Today (Thursday) POTUS Obama will meet with industry representatives from 14 Credit Card companies , and I hope he kicks some ass.
Ready for some good news for a change? Well, here goes!
Keeping with one of Obama's many campaign promises, this week the Democrats in Congress have begun trying to pass a bill to reign in and regulate the out of control Credit Card Industry. The bill was proposed yesterday and has been sent to a House-subcomitee already. Here's hoping it goes through with it's teeth intact.
This plan was supported by President Barack Obama during his election campaign. If passed, this legislation would go into effect within 90 days and would be, IMHO, the largest and most important piece of Credit Card based reform passed in my lifetime, and not a moment too soon.
Now this is a bit of good news after a weekend reading torture memos and the horrors associated with it(not even getting into it now, wait for my next diary). Could you imagine a bill like this getting passed under a McCain Administration? I don't think so.
More on the proposed bill and the fight to come below the fold.
"The playing field between card companies and cardholders has become very one-sided in recent years. Yet, more and more Americans are turning to their credit cards to help pay bills, buy groceries, and make ends meet in this troubled economy," said Maloney, who serves as chairwoman of the Subcommitee on Financial Institutions and Consumer Credit.
"Instead of looking the other way while Americans fall deeper into debt, Congress can and should take swift action to reform major credit card industry abuses and improve consumer protections for cardholders," she said.
~snip~
"The NFL does not allow one team, in the midst of the fourth quarter, to unilaterally move their end zone 20 yards just because they don't like the point spread. The rules are laid out before the kickoff, and the umpires enforce the same rules for both home and visiting teams for the whole contest," Autrey said. "It's time for legislation at the federal level that tells the credit card industry, 'Game Over' to unilateral, one-sided, contract changes."
consumeraffairs.com
Two bills, HR 627 and HR 5244 are designed to alleviate the burden of Credit Debt and to regulate the limits that Credit Card companies can raise the rates of it's costumers. Particularly, customers who have not missed payments have had rates raised because, frankly, the Credit Cartd companies are total crooks and ran by incompetant businessmen who make pirates in Somalia look like honest bible salesmen. Of course, this is just my opinion, and I could be wrong.
Congresswoman Carolyn Maloney (D) of NY-14 introduced the Bill HR 5277 in the 110th Congress. According to her official website the purpose of the Bill is to
The Credit Cardholders’ Bill of Rights (H.R. 5244), a comprehensive credit card reform bill, takes a balanced approach to reforming major industry abuses and improving consumer protections for cardholders. Among the bill’s protections, it:
- Protects cardholders against retroactive interest rate increases on existing balances
- Protects cardholders from due date gimmicks
- Shields cardholders from misleading terms
- Empowers cardholders to set limits on their credit
- Protects vulnerable consumers from fee-heavy subprime cards
- Requires Congress to provide better oversight of the credit card industry
Personally, I think this should just be the tip of the iceberg. Usery laws should be put back on the books, and a major reform of credit ratings agencies should also be in the cards for the near future. Either way, this is a HUGE first step.
Part of Obama's plan for dealing with credit card and ratings companies, as per
Address Predatory Credit Card Practices
Obama and Biden will establish a five-star rating system so that every consumer knows the risk involved in every credit card. They also will establish a Credit Card Bill of Rights to stop credit card companies from exploiting consumers with unfair practices.
Create a Credit Card Rating System to Improve Disclosure: Obama and Biden will create a credit card rating system, modeled on five-star systems used for other consumer products, to provide consumers an easily identifiable ranking of credit cards, based on the card's features. Credit card companies will be required to display the rating on all application and contract materials, enabling consumers to quickly understand all of the major provisions of a credit card without having to rely exclusively on fine print in lengthy documents.
Establish a Credit Card Bill of Rights to Protect Consumers: Obama and Biden will create a Credit Card Bill of Rights to protect consumers. The Obama-Biden plan will:
- Ban Unilateral Changes
- Apply Interest Rate Increases Only to Future Debt
- Prohibit Interest on Fees
- Prohibit "Universal Defaults"
- Require Prompt and Fair Crediting of Cardholder Payments
barackobama.com
Of course, expect the Big Banksters and their GOP stooges to fight this like hell.
Longtime banking industry attorney Oliver I. Ireland said if the card issuers were required in only three months, they would have only two choices: "Raise rates and fees, or reduce the risk in their portfolios" by cutting off consumers' credit cards.
Republican opposition with a thud
Republican representatives joined in condemning the enactment as too swift. "Three months is not enough time to do this," said Rep. Michael N. Castle of Delaware. "Sometimes when we rush legislation, we end up with situations like AIG," he said, referring to the insurance giant and its controversial bonuses.
With a thud, Rep. Spencer Bachus of Alabama dropped on his desk the existing regulations, contained in three binders a total of nine inches thick. "I'm not sure I could even read these in the time alloted," he said. Braunstein chimed in, "I'm glad I didn't have to carry those up here."
Supporters: The sooner the better
creditcards.com
Situations like AIG? You mean situations like AIG that were caused by the Republicans? The GOP has recently turned professional concern trolling into such an art form that we here at DKos can't imagine the skill it takes when we see these guys have at this. The modern GOP is the 1998 Chicago Bulls of concern trolling. What we see here on DKos can't even touch themit. IMHO, Cheney and Rove are the Mozart's or modern day concern trolling. Catsle needs to study harder if he wants to play on the big stage.
Mark off Rep. Mike Castle and Rep Spencer Bauchus as being anti-regulation and Credit Card Company stooges. I'm sure more of this obstruction from the party of "No!" is coming right around the corner any moment now, along with our own ConservaDem and blue dog stooges.
Good thing we have The President behind us.
Let the battle begin!
I'm sure it's gonna be a bumpy ride.