Surprise.

catocom

catocom

Well-Known Member
Looks like the House actually may have some positive work done here.

House Approves Credit Card Bill
The House Thursday approved a bill that would curb what supporters described as predatory credit card practices and eliminate spikes in credit card interest rates.

The House approved the package 357-70.

Among other things, the plan would ban what's known as "double-cycle billing" as well as retroactive rate hikes. The measure would also require credit card firms to give consumers a 45-day warning before they raise interest rates.

If they become law, the new measures won't take effect for a year, except for a requirement that customers get 45 days' notice before their interest rates are increased. That would take effect in 90 days.

House Speaker Nancy Pelosi, D-Calif., indicated that she hoped that "the big vote in the House will create even bigger momentum as we go to the Senate."

President Obama has indicated he would sign the bill.

The average home that has a credit card carries more than $10,000 in debt. Credit card debt has increased markedly over the past quarter-century.
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http://www.foxnews.com/politics/2009/04/30/house-approves-credit-card/
 
Since we own Government Motors & half the banks in the US, we might as well tell 'em how to do thier business.

On the consumer side, I like it. On the realistic side, it's just another power grab by the federal government. If you don't like the terms...end the relationship with the card issuer. Nothing more needs to be done. It's not Uncle Sams job to tell your bank how to run their business.
 
I think it worked well when they cap interest at 21%.
That's still high to me, but a decent rate.

The problem is that they took away the safeguards established that work well for so long.
 
Why cap it? If someone with a shaky history wants to pay 29% & the bank is willing to risk it, who are we to stand in the way?

Let the businesses decide how to handle their affairs. Then let us, the consumers, reject or accept their terms.
 
Because 'people' have become stupid, and corps greedily playing on it.

I'm not for more regulation on banks, just this aspect of it.

If 'people' were smart they wouldn't even get um at 21%.


The problem didn't start by banks making bad decisions, That was the gov.
That's why lending hasn't opened up. Banks don't like the gov. take over.

At this point, take over/bailout = bad,
regulation, Good regulation = good.
I hate to say.
 
Gonz said:
Let the businesses decide how to handle their affairs. Then let us, the consumers, reject or accept their terms.
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yeah, but... the CC companies are vultures. they change rules on the fly and fuck people over in inconsistent, unpredictable ways. not that i have much sympathy for dumbshits that get themselves into stuff over their heads blah blah blah but the behavior of CC companies, well, they almost make the movies version of "jimmy the loanshark" seem honest.
 
2minkey said:
yeah, but... the CC companies are vultures. they change rules on the fly and fuck people over in inconsistent, unpredictable ways. not that i have much sympathy for dumbshits that get themselves into stuff over their heads blah blah blah but the behavior of CC companies, well, they almost make the movies version of "jimmy the loanshark" seem honest.
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Minkey is right. My husband has excellent credit. He had a couple credit card with the major credit card companies. He decided to pay off one of his credit card bills and did so. A month later he was determined "high risk" and they jacked his interest up to the highest interest they could. He called and asked what did it and it was paying off the debt on the other card. So he said, fine... cancel my card I'll pay yours off also. He did so. They've been begging for him to come back since but he tears up their offers each time, no matter how low they go.

These credit card companies have been in the business of fucking people over for decades. Back in the 70's they wouldn't give a credit card to a woman unless she was married and her husband signed for it. If you were black or hispanic ... oh jeeze... forget it! Didn't matter what your credit history was.

And they all use the same predatory practices.

Me? I have two credit cards. I haven't used them in years. Balance is always zero. I use them once in a while just to keep my credit score from dropping (how fucked up is that?) and I send a check for the balance the same day I use it so it's paid off ... always.

But what happens when someone is living paycheck to paycheck and the transmission blows on the only vehicle. That's not cheap. So you have to take out a loan or get a credit card to pay for it.

Rent "Maxed Out", it opened my eyes to a lot of what happens behind the scenes. I no longer look at people who get caught in this credit trap the same way. Yes, there are those that go out and buy a big screen TV on a credit card (at 29% interest), but there are those with legit needs and get caught in the same bull shit trap.
 
If you want to become informed on credit cards, watch THIS PBS "Frontline" report entitled "The Secret History of the Credit Card".

Make sure you have no objects at hand which you could use to hurl at your monitor. Keep the blood pressure meds close.

Once you watch this you will know why Andrew Carr did not want anyone to know where he currently lives. The 2% rule was his idea but if you pay only the minimum amount of 2% of balance it will take you about 40 years to pay off a $10,000 CC debt.
 
I would like to see the law changed to make the credit card companies allow the consumer to pay more than they owe (a credit to their account) and the CC companies would have to pay an interest rate on that credit of 25% of the highest CC rate they charge.

ie: if they charge 30% as their highest rate to their worst customers, they would have to pay 7-1/2% interest to those accounts which pay a credit to their accounts. If the amount that the customer were allowed to pay into that credit account were limited to the amount they are allowed to use on their CC the amounts the CC companies allow would decrease. This would disallow the consumer from being able to overextend themselves so easily.
 
jimpeel said:
If you want to become informed on credit cards, watch THIS PBS "Frontline" report entitled "The Secret History of the Credit Card".

Make sure you have no objects at hand which you could use to hurl at your monitor. Keep the blood pressure meds close.

Once you watch this you will know why Andrew Carr did not want anyone to know where he currently lives. The 2% rule was his idea but if you pay only the minimum amount of 2% of balance it will take you about 40 years to pay off a $10,000 CC debt.
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Thanks, I will watch.
 
jimpeel said:
I would like to see the law changed to make the credit card companies allow the consumer to pay more than they owe (a credit to their account) and the CC companies would have to pay an interest rate on that credit of 25% of the highest CC rate they charge.

ie: if they charge 30% as their highest rate to their worst customers, they would have to pay 7-1/2% interest to those accounts which pay a credit to their accounts. If the amount that the customer were allowed to pay into that credit account were limited to the amount they are allowed to use on their CC the amounts the CC companies allow would decrease. This would disallow the consumer from being able to overextend themselves so easily.
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That is a brilliant idea!
 
jimpeel said:
I have one on occasion. :swing:

Now trying to get it actually implemented ...
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Forget it! The Credit Card companies spend millions on lobbyists every year. You have pocket change.

Anything that would cut into their profits or force them to change is going to be a real fight.
 
well, now the catch.
It's going to be buried in the spending bill...I mean the so called budget.

ditto on the other too.

too bad. Those are good, but not if we have to have all that other.
 
I think, that on the surface it would appear to cut into profits, but in practice, more people would end up having credit cards and carrying balances. This nonsensical business of jacking interest rates to near loan shark proportions cannot continue indefinitely, lobbyist or no. What we are finding out is that when the private sector gets greedy, everyone suffers. Fuck this shit of; "let the market be free, utterly and completely". If they won't police themselves, someone has to do it. Obviously we cannot idiot proof the process with such a wealth of idiot consumers, but we can make sure they are dealt with fairly, and not just legally swindled.
 
Want to police the free market?

Don't buy over-valued housing.

Don't spend forty grand on a twenty thousand dollar car.

Quit buying the latest fashions.

Put 5% of your net into savings.

It's your money-screw the Joneses.
 
Gonz said:
Want to police the free market?

Don't buy over-valued housing.

Don't spend forty grand on a twenty thousand dollar car.

Quit buying the latest fashions.

Put 5% of your net into savings.

It's your money-screw the Joneses.
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OK, I guess that settles that. My apologies!
 
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