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Broken Democracy

by: Scarce

Thu Nov 19, 2009 at 08:03:16 AM EST

The GOP blocked a bill yesterday from Senator Dodd which would have frozen increases in credit card interest rates, fees and finance charges. This would have moved the date up from February and August 2010 for this particular part of a bill which passed last May, on a vote of 90-5. Credit card companies have been jacking up rates in preparation all year as a result. This seemed like a good idea before the Holiday season.

Moments ago, Senate Republicans blocked a Democratic proposal to freeze credit card rates on existing balances through the holiday season. The bill, sponsored by Senate Banking Committee Chairman Chris Dodd (D-Conn.), would prevent credit card companies from hiking rates and fees on existing balances until the industry reforms passed by Congress earlier this year take effect. Although a few provisions of that law took hold in August, most don't launch until February or August of 2010. In the meantime, many card companies are hiking rates and fees to beat the law.
"The industry has tried to make one last grab at their customers' pocketbooks," Dodd said, just before asking for the consent of Republicans to pass the bill unanimously.
No dice. Sen. Thad Cochran (R-Miss.) objected "on behalf of several senators on this side of the aisle." There's no word yet which other lawmakers he was referring to.

Happy Holidays from the GOP.

Scarce :: Broken Democracy

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Broken Democracy | 1 comments

You left out this: (4.00 / 1)

From your link:

It's worth mentioning that the Democrats - folding to pressure from the banks - were themselves responsible for delaying those reforms, which were initially proposed to go into effect much earlier this year.

... and that story links to this story: Congress Delays Credit Card Reform

Yet as Congress advances legislation reining in the most abusive credit card traps, both the House and Senate proposals have been watered down in recent weeks so that the protections likely won't help card users for more than a year.
The delay - a concession to the banks, who oppose the changes - means that Congress' reforms likely won't arrive anytime sooner than the Federal Reserve's new credit card rules, scheduled to take hold in July 2010. It also leaves consumers hung out to dry at an unwelcome time, as the recession deepens, unemployment rises and card issuers raise fees and interest rates on even their most reliable customers.

Here is Dodd's problem: By watering down the reform bill, Democrats look like liars or fools. Nothing changes, consumers suffer, people get pissed and either don't vote or vote them out of office.

by: CaptCT @ Thu Nov 19, 2009 at 15:09:49 PM UTC