Credit card "bill of rights" legislation nearing success

[dbackjon]

http://hosted.ap.org/dynamic/stories/U/ ... TE=DEFAULT


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.

[AZGrizFan]

When are they going to promote legislation that requires these slimy motherfuckers to actually PAY their credit card bills? Did somebody hold a fucking gun to their heads and make them run up a $30k or $40k balance on those cards?

I've got news for you folks: the financial industry is going to collapse. And it's NOT going to be pretty. Reserves and capital is STILL leaking off at a record pace, and the losers are standing in line to get their debt "forgiven" because the mean ol' credit card companies are EVIL and out to get them.

I want a Credit Card ISSUERS' Bill of Rights. As in, we have a RIGHT to expect that you will actually PAY what you CHARGE. What a fucking concept, huh? Personal responsibility.....it's a thing of the past.

Nothing is EVER our fault.

[hank scorpio]

Good deal!

MT had failed bill that would have capped the interest rate for payday advance and title loans in the state. The opponents of the bill made it sound like they were a bunch of philanthropists who were being bullied by Big Brother.

Those assholes are the definition of preditory lending.

[dbackjon]

AZGRIZ - I understand your point, but it is a two-way street - the Credit Card ISSUERS have all the power right now. They have the power to change rates at a whim, and are in no way connected to the costs of borrowing.

No one FORCED the credit card companies to issue the cards. No one FORCED the credit card companies to give people making 20K a year a 30K credit card limit.


Stupidity all around, from Banks who issued them with so easy gotten limits, to customers who racked up more than they could pay.

But when Credit Card companies are jacking up the rates on borrowers in GOOD STANDING, this blowback was going to happen. The CC companies have no one to blame but themselves.

[AZGrizFan]

Good deal!

MT had failed bill that would have capped the interest rate for payday advance and title loans in the state. The opponents of the bill made it sound like they were a bunch of philanthropists who were being bullied by Big Brother.

Those assholes are the definition of preditory lending.

Bullshit. People spend beyond their means, and they it's the big bad bullies who take the blame. As I said, no personal accountability anymore. Our morals are a fucking joke in this country.

[dbackjon]

Good deal!

MT had failed bill that would have capped the interest rate for payday advance and title loans in the state. The opponents of the bill made it sound like they were a bunch of philanthropists who were being bullied by Big Brother.

Those assholes are the definition of preditory lending.

Bullshit. People spend beyond their means, and they it's the big bad bullies who take the blame. As I said, no personal accountability anymore. Our morals are a fucking joke in this country.

Just like you are refusing to acknowledge any responsibility for the mess we are in comes from greedy credit card companies and bankers.

[AZGrizFan]

AZGRIZ - I understand your point, but it is a two-way street - the Credit Card ISSUERS have all the power right now. They have the power to change rates at a whim, and are in no way connected to the costs of borrowing.

No one FORCED the credit card companies to issue the cards. No one FORCED the credit card companies to give people making 20K a year a 30K credit card limit.


Stupidity all around, from Banks who issued them with so easy gotten limits, to customers who racked up more than they could pay.

But when Credit Card companies are jacking up the rates on borrowers in GOOD STANDING, this blowback was going to happen. The CC companies have no one to blame but themselves.

It's not about the cost of BORROWING, Jon. It's about the LOSSES. Big. Huge. Gigantic LOSSES. People have no accountability to NOT spend what they can't afford to pay back. Just because you have a $100,000 line of credit on your house doesn't mean you MAX it if you KNOW you can't make the payment. That concept is GONE from the American psyche. We (as a credit union) are suffering MASSIVE losses from credit cards. These people ran up bills they absolutely KNEW they couldn't repay, but feel no obligation to work with us now to help rectify the situation. It's easier to just walk away. File BK. Ignore the phone ringing. And when people start doing that en-mass (like they HAVE), it spells eventual DOOM for the financial industry....and NOT just the big, bully-like credit card issuers. But little folks like us.

It ain't a pretty picture, and there's NO incentive for people to actually pay bills any more, because they know the government will "come to their rescue" to protect them from the evil credit card issuers and the "evil" mortgage brokers who got them into a loan they couldn't possibly afford because they're not fricking SMART enough (or don't have the moral values) to NOT take that loan out or max out that credit card.

[AZGrizFan]

Bullshit. People spend beyond their means, and they it's the big bad bullies who take the blame. As I said, no personal accountability anymore. Our morals are a fucking joke in this country.

Just like you are refusing to acknowledge any responsibility for the mess we are in comes from greedy credit card companies and bankers.

Jon. My company's credit card loss rate is 26%. 26%!!! Were there some poor underwriting decisions made? Sure....but not to that extent. The pay ethic in this country is GONE. And that moral decay lies at the feet of the government. Period.

[dbackjon]

This doesn't affect repayment of credit cards. If nothing else, it balances out the rights, which were very tilted in the issuers favor, especially after the last bankruptcy bill.

[Cap'n Cat]

Just like you are refusing to acknowledge any responsibility for the mess we are in comes from greedy credit card companies and bankers.

Jon. My company's credit card loss rate is 26%. 26%!!! Were there some poor underwriting decisions made? Sure....but not to that extent. The pay ethic in this country is GONE. And that moral decay lies at the feet of the government. Period.

Oh, bullsh*t! How is that, Rush?

What a whackjob.......

[dbackjon]

Oh - and welcome back to AZ, Tom

[danefan]

Good deal!

MT had failed bill that would have capped the interest rate for payday advance and title loans in the state. The opponents of the bill made it sound like they were a bunch of philanthropists who were being bullied by Big Brother.

Those assholes are the definition of preditory lending.

Bullshit. People spend beyond their means, and they it's the big bad bullies who take the blame. As I said, no personal accountability anymore. Our morals are a **** joke in this country.

Here's the thing AZ - credit card companies knew going in that they were issuing unsecured credit. You know as well as I do that there is an inherent risk in that type of lending. People should absolutely pay, but don't you think that credit card companies are making bad business decisions lending money to people who have no chance in hell in paying it back, especially knowing the possibility for Chapter 7 debt forgiveness exists?

[ASUG8]

I've been a Capital One cardholder for years and they just announced that they will be taking my rate (that I earned by paying on time) from 5.99% to 15%+ for the morons that don't pay. Also, BofA, who I just received a card from, reduced my credit line a month after I got it citing too many hits on my credit report (I just started a refi on my mortgage). I have small balances on both, so I'll just pay 'em both off and they can go screw themselves. Capital One especially - the wording was effectively "this is going to happen, and you can either accept it or not - if you choose not to accept it you forfeit your credit line and any accrued miles on the account". It's a bunch of crap, but it's all in the terms when you sign up so it shouldn't come as too much of a surprise. It's just a shame that those of us who are responsible and pay our bills get penalized for the failure of individuals to do the same and the banks who failed to run a tight ship when screening.

[Cap'n Cat]

Still waiting for that stupid-ass "moral decay....government responsibility" thing...............

WTF. So easy a life for Conks. Blame their failures on the ultimate scapegoat - the government.

What a ball sac.

[UNI88]

Bullshit. People spend beyond their means, and they it's the big bad bullies who take the blame. As I said, no personal accountability anymore. Our morals are a **** joke in this country.

Here's the thing AZ - credit card companies knew going in that they were issuing unsecured credit. You know as well as I do that there is an inherent risk in that type of lending. People should absolutely pay, but don't you think that credit card companies are making bad business decisions lending money to people who have no chance in hell in paying it back, especially knowing the possibility for Chapter 7 debt forgiveness exists?

Agree with AZ and Danefan on this one. The CC companies chose to provide a level of credit to people who probably shouldn't have gotten that high of a limit. They accepted that risk in the hope of making a profit and should be held accountable for their part in the situation. The individuals also need to be held responsible. They chose to spend more than they could afford to pay off and now they want out. It's expected that there will be some of that but when the number of people looking to file bankruptcy to avoid their debt grows beyond a certain point it is symptomatic of a larger problem. It would appear that more and more Americans are unwilling to hold themselves accountable for their own actions. That does not bode well for the future of this country.

[wideright82]

Here's a CRAZY idea. Don't spend more than you make, and never leave a credit card balance. Therefore these rates are MOOT.












"What's that, wideright? Spend what I make, and not more? That is so nuts it may just work!!!"

[Mountaineer]

It's just a shame that those of us who are responsible and pay our bills get penalized for the failure of individuals to do the same and the banks who failed to run a tight ship when screening.

My B of A card is also going from a 9% fixed rate to ~14% variable. I haven't carried a balance in a couple of years now, but I have in the past - and I liked that fact that I had a low interest rate if I chose to do so. I always pay my bills on time and my utilization (debt to credit limit ratio) is low.

I have the option to call and reject the rate increase. Doing so will mean I can no longer use the card. I don't want to cancel the card as it's been on my credit report for years and canceled cards never look good when credit scores are factored. I have another B of A card that's untouched so far although I imagine it's only a matter of time. I'm putting them both away for now in protest and using another card for future purchases.

It's absolutely infuriating that I, as an upstanding user of credit, have no recourse in what the credit card companies/lenders can do with my credit limits/interest rates/etc. It's not fair to the folks who use credit wisely and take care of their business. Legistation for the (repsonsible) consumer has been a long time coming, IMO.

[AZGrizFan]

Jon. My company's credit card loss rate is 26%. 26%!!! Were there some poor underwriting decisions made? Sure....but not to that extent. The pay ethic in this country is GONE. And that moral decay lies at the feet of the government. Period.

Oh, bullsh*t! How is that, Rush?

What a whackjob.......

Because people know the government will "protect" them. They've been dumbed down to the point where anytime we do something stupid, the government steps in to "protect" us. First it was the evil mortgage companies. Now it's the evil credit card companies. What next? The evil car companies? Forcing you to buy that car you couldn't possibly afford? The evil home improvement companies? Forcing you to add that addition to your house you couldn't possibly afford?

At what point did we lose the pay ethic in this country?

[AZGrizFan]

Here's the thing AZ - credit card companies knew going in that they were issuing unsecured credit. You know as well as I do that there is an inherent risk in that type of lending. People should absolutely pay, but don't you think that credit card companies are making bad business decisions lending money to people who have no chance in hell in paying it back, especially knowing the possibility for Chapter 7 debt forgiveness exists?

Agree with AZ and Danefan on this one. The CC companies chose to provide a level of credit to people who probably shouldn't have gotten that high of a limit. They accepted that risk in the hope of making a profit and should be held accountable for their part in the situation. The individuals also need to be held responsible. They chose to spend more than they could afford to pay off and now they want out. It's expected that there will be some of that but when the number of people looking to file bankruptcy to avoid their debt grows beyond a certain point it is symptomatic of a larger problem. It would appear that more and more Americans are unwilling to hold themselves accountable for their own actions. That does not bode well for the future of this country.

Exactly.

[wideright82]

It's just a shame that those of us who are responsible and pay our bills get penalized for the failure of individuals to do the same and the banks who failed to run a tight ship when screening.

My B of A card is also going from a 9% fixed rate to ~14% variable. I haven't carried a balance in a couple of years now, but I have in the past - and I liked that fact that I had a low interest rate if I chose to do so. I always pay my bills on time and my utilization (debt to credit limit ratio) is low.

I have the option to call and reject the rate increase. Doing so will mean I can no longer use the card. I don't want to cancel the card as it's been on my credit report for years and canceled cards never look good when credit scores are factored. I have another B of A card that's untouched so far although I imagine it's only a matter of time. I'm putting them both away for now in protest and using another card for future purchases.

It's absolutely infuriating that I, as an upstanding user of credit, have no recourse in what the credit card companies/lenders can do with my credit limits/interest rates/etc. It's not fair to the folks who use credit wisely and take care of their business. Legistation for the (repsonsible) consumer has been a long time coming, IMO.

So continue paying off your card on time. Then who gives a shit whether the rate is 1% or 100%. I agree it is annoying, but if you are responsible this should have no effect on you what so ever, unless you over step your means.

[AZGrizFan]

It's just a shame that those of us who are responsible and pay our bills get penalized for the failure of individuals to do the same and the banks who failed to run a tight ship when screening.

My B of A card is also going from a 9% fixed rate to ~14% variable. I haven't carried a balance in a couple of years now, but I have in the past - and I liked that fact that I had a low interest rate if I chose to do so. I always pay my bills on time and my utilization (debt to credit limit ratio) is low.

I have the option to call and reject the rate increase. Doing so will mean I can no longer use the card. I don't want to cancel the card as it's been on my credit report for years and canceled cards never look good when credit scores are factored. I have another B of A card that's untouched so far although I imagine it's only a matter of time. I'm putting them both away for now in protest and using another card for future purchases.

It's absolutely infuriating that I, as an upstanding user of credit, have no recourse in what the credit card companies/lenders can do with my credit limits/interest rates/etc. It's not fair to the folks who use credit wisely and take care of their business. Legistation for the (repsonsible) consumer has been a long time coming, IMO.

Yet, the only people it protects is the dirtbags, for the most part.

[Mountaineer]

So continue paying off your card on time. Then who gives a shit whether the rate is 1% or 100%. I agree it is annoying, but if you are responsible this should have no effect on you what so ever, unless you over step your means.

I do. It's the principle of the matter. I've been a good customer and I expect to be treated fairly in return. I shouldn't have to worry about what's going to happen to my balances and rates on a daily basis because the companies couldn't or wouldn't lend responsibly.

It's comforting to know everything is peachy keen up there in your ivory tower, but that's not always an option for some people.

Sometimes the last resort for people is the credit card. If they are within their credit limit and paying at least the minimum payment on time, I think it's unfair (and unethical) for credit card companies to chase balances and raise rates. It tends to do more harm than good. Someone watching their limit slashed to just above their balance and seeing their interest rate skyrocket is much more likely to give up and walk away.

[Mountaineer]

Yet, the only people it protects is the dirtbags, for the most part.

We've been protecting the dirtbag banks and lending instutions for years. It's about time things get evened out.

Seriously though AZ. I get where you're coming from. The entire process right now is screwed up and both lenders and consumers need to take responsbility for their actions.

[Cap'n Cat]

Oh, bullsh*t! How is that, Rush?

What a whackjob.......

Because people know the government will "protect" them. They've been dumbed down to the point where anytime we do something stupid, the government steps in to "protect" us. First it was the evil mortgage companies. Now it's the evil credit card companies. What next? The evil car companies? Forcing you to buy that car you couldn't possibly afford? The evil home improvement companies? Forcing you to add that addition to your house you couldn't possibly afford?

At what point did we lose the pay ethic in this country?

That's even worse tenuous bullsh*t, Z. God. Loosest tie-together I think I've ever seen posted here.

Give us a practical example. I wanna hear about the moral decay in this instance being the government's fault.

[UNI88]

So continue paying off your card on time. Then who gives a poop whether the rate is 1% or 100%. I agree it is annoying, but if you are responsible this should have no effect on you what so ever, unless you over step your means.

My only real b!tch with the CC companies is the BS rules that they give you in the small print. I pay off my CCs in full every month. One month I forgot and paid late. I knew I was going to get hit with a late charge and finance charges so I calculated what I thought they would be, doubled the amount and added it to what I paid immediately. I did this because I knew that if I didn't that I would be charged a finance charge for the actual late charge and finance charges for the following month. The additional amount that I paid was more than the actual charges so the CC company actually owed me money for a month. When I received the following months bill it had another finance charge on it. I called the company to complain and they explained to me that two months of charges was standard and was included in the agreement. I checked the small print and they were right. I b!tched and they agreed to drop the charges. The second month's charges might have been legal (and I was responsbile for them since I agreed to the terms) but they were still BS from a common sense perspective. It's arcane crap like that that pisses me off.