Banks and consumers brace for new credit card rules

[Joanne98]

Source: Reuters



WASHINGTON (Reuters) - The U.S. credit card industry, harshly criticized for imposing surprise fees and interest rate hikes on consumers, may face a day of reckoning on Thursday..

The Federal Reserve is to vote on credit card reforms that may bring some relief to customers who face a variety of ways for being hit with late fees, universal defaults, shorter payment periods and confusing payment allocations for different balances.

Credit card users likely also would see easier-to-read tables in their monthly statements as a result of the changes.

The new rules, which were proposed earlier this year, are expected to total some 1,000 pages. They need approval of the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration, which all are expected to act on Thursday.



Read more: http://www.reuters.com/article/topNews/idUSTRE4BC1YK20081214

[Uben]

1. Tape up your ass!

I feel a shaftin a comin!

[tom_paine]

2. I wish I didn't believe that, but you're probably right.

It's the usual pattern. State-Controlled Imperial Media does 100% reporting of these minor aspects while the massive theft and screwing of the peasantry passes right through the door, uncommented.

I have to give credit to whichever Bushies, Nazis, or Commies, who invented this seemingly new form of propaganda, the art of "lying without lying". It is quite, frankly, amazing. But don;t try it at home. Not unless you have a state-controlled media apparatus, disguised as a Free Press overflowing with Corporate Honesty and Treacle, that comprises 98% of all places people might turn to glimpse between the cracks of the False Relaity Bubble.

Which means, that to 99.5% of the American Subject Populace, Bushie Falsely-Geneated Reality IAS reality.

To circle back to the beginning, and make my point. I'd like to dismiss you out of hand, but I have observed this same templatewith disgust now for 10 years, and watched it in puzzlement, knowing SOMETHING was wrong but not exactly what, for the 18 years before that.

And my point is: You are almost certainly right. I want you to be wrong, but peasant wishes have no meaning in this world, with very brief and anomalous exceptions.

[closeupready]

24. ROFL. Yup. You nailed it. This story gets a big yawn from me.

The financial institutions are getting away with huge misdeeds and authorities throw the serfs some bones. Not impressed.

[SpiralHawk]

3. Republicon Roto-Rooter 'Elite' Reamers at the Ready

"Bend over and take it like compliant little Peasants. Smirk."

- Republicon Screw-Job Artistes

[eilen]

12. Basically, that is what it is...

If you get a chance, watch Maxed Out. It is a documentary on credit cards, how the banks and politicians gamed the system and what the fallout looks like. It was very eye-opening.

http://www.youtube.com/watch?v=YiOVNWoWTAU">Maxed Out

[SpiralHawk]

4. "Can we pretty please do it to the peasants ass backwards?" - Sen. David Vitter (R - Diaper Sex)

[Enthusiast]

11. The fact that it is 1000 pages

long indicates that you have a firm grasp of the situation. There will be loopholes you could drive a truck through. Government by and for the corporations.

[dixiegrrrrl]

22. One loophole is known already...

Banks and CC comp. have up to a year to implement the law.

As in, who the hell will remember the law in 6 months?
or enforce it?

[1monster]

20. And I feel a bankruptsy coming. Between insurance premium hikes (humongous),

credit card tricks which have led to a never-ending balance (even though I have charged only $300 in the last three years), and medical charges not covered by my very expensive (and now dropped) health insurance, have just about done me in.

If the consumer ends up getting royally screwed (raped) again, I may need to sell every liquid asset I have, pay what I can, and then file for bankruptsy just to save my home.

And five years ago, I would never have even given bankruptsy a full first though let alone a long consideration.

[Enthusiast]

25. And you are one of millions

The government must start working for us, we the people, not we the corporations.

[RebelOne]

27. You don't have to sell everything.

If you file for a Chapter 7 bankruptcy, it wipes the slate clean and you won't lose anything. You can even keep your car and home. I know I have been through it. And I had to file again in 2006. But this time I had to do a Chapter 13 bankruptcy because I made too much money. So, I pay monthly through the courts for 6 years. But it is good in a way because I am not allowed to have any credit for 6 years, so I can't get myself in financial trouble again.

[NashVegas]

5. Late Fees Are Insane

I have no argument with Am-Ex, minor quibble with Chase, but Juniper? Fucknuts. Where everyone else takes 2-3 days between posting and process, Juniper takes up 5-7. Fuckers.

[jetphixer]

6. Simple Ans

The answer to the whole situation is extremely simple: Cut the credit cards up,Toss them in the trash. I did just that about 8 yrs ago I have been retired that long an i have found out i didn't need the things. And the bonus is I actually have a sizable savings account. See i have the $$s not amex or citi or who ever.DAAAA. Second thought is what is gonna happen to the cc companies wen the bigger part of the melt down happens? Will the congress bail them out just like they did 4 Detroit? OR does Twisted Mouth shelby or corker(Crooks United) have bucks invested in them so they will come to there aid.Hum could be they will go the way of GM Humm Things to ponder on A Sunday AM

[Robb]

7. How clever

...If only those in CC debt would think to use their sizable savings account, this crisis would be over.

[man4allcats]

14. Hehehe! I wish I could rec your post.

I know what you mean. "Money's not important." Of course not. Not if you have it.

[Thor_MN]

21. I have no CC debt, because I consider the total price of using the credit

as opposed to just the price of the thing that I think that I need. I consider myself to be fortunate to be in my position, but I could have bought a much nicer house, drive a nicer car, watch digital cable on a huge flatscreen, etc. and have been in debt to credit card companies.

Instead, I was just able to bridge my sister and nephews when my brother-in-law recently died until the life insurance paperwork works it's way through the system. I could have blown that money on a top of the line flatscreen and several years of full boat cable. A top tier, 2 week cruise would easily be in reach of that money. But I think I made a much better choice.

Perception of what is "enough" and what is "affordable" is where the problems lie for many people. There are those that are forced into debt by situations outside their control, but there are many more who got there based on their decisions. No job is safe anymore, no one is bullet proof. One simply can not spend all of their income and then some more in credit card debt and not pay the consequences.

The true price of something purchased on a credit card is much higher than what is on the tag. Unless you are using the card to avoid carrying that much cash, you can not afford to buy it. It may look nice and shiny, but if you don't have the cash to pay for it, you are walking out on a limb. Unlike GOP fantasies, deficits do matter. The government can print more money but we can't.

[liberalpress]

8. Having recently refinanced

and paid off my credit card debt (after having been chronically late) I was greeted on the next statement with two things.... a $0 balance and a drastic reduction in credit. At first, I was angry. Here I am, doing the right thing, being responsible, paying off my debt, and this is the the thanks I get??

But then I realized, I was angry at losing a $10,000 credit line with an APR of 29%! 29%. I could borrow money cheaper from Guido the loan shark! I got over my mad. Now I pay cash. Plus I'm saving $1500 a month in CC payments. So I HAVE cash. If you can re-fi these days, I highly recommend it. If you can't pay off those cards ASAP. 29% Really?

[Lorien]

9. There's an office of Thrift Supervision?

is that new?

[NOW tense]

10. Just in time to keep this ridiculous addiction going.

[OKNancy]

13. Damn Bank of America is trying to beat the new rules

I got a letter yesterday... raising my rates on a business card... too much debt, they say, even though I have never been late on it or on any other card.

[sarcasmo]

23. Cancel and cut, rinse and repeat.

[OKNancy]

26. I love it how this is the answer from a lot of DUers

It's unreasonable however. As I posted, it's a business card.
I have to use credit.

[Chiefofland]

15. About time

Interest rates are increased without regard for the financial situation of the cardholders. Mine has often been raised without any apparent reason.

[Phred42]

16. Is this where they announce that your $15k limit is now $5k ?

...and by the way you have 30 days to pay your balance down to $5k or else.

here it comes and it's just around the corner.....

[dipsydoodle]

17. More likely

all of the credit card companies will create and then increase annual charges for supply and use of their cards.

[Phred42]

18. That could be the 'or else' - These are not mutually exclusive

:shrug:

[MilesColtrane]

19. Saw a cheap ad on TV for a "Auto Title & Payday Loan" operation yesterday.

In my state it's legal to charge up to 309% APR on a 14 day loan.

I hate scum who prey on desperate people.

[OKNancy]

28. kick

[sabra]

29. Credit card crackdown coming soon

Source: CNN

NEW YORK (CNNMoney.com) — Some reprieve for cash-strapped consumers could come ahead of the holidays, as the Federal Reserve Board votes Thursday to rein in controversial credit card practices.

The proposed rules, which have received overwhelming consumer support, prohibit banks from practices like raising the interest rates on pre-existing credit card balances unless a payment is more than 30 days late, and applying payments in a way that maximizes interest penalties.

The Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration, are all expected to approve the regulation.

Read more: http://cnnwire.blogs.cnn.com/2008/12/16/credit-card-crackdown-coming-soon/

[Why Syzygy]

30. DUH!

People are seeing their interest rates go up on EXISTING balances. It's robbery. That's always their long term game, but this is so blatant. The American consumer is being played for a dunce.

[indepat]

33. It's more than just robbery: it taking racketeering to an art form

:P

[indepat]

31. Now ain't it special that regulators might crack down on some of the many racketeering practices

arduously practiced by many in the industry? :P

[acmavm]

32. Wonder if old Joe Biden will come to their rescue as ususal.

[Raineyb]

34. So when are we going to crack down on usury for real?

Telling the credit card companies that they may only raise interest rates after a payment is 30 days late does nothing to keep the interest rate from reaching loan shark levels.

Regards

[DollyM]

35. someone needs to stand up for the consumer . . .

The Feds are lowering interest rates and credit card rates are going up, it makes no sense. I received notice a couple of weeks ago that my Citibank Mastercard that I pay faithfully on time and never exceed my balance, is being hiked from 9 percent interest to 14 percent interest! This is the card I use for my business and is already set up on many of my business accounts so switching to a different card is going to be a real pain but if that is how little they value a good customer, I can't see staying with them.