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U.S. lawmakers consider credit card reform proposals

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U.S. lawmakers consider credit card reform proposals
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A Congressional panel huddled on Wednesday to consider legislation that would curb high credit card fees and penalties by many banks that have benefited from the federal government's bailout program.

The bill, which would mean sweeping changes for banks that issue cards, is an important test of the political will of Democrats pushing for financial regulation reform.
U.S. banks that issue credit cards have received more than $120 billion in taxpayer funds since October, money the government has asked them to use to expand lending.

But with U.S. credit card defaults at record highs, lenders are trying to protect themselves by tightening credit limits and closing accounts, actions that have infuriated lawmakers and consumers, and even triggered an inquiry by the New York state attorney general.

U.S. lawmakers also angry that the same banks, such as Bank of America, Citi and Chase, with big credit card operations, charge excessive interest rates and fees while getting bailouts from taxpayers who use the cards.

The July 2010 date is the deadline established by the Federal Reserve last December to implement changes to curb what Chairman Ben Bernanke called "unfair and deceptive" practices.

Banks, citing the need for time to develop software, train staff and work with vendors on new printing procedures, say they cannot implement these changes overnight.
Original URL
http://news.yahoo.com/s/nm/20090422/ts_nm/us_financial_creditcards

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    • JDP JDP
      10 months ago


      So the banks want to sop up taxpayer bailouts and at the same time "stick it" to "we the people" with usurious interest rates and outrageous fees ... all to extricate themselves (more like make profits) from the mess they sank us all into. And they can't "make these changes overnight". What hogwash - they regularly raise rates and fees "overnight"; they can just as easily reduce / cap rates and fees.
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    • Dorothy Chaney
      10 months ago


      If this is how they are going to respond to the government bailouts and treat their customers, maybe the government should change the laws regarding bankruptcies in specific reference to credit cards so that U.S. citizens that are financially strapped can be relieved of some of this corrupt debt. I have seen these companies soliciting teenagers at colleges, giving them all sorts of freebies to get cards that they know these kids can't handle responsibily yet, then they charge outrageous late fees and sneakily increase interest rates. One of my "gas" cards that I only use to put $13/mon of insurance coverage on, upped it's rates to more than 60%. It doesn't effect me because I pay my balance each month, but if someone didn't notice, even one month will more than half again their original balance... total crooks!!!! If they can up interest rates in one month, why can't they reduce them. Americans should get together and instead of doing "tea parties", they should stop paying all credit card bills and this mess would halt! Maybe congress will allow everyone to just file credit card bankruptcy and start over... isn't that what they did for these companies basically?????
      President Barack Obama

      • JDP JDP
        10 months ago


        So true - there is one set of rules for the "fat cats" and another for all of the "little people". Unfortunately, one of the last administration's great gifts to those "fat cats" was bankruptcy "reform", which not only made it harder for the "little people" to get out from underneath crushing debt but also tied the hands of bankruptcy judges in the type of remedies they could employ in that process.
        President Barack Obama

      • JDP JDP
        10 months ago


        So true - there is one set of rules for the "fat cats" and another for all of the "little people". Unfortunately, one of the last administration's great gifts to those "fat cats" was bankruptcy "reform", which not only made it harder for the "little people" to get out from underneath crushing debt but also tied the hands of bankruptcy judges in the type of remedies they could employ in that process.
        President Barack Obama

      • JDP JDP
        10 months ago


        So true - there is one set of rules for the "fat cats" and another for all of the "little people". Unfortunately, one of the last administration's great gifts to those "fat cats" was bankruptcy "reform", which not only made it harder for the "little people" to get out from underneath crushing debt but also tied the hands of bankruptcy judges in the type of remedies they could employ in that process.
        President Barack Obama
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