House passes credit card bill that helps consumers
By MARCY GORDON, AP Business Writer 26 mins ago
WASHINGTON – Riding a crest of populist anger, the House on Thursday approved a bill to restrict credit card practices and eliminate sudden increases in interest rates and late fees that have entangled millions of consumers. The legislation, dubbed the Credit Card Holders' Bill of Rights, passed by a bipartisan vote of 357-70 following lobbying by President Barack Obama and members of his administration. The measure would prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18. If they become law, the new provisions won't take effect for a year, except for a requirement that customers get 45 days' notice before their interest rates are increased. That would take effect in 90 days. Similar legislation is before the Senate, where it could be taken up as early as next week. "This is a unique opportunity to end abusive practices that afflict millions of families across the nation, to contribute to our economic recovery, and to take a stand for American consumers," Sen. Christopher Dodd, chairman of the Senate Banking Committee and the bill's primary sponsor, said after the House vote. "Now it is the Senate's turn to act." Consumer advocates and some Democrats have unsuccessfully sought for years to bring new rules to the industry. Supporters want to put a final congressional package under Obama's eager pen by the Memorial Day holiday. They acknowledged, though, that House passage of the measure was an opening salvo and a lengthy legislative slog lies ahead, in which industry interests could prevail in getting restrictions weakened. "The administration supports Congress' efforts to ... provide additional strong and reliable protections for consumers that ban unfair and abusive practices," the White House said in a statement following the House vote. "The nation's credit card system must have more accountability, including more effective oversight and more effective enforcement of credit card issuers who violate the law." Obama's engagement in the issue diverged sharply from his handling of a plan to spare hundreds of thousands of homeowners from foreclosure through bankruptcy, which met defeat in the Democratic-controlled Senate Thursday on a 45-51 vote. Obama had embraced the plan, but facing stiff opposition from the banking industry, he did little to pressure lawmakers who worried it would encourage bankruptcy filings and catapult interest rates higher. Before approving the credit card bill, the House adopted a series of amendments — some of which were pushed by the White House — that amplified the restrictions on industry practices....................http://news.yahoo.com/s/ap/us_.....awNob3VzZXBhc3Nlc2M-
People don't need government 'protection' against credit cards! It is 'buyer beware!! If you don't like your interest rates or how the credit card company is treating you....change! This still is a democracy and we can make a change!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
WASHINGTON — The first phase of the landmark credit card legislation signed by President Obama in May will take effect this week, forcing card issuers to give consumers more time to pay their bills and to consider interest rate increases. Starting Thursday, issuers must give customers 45 days’ notice before raising their interest rates, instead of 15 days as previously required. Customers can then choose to pay what they owe at the original rate over time but will not be able to use the card for future purchases. The issuer reserves the right to increase the minimum payment, as a percentage of the total balance, to no more than double the percentage it had been. Card issuers will also have to mail bills 21 days — instead of 14 days — before the due date. Consumer advocates praised the new rules but said significant relief will not come to cardholders until February, when most provisions of the law will be implemented. The law will eventually prevent card companies from raising interest rates on existing balances unless the cardholder is at least 60 days late making a payment. If the cardholder pays on time for the next six months, the old rate must be restored. Companies must also receive customer permission before allowing them to go over their limits for a fee. Interest charges on debts that are paid on time, a practice known as double-cycle billing, will be also be banned. Several other provisions of the law require better disclosure of terms and conditions.
Card issuers will also have to mail bills 21 days — instead of 14 days — before the due date.
WTH? I pay my bills the day they come in. I don't wait for the due date. But some people have budgets based on due dates. Some have automatic payments taken right from their checking accounts.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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