Posted on 04/23/2009 10:43:52 AM PDT by TenthAmendmentChampion
Two leading Democratic senators asked federal regulators on Thursday to implement an emergency freeze on credit-card interest rates for existing balances. The call from Sens. Charles Schumer, D-N.Y., and Christopher Dodd, D-Conn., comes as President Barack Obama is meeting with credit-card issuers to discuss how consumers are faring during the economic crisis that has seen widespread credit disruptions.
(Excerpt) Read more at marketwatch.com ...
The credit card companies must have known something was in the works. I got a notice that my card rate on the card I use for travel is going up 7%(9.99 to 16.9). My fico was 812 the last time I checked and there is no reason for it to have changed much if any since then.
CAN THEY DO THIS??
Mine went from 12- 21 over night for no good reason. It got paid off real quick and shredded the card.
The credit card companies rather liked it when they got the government to change bankruptcy rules in their favor.
I was late with one payment and Citi jacked it from 7.9% to 28.9% they can go to h*ll.
These two again? Time to lock up the silverware, send the daughters to a Swiss boarding school and buy emergency rations. The Cheshire Cat and Tweedle-Dee belong in a children’s story - NOT the US Senate.
If they do, watch millions of Americans have their limits frozen, cards canceled, and rates set to the maximum for all customers.
Liberals have no idea the fire they are playing with.
Holy mackeral!! I thought mine was a drastic jump. I only had $300 on the card, never later in 20 years. When I called to ask why it jumped so much the reply was “well maybe you are in default” before ever looking at my account. I blew up at that point.
So you'd be okay with the government restricting how much you can charge for the product or service you provide?
This is nothing more than a price ceiling on the cost of borrowing money, and it will (as price ceilings always do) create a shortage of the product (in this case, the product is consumer credit, which is already in short supply).
Too bad politicians never seem to grasp the basics of economics.
Liberals have no idea the fire they are playing with.
Amen. Exactly.
steve86: First you'll get to see my face in a BK proceeding.
“...create a shortage of the product (in this case, the product is consumer credit, which is already in short supply).”
I’m not sure I’d agree. I think consumers have had too much credit, and are now in the process of paying it down or increasing their savings (or perhaps going bankrupt!).
But ultimately, no I don’t like the gov’t interferering with private business, private anything!
Tragic indeed, if liberals gave a rat’s neck about the average (a.k.a. middle class) American.
Gee, that’s easy, snap your fingers. But not far enough.
They should make the CC companies forgive all balances. And send a million dollars to everyone in the country.
All our economic problems solved by government.
Why didn’t we think of this before?
Mainly by denying credit: existing cardholders will have their lines reduced, it will get more difficult to get credit cards, and the rates for new accounts will skyrocket, making balance transfers impossible & reducing competition.
A few will be helped, the majority will be screwed, as in most rent-seeking ventures enforced by the state.
I hope that you will re-think your position - consumers always have a alternative - paid balances off, convert to another issuer, etc.
Price controls are a really bad idea.
Those options are not as easy as you suggest. Oftentimes it is not possible to pay off all a balance, or to transfer a whole balance to a new carrier, and debt settlmemet isn not enticing because it ruins a rating and can influence insurance rates, among other thinsg.
However, as you will note I am not in favor of this proposal.
I do think that credit card companies should be unable to unilaterally change interest rates without cause, however.
Exactly. First the bankers, then the auto makers, now the credit card companies. So, who's next?
Really? Me thinks you are making this up. I do understand that the CC company may raise the rates when the customer repeatedly fails to make the required minimum payment on time or defaults on the credit card or some other debt, or if the credit card has a variable rate, but I guarantee that the credit card contract that the customer signed when he or she opened the credit card account allows the CC company to raise the rates under these sort of circumstances as set forth in the contract. No one is required to have a credit card, and therefore, if you don't like the terms, then don't sign the contract. But please don't accuse the CC company or unilaterally raising rates for no apparent reason.
I’m appalled by the number of FReepers who don’t seem to object to this latest round of government interference. If a business is unpopular enough, does that make it OK for the government to tell it how to run itself?
I think credit card companies are evil, but the gov’t has no business meddling here.
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