Government cracks down on credit card industry practices

[Saguaro]

WASHINGTON - The Federal Reserve and other regulators are moving Friday to crack down on "unfair and deceptive" practices in the credit card industry that have added billions in debt to people already struggling to cope with the economic downturn.

In the most far-reaching crackdown on the credit industry in decades, the Fed and two government agencies are proposing rules that would stop credit card companies from unfairly raising interest rates and make sure they give people enough time to pay their bills.

The banking industry is expected to fight the new rules.

Travis Plunkett, legislative director for the Consumer Federation of America, said that while he hadn't yet seen the details, the rules "appear to address some of the most significant abuses in the credit card marketplace right now."

Rep. Carolyn Maloney, D-N.Y., who has introduced legislation to protect consumers from credit card abuse, said in a statement that she was pleased the Fed had adopted some aspects of her legislation.

But she also expressed concern that "by the time the Fed gets around to finalizing these credit card reform proposals, they will be watered down and come too little too late for consumers who need relief now."

The Fed has been criticized for moving too slowly to respond to abuses leading to the subprime mortgage crisis.

The agencies said the new regulations could be finalized by the end of the year.

Plunkett said his group estimates that credit card debt is now about $850 billion, with households that don't pay their credit card bills in full every month owing an average $17,000.

The proposed new rules that would prohibit:

_Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay;

_Unfairly allocating payments among balances with different interest rates;

• Unfairly raising annual percentage rates on outstanding balances;

_Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account;

_Unfairly computing balances;

_Unfairly adding security deposits and fees for issuing credit or making credit available;

_Making deceptive offers of credit.

In news releases, the agencies said the proposed rules also would require federal credit unions to give consumers a chance to opt out of an overdraft protection program. And they would prohibit those institutions from charging a fee for an overdraft caused by a hold placed on consumer's funds when a person uses a debit card.

The Fed, which is expected to vote Friday afternoon on its approval of the proposed rules, is acting in conjunction with the National Credit Union Administration and the Office of Thrift Supervision.

Ken Clayton, senior vice president of card policy for the American Bankers Association, said the industry will fight the new proposals, describing them as "aggressive regulatory intervention in the marketplace that will result in higher prices and less consumer credit."

He said the change "basically says that we can't price for risk" and that if higher risk borrowers don't bear the costs, those costs will be passed along to other consumers.

http://news.yahoo.com/s/ap/20080502/ap_on_bi_ge/credit_card_rules;_ylt=AkVrStpFmwQWBzR9WYbnp0KyBhI F

[Ringo]

The END of the YEAR!!!! Son of a bitch's quit spending all their time pulling WITCH HUNTS and start doing their damn Jobs, it could be done by July!!

Cap the Interest RATE at NO MORE than 20%, quit allowing small banks to issue Cards and then 6 months later selling off to Chase or Cap One, and other giants who immediately put their Loan Shark operation into practice!!!

Just in case their is a big blame BUSH rant coming, you better check the Politics of David Rockefeller, as its NOT a Political issue, its a CRIMINAL issue, with OUR GOVT being the enablers for the ASSHOLE BANKERS!!!:godzilla:godzilla

[John Gault]

WASHINGTON - The Federal Reserve and other regulators are moving Friday to crack down on "unfair and deceptive" practices in the credit card industry that have added billions in debt to people already struggling to cope with the economic downturn.

In the most far-reaching crackdown on the credit industry in decades, the Fed and two government agencies are proposing rules that would stop credit card companies from unfairly raising interest rates and make sure they give people enough time to pay their bills.

The banking industry is expected to fight the new rules.

Travis Plunkett, legislative director for the Consumer Federation of America, said that while he hadn't yet seen the details, the rules "appear to address some of the most significant abuses in the credit card marketplace right now."

Rep. Carolyn Maloney, D-N.Y., who has introduced legislation to protect consumers from credit card abuse, said in a statement that she was pleased the Fed had adopted some aspects of her legislation.

But she also expressed concern that "by the time the Fed gets around to finalizing these credit card reform proposals, they will be watered down and come too little too late for consumers who need relief now."

The Fed has been criticized for moving too slowly to respond to abuses leading to the subprime mortgage crisis.

The agencies said the new regulations could be finalized by the end of the year.

Plunkett said his group estimates that credit card debt is now about $850 billion, with households that don't pay their credit card bills in full every month owing an average $17,000.

The proposed new rules that would prohibit:

_Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay;

_Unfairly allocating payments among balances with different interest rates;

• Unfairly raising annual percentage rates on outstanding balances;

_Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account;

_Unfairly computing balances;

_Unfairly adding security deposits and fees for issuing credit or making credit available;

_Making deceptive offers of credit.

In news releases, the agencies said the proposed rules also would require federal credit unions to give consumers a chance to opt out of an overdraft protection program. And they would prohibit those institutions from charging a fee for an overdraft caused by a hold placed on consumer's funds when a person uses a debit card.

The Fed, which is expected to vote Friday afternoon on its approval of the proposed rules, is acting in conjunction with the National Credit Union Administration and the Office of Thrift Supervision.

Ken Clayton, senior vice president of card policy for the American Bankers Association, said the industry will fight the new proposals, describing them as "aggressive regulatory intervention in the marketplace that will result in higher prices and less consumer credit."

He said the change "basically says that we can't price for risk" and that if higher risk borrowers don't bear the costs, those costs will be passed along to other consumers.

http://news.yahoo.com/s/ap/20080502/ap_on_bi_ge/credit_card_rules;_ylt=AkVrStpFmwQWBzR9WYbnp0KyBhI F

So eventually we will need no personal responsibility at all.

You cannot be deceived if you are not stupid. Is it the government's job to protect us from being stupid?

However I am ok with some regulation.

The way they will allow a charge for a couple of dollars over your limit so they can charge you a 39 dollar over limit fee is bad news. They did it to me once, I called and told them to either remove the fee or close the account. The removed it and then when they explained to me that they approved the charge so I would not be embarrassed I knew they were lying. If they had been ohnest I might have been ok with it.

I closed the account anyway right after I got it confirmed that they removed the fee.

See that is the real way to stop such practices, to be smart, keep on top of your stuff and act accordingly.

But I guess it is easier to get the government to spend someone elses money to protect you from your own negligence.

[Matt]

Once the credit card industry started their practice of deception to get people entering college to sign up for credit cards the game was on.
Most people at one time or another fails to read the fine print. The young and the old are more gullible. They trust. It's a shame when that becomes a flaw.

Credit cards were once hard to come by and there was a cap on interest charges. I have no problem with the government going back to those rules that worked for all of us.

Nowadays every agency that you deal with bombards you with 'good deals' on credit cards.

Some people are not as good as others at money management.
Just as some have difficulty managing their personal life in a responsible and honorable manner, others have difficulty with money matters.

Yes, we need government protection from birth to death from those who strive to cheat us. They are licensed by government agencies. Make them accountable.

[Trueblue]

How is it in anyone's interest to allow predatory lending practices?

How many times do some people have to be taught the same lesson?

[Saguaro]

How is it in anyone's interest to allow predatory lending practices?
How many times do some people have to be taught the same lesson?

When that practice belongs to you

[jim]

First halfway intelligent thing I have seen happen in this country in eight years:coffee

[jim]

Once the credit card industry started their practice of deception to get people entering college to sign up for credit cards the game was on.
Most people at one time or another fails to read the fine print. The young and the old are more gullible. They trust. It's a shame when that becomes a flaw.

Credit cards were once hard to come by and there was a cap on interest charges. I have no problem with the government going back to those rules that worked for all of us.

Nowadays every agency that you deal with bombards you with 'good deals' on credit cards.

Some people are not as good as others at money management.
Just as some have difficulty managing their personal life in a responsible and honorable manner, others have difficulty with money matters.

Yes, we need government protection from birth to death from those who strive to cheat us. They are licensed by government agencies. Make them accountable.

I always thought this was what government was for - until I woke up thirty-five years or so ago and learned that: "to the spoils go the victors" If this keeps up eight more years...no more USA!!:rooster:drevil:godzilla If, indeed, there is any now...

[toxic]

The FED has only proposed action in response to Bills in Congress that would be even more restrictive.

The Banks and Credit Card companies are happy to give 1% interest for deposits and charge almost 30% for credit.

This totally unfair system is sustained by political donations to candidates.

For example MBNA, a credit card company, has donated over $605,000 to George W. Bush.

But Democrats are on the payola too.
Who are Hillary's top contirbutors in order of amount?

DLA Piper (Law firm)- $490,800.
Goldman Sachs - $426,100.
Morgan Stanley - $368,670.
Citigroup - $353,900.
Emily's List (Pac for Dems)
Lehman Brothers
JPMorgan Chase & Co
...

And Obama?

Goldman Sachs - $474,428.
UBS AG - $298,180.
JPMorgan Chase & Co - $282,387.
Lehman Brothers - $274,147.
National Amusements (theaters)
Sidley Austin LLP (Law firm)
Citigroup
...



Unless otherwise specified, the companies

[jim]

The FED has only proposed action in response to Bills in Congress that would be even more restrictive.

The Banks and Credit Card companies are happy to give 1% interest for deposits and charge almost 30% for credit.

This totally unfair system is sustained by political donations to candidates.

For example MBNA, a credit card company, has donated over $605,000 to George W. Bush.

But Democrats are on the payola too.
Who are Hillary's top contirbutors in order of amount?

DLA Piper (Law firm)- $490,800.
Goldman Sachs - $426,100.
Morgan Stanley - $368,670.
Citigroup - $353,900.
Emily's List (Pac for Dems)
Lehman Brothers
JPMorgan Chase & Co
...

And Obama?

Goldman Sachs - $474,428.
UBS AG - $298,180.
JPMorgan Chase & Co - $282,387.
Lehman Brothers - $274,147.
National Amusements (theaters)
Sidley Austin LLP (Law firm)
Citigroup
...



Unless otherwise specified, the companies


Yep::hotdog:monkey:rooster

[Ringo]

US Govt-US Politicians-US Banks are Equal Opportunity Screw Over the Citizenry Lenders and supporters!!

Remember the Farm Foreclosure in the early 80's? Well we went through a fairly rough recession, following the Carter debacle & Embargo, and it kicked off the disaster of Farm Lending practices!! Farmers were over extended, trying to meet their needs and stay afloat and the PREDATOR banks saw the opportunity to foreclose and took it!!
There were deaths over this from Shoot Outs, and suicides from people unable to face ruination!! This result was from the accumulation of an unregulated banking industry and disastrous policies from FDR thru to Reagen!!

Sorry, but someone must watch all THREE of these Criminal Groups, and I believe that would the former People of this Nation with a BACKBONE, while the rest whine!!!