05/19: Senator Reid: “We stood up for consumers and stood up to abusive credit card companies. We said that big banks can no longer take advantage of hardworking Americans.” Off The Record: “Well, you know, (like in December 08′) we are going to trust them to not go after their customers as predators (on a third wave) before these new measures go into effect. And, despite giving them a year’s head start, we are certain they will not come up with other ways to bypass everything we have accomplished.”
(1) They Let Us Down (05/21): Credit Card Protections With…Holes
Did not: “cap interest rates on credit cards, explicitly cap credit card fees, take effect immediately, limit interchange fees, or prevent issuers from finding new fees.”
(2) The Media Colludes In a Setup (06/15): Credit Card Defaults Rise
(3) And Finally, the Results (06/30): Citi Raises Card Rates On Millions
Are you Shocked, Sen. Reid and Rep. Maloney? (07/06):
“Citi has boosted interest rates on some cards to as high as 29.99 percent, according to a Credit Suisse report. Chase raised rates as high as 23.99 percent. . . . Capital One has kept rates steady for now, but warned consumers they will be increasing over the next year.” “‘We expect purchase APRs to continue to trend higher ahead of the recently passed Credit Card legislation, slated to go into effect February 2010,’ wrote Credit Suisse analyst Moshe Orenbuch.” “‘Issuers during this crisis should be using this period to adapt to the new rules about to take effect, not raising rates and changing terms on those who are already meeting their obligations’: Rep. Carolyn Maloney, D-N.Y., the prime sponsor of the bill.”
Nothing passed in May (beyond a 45-day notice) was immediate. Caps on interest rate proposals by Sen. Sanders and a few brave others were overridden. The credit card companies (and newly formed banks) were given another seven months (minimum) head start. Did you really stand up for us, Senator Reid? Are the banks continuing to “take advantage” (after having received billions upon billions in taxpayer-funded bailout money that was supposed to “free up” the credit markets)? Did you really expect anything different, Rep. Maloney? Did you think there was any (actual) chance these Vultures would do what they “should be“ doing before the new measures took effect? To them, this is what they Should Be doing – just like they were – since (before) December 08′ (and the 1 ½ year’s notice).
Update (11/19): Credit Card Rate Freeze Killed
Time For a Credit Union Movement:
Sen. Charles E. Schumer (D-N.Y.) once again requested that the Federal Reserve invoke its emergency powers to place a limit on interest rate hikes.
Predatory Practices Continue:
Cutbacks Harm the Economy
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