Senator Dodd working on capping credit card interest rates and merchant fees

[andym]

CREDIT CARD RESTRICTIONS NOW LAW
Dodd Now Shooting For Cap On Credit Card Interest Rate, Merchant Fees

By KENNETH R. GOSSELIN | The Hartford Courant
May 23, 2009

The most sweeping reforms of the credit card industry in two decades were signed into law Friday, curtailing charges and practices that industry critics have said are abusive, if not predatory. But Sen. Christopher J. Dodd, D-Conn., who led the effort to enact reforms in the U.S. Senate, was already looking ahead to more. In a conference call with reporters Friday, Dodd said there are still two major issues that remain unfinished business: a cap on interest rates and limits on fees that merchants pay when a customer uses a credit card for a purchase. Both issues were part of the debate that led to the wide-ranging reforms signed into law by President Barack Obama Friday, but never made it into the final Senate bill.

Dodd said it was outrageous that a credit company could charge more than 30 percent interest on purchases. It was equally appalling, he said, that big credit card companies make so much money from small store owners and other entrepreneurs who have to fork over a portion of their profits when customers pay with credit cards. "And we've got to do something about it," Dodd said.

Dodd has asked that the Federal Reserve conduct an analysis to determine how Congress could rein in interest rates. A similar study on merchant "interchange fees" will be conducted by the Government Accountability Office. The fees, typically 2 to 3 percent of each transaction, are paid by the merchant so they can accept major credit cards and have those transactions processed through banks.


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http://www.baltimoresun.com/business/bal-dodd-credit0523,0,2063810.story
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I recommend that we call our senators to help build support.

[myrna minx]

1. K&R.n/t

[panader0]

2. I gotta rec this too

Credit card abuses are no different than plain robbery, done legally. I'll bet everyone on this board has horror stories, I know I do.

[ladywnch]

6. you got that right! credit scores are another thing

they tell you you can control your credit score. mine has dropped significantly over the last 2 months even though I have not missed a payment, been late on a payment, gone over any limit or even run my balances up significantly. They've just all my credit lines because they gave me all kinds of credit increases that I didn't ask for and didn't use. They cut credit lines on accounts that have had zero balances for a year! They've ruined my credit without any action from me! They control the credit scores, the money, the interest...everything. the BASTARDS!

[DJ13]

3. I wish I could believe he was serious

Unfortunately I cant, because he gets too much of his campaign donations from the banks.

[depakid]

5. Then again "only Nixon could go to China."

[murielm99]

4. There is a small gas station and convenience market in

my neighborhood. The owners are good Democrats. I know they are having a tough time making a profit. I never use my credit card there. It is always cash or a check. Why should they have to pay some of their profits to a greedy credit card company? I don't get stuck with interest payments that way either.

[OwnedByFerrets]

7. The People's Senator Bernie Sanders already tried this

and was shot down royally by those fuckers that surround him and "claim" to be servants of the people.

[andym]

9. The difference is that Dodd is the Chairman of the Finance Committee

The difference is that Dodd is the Chairman of the Finance Committee. If he wants it will at least be seriously considered. But for it to be passed, a great deal of support among more conservative senate members (Democrats and Republicans) will be needed. So vocal support and lobbying will be needed.

Senator Dodd is also getting backup for a new bill by having the Fed and the GAO research how to best implement caps and to simulate the consequences which may win over more support than Sander's amendment received this time around.

[Inuca]

15. Banking committee n/t

[andym]

16. Yes you are correct, banking not finance committee nt.

[flpoljunkie]

10. Sanders' amendment to limit interest to 15% on credit cards failed miserably 33-60 with many Dems

voting against it. Both parties are owned by the banks and credit card companies. That's why we must demand public financing of their frigging campaigns.

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00191

[dtotire]

8. Dodd is a competant and effective Senator

He is also the co-author (with Chuck Hagel) of a bill to establish a National Infrastructure Bank, whereby States and local governments can borrow money at favorable interest rates to refurbish and improve their roads, bridges, water and sewage systems, etc. without going to the private sector or waiting for a grant from Congress. This method has a lot of merit. It was one of the planks in the Democratic party platform. Dodd is an expert in this area. It would be a loss to the country if he is not reelected.

[SOS]

11. A suggestion for Senator Dodd

"Dodd has asked that the Federal Reserve conduct an analysis to determine how Congress could rein in interest rates."

Pass a law that allows states to enforce their usury laws against national banks.
As it was before 1978.

If Delaware and South Dakota want to allow banks to loan shark their citizens, so be it.
But in NY, anything above 16% is a criminal offense.

[girl_interrupted]

12. SOS that is a really good idea!

Turn it over to the states. It's something I'd like to call Dodd & my own senators about and see what they have to say. Thanks for the suggestion!

[girl_interrupted]

13. K&R

[chill_wind]

14. K & R. n/t