Legislation reining in credit card practices may pass, helped b...

Full story: Chicago Tribune

In this April 22, 2005 file photo, signs for MasterCard and Visa credit cards are shown at the entrance to a New York coffee shop.

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Huh

Champaign, IL

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#23
May 19, 2009
 
moreofthesame wrote:
Hopefully the credit card companies will raise their standards and not give cards to anyone with a credit rating less than 650.
How about they actually check the credit of the person who they are offering credit to on the spot. The retail stores are the worst. They give you 15% off of your purchase if you apply for their credit card. Then they don't send you their bill, charge you a late payment fee of $39, interest at 29% and $10 penalty. Before you know it, your $40 blouse costs $100 and you couldn't afford to pay cash for it to begin with which is why you jumped at the offer. The credit card company is willing to pay the store for the blouse because they know they can charge their fees. This practice has got to stop and from what I can tell, this new law does nothing to stop this practice.
Long Island Taxpayer

Jersey City, NJ

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#25
May 19, 2009
 
Kris wrote:
why did Obama have to come into office for this to happen, overwhelming majority agrees with this bill, who has been protecting these credit card lonesharks?
Bottom line is if people paid their credit card bill each month there wouldn't be an issue of credit card interest rates. It's like only buying a house you can afford and then making mortgage payments each month istead od expecting the government to bail you zss out because you can't make the mortgage payment.

Since: Apr 09

Chicago

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#26
May 19, 2009
 
In general, the 42% of us who pay off monthly and are largely immune to most of the "excesses" being "reined in" will be paying more, and it will be harder for the other 58% to get credit cards. Running a card business isn't as profitable as it appears (because the losses and cost of collection are so high), which is why most stores got out of the business and there are only a handful of issuers. There will be unintended negative consequences of this legislation.

Since: Nov 07

Arlington Heights, IL

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#27
May 19, 2009
 
Always good to see the Federal Government expanding. They control the major banks, the major car companies and now the credit cards. What industry should they take next?
Rance Spergl

Berwyn, IL

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#28
May 19, 2009
 
Let's get this straight: This is by no means a "crackdown", it's a mild reproof and correction that should have never been necessary if these companies weren't greedy, rapacious and usurious in the first place.

What was passed is still not enough and another example of how we are NOT being represented in Congress.
RLM-G

Chicago, IL

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#29
May 19, 2009
 
"For example, the Senate bill requires those under 21 who seek a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default."
Is there a provision allowing for an independent 21 year old? What happened to 18 being the age that made you an adult? I moved out of my parents home at 17. How are you suppose to build any kind of credit without having access to any credit?
Take OUR Country back

United States

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#30
May 19, 2009
 
Caution, watch to see where this bill ends up, I guarantee that somehow it will end up costing the honest people that pay their balance off each month. I agree with those that say if you can't afford then don't charge. A little responsibility for your actions goes a long way...
NoConservativePr opaganda

Chicago, IL

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#31
May 19, 2009
 
The way these c/c companies have been raping people with interest hikes are bad enough to put loan sharks out of business.

Obama's cracking heads & taking names. He's on our side.
GeneTierney

AOL

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#32
May 19, 2009
 
Niles2 wrote:
But none of this is retroactive to help those of us already stung by increased rates from one company based on accounts with another—right?
Right!
GeneTierney

AOL

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#33
May 19, 2009
 
VivianC wrote:
Always good to see the Federal Government expanding. They control the major banks, the major car companies and now the credit cards. What industry should they take next?
The insurance industry.
Annoyed

United States

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#34
May 19, 2009
 
Two questions:
1) What is being done to address the backlash that is currently taking place with credit card companies? There is no mention of how the credit card companies are systematically going through all of their low risk clients (i.e. the ones who pay minimum balances on time or pay off their balance on time) and HIKING the heck out of their rates. Just ask anyone you know who actually practices responsible use of credit cards. They've been rewarded by a letter in the mail promptly raising their rates over 10%!!!
2) Why on earth would a loaded gun provision be added to this bill? Oh, wait, I know- because they want it passed. What nonsense. Have it stand on it's own merit. Ah, change we can count on.
Cara

Chicago, IL

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#36
May 19, 2009
 
It seems that once again, people who mind their budgets and pay on time will be penalized for their proper actions by losing rewards, small discounts, etc.

Just like the mortgage bailout for deadbeats, the federal government is forcing credit card companies to give a pass to those who refuse to live within their means !

What a way to buy votes in future elections. For these votes, the government is making the rest of us pay.
Jeff Newton

United States

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#37
May 19, 2009
 
Please report the whole story Tribune. Please include teh pork that is being pushed through that makes it now legal to conceal a weapon in National Parks.
Eileen

Naperville, IL

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#38
May 19, 2009
 
Take OUR Country back wrote:
Caution, watch to see where this bill ends up, I guarantee that somehow it will end up costing the honest people that pay their balance off each month. I agree with those that say if you can't afford then don't charge. A little responsibility for your actions goes a long way...
EXACTLY ... the people who pay off their balances are the ones that will take the hit, but you haven't cited the reason why. Follow me here:

Credit card companies make their REAL money from the merchant, not the consumer. The merchants pay a high fee to accept these cards and it is a guarantee that the credit card companies will collect (they have TOTAL access to our checking accounts). How do I know? I pay them monthly, and dearly, I might add. These charges to the merchant add up to between 2 and 5 percent of the TOTAL purchase. If the merchant's profit margin is only 20 or 25 percent, this charge drops the merchant's profit margin by 25% or more.

None of this legislation protects the merchant from the credit card company - i.e., it does not provide for the protection of what they charge us.

So ... if the credit card companies cannot make their profit from the consumer, who do you think they will make their profit from? You got it, the merchant who has no protection.

What does the merchant do? They will raise their prices to the consumer. Bottom line, the credit card companies will find a way to protect their profit margins. The consumer will pay ONE WAY OR ANOTHER.
Reverend Dewey Cox

Matteson, IL

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#39
May 19, 2009
 
Linda wrote:
Oh, yes, just yesterday, not one but TWO notices of interest rate hikes from Chase, one for my card, another for my husband's...both accounts in very good standing...how to fight that?
Likewise for me. I exercised the only right that was available and canceled my chase cards. I still have one of their 0% APR cards and when the free time ends this January, it'll get canceled and run through the shredder, also.
Reverend Dewey Cox

Matteson, IL

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#40
May 19, 2009
 
Eileen wrote:
<quoted text>
EXACTLY ... the people who pay off their balances are the ones that will take the hit, but you haven't cited the reason why. Follow me here:
Credit card companies make their REAL money from the merchant, not the consumer. The merchants pay a high fee to accept these cards and it is a guarantee that the credit card companies will collect (they have TOTAL access to our checking accounts). How do I know? I pay them monthly, and dearly, I might add. These charges to the merchant add up to between 2 and 5 percent of the TOTAL purchase. If the merchant's profit margin is only 20 or 25 percent, this charge drops the merchant's profit margin by 25% or more.
None of this legislation protects the merchant from the credit card company - i.e., it does not provide for the protection of what they charge us.
So ... if the credit card companies cannot make their profit from the consumer, who do you think they will make their profit from? You got it, the merchant who has no protection.
What does the merchant do? They will raise their prices to the consumer. Bottom line, the credit card companies will find a way to protect their profit margins. The consumer will pay ONE WAY OR ANOTHER.
Hey Ms. Eileen -- "2 and 5 percent" is a LOT less than the 12 to over 20 per cent that the credit card companies charge their customers after the promotional 0% APR ends. And if your business is only earning 20-25 per cent, rather than raise your prices, learn better business skills.
Reverend Dewey Cox

Matteson, IL

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#41
May 19, 2009
 
RLM-G wrote:
"For example, the Senate bill requires those under 21 who seek a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default."
Is there a provision allowing for an independent 21 year old? What happened to 18 being the age that made you an adult? I moved out of my parents home at 17. How are you suppose to build any kind of credit without having access to any credit?
Just think. Here in America you are old enough to go to strange, far-away countries and kill people, but not old enough or trusted enough to get a credit card of your own.
Eileen

Naperville, IL

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#42
May 19, 2009
 
Reverend Dewey Cox wrote:
<quoted text>
Hey Ms. Eileen -- "2 and 5 percent" is a LOT less than the 12 to over 20 per cent that the credit card companies charge their customers after the promotional 0% APR ends. And if your business is only earning 20-25 per cent, rather than raise your prices, learn better business skills.
Hi Reverend Dewey -

You obviously DID NOT read my post thoroughly. It is costing us 25 percent because while they may be "only" charging us between 2 and 5 percent, the charge is on the TOTAL cost, not just our profit.

So lets make this simpler for you. I sell a product for 100 dollars. That product that I sell you costs me 80 dollars. I now have to pay the credit card company $5.00, which leaves me with a wopping $15.00. By my math, my profit margin has now dropped my $25.00. Why? Because I have paid it on the total - not just MY profit.

Now you can insult me all you want and say that I need better business skills. I do quite well, sir, and don't expect to make a fortune with my business. All I want is a living, not a fortune. My philosphy in business is much like my business colleagues - which is a common misnomer with the general public (most people think that business owners are rich - nay, nay, I say). We wish to make a living and not necessarily gain riches. That's all we ask - to make a decent living.

Now do you understand or do I have to talk slower?
Eileen

Naperville, IL

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#43
May 19, 2009
 
Oops - in my above post, second paragraph, I meant to say 25%, not $25.00.
Butterflywithsor efeet

Springfield, IL

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#44
May 19, 2009
 
This legislation is like a lot of the other democratic plans - - it looks great in the newspaper headlines, but it has little substance. The real problem is people living beyond their means and their irresponsible behavior. Here's an idea, if you don't have the money, don't charge that HD TV, or $200 dinner, or the video games, or the $540 tennis shoes (couldn't resist), or the baseball tickets, or the spa treatment, or the i-phone....

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