Credit Card Industry Faces Reforms

[cal04]

Congress, Federal Reserve Propose Tighter Rules to Protect Consumers
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/09/AR2008080900138.html?hpid=topnews


Stricter regulation of the credit card industry will probably be approved by the end of the year, consumer advocates, members of Congress and banking officials said as the comment period on the Federal Reserve's proposed actions drew to a close last week.

Nearly 56,000 comments poured into the agency via e-mail and regular mail, a record response for any Fed proposal, said agency spokeswoman Susan Stawick.

Both the Fed and Congress are working to tighten rules on the credit card industry. The large response to the Fed's proposal comes on the heels of congressional action on the issue. The House Financial Services Committee moved Rep. Carolyn B. Maloney's Credit Cardholders' Bill of Rights out of committee on July 31. The measure would prohibit unexpected increases in the rates charged on pre-existing credit card balances, among other things. Observers said the New York Democrat's bill probably wouldn't pass the Senate this year because time is running out.

Nonetheless, the fact that the bill made it out of committee despite significant pushback from the banking industry and top Republican lawmakers sends a signal to the Fed that if it doesn't take action, Congress eventually will, if not this year then next, consumer advocates and members of Congress said. Several similar bills have been floating around the House and Senate for months, adding to the momentum for change

[Nikki Stone1]

1. I hope this legislation makes it into law

What the banks are doing is criminal.

[jaysunb]

2. And, how much have they profited in the interim ?

Classic American robbery: get a bunch...wait a few years....get a bunch more. Where will it end ????? :evilfrown:

[TahitiNut]

3. "probably wouldn't pass the Senate this year"

But it's GREAT posturing in an election year!!

Kabuki. :puke:

[spin]

4. About time...credit card companies need tighter regulation...

Capitol One offered Pruitt a credit card at their introductory rate: one year at about nine percent. But even before a year was up, her interest jumped to 21 percent—for no apparent reason. "I paid my bills on time and I never went over my limit," she says. "One lie they told me was that I was notified by mail of an increase but I never saw that."
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/09/AR2008080900138.html?hpid=topnew

I learned years ago to pay off my credit card balance every month. I don't trust credit card companies. They'll find any excuse to raise your rates to astronomical levels.

Homey don't play dat game!

The new regulations are a start but far more needs to be done:

But the proposal does not, in all cases, ban the so-called universal default -- that is, raising a person's interest rate if he or she is late on an unrelated debt. It also does not address many arbitrarily high credit card fees.
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/09/AR2008080900138.html?hpid=topnews

[silverojo]

7. If you're capable of paying off your card balance every month

Why the hell do you even have a credit card?

Most people living on credit cards are doing so because of this shitty economy and unemployment or medical bills. Get off your high horse and face reality.

[spin]

8. I have a credit card so that I can place orders on the.internet...

I get free two day shipping from Amazon.com since I'm a Amazon Prime member. It works out well since I live in a small town in Florida. I could always drive to a larger town to do my shopping but I would burn a lot of gasoline and time to do so. Amazon sells a lot of different items, often at far better prices than you can find locally.

A credit card also enables me to order from various other companies in many different areas of the United States and I can buy items from other countries if I want.

And of course there are times when it helps to have a credit card. Every time I've rented a car I was asked for a credit card.

I'm not really on a high horse and I do face reality. I just don't buy stuff I can't afford, and there's a lot I can't afford. I save my money until I can buy the items I want or need. I'm also fortunate as I have medical insurance.

I hate owing money so I have no mortgage on my house and I bought my pickup truck for cash. It took years to be able to do this, so I'm not young. I set this goal 25 years ago. I'm not rich by any means, but I don't lay awake at night worrying about foreclosure on my house or my truck being repossessed.

The government and the big corporations love for you to be deeply in debt. It keeps the economy rolling along. If you get in debt over our head, they really don't care.

Homey don't play dat!

[spag68]

5. No reform is good enough

The only thing that is good enough for me, is to bring back the crime of usury. That is charging more then 10% interest. I remember when I was in school it was repealed. MY folks had home loan with a rate of 3.75%. Oh the good old days. The credit card industry now puts the old loan sharks to shame, and gets ty carry out it's business legally. BY the way although I like Joe Biden personally, don't forget his votes and the fact that his state is home to some of the biggest offenders in the industry.

[regnaD kciN]

6. I hate to point out the obvious...

The measure would prohibit unexpected increases in the rates charged on pre-existing credit card balances, among other things.

...but I think that, if this became law, millions of credit cards would get their rates increased to the maximum allowed one day before the new law took effect. :-(

[Flabbergasted]

9. While they're at it...make businesses partly of fully responsible for credit card fraud....

The lax regulations concerning cc still stuns me. It makes no sense. It takes money out of struggling hard working people's pockets and puts it in the hands of businesses, cc companies, and the oh so admirable petty thieves.

Real simple solution:

Current photo on every credit card mandatory. If the business fucks it up they eat the transaction.