Rep. Barney Frank warns credit card firms

[rmp yellow]

Source: Chicago Tribune

October 9, 2009


Rep. Barney Frank sounded a warning shot to big banks: Behave, or Congress will make your life more difficult.

Last spring, Frank helped push a bill through Congress that imposes new rules on lenders, including a limitation on when and how banks can raise rates. Most of the rules will take effect in mid-February.

But the Massachusetts Democrat, who chairs the House Financial Services Committee, said at a hearing Thursday that lenders have abused the grace period by using the time to increase rates ahead of the new rules. He has introduced legislation that would move up the enactment date to Dec. 1.

"It is very clear that this is the kind of protection that shouldn't wait and we should move forward," Frank said about the new credit card rules.

Read more: http://www.chicagotribune.com/business/chi-tc-biz-brf-cards-1008-1009-oct09,0,7177835.story

[aquart]

1. And they didn't think they would raise rates in the grace period?

Oh, please.

[No Elephants]

18. Who could possibly have foreseen something like THAT?

What, you think each Congressional Rep. gets a crystal ball when elected?

:sarcasm:

[Robb]

2. Is he acting surprised, or just indignant? nt

[Ruby the Liberal]

3. GE just informed me today that their base rate is going to 19.99%

Assholes.

[MessiahRp]

10. Citi jacked my card from 18.99% to 29.99%

I closed the account. Fuck that ripoff nonsense.

Rp

[Lorien]

20. They did the same to a friend of mine and she also closed her account

I hope that their greed bites them in the ass, and that we won't bail themout again if they get in trouble because of it!

[Scout]

24. same here .... 18.99 will go to 25.99, or i can close the account

closing today.

fucking greedy bastards.

[Cass]

4. And this surprises him?

Moving the enactment date to Dec 1st is like closing the barn door after the horse has gone.

[Journeyman]

5. And one of my banks responded by moving up their date for increasing credit card rates. . .

Wells Fargo raises credit card rates

Wells Fargo & Co. plans to raise interest rates on a majority of credit card customers by 3 percentage points before new rules limiting such increases take effect, a company executive said. “This is something we’ve been contemplating for quite a period of time,’’ Kevin Rhein, group head of card services, said yesterday.

Wells Fargo began advising customers this week that the change takes effect Nov. 30. That’s one day before the chairman of the House Financial Services Committee, Massachusetts Democrat Barney Frank, wants curbs on rates and fees under a new US credit card law to take effect. He plans a hearing today on moving up the date to Dec. 1, from February, to head off increases by card issuers.

Rhein did not comment on whether Frank’s bill had any bearing on Wells Fargo’s decision.

The bank is also eliminating over-limit fees, which are imposed when customers exceed their credit limits, he said.

http://www.boston.com/business/articles/2009/10/08/wells_fargo_raises_credit_card_rates/


Discussed earlier on DU here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4094749


It's a vicious cycle, made all the worse when one party is without scruples. . .

[DJ13]

6. Barney, quit acting shocked, you knew this would happen

How many economic experts (including Elizabeth Warren from the administration) warned you that your regulations were doomed to failure because you not only allowed the banks a year to rip off their customers, but you failed to place a cap on interest rates?

Who's fault is it?

[pokercat999]

7. Warning....cough up the re-election cash or you've had it!

We'll pass a law that takes effect sometime next decade.....that'll fix ya! sticks out tongue

[phasma ex machina]

12. +1 nt

[robo50]

8. Why are there so many posters here who bash Barney Frank and

don't know the reason Frank introduced this, and DON'T KNOW how the credit card companies are required to give 60 day notice?

DUH.

Read up!

[No Elephants]

19. No, read the OP. He gave them PLENTY of time for several increases.

"Last spring, Frank helped push a bill through Congress that imposes new rules on lenders, including a limitation on when and how banks can raise rates. Most of the rules will take effect in mid-February."

What else could he have done? "Helped push a bill through Congress" that would have become effective immediately upon enactment, or 30 days after enactment.

Would that have been unfair, given what their rates were last Spring? No. They know when a bill is introduced and it takes quite a while before it is enacted. Besides, their rates were too high as it was, especially in light of economic collapse.

On edit: It's not about bashing Frank or praising Frank. It's about criticizing or praising an action or inaction, no matter who the individual is.

[tomm2thumbs]

9. Frank can always threaten to let Walmart get into the banking business like it wanted to years ago

Let's see how that plays out against these f*ckers.

[phasma ex machina]

13. +1 nt

[Piewhacket]

17. hmmm... never heard that one, how interesting...

before the meltdown I wouldn't have taken the idea seriously.
now.... its looking pretty interesting.

[change_notfinetuning]

11. BFD! I'm sure they're quaking in their Guccis. How about a rate cap? n/t

[Lugnut]

16. +1 n/t

[Piewhacket]

14. staged. he knew they would play games. he had this in mind all along.

he needed rapacious conduct and public support.
They obligingly gave it to him.

:popcorn:

[surrealAmerican]

21. I agree.

He set them up. Now the public will demand caps on interest.

[MaineDem]

23. I think you're on to something. n/t

[bemildred]

15. "I am shocked, shocked, to find that gambling is going on here." nt

[xchrom]

22. c'mon barney -- stop yankin our fuckin chain --

who couldn't see this coming with your grace period?

be easier to miss a buffalo stampede.

[Love Bug]

25. How about a retroactive enactment date?

I'm sure the CC companies are all just cowering from his finger-wagging.

[Honeycombe8]

26. Ooooooh....I bet they're scared. (not) nt

[defendandprotect]

27. k