advocates believe a major credit card bill has become almost inevitable

[lunatica]

Credit card firms back in hot seat

Consumer advocates say that it's time for tighter restrictions.


Longtime supporters of credit card reform have a new weapon in their rhetorical arsenal: the $700 billion Wall Street bailout.

“The big banks got billions of our tax dollars to rescue them from their own financial mess. Now they turn around and hit us with higher interest rates and fees on our credit cards,” read a recent alert from the Consumers Union, the publisher of Consumer Reports.

Indeed, a coalition of consumer advocates believes the time is right for cracking down on high credit card fees, abusive practices and loose regulations in the credit card industry.

“When are consumers going to stop getting the short end in this bailout? Chase, Citibank, HSBC, Capitol One and others recently hiked interest rates, with the average card rate now about 14 percent. Meanwhile, the banks are paying as little as 0 percent for overnight loans. Unbelievable,” the alert declared before prompting the reader to tell Congress to pass credit card legislation.

Consumer advocates and some Democrats have pushed for tighter credit card regulations for more than a decade, but they could not overcome resistance from card issuers, banks and financial services firms. Last year, a credit card bill sponsored by Rep. Carolyn Maloney (D-N.Y.) passed the House but died in the Senate. And in a January 2007 hearing, Senate Banking Committee Chairman Chris Dodd (D-Conn.) put the industry “on notice,” warning card issuers to halt abusive practices.

Now, in the wake of the financial crisis, advocates believe a major credit card bill has become almost inevitable.

more at the link...

http://www.politico.com/news/stories/0309/19579.html

[Rabrrrrrr]

1. We needed that ten fucking years ago, you senatorial dipshit fucks.

I love how credit cards are now raising rates from ridiculous to ludicrous rates ON THE PEOPLE WHO ARE MAKING THEIR PAYMENTS! Punishment for "screwing the company out of profits" by being responsible users of the credit cards.

That's fucking insane.

What other industry punishes the good customers?

Oh, wait, in the credit card usury business, the good customers are the ones who don't pay, who make minimum payments, or always pay late.

Shitty customers are the ones who pay their bills.

[lunatica]

2. Good customers are the proverbial Goose that Layed The Golden Egg

They're re-enacting the story. The Goose will be dead soon.

[CoffeeCat]

3. What makes me hurl a lung...

...Is that our lovely Congress supposedly passed some credit-card reforms--but they included a stipulation in
the bill that these reforms would not go into effect until 2010.

Isn't that just frickin great?????

So, as the economy falls down a hole, the banks have one more year to assault consumers and squeeze more dollars
out of them---with horrendous interest rates and unfair late fees.

It's so outrageous!!!

That bill wasn't pro-consumer. It was a gift to the credit-card companies. It is the equivalent of
saying to the credit-card companies, "Ok, you have one more year to take as much money as you possibly can
from the peasants! So raise those rates and late fees now! Screw with them and move their due dates so
they're ensured late fees, but you must do it now...before 2010!"

And I'd also like to add---2010 is most likely to be financial hell for most people---who will probably abandon their
credit cards and quit paying all together.

So....this whole set up works out real nice for the credit-card companies.

It's unbelievably disgusting--and our elected officials DID THIS!

[avaistheone1]

10. True. The stimulus bill that passed said credit card companies can charge up to 36% interest.

Little wonder why people can't afford to buy anything and are beomg driven into poverty.
This is no brainer.

In the meantime these banks are getting our tax dollars at 0% interest rates. Well folks if we don't fight for publicly-funded elections we are going to stay sitting ducks for the banks given WALL STREET AND THE BANKS ARE THE LARGEST CONTRIBUTORS TO BOTH THE DEMOCRATS AND REPUBLICANS.

Our Congress and Senate gave trillions to the banks in a matter of weeks for their relief. Ordinary citizens will have to wait well over a year for our relief, who knows what kind of reduced interest rate the bans will offer than. It is pretty disgusting. Washington still does not get the message: We want change.

[FrenchieCat]

15. 36% Interest? Do you know what page of the Stimulus Bill this is on?

I read somewhere that the rate had been 49% on defaulted Credit Card accounts. Does that mean that the stimulus bill reduced that fee down by 13%?

[dkf]

4. Maybe we need to cut everyone's credit limit to a level they can actually

afford.

And reward people for paying with cash while penalizing use of credit.

I don't understand why we rail against banks for giving people irresponsible mortgages, yet don't say anything about giving people credit that they could not possibly pay if they used everything available.

[ozu]

9. Slashing credit limits

would also lower FICO scores as a major component in the score is the percentage of available revolving credit that you're using. Optimal is above 0 but below 10%. Lower FICO scores and you make it much tougher for someone to get a decent rate and/or even get a home or car loan in the first place.

I do agree that credit card companies have been careless in the limits they've handed out.

[dkf]

12. FICO scores are ridiculous too.

I got penalized for not having a mortgage, which allows me to actually save some money and keep my debt to a minimum. Also counting against me is the fact that I only have 1 credit card and rip apart all those credit card offers I am constantly flooded with.

Whoever created FICO scores was trying to get people to request as much credit as possible. I'm very suspicious of their motives.

[SoCalDem]

13. FICO scores will have to go the way of the Dodo bird

We need a grand Re-set..a Do-Over..an Un-do..

and the sooner we do it, the sooner we will recover..

[Jello Biafra]

5. The M$M wont even report on this stuff....

when you have Capital One advertising on your news program. What's in your wallet?......Capital One's hands.....

[prolesunited]

6. They need to step in and make those changes

effective immediately.

[cwcwmack]

7. boy I hope so...

but that's not enough... they need to do some sort of balance reduction like the mortgage restructuring.

[flpoljunkie]

8. What in the hell are they waiting for!

Congress needs to step up to the plate and do what's right for the American people--finally!

[avaistheone1]

11. Congress, both the Democrats and the Republicans are waiting for the credit card companies to tell

them they have made enough money loan-sharking and preying on their credit card customers and then Congress will do something about it.

Do you really expect any better when Wall Street and the banks are the major contributors to Congress' campaign coffers?

[WCGreen]

14. Fuck, I just got a major credit card bill...