White House says opposes U.S. House credit card bill

[UpInArms]

Source: Reuters

WASHINGTON, Sept 22 (Reuters) - The White House said on Monday it opposes legislation called "the Credit Cardholders' Bill of Rights" that would curb unfair and deceptive credit card practices, saying it would constrain banks' ability to price risk.

The White House said in a statement the bill would lead to less access to credit and higher interest rates for consumers.

"For the credit market to operate efficiently, creditors must have the flexibility to react to changes in customer risk and market conditions," the White House said.

The provision "would restrict when lenders may change terms of the credit agreement, significantly constraining the ability of financial institutions to adapt to changing credit risks and market conditions," the White House said.

<snip>

The bill would end double-cycle billing, in which card companies reach back to prior billing cycles to help calculate the interest charged in the current cycle.

Read more: http://www.reuters.com/article/bondsNews/idUSN2234176720080922?sp=true

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color me not surprised!

if this mal-administration made one, just one single good decision, I'd fall off my chair

[jwirr]

1. They need to have a holdout for the next disaster capital adventure. nt

[central scrutinizer]

2. back to the regulations are bad meme

We've heard that tune before.

[safeinOhio]

3. If someone is such a bad credit risk

that it requires 21% interest, or more, why should they be given a card? Same as giving someone with bad credit(high-risk)a home loan. All born again regulators, get going on CCs before that one gets away too. DUH!

[shraby]

4. It isn't only bad credit that causes high interest

rates..we always paid on time but found that we were up to 25% interest so we refinanced our home, paid it off and will never get another one.

[avaistheone1]

20. After 30 years of using a couple of credit cards and paying them off in a timely manner, I tore them

up. I was sick and tired of all the credit cards games. How they started changing your interest rate at the blink of an eye, and all the ridiculous fees they charge. I have a debit card and I am much happier.

[snooper2]

28. It's other shit...like them changing the due date without telling you

hasn't happened to me but happened to a co-worker...

interest went from 8% to 27% after that one late payment...

[Waiting For Everyman]

5. Oh, that one's going through - I'll bet you.

It almost did before. Credit card terms are absurd.

Banks ARE the risk. And no contract should be changeable one-sidedly. It's ridiculous law, and impossible in reality. Nobody else seems to need such "flexibility". Consumers don't get such "flexibility" in fulfilling their side of contracts. Time to stop the criminals and begin restoring some semblance of a level playing field in transactions.

[Stellabella]

6. I'll never forget one Daily Show.

Jon had one of those banking assholes on, who kept insisting that 'people who are higher risk have to take terms that reflect that risk.'

And Jon kept saying 'In other words, you're forcing them to fail and default.'

[alcibiades_mystery]

14. But the banks make it so they assume NO risk (the bankruptcy legislation)

yet they still want to charge prices as if they are assuming a major risk. It is a fucking con.

[Stellabella]

29. Yes, exactly.

I want to see a national cap on credit card rates, mortgages, car loans and other consumer debt if this bailout scam goes through. 8% should be enough for those bastards, especially considering the best savings rate the consumer can get is 2-3%. If they're lucky.

[curious one]

7. Why they oppose?

[Mnemosyne]

8. Lower the interest rates and people could pay, idiots. n/t

[susanna]

9. This, during the current financial crisis? Words fail me.

But this administration's never-ending supply of idiocy doesn't. :-(

[Sen. Walter Sobchak]

10. but.... wasn't the bankruptcy law supposed to lead to lower rates?

it's actually funny, the interest rate was just raised on my card, I don't really care because I don't have a balance on it - but the reason they raised it was "universal default" because AT&T Wireless seems to feel I owe them money. And I faxed their collection agency my final bill showing I don't owe AT&T anything, they canceled my service because I was roaming on T-Mobile too much a year and a half ago.

But because AT&T reported me to the credit agencies as delinquent on my account with them, I am not a riskier credit case to up goes my interest rate with visa. Doesn't really matter to me as my balance is zero, but for somebody who has a significant balance that is obscene.

[NoName Left]

11. When something is proposed that benefits masses of

ordinary Americans? You can be SURE this administration will automatically oppose it.

BushCo = Governmental Ebola

[BlueIdaho]

12. As if the White House has any economic credibility left... nm.

[alcibiades_mystery]

13. Many many people would be better off being "denied credit"

Seriously.

This shit ruins people's lives. Not surprisingly, Bush is all for the ruiners. make him veto the fucking thing, and make the GOPers vote in public before the election. Everybody in this country hates the fucking credit card companies. Make the GOPers stand with them in October.

[VP505]

16. Good idea, lets see

how well that will work for them (GOP) in November.

[trthnd4jstc]

15. The White House Opposes anything that would help the ordinary person out.

This is another proof that George Bush is an A$$hole.

[dana_b]

17. wtf?! obviously they've learned NOTHING from the past few weeks!!

of course, why do I feign surprise??

[Pete2069]

18. Isn't this the housing disaster on a smaller scale!!!!!

They really don't give a d... about the workers in this
country..
Our country is now ran the way Corporations use to do to the
Coal Miners.   
They paid them a very poor salary , then took their money back
as soon as they received their pay.
They own their housing , where they brought their clothes /
food or what ever they needed for just surviving.
So Miners received their pay on friday and were back on the
books by saturday morning....
Bush took us back to the future , where corporations rules...
This Globalization is a bunch of S... and is the republicans
way of calling Monopoly a different Name.   GLOBALIZATION.
Boy are Americans stupid to just keep bending over...

[spag68]

19. Interest rates

I know there are few here that remember what an old as dirt dummy like me can remember. For instance I remember when anything over 10% was called usury and was a crime. What these banks do now would make the leg-breakers on the corner in the fifty's blush.

[blossomstar]

21. Freaking unbelievable article.

Talk about getting screwed, we're getting it right and left. I didn't think that I could be amazed at anything this administration could do... but this is simply incredible, especially when they are asking the hardworking people of this country to take on the debt created by these very same bastards who in essence made millions off our backs to begin with. It is shitting in our faces, grinding it in and is reprehensible. It is pure servitude, plain and simple.

[toadzilla]

22. they're shameless.

[lligrd]

23. What Part Of "IF They Are A Bad Credit Risk

they certainly can't afford to pay usury interest rates" doesn't the White House get? These people need relief not thievery, which is exactly what the credit industry does to them now. And while we are at it, how about *'s asinine "go shopping" advice. Seems people that followed his orders are now being screwed.

[HCE SuiGeneris]

24. Promote usury until the iron gets too hot -- then blame the Dems

FU Chimpy.

[Monk06]

25. Bailout the banks to the tune of $1.6 Trillion but they still get to use deceptive

billing and late payment schedules while the 'slaves
of plastic' have no recourse but to pay what the banks
demand.

Want to kick start the economy? Forgive credit card
monthly payments for the last six months so people
have a chance to get back on their feet.

Yeah like the cap in hand banks are willing to sacrifice
anything for the mess they created.

[truthisfreedom]

26. This is like the husband, caught cheating, says it's ok to keep f*cking his mistress as long as

he doesn't reveal the names of the rest of his whores.

[ixion]

27. "For the credit market to operate efficiently..."

oh, what, like it's doing now?

As soon as those words left his ignorant mouth there should have been a deluge of questions, considering that we're in a "credit crisis" because of such "flexibility". :grr: