New York Representative Carolyn Maloney, who serves as Vice Chair of the Joint Economic Committee (Senator Chuck Schumer is Chair), has performed a public service by introducing the Credit Cardholders Bill of Rights, H.R. 5244. She describes her bill as "comprehensive credit card reform legislation" that ends "abuses that unfairly hurt consumers."
Comprehensive it does seem to be, and reasonable. The bill prohibits "arbitrary interest rate increases," requires a notice of any interest rate increase at least 45 days in advance, reserves to cardholders their right to pay off their existing balance at the current interest rate if the rate is increased, requires that cardholders who pay on time will not be "unfairly penalized," prohibits "due date gimmicks" and "misleading terms," allows cardholders to set their own limits on their credit, requires that credits and payments be posted "promptly and fairly," prohibits imposing "excessive fees" on cardholders and prohibits issuing subprime credit cards to people who can't afford them.
If you agree, click here to support the Credit Cardholders Bill of Rights.
Usury laws must be re-imposed.
Banks must process transactions in a manner most favorable to the Consumer, not themselves, because banks owe a fiduciary duty to the Customer over their business obligations to their shareholders; not the other way around.
The list goes on.
But you know, it's really much too late now. Moves like this are not going to forestall the Great Depression of 2008. And mind you, I'm completely calm when I say that: history repeats itself.
Right now Democrats are trying to reassert the Bankruptcy Courts ability to adjust mortgage amounts, much as they could before the 2005 Bill.
Maybe another column with another email website is in order.
For example, if they don't post payments on the date the envelope is received, isn't that fraudulent theft of money from the consumer?
The due-date scam is absurd. They make the bill due on the 28th of the month, for example, knowing most people get paid on the 1st, deposit the check, wait for funds to clear, send the check -- voila, it's one day late, that will be another $50.00. All credit card bills should be due on the 7th of the month, for example.
But the most important thing congress could do is simply eliminate the exemption from the usury laws. Everyone in this country is subject to usury laws which prohibit interest above a certain rate -- say around 10%. But the financial institutions paid bribes to the politicians to get them to write into the law a special exemption for the financial institutions. It's corrupt, it's reprehensible, and that's what Congress could really do to help the consumer. Stop allowing these businesses to screw the public, and stop selling their votes to the highest bidder. Limit credit card interest to 10%. No late fees. No "other" fees.
This mealy-mouthed in-between nonsense is exactly what Hillary Clinton has been talking about. She says she will "fight" to make sure the credit card companies give us 30 days notice before they raise the interest another 10%. But what good does it do people to get notice, when they don't have the money to pay off the credit card? It does no good. It's just the appearance that the Democrats are helping us, when the fact is they are taking bribes from the credit card companies.
Hillary gets all emotional about the fact that she supported a law to "cap" interest at 30%. Okay, how about supporting a law to "cap" interest at 10%? Any reason she hasn't done that? Other than the fact that she and all the other Democrats take bribes from the credit card companies?
We always pay our credit cards to zero every month. And we always send in the payments the day after receipt of bill. Yet we were always getting slugged with late fees (10 days for a letter to go 400 miles!?!)
I started sending registered mail. Sure enough. Payment received in 24-48 hours, but not posted to the account until the day after due, leading to immediate $45 charge, and skyrocketing interest rate.
Clearly criminal. And endemic.
I've canceled the accounts on those companies, but had to argue my way through multiple levels of supervisors to get the accounts closed.
You are a captive consumer.
https://rn.ftc.gov/pls/dod/wsolcq$.startup
Until we do get a credit card holder bill of rights and congress reduces the interest rate these people can charge and also eliminate their ability to report your late payment to your other creditors so they can also raise your rates - you have to protect yourself.
Pay off those bills - whatever you do.
Thank you Congresswoman Maloney!
"You see, the bankers and the politicians have got a great plan
To create two kinds of people all across the land.
One will be the hammer, the other the nail.
That's the ones in debt and the ones in jail.
-- Robert Hoyt (Indentured Class)