GOP senators block effort to freeze credit card interest rates

rawstory.com...

Republican senators on Wednesday blocked an effort to debate a bill that would prevent credit card companies from raising interest rates ahead of new regulations coming into force next year.

The move angered congressional Democrats who were pushing for an emergency freeze on credit card rates.

"I’m extremely disappointed that the financial health of millions of American taxpayers has been completely brushed aside by a handful of Wall Street banking interests in the US Senate," Rep. Betsy Markey (D-CO) said, as quoted in the Coloradoan.

Sen. Chris Dodd (D-CT), who heads the Senate Banking Committee, had authored a bill that would have prevented credit card issuers from hiking interest rates ahead of a new law coming into effect in February that restricts how and when rates can be raised.

Earlier this year, Dodd wrote and passed through the Senate the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which requires credit card issuers to give customers advance notice before hiking rates and fees.

The GOP seems bent on self destruction in the up coming elections. Do you think the dembs aren't going to point out that it's the corporate masters and their lobbyist that pull the strings of the GOP.

I doubt if even ex. Gov. Palin can spin this to be anything but devastating.

So the GOP thinks it's OK for CC companies to make even more money. sheesh!

reply to post by whaaa


Not that I'm surprised, but it would be nice had they given the GOP's side of the argument. I have no idea what it is, mind you. The general principle of the proposal seems to be a good one, but the devil could be in the details, for all I know.

Oh well. Off to read the actual text.

The credit card rate changes keep coming in--24+% (considered usury in my state). It should be illegal. I hope that the emergency legislation passes without them.

The latest notice yesterday sent me off on a serious rant on how short sighted it was to not place a freeze on rate increases before the legislation went into effect.

This has been a trend over the last 20 years. Instead of rates dropping in conjunction with lower interest rates, the credit card interest rates rise! It's insane.

The same tactic the Dems always pull.

Write up all kinds of stuff in a bill, then add in one thing like freezing credit card rates. When the conservatives vote it down due to everything else Dems and media scream bloody murder.

reply to post by whaaa


I actually read an article on RCP yesterday that talked about how Republican strategy is to block everything in Congress. The more they delay every piece of legislation, the more it looks like Democrats and Independents are completely ineffective at governing the nation.

It's all a tactic to make the other team look bad at the expense of the people, so that they can get back in to power.

ETA: As someone famously stated on ATS a few months ago, "Damn the country, Obama must fail."

[edit on 20-11-2009 by Avenginggecko]

Originally posted by jjkenobi
The same tactic the Dems always pull.

Write up all kinds of stuff in a bill, then add in one thing like freezing credit card rates. When the conservatives vote it down due to everything else Dems and media scream bloody murder.

You can't always deflect the problems by just whining "well the dembs do it too" The GOP used to be the party of "personal responsibility" but all that seems to have changed of late to the "finger pointing, crybaby" party lead by the biggest crybaby of all Mr. Limbaugh.
Man it up! Adopt a platform that appeals to the average citizen and run on that. As a Republican I'm ashamed of my party; to care more about the corporate interest than the man in the street.


[edit on 20-11-2009 by whaaa]

This could also be titled "Republicans told you so".

Democrat: I got a great idea, let's create a bill so credit card companies can't jack up the interest rate on existing balances! (sounds ok)

They make a bill.

Republicans: Your bill is terrible, everyone can see the companies will just jack up the max interest rate for everyone prior to your bill going live. Will end up costing everyone more. I won't vote for your bill.

Democrat: Republicans don't support lower credit card interest rates yadda yadda.


Months later...

Democrats: Oh crap we have to craft another bill because now everyone will have the max interest rates thanks to our last bill.

Republicans: Told you so, you made it worse for everyone!

Democrats: Republicans don't support the freezing of CC rates, they want you to go bankrupt! It's all their fault!


Dems blaming Reps for a problem they caused the whole time. Classic.

After just skimming the bill, I think I found what the GOP objects to. The bill increases the borrowing limit for the FDIC from $30 billion to $100 billion...and potentially $500 billion.

Full Text of the Bill

‘(A) RECOMMENDATIONS FOR INCREASE- During the period beginning on the date of enactment of this paragraph and ending on December 31, 2010, if, upon the written recommendation of the Board of Directors (upon a vote of not less than two-thirds of the members of the Board of Directors) and the Board of Governors of the Federal Reserve System (upon a vote of not less than two-thirds of the members of such Board), the Secretary of the Treasury (in consultation with the President) determines that additional amounts above the $100,000,000,000 amount specified in paragraph (1) are necessary, such amount shall be increased to the amount so determined to be necessary, not to exceed $500,000,000,000.

Yikes. What the hell is that about?

Ok I read the article. And as usual there is no posting any where I could find the entire bill. I have no doubt there is pork in it some were like every dummy crate bill every written. Second this is America we the people if you don’t like the rates than don’t use the card go else were to do business that’s the beauty of our country. If enough people say no I will go else where they will lower there rates or loss business it’s the American way.

No one told you to go buy that 300 inch color tv or twisted your arm to buy today that newly modeled 50 foot long car that’s seats 10 people with a pool. Be real stop spending beyond your own means stop barrowing if you didn’t need it yesterday do you really need it today. Its time for people to take the blame and stop pointing fingers at the other guy and saying he made me do it.


Wake up America.
hey thank you for the link to the bill my bad i couldn't find it. reading it now but i still stand by what i said.

Ok here we go another committee to over see this:
(1) NUMBER AND APPOINTMENT- The Commission shall be composed of 15 members appointed by the Comptroller, in accordance with this section.
(2) QUALIFICATIONS-

(A) IN GENERAL- The membership of the Commission, subject to subparagraph (B), shall include individuals--

(i) who have achieved national recognition for their expertise in credit cards, debt management, economics, credit availability, consumer protection, and other credit card related issues and fields; and

(ii) who provide a mix of different professions, a broad geographic representation, and a balance between urban and rural representatives.

(B) MAKEUP OF COMMISSION- The Commission shall be comprised of--
(i) 4 representatives from consumer groups;

(ii) 4 representatives from credit card issuers or banks;

(iii) 7 representatives from nonprofit research entities or nonpartisan experts in banking and credit cards; and

(iv) not fewer than 1 of the members described in clauses (i) through (iii) who represents each of--

(I) the elderly;

(II) economically disadvantaged consumers;

(III) racial or ethnic minorities; and

(IV) students and minors.

And increase of money there is always an increase some were besides the one previously mentioned:
(b) NCUA- Section 203(d) of the Federal Credit Union Act (12 U.S.C. 1783(d)) is amended--

(1) in paragraph (1), by striking ‘$100,000,000’ and inserting ‘$6,000,000,000’; and

(2) by adding at the end the following:
‘(4) TEMPORARY INCREASES AUTHORIZED-

‘(A) RECOMMENDATIONS FOR INCREASE- During the period beginning on the date of enactment of this paragraph and ending on December 31, 2010, if, upon the written recommendation of the Board (upon a vote of not less than two-thirds of the members of the Board) and the Board of Governors of the Federal Reserve System (upon a vote of not less than two-thirds of the members of such Board of Governors), the Secretary of the Treasury (in consultation with the President) determines that additional amounts above the $6,000,000,000 amount specified in paragraph (1) are necessary, such amount shall be increased to the amount so determined to be necessary, not to exceed $18,000,000,000.

‘(B) REPORT REQUIRED- If the borrowing authority of the Board is increased above $6,000,000,000 pursuant to subparagraph (A), the Board shall promptly submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the reasons and need for the additional borrowing authority and its intended uses.’.

Notice it involves the Union. And when has any so called temporary increase every been temporary.



[edit on 20-11-2009 by drmeola]

[edit on 20-11-2009 by drmeola]

The Republicans seem to only like unConstitutional things when they think em up.

Otherwise they get all hot and bothered about it. The Dems never seem to care about the Constitution, they just oppose the Reps.

All fun and games with little to no thought to the Constitution.

I don't know where you all live or what banks you use.

But, my bank (Chase) raised their rates this past summer, and I'm sure many if not all the banks who wanted to skunk us already have.
Mind you, I have excellent credit and have never been late.
I was told if I didn't like the % rate, I could always keep the one I had....as long as I knew it would also automatically close the account.

I'm thinking there's more to the GOP refusal than merely the % rates.

Originally posted by whaaa
rawstory.com...

Republican senators on Wednesday blocked an effort to debate a bill that would prevent credit card companies from raising interest rates ahead of new regulations coming into force next year.

The move angered congressional Democrats who were pushing for an emergency freeze on credit card rates.

"I’m extremely disappointed that the financial health of millions of American taxpayers has been completely brushed aside by a handful of Wall Street banking interests in the US Senate," Rep. Betsy Markey (D-CO) said, as quoted in the Coloradoan.

Sen. Chris Dodd (D-CT), who heads the Senate Banking Committee, had authored a bill that would have prevented credit card issuers from hiking interest rates ahead of a new law coming into effect in February that restricts how and when rates can be raised.

Earlier this year, Dodd wrote and passed through the Senate the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which requires credit card issuers to give customers advance notice before hiking rates and fees.

The GOP seems bent on self destruction in the up coming elections. Do you think the dembs aren't going to point out that it's the corporate masters and their lobbyist that pull the strings of the GOP.

I doubt if even ex. Gov. Palin can spin this to be anything but devastating.

So the GOP thinks it's OK for CC companies to make even more money. sheesh!

Why don't you inject your own political bias into your response while you're at it. How do you know the GOP is pushing against this Dodd-authored bill for some OTHER reason? Perhaps it's porkier than a Hawaiian luau? You think there might be just a little pork in a LIB sponsored bill? How about you actually read the bill before you jump to conclusions. I don't even know what's in the bill, but don't automatically assume that it's only Republicans that are corporate puppets because they are against this one bill. I think it's been thoroughly demonstrated that the whole lot of them are corporate howdy doodys.

I, for one, am tired of this R vs D bullsh!t. It's this divisiveness that is bringing down this country.

reply to post by AwakeinNM


It's about perception when it comes to winning elections. I have worked in local elections for my neighbor, the mayor of my small village. The persona he presents to the public is very different than what he is like at home. His tactic was to put the people first and main street second; that resonated with the voters and he was elected by a landslide.

This strategy works on the national level too. Obama was elected because he appealed to people that felt disenfranchised by the political process.

All I'm saying is that people don't relate to corporate welfare and if the GOP is labeled with that tag then they will continue to be losers.