Credit card legislation nearing success

[babylonsister]

Sounds like Congress is actually working. Nice that.

Credit card legislation nearing success

By MARCY GORDON
AP Business Writer


WASHINGTON (AP) -- Responding to a wave of populist anger, the House moved toward passage of a consumer protection bill to rein in credit card practices and eliminate sudden interest rate increases and late fees that have entangled millions of consumers.

Similar legislation is before the Senate, where prospects also appear promising. The Obama administration has been pushing for passage of the legislation, which would bring unprecedented new rules for the industry that consumer advocates and some Democrats have unsuccessfully sought for years.

"A big vote in the House will create an even bigger momentum as it goes to the Senate," House Speaker Nancy Pelosi told reporters Thursday.

The House adopted a series of amendments - some of which were pushed by the White House - that amplified the restrictions on industry practices. The bill, dubbed the "Credit Card Holders' Bill of Rights," wouldn't take effect until a year after enactment.

The House measure incorporates new Federal Reserve regulations due to take effect in July 2010 but goes further, by adding restrictions for credit cards for college students. The bill would prohibit so-called double-cycle billing and retroactive rate hikes and ban the issuance of credit cards to people under 18. Another requirement in the bill, that customers receive 45 days notice before their interest rates are increased, would take effect in 90 days.

Double-cycle billing eliminates the interest-free period for consumers who move from paying the full balance monthly to carrying a balance.

more...

http://hosted.ap.org/dynamic/stories/U/US_CONGRESS_CREDIT_CARDS?SITE=CONGRA&SECTION=HOME&TEMPLATE=DEFAULT

[RUMMYisFROSTED]

1. Money @ 0.25%, billing @ 30%.

Who dares have a problem with that!?!

[RUMMYisFROSTED]

2. The feet are dragging on this one.

Every month is billions of dollars transferred.

[DJ13]

3. The CC industry has already blunted the good this bill would do

Why do you think they were in such a panic to raise rates the last two months?

This legislation is good, but it does nothing about rolling back interest rates, and thats what is causing the most harm to consumers at this point.

[Gormy Cuss]

4. Yes, the CC industry has been burning the midnight oil in preparation for this.

Every single company has sent me completely overhauled terms in the past few months. They were making sure that they were in the most advantageous position before the reforms kick in.

The bill is a good start (or at least, better than nothing)but there's more work to be done.

[malaise]

6. Bill passes

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h627ih.txt.pdf
The Credit Card Bill of Rights 2009
357 Yes
70 No
Please note that Bush opposed this bill in September
<snip>
The White House said on Monday it opposes legislation called "the Credit Cardholders' Bill of Rights" that would curb unfair and deceptive credit card practices, saying it would constrain banks' ability to price risk.

The White House said in a statement the bill would lead to less access to credit and higher interest rates for consumers.

"For the credit market to operate efficiently, creditors must have the flexibility to react to changes in customer risk and market conditions," the White House said.

The provision "would restrict when lenders may change terms of the credit agreement, significantly constraining the ability of financial institutions to adapt to changing credit risks and market conditions," the White House said.

http://www.reuters.com/article/politicsNews/idUSN2234253220080922
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Fuck you George Bush.


This is a good start but I agree that it's time to roll back the usurious interest rates.

[depakid]

5. "wouldn't take effect until a year after enactment."

Nice job, Dems.

Ever notice how bills to protect corporate interests and abuses go into effect almost immediately in this country, whereas anything that remotely protects consumers is delayed for a year or more?

[xchrom]

7. won't go into effect for twelve months -- nt

[MannyGoldstein]

8. Is There A Cap on Interest Rates?

Or will it continue to be usury in a new and shinier package?