Obama pushes for law to protect credit-card users

[one...two...tree 2,762]

WASHINGTON – President Barack Obama said Thursday he is determined to get a credit-card law that eliminates the tricky fine print, sudden rate increases and late fees that give millions of consumers headaches.

"I trust that those in the industry who want to act responsibly will engage with us in a constructive fashion, and that we're going to get this done in short order," Obama said, delivering a pointed message to leading executives of credit-card issuing companies after a closed-door White House meeting.

Both the House and the Senate are pursuing bills to give consumers greater protections as an expansion of new rules slated to take effect next year. Obama said his economic advisers will examine the various proposals and work with Congress and the industry, but he made clear he wants to sign a bill into law.

"The days of any time, any reason rate hikes and late fee traps have to end," Obama said.

At issue is how to protect consumers, particularly in a deep recession, while not imposing the kind of rules that could make it harder for banks to offer credit or put credit out of reach for many borrowers.

http://news.yahoo.com/s/ap/20090423/ap_on_...ma_credit_cards

[fozzie 41]

Surely everyone knows that if you have a credit card you need to pay your bill or incur high fees and charges! If you choose to get in over your head with credit then be aware of the consequences for doing so.

[Sofiyya 1,687]

You can pay your cc bills on time, keep your balance low and still incur fees, or even get canceled coz the bank makes no money off of you.

[fozzie 41]

You can pay your cc bills on time, keep your balance low and still incur fees, or even get canceled coz the bank makes no money off of you.

What CC do you have?

Every card incurrs interest if you are unable to clear you balance. What do you want free money? I never incur any charges, why? Because I pay my balance every month.

[MichelleN 0]

I don't think anyone's arguing that people shouldn't get late fees or such if they're constantly delinquent and poor clients but it's the excessive fees that's wrong. It's not unheard of for credit card companies to charge $30-$45 fees when a payment is even a day late. Then, if you should be unlucky enough to not have the credit to cover that and go over your limit, they slam you with another $30-$45 fee. Hell, my aunt's card just suddenly jumped from like 15% to 23% without any warning. She was a good customer, paying on time and keeping a good balance. When she called and asked to have it lowered back down, she was told the government controlled what rate she had. Unfortunately she was naive and believed that. She'll be calling back later though, since I explained to her that wasn't true.

[fozzie 41]

I don't think anyone's arguing that people shouldn't get late fees or such if they're constantly delinquent and poor clients but it's the excessive fees that's wrong. It's not unheard of for credit card companies to charge $30-$45 fees when a payment is even a day late. Then, if you should be unlucky enough to not have the credit to cover that and go over your limit, they slam you with another $30-$45 fee. Hell, my aunt's card just suddenly jumped from like 15% to 23% without any warning. She was a good customer, paying on time and keeping a good balance. When she called and asked to have it lowered back down, she was told the government controlled what rate she had. Unfortunately she was naive and believed that. She'll be calling back later though, since I explained to her that wasn't true.

1) if you are late you should be charged a late fee. Whats wrong with that? Yo uagreed to those terms.

2) if the rate spikes and you are the sort of customer that maintains a balance and incurs interest then cancel your card and get one with a cheaper rate.

3) Don't max out your cards.

[one...two...tree 2,762]

1) if you are late you should be charged a late fee. Whats wrong with that? Yo uagreed to those terms.

2) if the rate spikes and you are the sort of customer that maintains a balance and incurs interest then cancel your card and get one with a cheaper rate.

3) Don't max out your cards.

fozzie, credit card companies have lobbied and have had the regulations relaxed so they could charge usery fees and all kinds of outrageous fees without any government interference. Their practices have become gouging to those who use them. 23 day billing cycles...etc.

Do you work for a CC Co.?

Edited April 23, 2009 by Col. 'Bat' Guano

[Sofiyya 1,687]

You can pay your cc bills on time, keep your balance low and still incur fees, or even get canceled coz the bank makes no money off of you.

What CC do you have?

Every card incurrs interest if you are unable to clear you balance. What do you want free money? I never incur any charges, why? Because I pay my balance every month.

I'm not sure what you read that induced that response.

1) if you are late you should be charged a late fee. Whats wrong with that? Yo uagreed to those terms.

2) if the rate spikes and you are the sort of customer that maintains a balance and incurs interest then cancel your card and get one with a cheaper rate.

3) Don't max out your cards.

fozzie, credit card companies have lobbied and have had the regulations relaxed so they could charge usery fees and all kinds of outrageous fees without any government interference. Their practices have become gouging to those who use them. 23 day billing cycles...etc.

Do you work for a CC Co.?

A collection agency, maybe?

[Trumplestiltskin 5,791]

I think its long overdue, to be honest - though I'm curious what will end up in the final bill/s.

Personally I was surprised that US banks can still charge ATM loyalty fees and automatic "fines" for not maintaining an arbitrary minimum balance in a checking account.

In Europe the ATM fees were made illegal several years back because the banks couldn't justify them. Hell - even check books were provided for free.

Edited April 23, 2009 by Private Pike

[one...two...tree 2,762]

I think its long overdue, to be honest - though I'm curious what will end up in the final bill/s.

Personally I was surprised that US banks can still charge ATM loyalty fees and automatic "fines" for not maintaining an arbitrary minimum balance in a checking account.

In Europe the ATM fees were made illegal several years back because the banks couldn't justify them. Hell - even check books were provided for free.

Yep. Those ATM fee make absolutely no sense. I'll go to the grocery store, and get cash back from the register before I'll use another bank's ATM.

[mrsjohnsonscat 7]

1) if you are late you should be charged a late fee. Whats wrong with that? Yo uagreed to those terms.

2) if the rate spikes and you are the sort of customer that maintains a balance and incurs interest then cancel your card and get one with a cheaper rate.

3) Don't max out your cards.

This isn't about people not playing their bills on time or maxing their cards.

This is what the CC companies are doing:

A. They reduce your credit limit, then...

B. They increase your interest rate.

C. The credit agencies list the reduction in your credit as a negative score, because your credit has been reduced; they don't care why, only that it has.

D. Other credit, including your other credit card companies use that negative to further increase your interest rates and/or reduce your credit limits and/or deny you credit.

E. One credit card has now basically done great damage to your credit worthiness REGARDLESS of whether or not you have a running balance and/or have paid your bills on time. That's the reason people are up in arms, do you really believe if this wasn't affecting people with really good credit histories we would even be having this discussion?

Why is it that when people talk about being responsible, it always seems to be on the backs of the working man?

[Sofiyya 1,687]

Right on!

What I was saying in my original post is that cc companies have started punishing creditors for GOOD credit management because you make them little or no money. Paying off your balance every month or keeping it low can get your fees hiked or your account canceled for being a waste of time for the cc company.

Edited April 24, 2009 by Barza Woman

[w¡n9Nµ7 §£@¥€r 123]

I've been a cardholder with Citigroup since 1993 and they've suddenly turned into a real PITA. That I canceled all but this card back in 2002 isn't helping one bit.