich can buy a decent house without a mortgage.
It’s an evil web we’ve woven.
The filibuster isn’t written in stone. Senate rules can be changed. The question is, do Democrats have the balls? I doubt it. The Republicans didn’t have the balls when they were in charge either.
It’s time for many independents to choose parties other than the same ol’ Republicans or Democrats. We want a diversified country yet our own ruling bodies only come in two flavors. How FU is that.
#37 and #38.
Isn’t that what it all boils down to?
I used to have a few credit cards and got rid of them all. Didn’t like the sneaky lil’ bastards who were stealing my money.
Canceled all the accounts and now only use a Visa debit card.
And all my problems went away. Excellent fraud protection to boot!
So, as #15 was alluding to, I wonder what else is in that bill that would cause so much concern?
#42 I agree, I doubt the Democrats have the balls to do it. But the Republicans never had reason to — the Democrats didn’t abuse the filibuster like the Republicans are now.
#40–Paddy-O-Irrelevant==and an even bigger issue is continued bailouts or failure to pass a balanced budget.
This thread is however about CREDIT CARDS and how immature, self centered, and irrelevant the LIE-bertarians are.
Try to stay focused.
43
hate to tell you but REG E (the bill that “protects debit card users”) is the worst of the lot. You have zero protection on a debit card, in fact, the banks play hanky-panky with it all the time. Seems if something bogus posts to your account you have 72 hours to report that. However, in many cases, it will not show up online, or in any way YOU can view it timely. This is especially true if the batch is processed after 6pm on Friday, and the bank’s updates don’t happen until Sunday night….so you have a few hours, at best to report this mistake on Monday.
In the case of a “preauthorized transfer” (meaning you authorized, or maybe you didn’t) money to withdraw from you bank account…but then canceled service (or never ordered it in the first place). The bank will keep on sucking out the money until you: “A consumer may stop payment of a preauthorized electronic fund transfer from the consumer’s account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.” So, you have to REMEMBER to, and/or if you didn’t know it was going to happen…S.O.L. (wave goodbye to the money).
READ ALL OF THIS and then tell me how secure you are with your debit card:
http://www.bankersonline.com/regs/205/205.html
Credit cards have tricked more than a FEW kids in college. The ploy is that when they open a checking account they also open, without knowing, a check coverage CREDIT CARD. When the balance drops below a “threshold” (usually 50 bucks, and if you know college kids…this isn’t an alarming situation to them). Then the credit card kicks in some $$ (usually 100 bucks). So, now the kid has BINGO a $150 balance in the checking account….and, a 100 credit card bill, PLUS fees, advance charges, and whatever else (50 or so bucks). If this happens several times to an unsuspecting kid…they can end up with a hefty credit card bill…before they even realize they have a credit card.
So tell me, genius “don’t get credit cards if you don’t like the terms” bozos..how is this legal, and why aren’t you for legislation to curb these banking monsters?
There is no way this is going to pass. We have the best Congress critters money and buy and these people are already bought. Loan sharking will remain legal but please do note who is on the take.
#46 meetsy
Let me tell you from experience.
I had a company make an unauthorized charge to my Visa debit card.
Didn’t catch it for well over a week.
Made one phone call to my bank.
They reversed the charge while I was still on the phone and went after them. Situation resolved in hardly more than 10 minutes.
Their anti-fraud unit was superb. I also now have my account balance automatically emailed to me every night.
Now if that had happened with a credit card, well….
Why on earth would those in power want to stop this. They all have bank shares in their portfolio or family trust, repub or demo.
Religious conservatives should eagerly support this effort since usury is a sin.
#41,
Credit Score = “I love debt” Score. It hasn’t been relevant since the mid 90s. If you are poor, you can get a pretty good loan backed by Freddie and Fannie 🙂
#43, Isn’t that what it all boils down to?
Yes, it is.
People seem to think the collective can morally override the individual’s rights. I think SL said it perfectly a few months back — (paraphrased) “People spontaneously sprout new rights when grouped together.”
Altruistic doctrine lies in the premise that the happiness of one man necessitates the injury of another.
#47,
So tell me, genius “don’t get credit cards if you don’t like the terms” bozos..how is this legal, and why aren’t you for legislation to curb these banking monsters?
Oh, you mean how do we protect numb-nuts from getting duped? We educate them by teaching them to RTFP.
#49…I know you don’t bank with BofA!
# 19 jbenson2 said:
“The Democrats caused the financial disaster caused by their mortgage-happy Freddie Mac legislation. Now they want to give out credit cards to everyone.”
Yes, that’s right, nothing any Publican did anywhere at any time contributed in the slightest way to this mess.
And I’m not just getting my own unicorn, but a unicorn pony!
– – – – –
# 21 RMichael said:
“This is brilliant.
“The banks are insolvent, the government has pledged trillions to keep them in business, and now they want to pass a law that will eliminate one of the few profit centers that the banks have left.”
There’s a difference between profit and usury. In fact, this has gone beyond even usury; this is nothing more or less than mining for money. Big business has turned up its collective nose at the meager profits possible from selling goods and services and has set up roadblocks where they collect extortion at every turn.
It’s getting ridiculous — a pyramid can’t rest on its point for very long…
– – – – –
# 37 LibertyLover said, in part:
“If you don’t like the terms, don’t get a credit card. How hard is that?”
Hah! Try and live without a credit card! In most places you can’t rent a video, let alone a car when yours is in the shop. And then try to get credit to get that car worked on. Otherwise, you’d better have $1000 or so handy when your clutch/automatic transmission falls out and you still need to get to work in the morning.
– – – – –
# 52 LibertyLover said, in part:
“Altruistic doctrine lies in the premise that the happiness of one man necessitates the injury of another.”
Huh? Are you really saying that all altruism is evil and harmful to others? If you are, I can only say that Ayn Rand was mentally ill, and managed to inculcate that same illness in her followers. If not, I misunderstood and apologize. (And who’s SL?)
– – – – –
I think a bill will pass before the end of summer. As Barney Frank said, it’s now the Dems who are calling for roll call votes on these bills (it’s usually the minority party), Enough Publicans will vote for it because they want to be re-elected.
@ Paddy-O and others
Getting controversial legislation through requires bipartisan support.
You think there aren’t some Democrats knee deep in bank influence who don’t want the status quo to change?
Republicans need to support the reform as well.
And I hope they will, but often the minority party gets caught up in being opposed to whatever the majority party is trying to do (Democrats had their share of idiocy in doing that during the Bush years).
I sure hope the Republicans help take action to get reform and stop these abusive banks, it’s long overdue.
I don’t think the Democrats can do it alone, the banking lobby has to have several Democratic Senators in their pocket.
#54,
“If you don’t like the terms, don’t get a credit card. How hard is that?”
Hah! Try and live without a credit card! In most places you can’t rent a video, let alone a car when yours is in the shop. And then try to get credit to get that car worked on. Otherwise, you’d better have $1000 or so handy when your clutch/automatic transmission falls out and you still need to get to work in the morning.
Yeah, yeah, I know the modern arguments about how it is impossible to live in today’s world without instant access to credit.
I just don’t happen to agree with them.
#52, And who’s SL?
Sea Lawyer
“If you don’t like the terms, don’t get a credit card. How hard is that?”
Uh … even if you like the terms they get to change them on you and they send out a new change in terms every 6 months.
And .. let’s say you have an account through Small Good Guys Bank That Treats You Decently, that bank can get bought by Big Shithole Bank.
I can’t believe the disingenuous bullshit coming from the usury defenders here. By their logic, there should be no consumer protection legislation at all. That kind of thinking got us into this f*cking mess.
As usual, the right wing nuts and Liebertarians are clueless.
Consumer protections ARE required. Yes, there are some people who will abuse anything, but the vast majority of people are honest and being abused by big banks. Bank accounts now have hidden fees. Credit cards have more than their share of fees and charges. Loan providers continually abuse people.
Liberty Loser, try living in the real world for a change.
#57, There are quite a few people out there who are not in trouble because they think rationally about the problem instead of living on their cards. If they can do it, why can’t everyone else?
#58, I can’t believe the disingenuous bullshit coming from the usury defenders here.
I’m not defending it. I am pointing out the fallacy of an altruistic society where those in charge feel it is their responsibility to protect those who walk through life with their heads up their asses.
How much money could we save if we educated people to think rationally and avoid these types of problems?
#59, Liberty Loser, try living in the real world for a change.
As opposed to what, walking through life waiting on someone to do something for me? If that is your reality, you need a lesson in thinking.
Be a man. Think for yourself. Quit depending on other people to help you out. And quit expecting other people to feel good about it.
For all you moochers and looters:
The STATE is my shepherd, I shall not be in want.
It makes me lie down in green pastures,it leads me beside quiet waters,
It restores my faith. It guides me in paths of righteousness for society’s sake.
Even though I walk through the valley of the shadow of death, I will fear no evil, for it is with me; its rod and its staff, they comfort me.
It prepares a table before me in the presence of my enemies. It anoints my head with oil; my cup overflows.
Surely goodness and love will follow me all the days of my life, and I will dwell on the back of society forever.
Do you find it interesting that another version of this was really popular in the days when the churches ran the state?
Why don’t we just teach this one instead? It’s really what an altruistic society wants — dependence on the state.
# 51 Greg Allen said, “Religious conservatives should eagerly support this effort since usury is a sin.”
Score one for Greg.
#60, Loser,
If you don’t like living in a society, there is most likely some cave waiting for you to take up residence. The rest of us though want to and do live in a society. We refer to ourselves as “civilized” as we are beyond the every man for himself mode. We have discovered that working together we are much stronger than if we stood alone.
As a society we protect those weaker than ourselves. We protect the young, elderly, infirm, and those unable to help themselves. We do it because we don’t abandon each other in times of need, quite unlike the Liebertarians cult.
Last week I had some emergency surgery. The State licensed the surgeon, the other doctors, the nurses in the OR and recovery, and the hospital. Of course in your world you would have me biting on a bullet while I cut myself. And it would have been my fault if I missed. The surgeon did thank me as he said it was a very difficult procedure, and was very pleased with his work.
So, are you still claiming that you own a small business? And you don’t use a credit card or extend credit to your customers? Ya, right.
#61–Liberty Loser==you are such a tool. You imagine yourself to be a self actuated individualist able to protect yourself and everyone else should as well. But you ignore the reality of how credit cards are required in unrelated situations. You ignore that “society” is involved NO MATTER WHAT your position is. You just allow for credit card companies to have all the advantages when they go to court. Seems to me a “true” LIE-bertarian would say if A contracts with B and B decides not to perform, then A is out of luck, should have chosen a better contractee. But NO, in anti-true LIEbertarian fashion, now you want Society to step in and protect the Card Holder. You are not in fact a LIE-bertarian, you are just a capitalist goon.
You want consumers to protect themselves against rapacious business entities. Why not the same thing for physical protection? No cops. Get into trouble==protect yourself. Consumerism/Public Safety==all on the same curve.
YOU are just a flaming idiot safe in your protected little world.
Dolt.