GOP Blocks Freeze On Credit Card Interest Rate Hikes

Senate Republicans blocked a Democratic effort Wednesday to immediately freeze increases in credit card interest rates, fees and finance charges.

Shortly after Democrats passed credit card reform legislation in May, the card companies began jacking up rates in advance of its implementation. Major parts of the act won't take effect until February and August of 2010.

Earlier this month, to combat the rate hikes, the House passed legislation to move the effective date up to December 1st. The Senate moves much more slowly and the credit card industry has been arguing that it can't practically get its act together to implement the reforms that quickly.

Okay, said Sen. Chris Dodd (D-Conn.), who sponsored the original bill that passed 90-5. Instead of implementing the entire basket of reforms, Dodd proposed instead simply freezing interest rate and fee hikes in advance of the holidays. Surely, he said, that's not too difficult to implement.

"We worked long and hard to enact the safeguards included in the Credit CARD Act," said Dodd. "And no sooner had it been signed into law, but credit card companies were looking for ways to get around the protections this Congress and the American people demanded. This bill would end those abuses and further protect customers today."

The Senate schedule is packed with nominations, health care and appropriations bills, leaving no time for a prolonged floor fight over credit cards.

The only way Democrats could pass the bill in time for the holidays would be with the support of the GOP -- all but five of which voted for it initially.

Dodd, on Wednesday afternoon, asked for unanimous consent to move the bill forward.

"On behalf of several senators on this side of the aisle, I object," said Sen. Thad Cochran (R-Miss.). And that's the end of it.

The Senate moved on to a tribute to the service of Sen. Robert Byrd (D-W.Va.), who became the longest-serving senator in the history of the institution Wednesday.

WATCH:

Comments

[bigdaddyvike]

04:58 PM on 11/20/2009

Republican­s are so first to say how the left is crippling the country and the ruination of it all, while they all bow to their special interest corporate fatcats at every chance. despicable­. predictabl­e.

[jumperpin]

06:13 PM on 11/19/2009

Dems should have at least forced a floor vote. Sheesh.

[floridalib]

04:25 PM on 11/19/2009

This is great. The Dems are going to have so many things to campaign against republican­s with, starting with the franken amendment, objecting to freezing credit card rates, opposing health care, opposing extended unemployme­nt benefits, the list just goes on. I cant wait til 2010.

[Darsimaj]

02:26 PM on 11/19/2009

Yet another thing I simply do not understand­. They want the economy to start improving, ok, one way that is accomplish­ed is by people spending money sometimes even charging the purchase to a credit card. But since the banks and/or credit card companies raise rates for no reason, many people will not spend money this year. Instead they will endeavor to pay off the loan sharks debt.

To AIG, BoA, et al. Screw you. You begged for our money and now won't even lend it to small businesses­. Instead you play the gambling game where you have nothing to lose and everthing to gain.

To all the Mr. Potters out there in the banking world, the next time something comes up where you need the tax payer to bail you out, don't ask. You have used up of our understand­ing and concern. You go broke? Who cares. If it damages the countries economy, who cares. It's not like you're doing anything to help us now, so who will miss you.

Then perhaps we can start over, keep the congress off the banking industries payroll, and start this country moving in the right direction again.

The gop states: Country First. I ask, which country? Certainly not the USA.

[Genep34]

02:55 PM on 11/19/2009

Country first - the people last.

[littleblackcat]

01:58 PM on 11/19/2009

The people of Mississipp­i need to have that kept in front of them when it is time for them to vote for someone who represents THEM.

[floridalib]

04:27 PM on 11/19/2009

He will get reelected because he will attack his opponent on issue like abortion and ACORN. MS is a very conservati­ve state. Stupid tricks like that work there.

[jcbeeno]

12:41 PM on 11/19/2009

Wow, what a joke. Once agai nteh SHeeple (thats us) gets the short end of the stick. Is anyone surprised?­?

Jess
www.ultima­te-privacy­.br.tc

[jemiltd]

12:08 PM on 11/19/2009

Can someone explain how the republican­s can block anything when the Democrats are in the majority? Same question asked by Jon Stewart of Vice President Biden.

[StJames]

02:38 PM on 11/19/2009

Hi there....I­'ll try. The entire purpose of the Senate is to slow down legislatio­n and to protect the minority from the majority. With each state having just 2 senators, Liberal New York can't bully conservati­ve Wyoming. It was the senate that held the country hostage to slavery for 80 years even though the anti-slave­ry states far outnumbere­d the pro-slaver­y states population wise. Nothing has changed...­the friggin south is still holding the country hostage...­I wish Lincoln had let them secede.

The senate is the world's most prestigiou­s club and quite possibly the most useless part of our government­.

[jemiltd]

03:52 PM on 11/19/2009

I shall be quoting you....

[tdpubs]

09:37 PM on 11/19/2009

Damn! I wish I said that first. so true, StJames. So true.

[pmmar]

11:48 AM on 11/19/2009

This is absolutely insane - what are thinking?? I guess they think the GOP base doesn't have credit cards - what a bunch of ????? I am glad HP has brought this to our attention - I have not seen it referenced on other news sites - mostly they are writing about Palin.

[JayDoug]

01:50 PM on 11/19/2009

What are you talking about? You obviously have no idea about working hard for something. This is a country, that just wants a bunch of hand outs and freebies. The true America is and has always been about conservati­sm not your "give me" mentality. Why don’t you pick up the constituti­on and read it, you just might learn something.

[DanBest]

05:03 PM on 11/19/2009

" The true America is and has always been about conservati­sm not your "give me" mentality. "

So I guess because I'm a hard working progressiv­e who paid his own way through college, I'm not a true American because I don't think like you do. Open that mind much? I also have difficutly believing that someone who writes like you do could make it through the first few articles of the constituti­on before giving up and turning on your favorite rightwing personalit­y to explain it all to you.

[goodtomeetyou]

11:36 AM on 11/19/2009

Republican­s despise the middle class and poor people.

Why would anyone vote for them?

[Genep34]

02:56 PM on 11/19/2009

Country first - the people last.

Stupid people with teabag mentality will vote for them. I think they believe if they vote for a repub others will think they are rich.

[MakeAWish]

11:34 AM on 11/19/2009

Maybe Americans should start sending their bills to all those who received taxpayer bailout money, including Goldman Sachs who ate up AIG with our money in it.

[MakeAWish]

11:30 AM on 11/19/2009

If you owe bank of America, tell them to subtract it from the billion dollar bailout of YOUR money.

[Agent420]

11:28 AM on 11/19/2009

The solution here is simple. Destroy all your credit cards and refuse to pay them. Are they going to take millions to court? I don't think so.

Don't be afraid! They cannot do anything to you except put whinny complaints on your credit report.

[TheFabOne]

11:24 AM on 11/19/2009

Rethuglica­nism promises to rape and rob honest taxpaying Americans of their right to NOT be raped and robbed by the end results of lobbyist's bidding.

[goodtomeetyou]

11:37 AM on 11/19/2009

Yup, it's another example of Repubs supporting rapist.

[KevinFitzz]

11:16 AM on 11/19/2009

The NOpublican­s strike again... GD it, get on the stick. For every NO we get has to be turned into the YES! Are they for US or agin US? Try a new tack. What is wrong with you NOpublican­s? jesus...

[Jevad]

10:56 AM on 11/19/2009

Grand nO Party ... strikes again.