Senate's credit card crackdown: 90-5

[babylonsister]

Senate's credit card crackdown: 90-5
Posted May 19, 2009 2:00 PM
The Swamp

by James Oliphant


Heeding a call from President Obama and riding a wave of populist anger, the Senate today overwhelmingly passed a sweeping bill that promises to transform the relationship between consumers and their credit-card companies.

The bill, which was approved by 90-5 vote, slaps the industry with an unprecedented set of restrictions, and would, among other things, rein in interest rate increases, require advance notice of rate increases, prevent high "over limit" fees, and prohibit lenders from raising rates when a cardholder is late on a separate debt -- a practice known as "universal default."

The House passed a similar bill earlier this month. The two will now be reconciled, with the goal of sending the final version to Obama for his signature by the end of the week.

For much of the debate over the bill, banks and credit-card lenders--which historically have wielded enormous clout in Washington--found themselves easy targets, the objects of blistering attacks from senators who accused them of engaging in exploitative and misleading tactics.

"It was abusive," said Sen. Christopher Dodd (D-Conn.), a co-sponsor of the bill, said after the vote. "It needed to stop. It needed to change."

more...

http://www.swamppolitics.com/news/politics/blog/2009/05/senates_credit_card_crackdown.html#more

[Richardo]

1. OK - Who are the five?

[Freddie Stubbs]

2. Alexander, Bennett, Johnson, Kyl, and Thune:

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00194

[TwilightZone]

3. Thune is no surprise. SD is loaded with credit card companies.

Johnson used the same reasoning, I'm sure, but his vote is disappointing.

[SCantiGOP]

5. I am shocked

Jim DeMint of SC didn't vote against it. I've never known him to vote for a tax or a regulation. Maybe he didn't understand the question.

[Catshrink]

7. Kyl? Of course.

He's an ass.

[CatWoman]

8. Freddie,

you and that damn dog!!

:hi:

[lapfog_1]

4. Of course, no cap on interest rates

only restrictions on "increases"... i.e. you will still pay 30%, it just might take two or three cycles to get you there.

BTW, interesting report on Malloy last night (news break), which discussed the gap between what the banks borrow money at and what they loan it out at (across ALL credit card holders)... it's currently at 19 points! Which means they are borrowing at an average rate of 3.5% and loaning it out at an AVERAGE rate of 23%.

This water(boarded) down bill was almost completely useless.

[MzNov]

9. thank you. Why do you think so many Repukes voted for it?

:grr: Same old shit, different day.

[MzNov]

10. besides the guns in Natl Parks amendment that is....

no usury laws, but it's very very important to have guns in natl parks!

[Wabbajack_]

12. Coburn amendment

"To protect innocent Americans from violent crime in national parks and refuges."

That Yosemite rapist has everyone on edge.

[michreject]

13. You bet

Just means that I'm gonna be legal now.

[ejpoeta]

14. weren't the repubs the ones complaining about adding amendments

for things unassociated with the bill? i could swear i heard that during the debate over the stimulus... oh, and the budget. :)

[able1]

11. In fact, "increases" will continue in the form of new fees etc. EOM

[Raineyb]

6. If according tothe quote in the article the Senators see how important this bill is

why the hell didn't they do something about capping the interest rates the CC companies are allowed to charge. If 15% is good enough for the credit unions it should be good enough for the banks.

Regards