US Senator (Levin) Urges Fed To Toughen Credit Card Rules

[Purveyor]

Source: http://wiredispatch.com/news/?id=281120

WASHINGTON (Reuters) - The Federal Reserve needs to push harder to protect consumers from credit card abuses, such as hidden fees and interest rates that jump unexpectedly, a senior U.S. senator urged Monday.

With the Fed and other regulators studying how far they should go to rein in card companies, Sen. Carl Levin said, "The current regulatory regime is totally insufficient to prevent these ongoing credit card abuses."

The Michigan Democrat, chairman of the Senate Permanent Subcommittee on Investigations, made his remarks on the last day for the public to submit comments to the Fed.

"Stronger consumer protections and clearer prohibitions against unfair and deceptive credit card lending practices are long overdue," Levin said in a letter to the central bank.

Big issuers of Visa Inc and MasterCard Inc cards include Bank of America Corp, JPMorgan Chase & Co , Citigroup Inc, Capital One Financial Corp and Discover Financial Services. Cards are used for about $2 trillion in transactions annually in America.

The Fed said in early May that some card practices need overhauling to protect consumers. It proposed giving consumers more time to pay their bills.

Levin urged the Fed to go further by forcing card companies to credit payments made on weekends or mailed a week before the due date so consumers would not be charged late fees.

To address complaints that payments are applied on balances with lower interest rates first, the Fed is considering forcing issuers to first apply payments to balances with higher rates or apply equal amounts to balances with different rates.

Read more: http://wiredispatch.com/news/?id=281120

[Faygo Kid]

1. It's well past time to enact consumer protections.

The credit card companies have had a nice run under Bush.

Party's over.

[Purveyor]

2. Just a reminder. Sen. Levin (my Senator) supported and voted for the "Bankruptcy Reform Act"

[MannyGoldstein]

8. Methinks The Winds Are Shifting n/t

[Dr.Phool]

3. Yoo Hoo, Senator Levin.

Isn't that part of the Senate's job? You know, to kinda like pass regulations and stuff?

Hell's gonna freeze over before the Wall Street bankers at the Fed cut off their biggest profit source.

[Raineyb]

11. While they're at it how about trying to pass a usury law again

Because exorbitant interest rates aren't just for loan sharks anymore.

Regards

[Vidar]

4. Thanks for the effort, Carl.

[jwirr]

5. Too late for a lot of people.

[closeupready]

13. Good point. With all due respect, Sen. Levin, I am not impressed.

n/t

[Clear Blue Sky]

6. How about not sending out preapproved credit cards to kids and pets?

[Dr.Phool]

9. I've proudly carried my "Murder Inc." Corporate Mastercard for 10 years!

And, it's got a $20k limit!

The name started out as a joke, and after a while I started getting credit card solicitations for this company (which doesn't exist), and I wondered if someone would actually send me a card with that name on it.

I filled out the application, and put down $0 in revenues, and earnings. They sent me a card.

The first place I used it was in Atlantic City.

[Clear Blue Sky]

17. Nice...

[ThoughtCriminal]

7. While they're at it

How about the practice of sending us "Changes it terms" multiple times a year?

Enough with privacy opt-out hassles. Unless and until I opt-in, stop selling my name!

[humbled_opinion]

10. Damn Good...

You know I got scammed like this... zero percent interest send all your balances over to one card 10k limit.... only make 35k per year but what the hell i had other cards with 11 and 12 percent interest rates why not use the BOA card to consolidate all the debt.... hmmm 6 months after all debt transferred total 7k my card sendt me a notice and said my interest rate was now 22 percent.... HUH... WHAT????? of course I could pay off the balances and close out the card if I wanted to.... anyway.... I am still paying on this card and the total loss in accumulated interest from going from my other cards over to this one is going to be an additional 2k dollars....

I hope Congress hammers all the asshat credit card Companies in fact I hope they give a moratorium on anyone that feels they were shafted so I can just pay back the amount loaned and Zero interest that would be fair.

[Lint Head]

12. Nothing will be done. Congress has talked about this for years

and done nothing. It's election time and everything will be discussed to make it look like they care about us civilians. The credit card companies have deep pockets and money talks. Washington is full of cowards. :dem:

[Gman]

14. How old fashioned! Usury laws!

Forget about the fact that usury is condemned in the Bible and the fundies and the rest of the GOP just look the other way as long as gays can't marry or a woman can't take care of her own health the way she wants. Yeah, they pick and choose which morals they want to follow and which ones they can just look the other way.

[regnaD kciN]

15. "Usury"...? Come on...

Usury laws are just so pre-Reagan Republican Revolution!

:sarcasm:

[closeupready]

16. But it's worse than that, unfortunately.

Congress has been figuratively (literally?) BOUGHT by those whose career interests are served by the current set of laws governing consumer credit cards. No such industry exists to profit off of a woman's right to choose or gay marriage.

That is, Congress members have compromised their integrity for a fast buck.