NYT: A Gift to the Credit Card Companies (Republican Thad Cochran blocks Dodd bill)

[flpoljunkie]

(Outrageous! Both now and when the bill was passed to allow this giveaway to the credit card companies When will Congress put the public interest before the special interests? Not until we pay more attention and demand otherwise from our representatives in Congress.)

November 20, 2009

A Gift to Credit Card Companies

Congress left consumers extremely vulnerable when it gave the credit card industry as long as 15 months to end the deceptive predatory practices outlawed in the spring in the Credit Card Accountability, Responsibility and Disclosure Act. The credit card industry, which clearly wants to make a killing in the Christmas season, used this unnecessarily long grace period to intensify its predations, doubling interest rates on people who pay on time and driving up rates by an industry wide average of about 20 percent.

These ravages seemed not to have registered with Senator Thad Cochran, a Republican of Mississippi, who represents the nation’s poorest and most economically vulnerable state. On Wednesday, Mr. Cochran blocked a vote on a bill introduced by Senator Christopher Dodd, a Democrat of Connecticut, that would have immediately frozen credit card interest rates and fees.

Mr. Cochran said through his office that he objected to the bill on behalf of unknown Republican colleagues who had their own objections. But it is difficult not to see his maneuver in yet another act of obeisance by Senate Republicans to the banking and credit card industries.

The same was true of Congress’s decision in May to delay implementation of the original credit card reform bill. Had the act gone into effect immediately, credit card issuers would have been forced to end many of the practices that have trapped millions of Americans in debt that they had no hope of repaying.

more...

http://www.nytimes.com/2009/11/20/opinion/20fri3.html

[nykym]

1. I just don't

understand why they need 15 months to stop predatory practices, they increase rates overnight.

[prolesunited]

3. Yep, I have an excellent credit rating

and have very low balances just to keep cards active, but every single one of them have hiked their rates. It only took weeks for that to happen.

[Hamlette]

2. I think credit card companies should charge extremely high interest and fees.

the credit card economy has fed our consumerism which is unhealthy.

If anything, we should make the credit card company print on each bill, just how much a purchase will cost if paid out at minimum payment, oh and throw in a few late charges. "This $200 iPhone you bought will end up costing you $400 if you make the minimum payment. $500 OR MORE if you incur late charges. If you had just waited, you could have had this iPhone and a Wii for free! or a new flat screen TV for free!"

I know all of you here think the economy is all about big evil corporations but we are part of the problem. The financial disaster of 2008 does not happen without the housing bubble. The housing bubble doesn't happen without "flip that house" mentality. Without people running up horrid credit card debt for non essentials and taking out a second mortgage to pay it off.