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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Student beware Department of Education is just as evil as Credit Card Companies.
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.
Either this guy is weak as they come or something else is going on here. He can throw bucketfuls of our $$$$$$$$$$$$$$$$$$$$$$$$$ at the banks but when it comes to standing up for the people who stood up for him, well, he has to give the banks "time to adjust" to not ripping us off.
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.......that's why SS recipients will not be getting a cost of living increase for the next 2 or more YEARS.
http://votingbloc.org/Credit_Card_Rights.php
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.
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.