Credit Cards: No Holiday Help From Congress. Republicans in Senate block move to fast-track bill.

[flpoljunkie]

Credit cards: No holiday help from Congress

Congress sputters in push to stop credit card issuers from raising rates before tougher laws kick in on Feb. 22.

By Jennifer Liberto, CNNMoney.com senior writer
November 24, 2009: 4:02 AM ET


WASHINGTON (CNNMoney.com) -- A congressional effort to enact swift rules to protect credit card consumers during the holiday shopping season is all but dead.

Tough new rules are already slated to go into effect on Feb. 22. The new rules, enacted by President Obama in May, prohibit banks from hiking interest rates on existing balances of fixed-rate cards unless the cardholder is two months late in paying the bill.

After credit card companies started hiking rates over the summer, the House and Senate offered proposals to move up the effective date of the new rules to Dec. 1 or freeze rates until the new law kicks in.

The House passed a measure, sponsored by Rep. Carolyn Maloney, D-N.Y., to move up the start date to Dec. 1. But the Senate has recessed until Nov. 30 without taking action.

Last week, Sen. Chris Dodd, D-Conn., tried to move to fast-track legislation to freeze rates, but Republicans blocked the move.

more...

http://money.cnn.com/2009/11/24/news/economy/credit_card_rates/index.htm

[fasttense]

1. Is this why my Credit Union changed my credit card from fixed rate

to adjustable rate? After 20 years with the same credit card, I may have to cancel it.

[Clio the Leo]

10. Yep, cancel that puppy.

That's the only way they'll get the message. (Of course it will take ALL of us doing that, which won't happen.)

You know, in Christmases past the only thing families spent was time ..... with one another.

And the kids would get an orange or something. ..... Obviously kids need presents. But the amount of $$ adults spend for gifts for EACH OTHER is insane. The adult members of my family stopped exchanging gifts several years ago and the whole process has been so much more enjoyable ever since.

But the time we've spent together .... priceless.

[hobbit709]

2. If nobody would use their card this Xmas, they'd get the message.

I got 3 out 4 paid off, got about $1000 on the last one and it's being paid at about 3 times the minimum every month.

[Vinnie From Indy]

4. Sure, that is true!

One thing that should be pointed out is that there are MILLIONS of Americans that are not in your fortunate position. These folks have balances that will take many months if not years to pay off. Now, with the outrageous rate hikes to 29.99%, this credit card debt becomes a major burden and for some it is the last push into bankruptcy.

[Vinnie From Indy]

3. Madness!

Here Congress is given an easy, effective way to help and protect mainstreet America from the mobster-like loansharking of credit card companies and they reject it.

The effect of THIS neglect and corruption in our Congress will directly result in THOUSANDS of Americans, if not more, going bankrupt. Millions more will suffer by having to pay 29.99% on existing balances at a time when they can least affors it.

[freddie mertz]

5. The Dems really should do whatever they can to get this thing passed.

This is highway robbery being conducted against the people by the very institutions who were deemed "too big to fail."

agree that in the interim, we need to stop using these cards, cut them up and pay cash or let it go.

[flpoljunkie]

13. We need to bombard the Senate with phone calls, emails when they return from Thanksgiving break.

[freddie mertz]

32. I think you're right.

Ill be on it with Casey and Specter.

[flpoljunkie]

6. Huffpo: Video of Dodd speaking on the Senate floor asking for unanimous consent to freeze rates

"We worked long and hard to enact the safeguards included in the Credit CARD Act," said Dodd. "And no sooner had it been signed into law, but credit card companies were looking for ways to get around the protections this Congress and the American people demanded. This bill would end those abuses and further protect customers today."

The Senate schedule is packed with nominations, health care and appropriations bills, leaving no time for a prolonged floor fight over credit cards.

The only way Democrats could pass the bill in time for the holidays would be with the support of the GOP -- all but five of which voted for it initially.

Dodd, on Wednesday afternoon, asked for unanimous consent to move the bill forward.

"On behalf of several senators on this side of the aisle, I object," said Sen. Thad Cochran (R-Miss.). And that's the end of it.

Video at link below:

http://www.huffingtonpost.com/2009/11/18/gop-blocks-freeze-on-cred_n_362787.html

[flpoljunkie]

7. Dodd asks us to contact our senators and ask them to pass S.1927-Credit Card Rate Freeze Act of 2009

The unanimous consent request to move the legislation begins at about 7:10 on the video and ends at about 7:57 with Miississippi Republican Senator Thad Cochran blocking the request on behalf of several Republican senators.

[phantom power]

8. A smart Democratic party would be saving up tidbits like this for 2010...

[flpoljunkie]

11. They might well want to point this out now, but they are not.

Watching the video of Dodd on the Senate floor, it seemed somehow so perfunctory--a bit of a dog and pony show. We do know that Senators Tom Carper and Tim Johnson (Senators who represent states where these credit card companies incorporate) oppose reining in credit card companies.

http://sanders.senate.gov/newsroom/news/?id=44e7ff9d-128c-4918-bf03-35ef60c91a38

[high density]

9. Is there some reason why "Republicans blocked the move" isn't in the first paragraph of this story?

If Democrats were doing this shit I know it would place blame on the Democrats from the first sentence. This obstructionism getting a free pass in the press is so painful.

[flpoljunkie]

12. Tragically, there are no Senate Democrats speaking out yet either. Remember what Dick Durbin said.

'Frankly, the banks own this place.'

[girl_interrupted]

14. Banks own the place because Democrats allowed them too

Bernie Sanders had a credit card bill that would have immediately set caps on what credit card companies could charge. But did our Democratic majority vote for it? Of course not, they opted for a bill with no caps allowing Usury to continue unchecked. And in addition, concealed weapons in National Parks was added to that crappy piece of legislation. What did one have to do with the other. Some "reform". What a joke. I still can't believe Obama signed that bill.

Banks got bailouts interest free. I love how some people say others should be "responsible" when it comes to credit card debt. Banks however, are given a free pass when it comes to "responsibility". They get our taxpayer dollars, free of interest, because they failed.

There are a lot of people who want to be "responsible" and pay off their debts, but how can they do that when rates got jacked up to 30%? Doesn't matter to the banks if you default, might ruin your credit rating, but banks just put in in their loss column and benefit off that.

It never ceases to amaze me, that while the leading cause of credit card debt is medical bills, no one brings that up. Health care reform is absolutely necessary, but what about the people who are already in trouble? No help for them at all. Makes no sense that the two don't go hand in hand, instead of credit cards and guns.

Now Democrats are upset that republicans are blocking them? Where were they when they had the chance to adopt Bernie Sanders bill?

These are tough economic times. Banks shouldn't be the only ones getting the breaks. I don't know how Democrats think they are going to hold onto the middle class when they haven't done a thing to help them. They have the majority, for the love of God, use it. If you can give banks interest free loans, why not stop them from loansharking like crazy? Caps are needed and they are needed now.


Sometimes I get so disgusted I wonder why I even bother to vote.

[flpoljunkie]

17. Banks own the place cause Congress members use lobbyists to keep campaign coffers full.

They do not want a level playing field when it comes time for their re-elections. They like the system just the way it is. Thank you very much.

Only our recourse is to speak up loudly and frequently and hold them to account at the polls. There is very little chance they will enact public financing legislation, although bills have been introduced again this session of Congress--H.R. 1826 and S. 752.

[ej510]

25. I and my father spoke about this Saturday. Dems and repukes

do not want a level playing field, because they would be held accountable.

[girl_interrupted]

26. sad but true

[freddie mertz]

33. Unemployment is another major cause of credit card debt.

That is how we ended up with a balance on CITI, now jacked up over 20 %.

My wife was unable to find a job for nearly a year after our last move, so our moving expenses ended up on that @@#@$@$ card.

Damn then. How do they excuse raising rates when you are paying it down and never missed a payment?

[Undercurrent]

15. Don't use credit cards

for Christmas shopping. Going into debt for non essentials is lazy, and it plays right into the game set up by the banks to trap you into the modern version of shopping at the company store in the company town.

Pay off your cards. It will be the best gift you can give to your family. I just paid off my last card last month.

[flpoljunkie]

16. Great you are in a position to do so, but, tragically, millions of people are not.

[Undercurrent]

18. That is very true.

It was not easy. I worked hard to get out of debt over the last 10 years.

[flpoljunkie]

19. Congratulations for your hard work to get out of debt!

[PassingFair]

28. I had mine all paid off...but an unexpected vet bill and some lean months...

caused me to charge about $1000 on a CC with
a 12% APR....They sent me a notice a couple
of weeks ago that they were jacking the interest
rate up to 19.99%, just because they can.

I'll pay it off quickly, but I had planned on
charging some things for X-mas that the kids
are NOT going to get now, because I am NOT
charging a dime on that *ucking card.

Up yours, Citibank!

I'm hoping that after Feb. they will be back
to competing for our business, instead of
gouging their way into oblivion.

I believe that we should have let the banks
FAIL, the VAST majority of Americans would have
been satisfied with the FDIC's 250,000 protection
money and we would NOT have had so many foreclosures.

On edit: The "Frontline" episode entitled "The Card Game"
last night was interesting. Nothing we didn't know, but it
was interesting seeing them all squirm and LIE in front
of cameras.

And that goes for Dodd, too.

I always thought that the expression "socializing
losses and privatizing gains" was trite, but now
I see just how TRUE it is.

[flpoljunkie]

31. So sorry you are getting screwed by Citibank! You make great points!

[freddie mertz]

34. CITI is the worst offender these days.

No excuse is possible for these usurious bastards.

[Honeycombe8]

38. How so? nt

[girl_interrupted]

20. For some it's already too late & there was a real opportunity

to set things right with Bernie Sanders bill. The usury and loansharking would have come to a halt. Now it seems they want to close the barn door after the horses got out. I don't know why some people think that all credit card debt is due to people buying luxury items. A lot of people, especially the elderly on fixed incomes & others with health issues, and those who became unemployed, had no other choice but to use credit cards.

It's tragic that a real opportunity was lost, where a lot of people could have been helped. You hear a lot of talk about "responsibility" but it's never applied to the banks that issue these cards. One day you are paying 8% the next, even if you pay on time, you are charged 30%. There is a lot of anger out there, and it's justified, that banks are still being allowed to get away it. "You" should "responsible" but banks? Nope.

Another thing that is quite ironic is, while the right wing is out buying as many guns as they can, in fact to celebrate Thanksgiving, South Carolina is offering a "tax free" day on gun purchases. Yet a bill meant to help people pay their debts off at reasonable rate, is thrown to the wind. So who did the "credit card bill" help but those who wanted to carry concealed weapons. That's insane. And they worry Obama is going to take their guns away? Hardly.

I am disgusted.

Congratulations paying off your debt, I'm sure it wasn't easy. It's too bad banks made it even harder.

[flpoljunkie]

21. Great post! The Democrats ignore the banks, credit card companies at their peril.

They'd better wake up, or they will be out of power in 2010.

[girl_interrupted]

23. flpoljunkie wish i could have gotten back to this thread sooner

Because I really wanted to thank you for posting it, for all the reasons I posted back. This makes so angry, I am just stunned that it goes ignored.

You are so right, Democrats ignoring banks and credit card companies is going to come back and haunt them, when they are asked what they have done to curb them. And they aren't going to get away with the excuse "Republicans stopped us" When they had the opportunity to really give consumers an even playing field with banks. Voters are going to turn around and say: "We put you in office to help us, if you can't do it, who needs you"

[flpoljunkie]

29. Thank you, girl_interrupted for your pointed and thoughtful posts.

They have added quite immensely to the conversation.

[freddie mertz]

35. They have 60 votes in the Senate.

Or else they don't.

[Honeycombe8]

39. They don't. The Dems have 58 Senators, and the Dem Party members are more independent,

and varied in ideology and geographical area than the Repub Party, so it actually needs a bigger majority than Repubs to get controversial things done.

[Undercurrent]

22. True.

I am 100% disabled, and live on SSDI so I know how hard it is, and how hard it was to pay off all my debt (including my truck and land). Now I have zero debt. But it was very, very hard. I went without a LOT to do it.

btw: After my divorce I realized what the true meaning of "community property" is in the state of Texas. It means "community debt". Even if one spouse was unaware of the debt. I also learned how the finical deck is stacked against woman. For example, the preferred rates on car insurance automatically go to the man.

I pray people can figure out a way get out of debt, and live more frugally. Screw the banks, and the CC companies. They are parasitic scum!


--typo edit

[girl_interrupted]

24. Undercurrent my heart goes out to you

I know many people in the same situation and I know how hard it must have been for you to pay off your debts. But why should it have been this hard to begin with? Banks that own these credit card companies get away with ripping off consumers. And that hasn't changed. I'd like someone to tell them..."You be responsible" You are taking taxpayer money and instead of getting it interest free, we will know charge YOU the same 30% you make your customers pay. And maybe next week, even if you pay on time, it will be 35% or 40% whatever the taxpayer feels like charging. That would be justice.

[jeanpalmer]

27. Pure window dressing

It's already too late. The rates have been raised. Gosh, wonder if it ever occurred to them that the banks would preemptively raise the rates?

"Tough new rules are already slated to go into effect on Feb. 22. The new rules, enacted by President Obama in May, prohibit banks from hiking interest rates on existing balances of fixed-rate cards unless the cardholder is two months late in paying the bill." LOL. The poor debtor falls behind in his payments and what's the solution? Raise his rate.

[flpoljunkie]

30. Sadly, you are absolutely right. They were given many months to rip off consumers with impunity.

[freddie mertz]

36. We should all remember this come election day.

Vote out the sell-out bastards.

[NC_Nurse]

37. Dems suck SOME of the time, REpubs suck ALL of the time.