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The Senate voted for this 90-5. Credit card companies have made huge profits through unfair practices. This bill forces them to:

(1) notify people 45 days in advance before changing interest rates

(2) requires those under 21 to prove that they will be able to make payments before getting a credit card.

I honestly don't see how you can oppose this bill; only 5 senators did. The bill protects responsible borrowers from unfair hikes/Machiavellian rules. It's not surprising that, as the NYT link suggests, the credit card companies are against this.

When is the gubbermint gonna buy me a house and fill my tank?

Those 2 provisions arent the problem along with stopping charging interest twice (double cycle billing) and jacking up rates on previous fixed rate balances (it would be like your fixed rate mortgage all of sudden becoming a variable rate mortgage).

Its what is planned for Stage 2. Government mandated interest rates and fees. Which will result in people with good credit being forced to pay higher fees and rates to make up for people who dont use credit wisely.

Ben, of course no reasonable person objects to those two items you mention. Yes, there is some scumbaggery going on, Capital One is the worst, but I choose not to do business with them.

You know, the devil is in the details in ALL legislation; that's why so many people are mad that the porkulus bill was crammed down our throats in record time, with nobody reading it.

Did you know, for example, this CC bill contains a provision you may find distasteful but that many here would not? It says that you can bring a firearm onto national park property.

JameJ.....It's spelled GUBMINT.

no i rekon its speld GUBMIN. by de way, im waytin for my free hows and car too.

I did know, news hound that I am. I'd rather people had loaded guns in National Parks than in city centres; there are bears in National Parks, after all.

It says that you can bring a firearm onto national park property.

GOOD - and why shouldn't I be allowed to carry in a park?

As far as Ben's comment about Bears... Ben - unless you've got a higher calibre weapon - you're just going to piss the bear off.

However, Coyotes, Wolves, Mountain Lions, etc - fire away.

And by "higher calibre" I mean "more than a 9mm".

I hate to point this out guys, but after I paid off a fairly sizable chunk of credit card balance (which had previously been on a fixed rate 5.5%, due to a "deal" they made when I transferred a credit balance) and moved the residual to my lower fixed interest credit union loan, which I am proceeding to finish paying off ... the first company (Citibank) upped my rate to 24.6%.

So I'm in favor of getting the credit card thing under control. About the ONLY thing I agree with that Chairman Zero has proposed. I do also believe people without the means to pay, ought not to be getting cards tho.

So, wait, tell me why I shouldn't also be mad at the credit card company too? Their attacking people with good credit is like kicking the cat because the dog bit you.

Its what is planned for Stage 2. Government mandated interest rates and fees. Which will result in people with good credit being forced to pay higher fees and rates to make up for people who dont use credit wisely.

Posted by: Anonymous at May 19, 2009 12:21 PM

Bingo. Industry analysts are already fearing this.

On a semi-related note: the Obamas themselves lived way beyond their means for years.

Their financial situation only really became viable after they hit the big time with the 'autobiography' that Bill Ayers wrote for Obama.

As someone at Ace of Spades noted, maybe that's Obama's plan for the economy: he's going to have Bill Ayers write an autobiography of America and hope it brings in $20 trillion to pay down the national debt.

:)

The scumbags that have abused the credit industry (yes, abused the credit industry) for years is the cause of this. Over time those scum have learned that you rack up a huge debt with one or several cards and then file bankruptcy. And then do it again LEGALLY. The companies were forced to change the rules to compensate for the losses. It's similar to the scumbags that defraud the welfare system. It's always the good guys that end up paying by hook or by crook. The disease of fraudulent behaviour in this country is disgusting. And worse, it's condoned by the government. Our founders would be appalled. I am.

Joe, you really don't know shmoe.

Its not the companies that are changing the rules. The Card companies are AGAINST changing the rules, fool.

Another of the rules that has been changed that hasn't been mentioned here is that if you have multiple interest rates being charged on a single card (say, one for a cash advance, one for a balance transfer, and still another for purchases) and you pay more than the minimum payment, the company is required to apply the amount towards the highest interest rate balance.

Guess how most of them USED to handle this situation?

Another thing you're misinformed about is that the credit card companies LOVED the deadbeats!

They helped create the situation, because people who pay off their balance every month don't make the company any money. People who ring it up and pay the min. balance each month. THOSE are the people they make money off of, until recently.

The biggest thing that this MIGHT cost good credit consumers is the "rewards" systems. But right now that mostly just looks like a threat by the credit companies. As the rewards are the marketing hook they use for most cards, it seems unlikely that they will do away with them.

This is a good bill and a good law. If you don't think that the credit markets need some regulation at this point ... OPEN YOUR EYES!

Basic regulation is reasonable but please keep in mind - no one forced you to purchase an item with a credit card that you knew you couldn't pay off.
If the possibility of being exposed to unsafe business practices unnerves you go to Smartypig.com or any other saving account - save for what you desire - then purchase it.