Congress pretends to rein in credit card companies with a wink, a nod and probably some nice contributions
By Uppity Woman on May 19, 2009 at 11:18 AM in American Consumers, Banks, Credit Card Companies, Credit Risk, Economy
The Senate is getting ready to address the bill that was initially intended but they broke their promise to rein in thieving credit card companies that have taken to arbitrarily punishing good, reliable customers for their own bad management and greed. But don’t expect much So what else is new? from Congress. As usual, they have watered down the original intent and figure the people will be too stupid to notice.
The one thing consumers have been really angered over isn’t going to change at all in this bill. In fact, interest rate caps are no longer even mentioned. This ensures that the House and Senate can continue to enjoy eating at the contribution trough like the pigs they are –while taking their constituents for fools.
WASHINGTON(Reuters) – A bill to curb sharp practices in the credit card business was on track for approval by the U.S. Senate as early as Tuesday, with President Barack Obama expected to sign it into law before the end of the month.
Enactment of the legislation would mark the crest of a political backlash rising for years against the card industry amid sudden interest rate increases, hidden fees and aggressive marketing programs that have angered consumers, analysts said.
What’s the reaction from the Credit Card Companies?
“This is a tough bill and will hurt the profitability of credit card lenders in our view. But the legislation could have been much worse” for card companies, said Jaret Seiberg, financial services policy analyst at Concept Capital.
Translation: “Whoa! We escaped real regulation again! Write that check to Senator Pig, Clyde!”.
Now that our caring Congress has stepped in, your credit card company has to give you a 45 day warning before it arbitrarily hikes your interest rate whenever they need to gouge you.
The Senate bill would limit, but not prohibit, card issuers’ ability to raise interest rates on existing balances.
It would require 45-day notice of most rate increases; limit rate increases for new and promotional-rate accounts; prohibit certain kinds of fees; and bar extension of credit to consumers under the age of 18, with narrow exceptions.
(congressional snowball in summer)
In other words, you are still screwed.
You can receive a letter from your credit card company at any time telling you that your rate is going to change to any number they choose–in 45 days. Most of them already were giving 30 days notice. So biggggg deal.
You have to hand it to these House and Senate hucksters. They have truly mastered the art of handing out snowballs in the summer that melt right in your hand.
Oh and guess what else they ‘Provided for’ in the bill? Are you sitting down?
In addition, the bill would require more disclosure of the terms of card agreements; require periodic review of a cardholders’ interest rate and open the possibility of lowering it if warranted;
In addition to taking you for a fool, these people are a bunch of comedians, aren’t they? As if your credit card company is just chomping at the bit for “permission” to lower your interest rate! These political whores didn’t even have the integrity to define and direct these banks as to what should warrant a lowering of an interest rate: Like say, your FICO score, for instance! Or years of paying on time without ever missing a payment.
Nothing from Congress. Nada. Zilch. A useless piece of legislation from our useless elected contribution whores. Again.
They did manage to do one “good” thing though, only one wonders why they even let the practice of giving charge cards to 10-year-olds happen to begin with, much less allow it to continue on ”unnoticed” for years.
Senator Byron Dorgan on the Senate floor on Monday criticized card issuers, citing what he said was a marketing pitch by a major issuer for a pink, white and yellow “Hello Kitty” credit card aimed at children 10 to 14 years of age.
“I’d just love to know the person who thought this up and to say, ‘Are you nuts?’” Dorgan said. “What on earth are credit companies doing soliciting young kids to get a credit card?”
Yes Senator, and I would like to know how it is that you and the rest of your buddies looked the other way with your heads up your asses for years while this was going on–and now you suddenly notice, but only because we are watching.
To sum things up, this bill isn’t worth the powder to blow it up with, as usual. It doesn’t address a cap on loan shark rates at all. Nor does it reign in the companies from arbitrarily raising your rates for no reason other than they just want to gouge you some more. Both of these issues got removed from consideration right after your Senator and Congress person tallied up all those campaign contributions. Only 33 senators voted “Yes” in roll call to a bill that would have capped interest rates. Only one of them was a Republican, you should know this the next time you have delusions that this party cares about you any more than the Democrats do. As for the Democrats, the number “32″ is a very interesting statement, don’t you think? The Party of The People? At least Republicans are up-front about letting you know they don’t give a rat’s ass about what their biggest donors are doing to you. (See names of “Yes” voters here)
Not only did both parties let you down AGAIN, but this bill doesn’t take affect immediately. The toothless bill that gums credit card companies to death won’t take affect for nine months after the President ceremoniously signs the useless thing. This gives your credit card company plenty of time to figure out how to shove it up your ass a couple of more times first.
…..with President Barack Obama expected to sign it into law before the end of the month.
Barack Obama will sign this Nothing Bill with great fanfare. He might even say something to the effect that “It’s not perfect but it’s better than nothing”. Too bad it is Nothing. It’s always nice to make a big production when you are really screwing the public. It helps give credibility to the pretense that you care.
Now run along. We wouldn’t want you to miss American Idol!
by Ronald Scott
* More novels by 
* 
(
)
- You'll have access to 18 million movies, TV shows, songs, magazines, and books, as well as ultra-fast Web browsing with Amazon Silk -- faster than iPad. Full e-mail and document access and a keyboard. Fire can transmit what is on your screen onto a connected TV or monitor without an accessory. It runs Flash (iPad doesn't). 
Pingback: Micheal Steele Speaks in Maryland
Pingback: Let the Credit Card Games Begin! : NO QUARTER
Pingback: Pages tagged "rat"