Nelson and Martinez join forces to keep credit card rates high

[wrobert]

Interesting bedfellows:







Those tired of all the partisan rancor in Washington may be pleased to know that a bipartisan coalition of U.S. Senators joined forces yesterday ... in rejecting a 15 percent cap on credit-card interest rates.
The provision died 60-33 with both of Florida's senators, Democrat Bill Nelson and Republican Mel Martinez, opposing the cap. Only Dems and Vermont Independent Bernie Saunders, the bill's sponsor, supported the move
Banks argued the cap would sour already depressed financial markets. Consumer advocates contended credit card rates of 20, 25 and 30 percent are more like loan-sharking. One of the more colorful lines came from Vermont House member Peter Welch, who said: "Congress cannot sit on the sidelines while the credit card industry raises interest rates to levels that would embarrass the mafia."

 

[30ashopper]

Credit companies should have the right to charge what they want. Government has no business meddling in their affiars unless they are inappropriately taking advantage of consumers. A law was passed recently that did exactly that.

I'm not surprised Bernie supported it, he is, after all, a self proclaimed socialist.

 

[wrobert]

Credit companies should have the right to charge what they want. Government has no business meddling in their affiars unless they are inappropriately taking advantage of consumers. A law was passed recently that did exactly that.

I'm not surprised Bernie supported it, he is, after all, a self proclaimed socialist.

I agree. To me the article is more about the Democrats breaking ranks from the Obama agenda so early.

 

[Bob]

Credit companies should have the right to charge what they want. Government has no business meddling in their affiars unless they are inappropriately taking advantage of consumers. A law was passed recently that did exactly that.

I'm not surprised Bernie supported it, he is, after all, a self proclaimed socialist.

some banks bump rates to usury levels after cardholders run up their balances. the practice is unethical, and should be illegal. rates of 20-30 percent guarantee high defaults, and prey upon those least able to pay.

 

[Bob Wells]

some banks bump rates to usury levels after cardholders run up their balances. the practice is unethical, and should be illegal. rates of 20-30 percent guarantee high defaults, and prey upon those least able to pay.

Yeah, what he said.

 

[30ashopper]

some banks bump rates to usury levels after cardholders run up their balances. the practice is unethical, and should be illegal. rates of 20-30 percent guarantee high defaults, and prey upon those least able to pay.

I don't believe the recent laws passed restricted rate increases, but what they did do was ensure consumers are fully aware of what they are getting into when the procure a new credit card. They also protect people from unfair billing practices.

I think the law also restricted "living contracts" (oh yes, there is irony in that statement) so that card companies can't arbitrarily change contracts without the consumer's approval. (I'm not entirely sure this part though actually got passed.)

 

[Lynnie]

I heard of one this week charging up to 64%? Not sure I believe it, but I never thought it would go as high as 30% either......unethical? Yep and there should be stops in place to prevent this. The gov't meddles in everything else, why not this, too?

As Biggie Shortie says, "Greezy Bastahd!"

 

[scooterbug44]

We have caps on the interest you can charge a client who isn't paying you, why shouldn't we cap the interest the credit card companies can charge.

Both the credit card and credit score industries are long overdue for a kick in the teeth IMO.

 

[rancid]

I have to side with the free marketeers on this one. Caps would be bad. An unintended consequence may be fewer companies willing to give cards to poorer clients.

More regulation requiring CC companies to stipulate clearly up front what rates the card will go up to for various offenses ( ie; late payment, no payment etc) would be better. This way a consumer can decide at the beginning if they are willing to take the risk.

 

[30A Skunkape]

I don't believe the recent laws passed restricted rate increases, but what they did do was ensure consumers are fully aware of what they are getting into when the procure a new credit card. They also protect people from unfair billing practices.

I think the law also restricted "living contracts" (oh yes, there is irony in that statement) so that card companies can't arbitrarily change contracts without the consumer's approval. (I'm not entirely sure this part though actually got passed.)

The banks are already gracious enough to do this. As I was informed by one of my banks last month, my interest rate for balances would be increasing...due to increased cost of doing business. I was free to opt out of this rate increase by closing my account! They know they have you becuase a closed account lowers the available credit factor in your credit score. The only way to beat them is to pay about 15 cents more than you owe and let them keep mailing you statements that demonstrate that they owe you money (we did this to Providian Bank until they got sick of us after a year and mailed us a check :funn