Congress Probes Credit Card Industry

Congress Probes Credit Card Industry

There are 27 comments on the Newsday story from Dec 4, 2007, titled Congress Probes Credit Card Industry. In it, Newsday reports that:

Congress is renewing its scrutiny of the credit card industry, as some lawmakers denounce the practice of raising customers' interest rates when their credit scores decline, even if they make their card ...

Join the discussion below, or Read more at Newsday.

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thery are crooks

Orlando, FL

#1 Dec 4, 2007
please stop them
Sam Snead

Woodhaven, NY

#2 Dec 4, 2007
thery are crooks wrote:
please stop them
Don't use the credit card dumbass.
Democracynoworg

Hackensack, NJ

#3 Dec 4, 2007
THE CONSERVATIVE NANNY STATE
How the Wealthy Use the Government to Stay Rich and Get Richer
By Dean Baker
http://tinyurl.com/e7gyr
This book is written in frustration and hope. People in the United States who consider themselves progressive must be frustrated over the extent to which conservative political ideologies have managed to dominate public debate about economic policy in the last quarter century. Even when progressives have won important political battles, such as the defeat of efforts to privatize Social Security, they have done so largely without a coherent ideology; rather, this success rested on the public’s recognition that it stood to lose its retirement security with this “reform.” It also helped that the public was suspicious of the motives of the proponents of Social Security privatization. However, success in the goal-line defense of the country’s most important social program is not the same thing as a forward looking agenda.

The key flaw in the stance that most progressives have taken on economic issues is that they have accepted a framing whereby conservatives are assumed to support market outcomes, while progressives want to rely on the government. This framing leads progressives to futilely lash out against markets, rather than examining the factors that lead to undesirable market outcomes. The market is just a tool, and in fact a very useful one. It makes no more sense to lash out against markets than to lash out against the wheel.

The reality is that conservatives have been quite actively using the power of the government to shape market outcomes in ways that redistribute income upward. However, conservatives have been clever enough to not own up to their role in this process, pretending all along that everything is just the natural working of the market. And, progressives have been foolish enough to go along with this view.

The frustration with this futile debate, where conservatives like markets and progressives like government, is the driving force behind this book, along with the hope that new thinking is possible. We shall see.
http://www.conservativenannystate.org/cns.htm...

==========
Exposed: The Carlyle Group
Shocking documentary uncovers the subversion of Americas democracy.
http://tinyurl.com/22uag
http://www.informationclearinghouse.info/arti...

Bank Scam How The Illuminati Gets And Keeps All Of Your Stuff
Control Society Through Monetary and Banking Systems
http://tinyurl.com/e9zdw
http://www.starttherevolution.org/video/strea...

TAX HAVENS CAUSE POVERTY
"Taxes are what we pay for civilized society"
http://tinyurl.com/9jlsk
Tax havens are a major cause of inequality and poverty. They function as a result of collusion between banks and other financial intermediaries and the governments of states and micro-states which host their activities. The major culprits include the United States, Britain, Switzerland and other European countries which promote tax havens and prevent efforts to clamp down on their activities.
http://www.taxjustice.net/cms/front_content.p...
Democracynoworg

Hackensack, NJ

#4 Dec 4, 2007
GM Courts Talk Radio Hosts
by Ralph Nader
August 11, 2007
http://tinyurl.com/2a45e3
Just when one guesses that the standards and practices of national talk radio could go no lower, General Motors comes along to show the way to new lows.
Automotive News (August 6, 2007), the leading trade journal for the industry, reports that GM is wooing the radio stars. Its article led with the headline:“Puff Piece. Rush Limbaugh is one of the radio personalities GM is working with to talk up its vehicles.”

What is surprising is that GM purportedly enlisted not only the expected suspects like Sean Hannity, Laura Ingraham and Bill O’Reilly but also Bill Press and Ed Schultz, know for their liberal views. Attempts to reach Press, Schultz and Hannity were unsuccessful. Surely, they will be explaining their relationship shortly.
http://www.commondreams.org/archive/2007/08/1...
Richie

United States

#5 Dec 4, 2007
Wow...only took TWO posts for some self-righteous jackass to blame the victim.

I was betting on at least five.
Democracynoworg

Hackensack, NJ

#6 Dec 4, 2007
Banks Gone Wild
November 23, 2007 http://tinyurl.com/388asc
“What were they smoking?” asks the cover of the current issue of Fortune magazine. Underneath the headline are photos of recently deposed Wall Street titans, captioned with the staggering sums they managed to lose.

The answer, of course, is that they were high on the usual drug — greed. And they were encouraged to make socially destructive decisions by a system of executive compensation that should have been reformed after the Enron and WorldCom scandals, but wasn’t.
In a direct sense, the carnage on Wall Street is all about the great housing slump.

This slump was both predictable and predicted.“These days,” I wrote in August 2005,“Americans make a living selling each other houses, paid for with money borrowed from the Chinese. Somehow, that doesn’t seem like a sustainable lifestyle.” It wasn’t.
http://www.nytimes.com/2007/11/23/opinion/23k...

“Truth to Power!”

Since: Apr 07

Los Angeles, CA

#7 Dec 4, 2007
The CC company's ARE out of control and ripping people off with fees and 30% interest rates which qualify as Loan Sharking in my book.

Congress needs to stop this. Look back on changes made in 1980...

Some interesting reading on this topic:

http://www.lectlaw.com/files/ban02.htm

http://www.consumerfed.org/pdfs/The_Growth_of...

http://en.wikipedia.org/wiki/Usury
Plain Funny

Raleigh, NC

#8 Dec 4, 2007
Congress investigating the credit card companies is like the fox watching the hen house! They all have taken money from the various PAC's that represent these companies. They're a joke, my only regret is that I didn't run for an office, I could have used the connections.
Had enough

Jamaica, NY

#9 Dec 4, 2007
On one hand:
I blame the lack of personal responsibility on the consumer. There are too many people charging over their heads. The current housing situation is proof of this.
Yes some people have very little choice. Medical expenses, emergencies and what not. I am not talking about them.

On the other hand:
These credit card banks do use Mafia style lending practices. That you and I would be prosecuted under the usury laws.
Why should Bank A be allowed to reset their rates at will, if you are late on another banks account?
I also love the movement of the monthly "due date" in order to trick you into being late.
I think if your rate is at 10%, 15% when you purchase an Item it should stay at that rate until:
1. You pay off that balance or
2. You are late with payments to that account.

Making a purchase with the rate "at the time of the purchase" should be a binding contract.
I also find it rediculous that if there is a problem you need to go through arbitration.
Of course the arbitrator is in the back pocket of thes lending bank.

These lending practices should be looked at by our congress and all wrong doing on the part of the banks should be corrected.

“Truth to Power!”

Since: Apr 07

Los Angeles, CA

#10 Dec 4, 2007
The Qur'an's take on high interest rates:

The following quotations are from the Qur'an:

Those who charge usury are in the same position as those controlled by the devil's influence. This is because they claim that usury is the same as commerce. However, God permits commerce, and prohibits usury. Thus, whoever heeds this commandment from his Lord, and refrains from usury, he may keep his past earnings, and his judgment rests with God. As for those who persist in usury, they incur Hell, wherein they abide forever (Al-Baqarah 2:275)

God condemns usury, and blesses charities. God dislikes every disbeliever, guilty. Lo! those who believe and do good works and establish worship and pay the poor-due, their reward is with their Lord and there shall no fear come upon them neither shall they grieve. O you who believe, you shall observe God and refrain from all kinds of usury, if you are believers. If you do not, then expect a war from God and His messenger. But if you repent, you may keep your capitals, without inflicting injustice, or incurring injustice. If the debtor is unable to pay, wait for a better time. If you give up the loan as a charity, it would be better for you, if you only knew.(Al-Baqarah 2:276-280)

O you who believe, you shall not take usury, compounded over and over. Observe God, that you may succeed.(Al-'Imran 3:130)

And for practicing usury, which was forbidden, and for consuming the people's money illicitly. We have prepared for the disbelievers among them painful retribution.(Al-Nisa 4:161)

The usury that is practiced to increase some people's wealth, does not gain anything at God. But if people give to charity, seeking God's pleasure, these are the ones who receive their reward many fold.(Ar-Rum 30:39)

Not a religeous guy just find this interesting...

http://en.wikipedia.org/wiki/Usury

“lightly burnt,but still smokin”

Since: Dec 06

in the corner of your mind,

#11 Dec 4, 2007
the credit card companies are not gonna give up anything, that they have been handed by this corrupt administration
nukethedarfians

United States

#12 Dec 4, 2007
Richie wrote:
Wow...only took TWO posts for some self-righteous jackass to blame the victim.
I was betting on at least five.
awwwww... the poor hapless 'victim'.

Let me go get a band-aid, my heart seems to be bleeding.

The poor hapless victim who sat there with a gun to his(her) head, filling out credit card applications?

I've never been forced to apply for a credit card... Have you?

Apparently, the banking industry has either been late or stingy with campaign contributions.

How else to explain this drivel from Washington?

The insurance racket obviously has better connections.

Auto insurance is mandatory, for those who wish to drive a vehicle. Required by law.

Why is it so outrageous for banks to raise interest due to credit rating changes, when insurance companies are allowed to set and adjust rates for the same reason? Does applying for a loan really make a person more likely to run into something?

Note the latest wave in 'health care plans'- "Let's get medical coverage for the uninsured by requiring them to buy insurance".

Maybe it's a good thing that the banker's lobby has been cheap. If they could match the graft from the insurance racket, then everyone WOULD be forced to carry adjustable-rate plastic, renter's-equity loans, and other unnecessary debt products.
Congress Sucks

Bennettsville, SC

#14 Dec 4, 2007
What I would like to know is when Congress is going to investigate themselves on how they deal with lobbyist who come to Washington DC with a suitcase full of cash?? Also I would like to know why Congress blocked the FBI from getting Republican Congressman Mark Foleys computer?? This is the Congressman who was trying to get into all the young guys pants in Washinton DC. I think Congress should investigate the Health Insurance Companies and Auto Insurance Companies??? These are the real CROOKS. If you read the beginning of this forum it says RENEWING??? Not again?? Congress is a joke. What about our guys who are still in Iraq dying for Corporate Oil???

“Truth to Power!”

Since: Apr 07

Los Angeles, CA

#15 Dec 4, 2007
godless by choice wrote:
the credit card companies are not gonna give up anything, that they have been handed by this corrupt administration
What are you talking about? What was handed to them?
Can you back up this claim?
Charles

New York, NY

#16 Dec 4, 2007
I love it how banks can process deposits and withdrawals in the order they see fit to maximize profit (late fees and overdraft fees). That's some shady sh** right there...

“lightly burnt,but still smokin”

Since: Dec 06

in the corner of your mind,

#17 Dec 4, 2007
"The laughing liberal"
What are you talking about? What was handed to them?
Can you back up this claim?

look at the new bankruptcy laws,the ones that are on the side of big banks.

“Truth to Power!”

Since: Apr 07

Los Angeles, CA

#18 Dec 4, 2007
godless by choice wrote:
"The laughing liberal"
What are you talking about? What was handed to them?
Can you back up this claim?
look at the new bankruptcy laws,the ones that are on the side of big banks.
So the credit card companies were given the new Bankruptcy laws from the president?

The law designed to lessen the incentive for individuals declaring bankruptcy so they no have to pay off what you owe?
Had enough

Jamaica, NY

#19 Dec 4, 2007
The laughing liberal wrote:
<quoted text>
So the credit card companies were given the new Bankruptcy laws from the president?
The law designed to lessen the incentive for individuals declaring bankruptcy so they no have to pay off what you owe?
I do find it odd that this change in the bakruptcy law took effect exactly 2 years before the Housing bubble / ARM problems came to roost.

Random Reader

Moscow, Russia

#20 Dec 4, 2007
If the company starts charging an interest rate one does not like, one can stop doing business with them. This is why a consumer needs to have credit accounts with several different issuers (Bank of America, Chase, Citibank, WellsFargo, etc.), so if one issuer raises the interest rate, another is happy to oblige with a lower rate.

In fact, if a consumer has been paying on time and lacks delinquent accounts/derogatory items, but the score temporarily suffers (because of a need to carry large balance for a while, perhaps), such consumer may well qualify for introductory offers, some as low as 0% APR for 12 months with no fee. Transfer the balance from the high-rate card and stick it in a drawer (no business for extended period of time may motivate the issuer to lower rates).

Also, the consumer can always call in and negotiate. A friend shared a story about a Chase card with me. Despite having good credit, the interest rate "creep" caused the regular rate on the particular card for purchases to be around 24%. When friend called customer support and complained, he got transferred to a credit analyst who adjusted the rate to be 9.9% fixed, and apparently the rate hasn't changed since.

Consumers DO have choices, and those who make bad choices SHOULD be penalized. We do penalize those who drive (or practice medicine) without a license, so why bail out those who do things they do not have a basic understanding about?
tommy salami

United States

#21 Dec 5, 2007
GET A CREDIT CARD WITH A FIXED RATE.....UNLESS U DEFAULT THE RATE STAYS THE SAME. SIMMONS FIRST OFFERS A PLAT. CARD WITH 7.25% FIXED I WORK FOR A BANK AND ALL OF OUR CARDS ARE VARIBLE

I DONT CARRY MY BANKS C.C. FOR THAT REASON

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