by Damozel | Can we hear an "Amen" and a round of cheers from our friends on the left? The bill was sponsored by Democrats Barney Frank (MA) and Carolyn Maloney (NY) and is supported by Consumers Union, Consumer Federation of America, Consumer Action, Center for Responsible Lending and U.S. Pirg. (SeattlePi) Grayson says:
Crucial provisions include the following:
· Protects cardholders against arbitrary interest rate increases
· Prevents cardholders who pay on time from being unfairly penalized
· Protects cardholders from due date gimmicks
· Shields cardholders from misleading terms
· Empowers cardholders to set limits on their credit
· Requires card companies to fairly credit and allocate payments
· Prohibits card companies from imposing excessive fees on cardholders
· Prevents card companies from giving subprime credit cards to unqualified people
· Requires Congress to provide better oversight of the credit card industry
· Contains NO rate caps, fee setting, or price controls (Press Release)
Rep. Maloney said:
"The playing field between card companies and cardholders has become
very one-sided in recent years. Yet, more and more Americans are turning to
their credit cards to help pay bills, buy groceries, and make ends meet in this
troubled economy," said Maloney, who serves as chairwoman of the Subcommitee on
Financial Institutions and Consumer Credit.
"Instead of looking the other way while Americans fall deeper into
debt, Congress can and should take swift action to reform major credit card
industry abuses and improve consumer protections for cardholders," she
said. (Consumer Affairs.com)
Democratic leaders said they were mindful of polls showing widespread disapproval of credit card companies, particularly as rates and penalties charged to consumers have been climbing steeply, even though the companies’ cost of borrowing is at a historic low. That has put pressure on Congress to move swiftly.
He called on the companies to produce statements that are clearly written and do not have any confusing terms and conditions. He also proposed that every company issue a “plain-vanilla, easy-to-understand, simplest-terms possible credit card” to make it easier for the average consumer. ...(NYT)
In response to one executive who was trying to make the case for less regulation, Mr. Obama told the executives to remember that they were “talking to a president who still has a very fresh memory of relying on credit cards” to finance his lifestyle. “I know them firsthand,” he reportedly said.
Mr. Obama’s firm tone left some executives resigned. One executive told the president that although her assignment had been to try to persuade the president not to support new restrictions, “it was pretty clear I won’t succeed.”
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