House Committee Passes Bill To Limit Credit Card Fees, Rate Increases

CNN Money:

A key House panel on Wednesday advanced a bill to crack down on credit card interest rates and fees amid signs the Obama administration will try to toughen the bill further before it goes to a full vote.

Read the whole story: CNN Money

Comments

[RightWingMarine]

is there any industry that will get to operate free of govt interference? Why not have a business czar and have a govt employee on every board to help decide what the company should do?

[HLL]

About bloody time.

[SamKnause]

If there were ever a time for Robin Hood it is today!!!!! Anytime a rich person or rich corporation gets richer off the poor it is wrong.

[SamKnause]

Sounds like another wishy washy watered down solution to a real issue facing many people. The credit card companies should never have been allowed to raise your rate if you were late on your electric bill, but paid your credit card bill on time. I didn't see where the outrages interest rates that they are allowed to charge were addressed. The banks are using we the people to balance their books by over charging and gauging us while they borrow money at 0% to .05%, and using tax payer money. It doesn't take a rocket scientist to know that this is outright theft on the part of the banks. As long as lobbyist line the pockets of our elected officials nothing will change.

[blueskybigstar]

What are the terms?

[DragonFly]

“The House bill mirrors tougher rules that the Federal Reserve passed last December.”

This is obviously a quiet but effective stall tactic meant to benefit the banks as the all-powerful Fed has placed its 'tougher rules' all the way out into July of 2010.

But even that 'go-away' gesture guarantees nothing, because as chairman Frank of the House Financial Services panel stated, "What the Federal Reserve giveth, the Federal Reserve can taketh away,"
The Fed can undo the rules it creates, if Congress doesn't pass a law.

Inserting little surprise, but much gall, Republican Rep. Jeb Hensarling of Texas stated, "I haven't heard any evidence that the competitive market isn't working."
"In the absence of that, why are you attacking risk-based pricing?"

To that, I can only respond - ask the people, Mr. Jeb Hensarling.
Ask the people.

[RButler]

Are members of Congress on banking committees allowed to accept contributions from banks and other financial institutions? Let me guess.

[RButler]

Isn't raising interest rates on credit card holders who run into a temporary financial problem counterproductive by making it even more difficult for them to pay off the balances. They should instead halt new charges till the borrower is back on track, paying on time for a specified number of months or paying off the balance completely. Raising rates only makes it worse. How about making the minimum payment only good for 1-3 months then raise it to a level that pays off the balance within a year, for example and halting new charges in the meantime till the 3 months are up?

There are ways to make it work for the bank and the customer, if only they would think about it.

[Shavano]

There's a reason the money changers were thrown out of the temple. More than 2,000 years ago people realized that a crook was a crook and it didn't matter whether they robbed you at gunpoint or by scamming your hard earned wages.

[sweetwhine]

I agree. What I didn't understand is why we didn't make a bigger fuss? It's our money you know.

[Shavano]

Okay, that's a start. Now, how about not letting employers and insurance agencies use credit ratings as a criteria for hiring or increasing insurance premiums.

[loki]

IS this another bill that is set to go into effect years from now? Did they leave loopholes everywhere for the credit companies to work around like usual? LIke they say, the devils are in the details, and youll find no more corrupt devils than you will in Ivy Greed American style capitalist , like banks, and the US gov.

[bigbluenat4]

Well let us hope not! i would like to see a stop to these OUTRAGEOUS fees.

[sweetwhine]

I'm shocked they've been getting away with it all this time.

[Helzapoppin]

too little, too late

and completely meaningless

[Shavano]

Not completely meaningless, but it didn't go far enough. It needed to put a cap on usury rates, just like the government did 65 years ago.

[Wallysmom]

Any Republican (or Democrat, for that matter) that opposes this legislation does not have the interests of the people at heart. I know, we shouldn't have jacked up that credit card in the first place but....reg­ardless, some of the credit card companies are enjoying the feeding frenzy. I must say that several will work with you and have been very willing to lower rates. Not all are venomous bloodsuckers.

[4real]

The whole pratice of raising someones interest rates because they are late on another unrelated card is crim in al.

[jwdeluca]

If any real change comes from this, they should make sure it's retroactive as most have already experienced ridiculous interest rate increases.