Senate votes to limit credit card rate changes


WASHINGTON – The Senate voted on Tuesday to prohibit credit card companies from arbitrarily raising a person's interest rate and charging many of the exorbitant fees that have become customary — and crippling — to cash-strapped consumers.

The overwhelming bipartisan vote of 90-5 was lawmakers' way of telling Americans that they haven't been forgotten amid a recession that has left hundreds of thousands jobless or facing foreclosure.

With the House on track to endorse the measure by week's end, President Barack Obama could see a bill on his desk by the end of the week.

"We've got too many hard-working families in Massachusetts struggling to keep their heads above water, and the last thing they need is to get whacked with unfair credit card fees," said Sen. John Kerry, D-Mass.

If enacted into law as expected, the credit card industry would have nine months to change the way it does business: Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone for free. They'd also have to give consumers a chance to spare themselves from over-the-limit fees and provide 45 days notice and an explanation before interest rates are increased.

Some of these reforms are already on track to take effect in July 2010, under new rules by the Federal Reserve. But the Senate bill would put the changes into law and go further in restricting the types of bank fees and who can get a card.

For example, the Senate bill requires anyone under 21 seeking a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default.

http://news.yahoo.com/s/ap/20090519/ap_on_go_co/us_congress_credit_cards

..i have never owned a credit card ..although if the doctor was to tell me i only had six months to live..i would get all of them and rack up an exorbitant amount all the way to the bahamas ..then die ..at least thats my plan ...

yeah right

they have 45 days then 9 months

and to late most of them already raised their interest rate

does it make it retroactive

and put a reasonable cap on it

i doubt it

They Won't Stop 30% Interest Rates, But At Least We'll Have Loaded Guns In Our National Parks
The headline today read "Reform may mean good card users pay more", even as the Senate passed their totally phony credit card bill, S. 627 [text of bill]. The one thing that actually mattered, an amendment to limit interest rates to a very generous 15 percent was killed. With the government bailing out some of these same companies, and giving them money for zero interest, how greedy can they possibly get? Oh, but they had no problem tagging on a totally unrelated Wild Bill Hickok in our national parks provision.


http://www.peaceteam.net/action/pnum986.php


----------------------------------------------------------------

imagine that

Beecth about bailouts to Industries but no beetching when the bailout goes in their own pockets.

Amazing!

I don't use credit cards so it doesn't affect me

You do use US dollars, no?

What is hidden is how exactly such bailout can be financed. The article doesn't show that. I tell you how. You will finance it, if you hold any notes of Federal Reserve.

Wrong thread!

it is not a bailout

it is an end run

their is no cap on interest rates

they end some of the penalty charges big deal

they just raise the interest rate and they make even more money

Dispelling myths on credit card legislation


Posted: Wednesday, May 20 2009 at 05:40 pm CT by Bob Sullivan

The credit card reform bill just passed by Congress includes tough new provisions that will legally ban some of the most egregious behavior by banks. But as in all such laws, the devil is in the details.

There's already some confusion about what the Credit Card Accountability Responsibility and Disclosure Act does and doesn't require. Here's a true-and-false primer.

http://redtape.msnbc.com/2009/05/dispelling-confusion-over-credit-card-legislation-.html

In one certain point , I understand the reason behind it , having people already in trouble with credit card bills, but my other half is telling me, this is just another something the government shouldn't be involved.

People should learn to be careful and about the credit cards "fool me once shame on you, fool me twice shame on me" - they should learn not to get into debt on their own.
I don't want to be babysitted neither by the government or someone , that "ohh poor boy, get your credit card, we capped the bastards, it's ok now" .
No thanks. If they mess me up with some crazy interest rate, I learn from it and not get another credit card from that company or not get any either. Eventually they will admit their foolish games and loose enough customers to reconsider messing with people and it will be better. But for the government getting into everything lately, makes me wonder when they will be telling me what color of underwear I shouldn't wear.

The grain of wisdom hides in the bushel of anger, they say.

In this case, Atlantis, you are bringing up a very well hidden and important piece of wisdom, revealing to us for exactly what purpose this legislation has been crafted.

I agree, it is precisely to allow the indebted not to learn from his mistake. For if he does learn, then the indebtor will lose his income stream.