The multiple and egregious credit card abuses by banks have been building for almost 3 decades with few if any checks on the ability of creditors to pick your pocket whenever, wherever and however they choose. Hidden fees, outrageously large late fees, double-dipping, usurious interest rates approaching 30%, and on and on, have been the mechanisms that let them get paid as much as $100 for every dollar they loan.
The Congress (finally!) is about to take some action - if the conservatives and lobbyists let them - with a bill nicknamed The Credit Card Bill of Rights. It isn't by any stretch all that's needed to stop unethical predatory credit card practices but it's a start.
Legislation to rein in credit card practices and eliminate sudden rate hikes and late fees that have entangled millions of Americans moved closer to becoming law Thursday, bolstered by presidential pressure and the backdrop of economic calamity.
Measures before the House and Senate are designed to enhance protections for credit card customers. The House debated a bill that would prohibit so-called double-cycle billing and retroactive rate hikes and ban the issuance of credit cards to people under 18, but wouldn't take effect until a year after enactment. Another requirement in the bill, that customers receive 45 days notice before their interest rates are increased, would go into effect in 90 days.
Double-cycle billing eliminates the interest-free period for consumers who move from paying the full balance monthly to carrying a balance.
(emphasis added)
The Republicans, of course, oppose it because, hey, if banks can't steal from you they might not lend you anything at all.
In debate on the House floor, Rep. Pete Sessions, R-Texas, said the legislation could prompt lenders to restrict credit in an already tight market to compensate for the new requirements. That would choke off credit for consumers relying on it to meet needs in tough economic straits "and small businesses that count on this credit," Sessions said.
I'd say, "And another clueless Pub hammers yet another nail into the GOP coffin" were it not for the fact that that's precisely the kind of specious reasoning the Blue Dogs love and that Timmy Geithner, Larry Summers et al have been using to shovel truckloads of taxpayer cash to both the financial and auto industries. They're really kind of, you know, vulnerable to stoopid arguments about how businesses would just shut their doors if they can't poison us, overcharge us, and kill their employees when it suits them.
The Democrat Party has, so far, been almost as friendly and accomodating to lobbyists as the GOP was in its day, so this bill, for all its weaknesses (it doesn't attack in any way the absurdly high interest rates), represents a sort of test. If the Democrats aren't going to rein in corporate greed even this much, they aren't going to rein it in anywhere. It's an obvious place to start and the bill is weak enough that there's no real reason our so-called representatives can't fob off the bank lobbyists by reminding them that it could be a LOT worse.
Of course, Arlen isn't going to like this bill, and neither is Joe, and they're running the party now so we'll just have to see if there are enough actual Democrats to get even a small pen built for our resident hogs. I ain't holdin' my breath.
Don't let em get away with sliding out from under this. Call your Rep - and especially your Sen - and tell them you want them to vote for the CCBOR. And while you're at it, you might mention that this is the least they can do and you're going to want something stronger pretty soon.
That oughta puzzle em. At least.
UPDATE: (5.16pm) The House passed the bill.
Riding a crest of populist anger, the House on Thursday approved a bill to restrict credit card practices and eliminate sudden increases in interest rates and late fees that have entangled millions of consumers. The legislation passed by a bipartisan vote of 357-70 following lobbying by President Barack Obama and members of his administration.
Not without incident. Clueless Pubs pushed a "loophole" amendment to give banks a chance to raise rates. You knew that was coming, din't yah? Dig the classic conservative reasoning:
Opponents tried vainly on the House floor to temper a fast-moving bill with amendments that would have given credit card issuers some openings to raise rates within the proposed restraints.
"We shouldn't take credit opportunities away," said Rep. Jeb Hensarling, R-Texas. "I just want consumers to have choices. I want there to be a competitive marketplace."
Ain't it perfect?
i think its stupid that it doesn't say anywhere what the price is per a ride and how much it is for entry fee?!
Posted by: Taylor | August 23, 2009 at 03:31 PM