House Panel Curbs Credit Card Rate Hikes (based on credit reports)

[truthpusher]

http://biz.yahoo.com/ap/050621/congress_credit_cards.html?.v=1

House Panel Curbs Credit Card Rate Hikes
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Tuesday June 21, 7:49 pm ET
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By Andrew Taylor, Associated Press Writer
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House Panel Restricts Interest Rate Increases on Credit Cards
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WASHINGTON (AP) -- Banks and other issuers of credit cards would no longer be able to raise a cardholder's interest rate simply because of negative information from a credit report under a bill that advanced Tuesday in the House.

The House Appropriations Committee added the restrictions on card issuers to a bill funding the Transportation and Treasury departments for the budget year beginning Oct. 1. Rep. David Obey, D-Wis., sponsored the proposal -- which he said was aimed at credit card issuers that jack up interest rates even when consumers pay their bills on time -- and won a 33-25 vote.

"Even though you haven't missed a payment you can pay 30 percent interest," Obey said.

The proposal would allow card issuers to raise rates only for activity related to that account, such as missing a payment on running up a big unpaid balance. However, the proposal is vulnerable to being taken out because it's within the jurisdiction of the rival Financial Services Committee.

complete story: http://biz.yahoo.com/ap/050621/congress_credit_cards.html?.v=1

[Jacobin]

1. Snowballs chance in hell of passing

[TahitiNut]

2. Sure ... just try and get them to comply.

Bullshit kabuki.

[Miss Chybil]

3. How could anybody be against this?

Oh, I long for a government by the people and for the people... Didn't we used to have something like that?

[FloridaPat]

8. Actually never. Use to be a nice line you memorized in school.

This country was originally founded for landed gentry. Then they decided only male landed gentry. Half the people finally got the vote in 1920. Blacks have been pretty much left out until the 1960's. This country has always been run for the corporations. However, in 1900 90% of the people had their own company. Very few employees. The repubs have always been known for giving everything they could to the corporations. The Democrats have been known to care for the little people. During the Depresssion, 60% of the population was dirt poor. We've really come a long way. The Middle Class showed up after WW2. But since 1980 it's been to rape the people for the corporations.

[Miss Chybil]

11. It was a nice dream... nt

[whistle]

4. I got a letter last month from MBNA whose credit card I have...

...had for well over ten years and which I've kept fairly low balances on. They informed me that effective July 1, the rate will be increased to the maximum they charge with no explanation. This effectively doubles the interest rate I have been charged by them. I just wrote a check to pay off my balance and the card goes into my drawer. If they want my future business, they'll have to beg for it.

I was also thinking that there has been a lot of lost credit information through hackers. Maybe the big credit card companies are about to have a major implode in their systems. I am no longer using credit cards to make any purchases and paying off all outstanding balances. I have one gas credit car, which I use essentially for convenience and pay that balance in full each month.

[Purveyor]

5. MBNA is notorious for that...

My mother, whose has a debt-free estate worth around $750,000 called me up in tears about a year and a half ago thinking she had "bad credit" because MBNA increased her interest rate to 20.9%.

No reason given and she doesn't even maintain a balance but she had thought "she" had done something wrong.

Needless to say, that account was immediately closed only to receive pleas from MBNA to "please come back", we are so sorry.

Poor bastards on the phone making those calls to her certainly weren't being paid enough for "that call".

She now carries a nice "Credit Union" issued card with an interest rate of 7.9% and an actual "person" to talk to if she thinks there is a problem.

[high density]

7. My coworker called up MBNA and bitched about her rate...

...and they lowered it, no questions asked.

[bleedingheart]

9. I find when I call to cancel they hurry up and lower the rate.

[kohodog]

6. Wow, such a deal.

These motherfuckers (credit card co's) are making more profit than ever and can jack the rates up as high as they like and charge outrageous "late fees" on top. No wonder Congressional approval is at an all time low. There should be a cap on interest rates based on T-Bills or something. They think they can appease us with a lame bill like that?

[FloridaPat]

10. The CC interest rates were originally determined by the states.

During Reagan's term, the prime went up to around 21%. Poor credit card companies could only charge 12% max per state laws. So the feds steped in and took only their interest rates under federal law. If you or I charged 30% we'd land in jail for usury. The law expired last December. It was promptly renewed.

[Phoebe Loosinhouse]

12. The concept of "universal default"

an exceptionally inherently evil and stupid policy promulgated by the banks who will stuff their coffers anyway they can unless they are reined in by our legislatures.

Joe average who lives paycheck to paycheck has an unexpected car repair that blows up his budget. He pays 4 out of his five accounts on time, but must make a late payment on one. Smelling blood in the water, the banking carnivores jump all over poor Joe and send the rates on all his accounts spiralling beyond his ability to pay, even though he had only a one-time temporary shortfall in one account. Joe now has a shortfall every month. His credit is ruined, he loses his house, he can't get the new job he is qualified for because of his ruined credit and now he and his 14 year old daughter stand by the highway on-ramp looking for handouts.

This bill MUST pass!!!!