Senate Rejects Limit On Credit-Card Interest Rates

[babylonsister]

http://thecaucus.blogs.nytimes.com/2009/05/13/senate-rejects-limit-on-credit-card-interest-rates/?partner=rss&emc=rss

Senate Rejects Limit on Credit-Card Interest Rates
By Carl Hulse


Despite complaints that banks and credit card companies are gouging customers by charging outrageous interest rates, the Senate on Wednesday easily turned back an effort to cap interest rates at 15 percent.

The effort by Senator Bernie Sanders, the Vermont independent, drew only 33 votes and needed 60, with a bipartisan group of 60 senators opposing it as the Senate pushed its credit card overhaul toward the finish line. Some Democrats and consumer groups have said that an interest cap is needed to put real teeth into an otherwise solid bill.

Other backers of the measure calculated that an interest rate ceiling would doom the popular legislation. The banking industry, which had some heavy-weight representatives monitoring the vote off of the Senate floor, warned that an interest rate limit could cause a sour reaction in the financial markets.

But Mr. Sanders said the card companies and banks were engaged in conduct that could get others hauled into court. He said one-third of all credit card holders are paying interest above 20 percent and as high as 41 percent.

“When banks are charging 30 percent interest rates, they are not making credit available,” said Mr. Sanders, who noted credit unions are limited to 15 percent. “They are engaged in loan-sharking.”

After the effort failed, Senator Christopher J. Dodd of Connecticut, the Democratic chairman of the banking committee, proposed that the Federal Reserve be asked to provide an analysis of how Congress could rein in interest rates.

Senators said they hoped to finish up the credit card bill as early as Thursday, coinciding with a town hall meeting by President Obama on credit card issues in New Mexico.

[skipos]

1. Huh. Not a single Repub vote.

I am going to email Stabenow about her crappy vote right now.

[nadinbrzezinski]

2. Color me surprised, NOT

[Hugin]

3. K&R

[Hugin]

4. "... could cause a sour reaction in the financial markets."

Not nearly as sour as people continuing to refuse to purchase anything.

Oh, and how would adding caps 'doom the popular legislation'? That's WHY it's popular you idiots! It's just the same as the idiocy of passing a Mortgage relief bill with no relief in it... Plain useless.

[Lorien]

6. Exactly. They're missing the forest for the trees

I'm unemployed and was told yesterday that my bank was freezing my home equity line of credit-the very thing that was supposed to help keep my in my home with the lights on while I search for another job (my life savings were sucked dry by medical expenses-even though I had insurance). So NOW what do I do? They'll give me no credit because I have no income, even though I have over 200k of equity in my home. There is no safety net for people like me; the banks just take our taxpayer dollars and then bleed us dry of everything else!

[salguine]

5. Consumers need to organize a nationwide event where no one uses a credit card for one week.

[spanone]

7. congress is bought and paid for....a human comedy/tragedy

[GReedDiamond]

8. The Corporatists, whether they be Republic or Democratic...

...have us all by the balls.

The Republican Party is on the verge of extinction, but, unfortunately, their "policies" (i.e., the 30 year domestic and international crime spree they inflicted on us) remain(s).

Meanwhile, back in the "real world," just because an "elected official" has a "D" after their name, doesn't mean they aren't out to screw ya.

In any case, thanks to Senator Sanders for making the effort. Funny how he's neither Repug or Dem.

Since I never opted into the whole "credit card" system of commerce/finance, I have no personal concerns about credit card interest rate percentages. I never trusted these fucks ever, so never bought into it. But, like the cancer that they are, the usurious behavior of these transnational corporate bloodsucking hucksters negatively effects everybody outside of their stockholder dividend payouts, myself included. As far as I can tell, it's way past time to reign these fuckers in, but, I apparently exist in some kind of Twilight (Time) Zone ...

[Canuckistanian]

9. The banks own the Senate. Could it BE more obvious?

Not even Obama can rein them in.

Whatever happened to a president who says, "I want a bill on my desk THIS WEEK that I can sign to end this <insert atrocity here>"?