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Thank You Mr President; Credit Card Changes Takes Effect Today

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Hutzpa Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:12 AM
Original message
Thank You Mr President; Credit Card Changes Takes Effect Today
Edited on Thu Aug-20-09 09:23 AM by Hutzpa
Today is the beginning of pocket book changes Americans will start seeing, credit card
companies will start giving 45 days notice, yes, you heard right, 45 days notice before
any significant changes to your credit card contract and also companies are required to
mail your billing statement 21 days, yes, 21 days before billing due date, no more 14 days
notice. I'm excited just typing this.....:bounce:

Beginning Aug. 20, credit card issuers will be required to give customers 45 days advance notice before making any significant changes to a contract and will be required to mail bills 21 days before the due date.

Under current laws, issuers are required to give 30 days notice before changing a contract and mail bills at least 14 days in advance.

Consumers will also have the right to reject changes to their contracts, including interest rate increases, and they will have the option of paying off their balances at their existing rates within five years.


http://money.cnn.com/2009/08/19/news/economy/credit_card_reform/?postversion=2009081918



Now, if you can join me.... three cheers to our President...hip hip hip......wooaaaaaaaahhhhh!!!


:bounce: :bounce:



Thank You President Obama.


:patriot:
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phleshdef Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:16 AM
Response to Original message
1. OMGZ, but he do nothing for teh progressive causezzzz!!!!
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kenfrequed Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:49 AM
Response to Reply #1
11. Uhm...
Edited on Thu Aug-20-09 09:50 AM by kenfrequed
This is a pittance. It is a nice pittance, but compared to the damage of the bankruptcy reform act of 2005 it is like putting band aids on a sucking chest wound.

So yes this is a good tepid non-confrontational step in the right direction. *golf clap*


(edited for a hand-dominant inflicted typo)
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Vinnie From Indy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:55 AM
Response to Reply #11
13. Real meaningful reform was KILLED with this bill
Your description is dead on. The fact that credit card companies still have the right to engage in usury unchecked is shameful. IN addition, the untold story about this legislation is that it gave the credit card companies just enough time to raise rates on millions of Americans with impunity. Many folks have gone from paying single digit interest rates to 29.99%. Gee, thanks for that!
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Nitrogenica Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:20 AM
Response to Original message
2. I'm very very pleased with this. Great Job Barack Obama!
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scheming daemons Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:23 AM
Response to Original message
3. But...but... there was an OP the other day that said all of Obama's "accomplishments" were minor!

:eyes:
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Araxen Donating Member (826 posts) Send PM | Profile | Ignore Thu Aug-20-09 09:29 AM
Response to Original message
4. but no cap on interest rates..
which is where the real problem is.
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Hutzpa Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:32 AM
Response to Reply #4
5. Can we just celebrate this
and then work toward making it better, is that too hard for you(?)
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CitizenPatriot Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:45 PM
Response to Reply #5
31. no, because it's not cool to be happy
you're only hip if you're cynical. /s

To have a moment of joy or gratitude for change or improvement could be an indicator of being the fool. Best to be miserable at all times. :-)
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Hutzpa Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 07:20 PM
Response to Reply #31
36. Cynicism is a sorry kind of wisdom
and some have actually made money being that way.
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Apollo11 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:36 AM
Response to Reply #4
8. Good point
On March 3rd 2005, 24 Senators (including Hillary Clinton) voted for an amendment "To limit the amount of interest that can be charged on any extension of credit to 30 percent".

Senators Obama and Biden voted against it.

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=1&vote=00020

http://www.noquarterusa.net/blog/2008/01/16/fess-up-sen-obama-about-those-predatory-credit-card-interest-rates/

http://1950democrat.livejournal.com/49267.html
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ecstatic Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:01 AM
Response to Reply #8
14. I don't think that's practical
Don't get me wrong, I think what the CC companies do is horrible; however, if caps are given, people with bad credit will just be flat out denied. You can't force a CC company to give an unsecured loan to someone with bad credit at low interest rates. If you don't like the rate, don't use the card. And those who are truly desperate for the LOAN will still have a source of funding.
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DrToast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:42 AM
Response to Reply #14
17. Exactly
I think the people bitching about interest rates don't realize that people can close the card if the rates are raised too high.
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Apollo11 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:45 AM
Response to Reply #17
19. So Hillary Clinton and 23 other Democratic Senators were "bitching"
when they voted to legislate a 30% cap on interest rates back in 2005?

I'm not sayin' I'm just askin' :eyes:
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ecstatic Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:48 AM
Response to Reply #19
23. I think they meant well
and what they said makes sense. The problem is, they didn't put much thought into who would be shut out under such a deal. Again, the high rates/bad credit thing is like a cycle and a trap. But I feel that even if someone has horrible credit, they should have access to money if they really really need it (with the assumption that they will try to pay the money back). I'd rather that people in those situations have access to the money, even if at a higher rate, than to not have access at all. At the end of the day, it is our choice whether we want to sink further into debt.
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Apollo11 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 11:03 AM
Response to Reply #23
25. I disagree with you
The government should protect the most vulnerable members of society from getting deeper into debt, or at least from getting totally screwed by their creditors.

When you talk about "access to money" in your post - what you really mean is "access to credit", which is not the same thing.

In The Netherlands they have a law that all credit/loan advertising has to state "Borrowing money costs money". They have to read it out loud on TV and radio ads.

Otherwise people just think about getting the money and they don't think about paying it back until later.

Here's a recent column on debt collection in the UK from one of my favorite liberal journalists:
http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-cruel-and-out-of-control-the-new-face-of-debt-collecting-1771885.html
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DrToast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:48 AM
Response to Reply #19
24. Yes. n/t
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Apollo11 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:42 AM
Response to Reply #14
18. 24 Democratic Senators supported the amendment. Obama and Biden voted against.
The amendment was referring to credit extentions, not making new loans.

Charging poor people more than 30% interest on their debts would be extortion in my book (24 Senators agreed).
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DrToast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:47 AM
Response to Reply #18
21. Why can't people just not sign up for a card if they don't like the rates?
Putting a cap in interest rates wouldn't help high credit risk people. It would just keep anyone from offering them credit.
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dflprincess Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:44 PM
Response to Reply #14
27. "If you don't like the rate, don't use the card"
True - but a lot of people get into trouble with the credit cards because they're using them to pay the out of pocket expenses their health insurance doesn't cover (something the bills currently getting the most attention in Congress won't change as they allow for fairly hefty "cost sharing").

I suppose if the choice is between digging yourself in deeper with the credit card company or skipping the biopsy you need, you might just use that credit card.
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phleshdef Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:38 AM
Response to Reply #4
9. But if they try to raise them, you can reject it and be done with it.
It has the same effect. If credit card companies tries to jack up rates too high, they will now lose a lot of customers.
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DrToast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:39 AM
Response to Reply #4
16. If the rate is too high for you, don't sign up for the card
What's the problem?
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TomCADem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:32 AM
Response to Original message
6. k&r
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blueworld Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:32 AM
Response to Original message
7. Now I get it
This explains why my Master Card notified me yesterday that they're increasing my interest rate to 25% even though I've never been even late with a payment for over 4 years.
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phleshdef Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 09:39 AM
Response to Reply #7
10. And now you have the right to reject it and drop them.
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Raffi Ella Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:53 PM
Response to Reply #7
28. call them.

Several card co.'s have done the same to me. I called them and told them that I'd never been late and that this was unnacceptable - they returned my rate to what it was previously. One tried to lower it just to 18% from 25% when it was just 12% before. I said that's better but still not good enough. I'd like to speak to your manager please. I got it lowered back to 12% -Call Them! Seriously.
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Wanet Donating Member (197 posts) Send PM | Profile | Ignore Thu Aug-20-09 09:51 AM
Response to Original message
12. This explains why American Express just raised my interest rate
They knew this law would take effect and people could reject the interest rate increase, cancel their card, and pay off the balance at the current rate in 5 years. They've been a good credit card over the years, but this is disappointing. -- Wanet
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Wanet Donating Member (197 posts) Send PM | Profile | Ignore Thu Aug-20-09 10:37 AM
Response to Reply #12
15. I just called AmEx
They said that because they informed me of the interest rate raise before August 20, I can't take advantage of the new law. Congress gave the credit card companies plenty of advance notice to raise their rates and make them "variable" before the new law took effect. Way to protect us consumers!
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Apollo11 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:47 AM
Response to Reply #15
20. Credit Cards ... Health Insurance ....
If you aks me they're all legalized forms of extortion - one way or another.

I guess that would make me a socialist? ;-)
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windbreeze Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:40 PM
Response to Reply #20
30. Yes, they are...
The amount of money that we, my husband and I, pay for medical insurance per month is a lot...$600 out of pension...that's more than we paid for our house payment when we had one...and it hurts..but because of husband's heart condition, we don't dare cancel it..2/3 of pension and 25% of our total income every month...and that doesn't even count co pays or prescriptions...but I won't bitch any further, because at least we have insurance...where so many don't....wb
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Peacetrain Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 10:47 AM
Response to Original message
22. Good Deal!! I closed an account, at one rate,to pay it off and they
raised the rates on me after it was closed.. What a bunch of blood suckers.. I am so happy to see this

:patriot:
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Phx_Dem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 11:05 AM
Response to Original message
26. It's a great day and a great reason to celebrate! This is huge.
Thank you President Obama!!

:patriot:
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lunatica Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:01 PM
Response to Original message
29. I don't mean to be a wet blanket but how does this help anyone?
I'm getting laid off of one of my jobs which will leave me with half my income if I'm lucky enough not to get laid off from my other job. I'm seriously looking into bankrupcy because even with a full paycheck I can't afford to pay 23+% plus extra 'service fees' now. At 61 I don't feel very confident about getting another job either. Not with the jobless numbers now.

In all honesty, I only see that they have to tell you sooner just how they're going to fuck you over.
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TxRider Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:59 PM
Response to Original message
32. Does nothing for me.
IMO anyone who uses a credit card or especially pays a cent of interest is just being duped..

I gave them up and save my money to pay cash for everything but my house, and I wish I had done it for my house as well.
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DU GrovelBot  Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:59 PM
Response to Original message
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DefenseLawyer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:04 PM
Response to Original message
34. 45 days notice before they fuck you
Praise the lord, that changes everything.
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Writer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:52 PM
Response to Original message
35. How is Bill Maher going to find a way to gripe about this one?
Guess we'll find out tomorrow night.
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