Kudos to Dems, Get House Panel to Vote to Curb Credit Card Rate Hikes-

[flpoljunkie]

even though it will probably be "struck on a point or order." Congrats to Democrat David Obey, D-WI, for getting this passed in committee by a vote of 33-25!

We need to raise hell so that they will think twice about removing this provision!

House Panel Curbs Credit Card Rate Hikes

By ANDREW TAYLOR
The Associated Press
Tuesday, June 21, 2005; 7:49 PM


WASHINGTON -- Banks and other issuers of credit cards would no longer be able to raise a cardholder's interest rate simply because of negative information from a credit report under a bill that advanced Tuesday in the House.

The House Appropriations Committee added the restrictions on card issuers to a bill funding the Transportation and Treasury departments for the budget year beginning Oct. 1. Rep. David Obey, D-Wis., sponsored the proposal which he said was aimed at credit card issuers that jack up interest rates even when consumers pay their bills on time and won a 33-25 vote.

"Even though you haven't missed a payment you can pay 30 percent interest," Obey said.

The proposal would allow card issuers to raise rates only for activity related to that account, such as missing a payment on running up a big unpaid balance. However, the proposal is vulnerable to being taken out because it's within the jurisdiction of the rival Financial Services Committee.

"It'll be struck on a point of order, but it's a nice signal to send," said Rep. Roger Wicker, R-Miss.

"Then we're going to have a fight," Obey said.

more...

[FloridaPat]

1. How come not one congress person thinks 30% interest rates are obscene.

Right after the election, congress renewed the high interest rates for credit card companies. It by passes states maximums. So now these leeches can charge as high as they want. Now here is where we need real reform for the people, unlike the bankruptcy bill.

[flpoljunkie]

2. Dems could distinguish themselves from Republicans if they stood up

against the banks and credit card companies and demanded an end to 30% credit card interest rates--let alone the truly outrageous rates legally charged by payday loan outfits-- some of those now reported to have been bought out by banking interests.

The question is will they? I am afraid too many of them have been bought off by these same special interests to fight for the interests of the American people.

Prove us wrong, Democrats. Stand up and fight for economic justice, and when the Republicans block your efforts, call them out at every opportunity.