Senate Republicans Save Credit Card Companies.

[Joanne98]

And they're going to get the blame for it too. Half-ass reform doesn't help at all!

Senate Banking Committee Chairman Chris Dodd has struck a deal with his Republican counterpart on credit card legislation, clearing the way for the Senate to approve tough new rules for the industry.

The compromise with Sen. Richard Shelby of Alabama, the top Republican on the Banking Committee, goes farther than the credit card bill passed by the House last month, freezing interest rates on some credit card balances. The Dodd-Shelby compromise only allows credit card companies to slap a higher rate if the card holder is 60 days late in making a minimum payment. The original Dodd bill banned rate increases on existing balances regardless of missed payments, and the House bill passed last month allows rate hikes after the card holder is 30 days late.

With Shelby’s backing, the revised legislation is likely to garner more than enough Republican votes to pass the Senate.

Indeed, populist anger against Wall Street and big banks and the near-universal dislike of the credit card industry doesn’t leave Republicans with a lot to gain by opposing Democrats on this issue.

There are nuanced policy arguments about the upsides and downsides of this legislation, said longtime GOP consultant Dan Schnur, who now heads the Jesse M. Unruh Institute of Politics at the University of Southern California. “But when the voters are breathing fire at your door, it gets a lot harder.”

And Dodd vowed that he’s not giving any more ground. “While I expect some battles in the coming days from credit card companies and their allies in an effort to diminish these strict new rules, I stand ready to fight against any attempt to weaken the strong consumer protections in this bill,” he said in a statement announcing the deal, made with Shelby over the weekend.

Card companies would not be able to increase rates at all in the first year after an account is opened. Moreover, if a card company increases a consumer’s rate, the legislation would require them to periodically review the account and lower the rate in the future if warranted.

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http://www.politico.com/news/stories/0509/22360.html

[bullimiami]

1. are the usurious rates still legal?

because it should be absolutely criminal for them to be able to charge 20-30% interest when the prime rate is under 5%.

where the hell are the 'christians' on this one? its right in the damn bible.

[regnaD kciN]

2. Closing the barn door after the horse has fled...

I know Dodd means well, but any bill that simply limits rate hikes in the future overlooks the most important point: the banks have already jacked up interest rates on those judged "at risk" (in particular, millions over the past few months), and this bill does nothing to lower those rate increases.

Sorry, but unless the bill is a flat-out usury law that rolls back already high rates (20%-30% and more), this is little more than re-arranging the deck chairs on the Titanic.

[snappyturtle]

3. What you said. nt