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Economy
Senate Approves Bill to Overhaul Credit Card Industry
2009-05-19
The Senate has voted to prohibit credit card companies from arbitrarily raising an individual's interest rate and charging many of the exorbitant fees.

The vote was 90-5.

With the House on track to endorse the measure by week's end, President Barack Obama could see a bill on his desk by the end of the week.

If Obama signs the bill as expected, the credit card industry in the next year would have to change the way it does business.

Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone for free. They'd also have to give consumers a chance to spare themselves from over-the-limit fees and give them 45 days notice and an explanation before interest rates are increased.
Posted by:GolfBravoUSMC

#5  It wouldn't surprise me in the least, Sea.

Too bad the federal Constitution doesn't have what the Virginia one does - each bill must be about ONE subject.

The General Assembly still introduces - and passes - some stupid ugly bills, but at least they can't sneak something nasty through in an otherwise innocuous bill.
Posted by: Barbara Skolaut   2009-05-19 21:34  

#4  There's a whole lotta ugly attached to this bill though. I don't have details, but I saw rumors of some gun-control language and huge borrowing authority increases for FDIC...
Posted by: Seafarious   2009-05-19 16:02  

#3  How long before credit for risky individuals starts drying up?

Should be harder to get a card. I recall in the 70s it was extremely hard to get one. Then in the 80s, your dog or cat would get invites to have one. What happened is that banks discovered they could write off bad card debit by making the other card holders carry the losses. That way the banks never suffered a significant loss and had no incentive to do any real screening of applicants. When they failed to follow the drop of the Prime Interest rates [who's rise was the justification for their interest rates to reach 21%+], they became free targets for attention. Bush the Elder made a initial proposal to investigate and the banks dumped on the market the next couple days scaring the man off the issue. That was back round '90. It's red on red as far as I'm concerned. Credit is earned, not an entitlement.
Posted by: Procopius2k   2009-05-19 15:59  

#2  Or credit for just about everyone?
Posted by: Seafarious   2009-05-19 14:57  

#1  How long before credit for risky individuals starts drying up?
Posted by: AlanC   2009-05-19 14:54  

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