Change is coming. Today, the House Financial Services Committee approved a credit-card “bill of rights” (H.R. 627), by a vote of 48-19. What should bring hope to a lot of the readers here, is the fact that our Representatives are hearing us loud and clear. From a Bloomberg article written today:
“Lawmakers say they’re under increasing pressure from constituents to respond to rising interest rates and abrupt changes to consumers’ accounts. Senator Robert Menendez, a New Jersey Democrat, cited complaints to his office in an April 20 letter to the U.S. Treasury and urged the department to consider restrictions on any bank receiving government support under the Troubled Assets Relief Program.”
The credit card companies have had their way for too long. Contact your Representative, or Senator. Let them know that the Fed Rules that are going into effect next year are not enough. Changes in terms for “any reason,” at the sole discretion of the credit card companies, leaves no choice for the consumer, and we must demand action.
The time to act is now. Representative Steny Hoyer has stated that he believes a vote on the bill will come next week. The Obama administration is set to meet with executives of the credit card industry tomorrow. We can, and we must end these abusive practices.
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It sounds like our legislators are finally getting the message:
http://www.cbsnews.com/blogs/2009/04/23/business/econwatch/entry4964729.shtml
While President Obama met today with executives from the leading credit card companies, two senators called on the Federal Reserve to immediately implement an emergency freeze on interest rates tied to existing balances on credit cards.
The Federal Reserve plans to implement a new set of rules for credit card lending beginning July 2010, but that is too long to wait, Senators Chris Dodd (D-Conn.) and Chuck Schumer (D-N.Y.) said in a letter sent to Federal Reserve Chairman Ben Bernanke and other regulators. Companies are increasing interest rates now before the new rules go into effect, they said.
“Consumers describe situations to our offices in which the interest rates on their accounts have doubled or tripled overnight, without any misconduct on their part,” the letter says. “This kind of practice clearly violates the spirit and intention of the rules, even if the delayed implementation date has the effect of making such behavior legal.”
I just watched Your World Cavuto show (some “idiot” was substitute host).
Guest, Jared Bernstein, was trying to explain to him the dfference between people who are fiscally irresponsible and those who entered into a fixed interest promotional agreement and met their contractual commitment only to have the terms unilaterally changed by the credit card company.
The substitute host (who I gather has a law degree) kept interrupting and ignoring what Bernstein was telling him.
It was not only shocking but, disheartening, to see how Cavuto’s substitute host totally missed Bernstein’s point and continued to rant about cardholders getting themselves into their own mess.
S 414 introduced by Chris Dodd is a bill with A LOT of meat in it. Here is the summary for the bill: http://www.govtrack.us/congress/bill.xpd?bill=s111-414&tab=summary
HR 627 definitely has less teeth, but it is still a step in the right direction:
http://www.govtrack.us/congress/bill.xpd?bill=h111-627&tab=summary
While we should remain vigilant in fighting irresponsible and draconian credit card agreements in any way we can. We have a real opportunity here with public sentiment so strongly against the major issuers. Normally consumer protections bills are introduced and quietly killed, however there looks to be some real traction and populist anger on this specific issue. It’s not often when the ticker on the Today show reads, “Obama administration to meet with credit card industry to discuss abusive practices.”
Any change for the consumer is good. ..although I dont see anything of any substance changing. Too many politicians are being paid off.
If there is change, I dont think those striving for reform will be trivialized…it would be a small victory, but a victory nonetheless.
My concern is that no “heroes” or consumer watchdogs are going to come out of this. If only congress and the credit card companies are involved, plus faceless millions, where is the lightening rod consumer advocate that can get media attention the next time the credit card companies behave badly.
My fear is that the fledgling credit card watchdog groups that said enough is enough will be minimized once this biill goes through, which will sabotage the ability to monitor the credit card companies and have any kind of ability to attract the media.
Will there be any retroactivity to this bill?
http://www.Daily-Protest.com