Obama Calls for Credit Card Reform By Memorial Day...
No not really! Obama's proposed credit card crack down does not go far enough. It certainly is a first step for a beautiful Saturday morning in May, but his team has got to get much tougher on the financial institutions.
The reality is that we are in the midst of an unprecedented bailout for these very same financial institutions. Billions are being allocated to stabilize the banks, while consumers continue to be walloped by increasing interest rates for an existing and new debt -- when it can be found. Credit card interest rate are ballooning to 30% interest. So a lucky consumer can refinance their mortgage for 5% interest or even less, but carry credit card debt for 30% interest. This does not make sense. These lucky ones can live in their home, but struggle to pay their credit card bills.
Is the American public being punished for the mortgage bailout by these financial institutions? Interest rates have been indiscriminately raised for consumers over the last year, often even for good clients with little notice or purpose.
The Obama Administration must develop sweeping policies and regulations to mandate change within our financial institutions. The legislation proposed, known as the Credit Card Holders' Bill of Rights does not even go into effect, if passed in the Senate, for another 12 months except for notification of interest rate increases. Understandably, the banking lobby is up in arms, and we know we must not let our elected officials in the House and Senate, crumble under these attacks.
Again, we are poised at another crossroads. Do we allow many more Americans to be pushed over the edge into unfathomable financial crisis? In many cases the use of credit cards is not a matter of living beyond a person's means; rather it is a necessity while salaries have been slashed or jobs lost.
If we can mandate the kind of programs to restructure mortgage debt, we certainly must do better than this.
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1st. Dem 4 life unless Obama fails main street. That said, it seems like nothing has changed in government except the players. Huff Post should do an investigative report - Do as we say, Not as we do. Coming down on credit card companies for excessive fees good. But look at the Department of Education. If you can not afford to make your student loan payments they give you a 25% penalty. Imagine you work hard for that degree, even getting say $40,000 into debt. You have a hard time finding employment (which is a hard reality for most current grads). Then the Dept. of Education ups your debt by $10,000 in fees and penalties. This is happening now and all thanks to Bush's Bankruptcy Law, and Obama keeping those policies in place.
Student beware Department of Education is just as evil as Credit Card Companies.
Why, with all the cry for credit card reform, is all the legislation so far into the future rather than forcing a rollback of rates to the levels they were at before the banks got themselves in trouble? The legislation should also include allowing our the interest we pay to be tax deductible again? It is INCOME to the banks.
We all should have known Obama was going to favor the corporations over the people by his vote on telecomm immunity back during the campaign.
And all of his financial advisers and appointees have come from the same scofflaw Wall Street banks that created this mess in the first place.
Same things presaged his refusal to hold any former administration people responsible for torture and other war crimes.
He puts the "institution" ahead of the people the institution was created to serve.
Hope "No not really! "
Either this guy is weak as they come or something else is going on here. He can throw bucketfuls of our $$$$$$$$$$
Better raise some food this summer. I have a feeling it's going to be precious as gold here pretty soon. Of course, there's no inflation.
Congress will have a tough one with this bill, many members have been bought and paid for. I cant see how they will be able to with stand the bombarding of lobbyist. Reality is, our way of electing public officals needs a mighty change. Obama has struck the first note in a many faceted cord, lets hope he has the guts to continue. If he dosen't do something we are doomed to back breaking slavery. This may be the straw that breaks the camels back.
If you would like to help pressure the Senate to pass the credit card bill of rights please join our voting bloc at:
http://vot
How about if we stop using credit cards by Memorial day? I understand that some people are living off their credit cards, and they should do that. I also understand the importance of being able to take out a loan for an important purchase that you don't have the cash for now, so why don't we start a new credit card company? There must be a way for communities of people to organize in such a way that is financially ethical and supportive of the community's investments.
And if we can't do that we are going to have to pass a law to cap interest rate at 1-2%. There are other policies that need updating, but if we are going to continue to use credit as a valid and vital part of society we must find a way to do it responsibly, and that means it has to be balanced with the consumer's needs.
That's the answer. New ethical credit-card companies. I am surprised no one has done it yet. The market would be huge.
Prime rate is about 3.25%. Credit-card interest should be legislated at a certain percentage above prime, not at a fixed capped rate. That would mean rates would rise and fall with interest rates. Rates would always be reasonable. Shylock would lose his place on the board.
No late fees. Those not paying in full each month or not paying on time are already paying extra in interest.
Prompt cut-off mechanism for chronic late payers.
Maybe an annual fee towards operating costs. (I don't know enough about the business to know how much spread above prime is needed to cover borrowing costs, administration costs and reasonable profit -- maybe a fee is not necessary.
Those that treat their customers the best will have more customers and make higher profits.
is that you Jesus?
Give the President credit for the courage to identify the reality of the financial crisis that has been building for years. Of course his team could do better but give them a break they have just started addressing real problems. To be dramatic as a means to simplify the issue- Corporate America has no soul and yet we have passively expected Corporate America to do what is best for its citizens. Resolving the credit crisis and the manner by which it was intentionally created needs to be clearly recognized and fixed. We can all critique but he is beginning the work.
you're right, he is beginning the work... we rant and vent but do we direct it effectively? where do we begin?
My hat is off to the President and yes he has started an uphill battle of putting regulation in place for a widely unregulated industry. The issue is that credit card reform is up there with the mortgage bail out and cannot be ignored.
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