Dodd Calls for Interim Freeze on Credit Card Fees and Rates

[bunnysoft]

Source: New York Times

Senator Christopher J. Dodd, Democrat of Connecticut, on Monday proposed freezing interest rates and fees on existing credit card balances until a new law took effect.

Senator Dodd, the chairman of the Senate Banking Committee, said his bill was necessary because banks were raising rates “to squeeze customers” before the remaining provisions of law took effect in February.

The new credit card law, which was passed in May, seeks to stop banks from arbitrarily raising interest rates.

Last week, the House Financial Services Committee passed legislation to move up the effective date for the credit card law, which will restrict interest rate increases and hidden fees, from Feb. 22 to Dec. 1. The measure is opposed by the banking industry, which says it will be difficult if not impossible to meet the expedited deadline.

Read more: http://www.nytimes.com/2009/10/27/business/economy/27card.html

[Uben]

1. And make it retroactive......

.....back to 2000. Stick it in their ass, twist, repeat!

[gmoney]

29. or even Jan 1, 2009 (or 2008)

or even May when the damn law was passed!

[msongs]

2. yet the banking "industry" can cut off customers in one minute or less by the press of a key nt

[dmr]

8. Amazing, isn't it? Logic disrupts profits.

They have boats and planes to maintain!

[BrklynLiberal]

13. Reallly like your sig image.....so adorable..

[Ruby the Liberal]

3. I was certainly not "difficult if not impossible" for them to raise rates

drop credit lines and cancel cards on a whim.

Just put the machine in reverse, guys.

[DJ13]

4. Thats a start

Now how about regaining the regulatory authority to cap the rates at realistic levels?

Freezing a rate of 30% (or more) is NOT a realistic interest rate.

[ozone_man]

7. How about 10%?

Above that is usury. At some point, they have to deny credit. As a nation, we have been living off of credit the past 10-20 years.

Of course it will cause a depression if they stem the money flow now, but it will happen anyway, and to keep the credit spigots open will only cause a worse depression in th end.

[stewartm0205]

19. Use to be 7%

Should be prime + 3% max about 6.25%. And the interest rate should stay fix when you borrow. If you borrow at 7% then it should stay at 7%. Some people won't get credit but thats ok since these people are better off not paying 29% interest. 29% interest is bad for the customers, the banks and the credit card companies. The bank executive must have skip economic 101 - how price affects demand. They also forget that the Republicans are not in power anymore and pissing off the voters is not a good strategy.

[ozone_man]

23. Agreed.

That is really what is driving the recession/depression, an overextension of credit, the resulting accumulation of debt, and usury CC rates, so the consumer has tapped out their home equity (ATMs) and maxed out their credit cards. Consumer spending is 70% of GDP and that portion is going to banks, credit card companies, ...

It won't end well, and may lead to a revolution at some point, torches and pitch forks against these banks.

[harun]

5. They need to cap rates at 15%.

[JerseygirlCT]

6. Might be too late

I know mine have already been jacked up.

[Hotler]

9. You're years to late and you don't have

the balls.

[Hawkeye-X]

10. No, Dodd, you got it wrong again.

You want a REVERSAL of all credit card fees, impose 0% interest fees for the next 25 years. You want to bankrupt the CC companies, not us.

Oh, and make usury of 15.1% or more a mandatory minimum of 50 years maximum security prison time with hard labor and daily ass-reaming with a pineapple for all executives involved in raping Americans.

Thanks!

Hawkeye-X

[graywarrior]

12. Seriously!

That's the way to go.

[DeSwiss]

11. Borrow funds from the Feds.....

...at 0.0001% interest and charge us 30%.

- The below pic I think captures my feelings quite nicely......



K&R

[Laelth]

14. Too late for me. Dodd isn't fooling anybody with this move.

The new credit card law stinks, and Democrats deserve to take some heat for it. Now Dodd wants to throw us a meaningless bone?

I am not amused.

:dem:

-Laelth

[closeupready]

17. He worked all this out - Dodd is folloiwng a strategy, not spontaneous outrage.

He is such a piece of work, a consummate politician.

[Skittles]

15. so why the fuck did you give them until February

oh that's right, because y'all were busy sucking corporate ass

[wisteria]

16. I appreciate the gesture, but this should have been called out a few months ago.

Most credit card companies are currently in the process of raising everyone's rates before the new laws go into effect. I got hit with two this month alone. The rates weren't a point or two, but more like four or five points more and I pay my amounts due on time. I have two cards that now carry 29.99% interest rates. I intend to pay them off and then tell them to go to hell. I will never again get caught up in the credit card debt.

[hedgehog]

18. If you miss a payment or go over limit, your rates go up because you're a risk.

Make every payment on time, you're rates go up because you're a risk. (Just like the auto insurance companies that figure the longer you go without an accident, the more likely you are to have some sort of fender bender, the banks must think everyone is a day late once in awhile.)

Pay your card off in full on time every time and your card gets canceled or you pay a fee.

[Kali]

20. uh lets see they have been extra jacking the rates the last few months

as soon as the bill passed, not to mention the last decade of rates worse than any mafia loan shark. To make this an actual help to the small card holder it needs to be retroactive to ten years ago.

[CountAllVotes]

21. too late now Mr. Senator

rates have been "adjusted" to variable rates on all of my credit cards already you idiot!!!!

:kick:

[K Gardner]

22. Right.. now that every single company has raised rates to over 20%. Too little, too late.

[ladywnch]

24. hello....barn door.....horse.......long gone....... n/t

[adamuu]

25. exactly. this is AFTER my default non-default notice. n/t

[adamuu]

26. Why not just outlaw usury? n/t

[damntexdem]

27. A freeze would be good, but ...

a roll back would be better.

[gmoney]

28. "I Hate Banks"

http://www.amazon.com/I-Hate-Banks/dp/B000QPF8SI/ref=sr_1_1?ie=UTF8&s=dmusic&qid=1256664465&sr=8-1

Free Mojo Nixon download (US only)


Anyway... why didn't the lawmakers didn't see this coming and put the freeze into effect in MAY when the law was PASSED?

"We'll be putting a lock on the door December 1, so please don't loot us in the interim."