House passes Credit Cardholders' Bill of Rights bill Today- Banks don't like it

[Ichingcarpenter]

House passes Credit Cardholders' Bill of Rights bill
Bill would give consumers protection against credit card abuses

By Connie Prater
In another blow to the banking industry, the U.S. House of Representatives Tuesday passed a landmark consumer protection measure aimed at leveling the playing field for credit card users.

The Democratic-controlled House voted 312-112, mostly along partisan lines, to support the Credit Cardholders' Bill of Rights. The vote came amid a tumultuous week for Wall Street and the credit markets and days before Congress considers an administration plan for a $700 billion bailout of mortgage lenders.


"Amidst the financial turmoil on Wall Street, today the House took steps to help those on Main Street," said Rep. Carolyn Maloney, the New York Democrat and the bill's chief sponsor, who is credited with keeping the bill alive on Capitol Hill despite heavy opposition from banking industry lobbyists. "This historic legislation will help working families who face their own credit crunch as a result of what the Federal Reserve itself calls 'unfair,' 'deceptive,' and 'anti-competitive' credit card practices."

Banking industry reaction
The banking industry was quick to condemn the passage and issued a statement within minutes of the vote. The bill, "while well-intentioned, will increase the cost of credit for consumers and small businesses across the country, result in less access to credit for consumers and businesses alike, and may further roil the securities markets -- all at a time when our economy can least afford it," Edward Yingling, president and CEO of the American Bankers Association, said in a statement.

The passage may represent a hollow victory for those pushing for real reform. A companion bill would have to pass in the U.S. Senate -- an event seen as unlikely by both Democrats and Republicans. Maloney called on the senate to "recognize the strong grassroots support for these reforms."

>>>>>snip

http://www.creditcards.com/credit-card-news/credit-cardholders-bill-rights-house-vote-pass-1282.php

[Winterblues]

1. Sounds like the Republicans in 1993

"If you pass this Clinton Budget you will destroy the US economy" the Budget did pass and America went on to experience the "Greatest Economic Expansion in History" Their economic wisdom seems not...

[samuraiguppy]

2. we really need this--unfortunately

they think it is unlikely to pass the Senate.

[Jacobin]

3. Um, that was a lot of nothing.

WTF does the bill provide?

[patriotvoice]

4. "will...result in less access to credit" -- Good!

The last thing this country (and the corporate and individual entities that comprise that whole) needs is to draw on more credit!

[KoKo]

5. Thanks for the post. I posted about it earlier when House was voting on it...

It passed with a huge majority...I'd hate to see it die in the Senate.

[RaleighNCDUer]

6. Hey, Banks!

Less access to credit for consumers is a GOOD thing. People actually paying real money for what they buy is a GOOD thing. Vacuuming out their wallets with interest payments may seem like a good thing, but people who are financially secure will, in the long run, spend MORE money than people who are seeing 20% of their pay vanish into interest payments. They spend more on real goods, keeping people who make those goods employed, and those who transport and sell those goods employed, all of whom also spend on real goods, keeping more money in circulation and improving your bottom line.

Interest payments may SEEM like free money to you, but it is not a bottomless well - without a sound economy re-filling it it will go dry.

Less credit = more wealth.

[AlCzervik]

7. Here are the cliff notes on the actual text of said bill

H.R.5244
Title: To amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes.
Sponsor: Rep Maloney, Carolyn B. (introduced 2/7/2008) Cosponsors (155)
Related Bills: H.RES.1476
Latest Major Action: 9/22/2008 Rules Committee Resolution H. Res. 1476 Reported to House. Rule provides for consideration of H.R. 5244 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill shall be considered as adopted.
House Reports: 110-857
SUMMARY AS OF:
2/7/2008--Introduced.
Credit Cardholders' Bill of Rights Act of 2008 - Amends the Truth in Lending Act to prohibit a creditor from using certain adverse information, including information in a consumer report or any change in a consumer's credit score, as the basis for increasing any annual percentage rate (APR) of interest on the consumer's outstanding balance under an open end consumer credit plan, except for actions or omissions of the consumer directly related to such account. (Thus eliminates the universal default for credit already outstanding.)

Bars a creditor from changing any term of the contract or agreement of an open end consumer credit plan until contract renewal, except for specific material reasons already contained in the contract or agreement.

Requires advance notice of credit card account rate increases.

Authorizes a consumer who receives such notice to: (1) cancel the credit card without penalty or the imposition of any fee; and (2) pay any outstanding balance that accrued before the effective date of the increase at the APR and in the repayment period in effect before notice was received.

Prohibits a creditor from imposing interest on credit repaid within the interest-free repayment time period. (Thus prohibits double cycle billing).

Prohibits the imposition of fees on any outstanding balance on a credit card account attributable only to accrued interest on previously repaid credit.

Requires each periodic statement of account to provide specified information on obtaining the payoff balance.

Prohibits a creditor from furnishing information to a consumer reporting agency concerning a newly opened credit card account until the consumer has used or activated the credit card.

Details mandatory pro rata payment allocations by a creditor.

Authorizes a consumer to opt-out of creditor authorization of over-the-limit transactions if fees are imposed.

Restricts the frequency of over-the-limit fees.

Specifies the contents of credit card price and availability information the Board of Governors of the Federal Reserve System must collect and make public semiannually.

Prescribes a standard for the initial issuance of subprime or "fee harvester" cards (accounts requiring first-year fee payments in excess of 25% of the total amount of credit authorized).

[Gormy Cuss]

12. Poor CC companies.

They might actually have to work for their profits.

None of those provisions seems unreasonable to me. In fact, half of them used to be the norm.

[Jacobin]

15. There's a lot of very little

Basically meaningless except for a few late fee and overlimit fee restrictions

[FVZA_Colonel]

8. Hey banks: if you want us to just bend over for that 700 billion dollar bail-out,

you ought to give us a little something.

[dkofos]

9. If they didn't cap the interest rate it is next to worthless.

[onethatcares]

10. fuck ed yingling.

bet he looks like a pig at the trough. Never missed a meal and has lily white hands.

[snappyturtle]

11. Hey, Hey Banks: Don't threaten us...sounds like a threat to me:

"Banking industry reaction
The banking industry was quick to condemn the passage and issued a statement within minutes of the vote. The bill, "while well-intentioned, will increase the cost of credit for consumers and small businesses across the country, result in less access to credit for consumers and businesses alike, and may further roil the securities markets -- all at a time when our economy can least afford it," Edward Yingling, president and CEO of the American Bankers Association, said in a statement."

I read about the bill this morning on thomas.gov and agree that some of the aggregious practices of these thieves will be better controlled. What I wonder is this bill only going to effect the new issuance of credit cards?

underlining mine

[KamaAina]

13. That's not "mostly along partisan lines".

That's dozens of repukes doing the right thing for once.

Yet another attempt to paint Dems as wild-eyed anarcho-lefty business-haters. :eyes:

[Sebastian Doyle]

14. House Repukes are 6 weeks away from an election

They aren't completely stupid. ;)