Posts with the tag credit cards

Banks Oppose Emergency Clampdown On Credit Card Rates

Erin Rosa — Tue, 27 Oct 2009 13:32:45 EDT

The financial industry is scurrying to jack up interest rates on credit cards before new and more stringent federal laws take effect in February. But now one proposal in Congress would immediately freeze rate hikes on existing balances.

Senator Dodd, the chairman of the Senate Banking Committee, said his bill was necessary because banks were raising rates “to squeeze customers” before the remaining provisions of law took effect in February.
The new credit card law, which was passed in May, seeks to stop banks from arbitrarily raising interest rates.
…
Scott Talbott, senior vice president for government affairs at the Financial Service Roundtable, said his organization, which represents large financial institutions, opposed the bill to freeze rates. He said the bill was based on the faulty premise that credit card interest rates were going up because of legislation.

Credit card debt is a dire problem for young people in particular, due to aggressive marketing and crippling interest rates that are, until new laws are enforced, controlled on a whim by the banks that issue them.

Credit Card Bill will Help Young People & Students

pdelatorre — Wed, 20 May 2009 17:49:16 EDT

Campus Progress released the following statement after the passage of the Credit Cardholders' Bill of Rights early today:

Credit Card Bill will Help Young People & Students
Washington, DC — Today Congress passed the Credit Cardholders’ Bill of Rights by a margin of 361-64 in the House of Representatives, following yesterday’s vote of 90 to 5 in the Senate. The President is expected to sign the bill on Friday afternoon. “By passing this legislation, Congress took a big step toward extending basic protections to all credit card borrowers, especially young people and students,” said Erica Williams, Deputy Director of Campus Progress, who testified before the House Financial Services Committee on this issue last summer on behalf of Campus Progress Action.

To read the full statement, and see the attached factsheet on young people and credit cards, click here.

Credit Card Holder’s Bill of Rights Passes House of Representative

pdelatorre — Wed, 24 Sep 2008 11:28:10 EDT

Amid all of the debate on the $700 Billion bailout, the House of Representatives passed the Credit Cardholders’ Bill of Rights by a wide (312-112) margin. The bill represents one of the first times in many years that Congress has taken action on credit card debt and abusive practices within the industry, and passed despite strong opposition from both the White House and credit card companies. The Senate is not currently expected to take up the bill before the end of the legislative session, but Campus Progress will be joining consumer groups in calling on the Senate to find time to consider this important proposal.

The bill would, among other things, protect consumers from underhanded games that make it more likely that credit card payments would be considered late, require that credit card companies inform their customers at least 45 days before any interest rate increase takes effect, limit the ability of companies to increase interest rates retroactively, and prohibit certain kinds of predatory and “subprime” credit cards.

Check out how your representative voted!

Campus Progress has worked with partner organizations to advocate for strong protections for credit card borrowers, especially young people. We have testified before the House Financial Services Committee, issued action alerts to encourage young people to contact their representative, and signed onto letters to Congress with partner organizations.

We look forward to continue working with students, Congress, and partner organizations on this issue, and congratulate the House of Representatives for taking action on this issue.

House to Vote on Credit Cardholders’ Bill of Rights Next Week

pdelatorre — Fri, 19 Sep 2008 12:43:41 EDT

Great news – we have heard from a very good source that the House of Representatives will be voting on the Credit Card Holders’ Bill of Rights sometime early next week! The credit card industry has been lobbying hard to kill this legislation behind the scenes, and so the support of strong consumer protections for borrowers by Campus Progress readers and activists have shown to Congress so far has been crucial.

We can’t stop now – we need to keep up the pressure until the minute that Congress votes. Check out the action alert below for more information, and to take action:

Tell Congress to Protect Credit Cardholders!

With the rising costs of college, gasoline, food, health care, and other expenses, credit cards are becoming the “safety net” for an entire generation. Unfortunately, credit card companies are using unfair and even predatory practices to increase their profits at the expense of the financially vulnerable or inexperienced. Luckily, the House Financial Services Committee has recently passed the Credit Cardholder’s Bill of Rights, which will create several important protections for borrowers, and the bill will be voted on by the full House of Representatives next week, so take action now!

Tell Congress to Protect Credit Cardholders!

pdelatorre — Fri, 12 Sep 2008 14:28:06 EDT

Pressure is building to bring the Credit Card Holder’s Bill of Rights to the House floor. The bill would stop some of the worst abuses of the credit card industry (see below for more info). Consumer groups are working hard to make sure this legislation is considered, despite the opposition of the industry. They need your help, however, so take action:

Tell Congress to Protect Credit Cardholders!
With the rising costs of college, gasoline, food, health care, and other expenses, credit cards are becoming the "safety net" for an entire generation. Unfortunately, credit card companies are using unfair and even predatory practices to increase their profits at the expense of the financially vulnerable or inexperienced. Luckily, the House Financial Services Committee has recently passed the Credit Cardholder’s Bill of Rights, which will create several important protections for borrowers. We need your help to make sure that this issue is considered on the House floor before the end of this legislative cycle.

Click here to check out other action alerts.

Tell Congress to Protect Credit Cardholders

pdelatorre — Fri, 18 Jul 2008 16:26:29 EDT

Campus Progress wants you to take action on abusive credit card practices! Check out this action alert:

With the rising costs of college, gasoline, food, health care, and other expenses, credit cards are becoming the "safety net" for an entire generation. Unfortunately, credit card companies are using unfair and even predatory practices to increase their profits at the expense of the financially vulnerable or inexperienced. Luckily, there are several efforts in Congress and in the Federal Reserve Board to reign in these anti-consumer practices. In fact, the Credit Cardholders’ Bill of Rights will probably be considered in the House Financial Services Committee by the end of the month. We need your help to make sure that your representative takes this issue seriously. Take Action Now!

Dont forget to check out our Action Alerts Page to make your voice heard on other issues that matter!

Campus Progress Testified in Congress on Credit Cards & Student Debt

pdelatorre — Thu, 26 Jun 2008 14:35:41 EDT

Campus Progress’s Erica Williams, along with the PIRGs and several other organizations, testified at the House Financial Services committee today on credit cards and student debt.

You can read her testimony here, and watch the hearing here.

Trapped in Credit Card Debt

Kay Steiger — Wed, 14 May 2008 11:34:00 EDT

New America's Higher Ed Watch blog has a great post by Ben Miller on how colleges and credit cards are teaming up to ensnare students into loads of credit card debt. (The post also includes an interesting fact I didn't know, which is that over 70 percent of students keep their first credit card for years -- now that's brand loyalty that companies would kill for -- and student credit cards often include much higher interest rates and more penalties).

Bob Reich also has a great post from yesterday on how credit card companies are similar to the mortgage industry in that they're dangerously underregulated -- they can raise interest rates at will and hide important information like how they calculate an outstanding balance. It also seems that the lobby in favor of keeping credit card companies that way is way more powerful than any force to enact legislation, and it's not just Republicans that are in the pockets of credit card companies. As Reich says "only 11 of 36 Democrats on the House Financial Services Committee have backed" legislation that would impose tougher regulations on credit card companies.

Young People “Stretched Thin”

pdelatorre — Mon, 28 Apr 2008 13:05:39 EDT

Nope, I don’t mean medieval torture, but I do mean something almost as bad: moving back in with your parents.

The LA Times ran a pretty good article about the economic situation of young people, especially as it relates to the current recession.

The gist - young people are facing some tough economic times as they enter the job market, forcing many to move in or borrow money from their folks, as well as cut back on the lifestyle they are used to. Along with the steady trend towards higher student and credit card debt, the bursting economic bubbles have meant that young people are now more concerned with economic issues than, for example, ending the war in Iraq (although, of course, they are related issues - money spent on the war could help alleviate the crisis at home).

Overdraft fees – are you getting ripped off?

pdelatorre — Mon, 24 Sep 2007 18:45:04 EDT

I’m sure you’ve been there: it is the end of the semester, and you have depleted most of your financial aid package on tuition, books, and rent. Suddenly, when you check out your statement online, it is almost $100 in the red. Apparently, the bank has charged you $30 for each of several small purchase you unwittingly made on your debit card after your balance fell to $0. You don’t event want to deposit your next paycheck, since there will barely be anything left after the bank automatically takes its share.

According to a report released today by the Center for Responsible Lending, college-aged youth (18-24) spend more than $1 Billion a year on overdraft fees!

Don’t get f*cked

pdelatorre — Tue, 18 Sep 2007 12:28:22 EDT

New video by Americans for Fairness in Lending:

You can find some ways to get involved on their website: http://www.affil.org/ybf.

Major Debt

Kay Steiger — Wed, 05 Sep 2007 00:11:39 EDT

Business Week has a back-to-school article that's a bit sobering. It reminds us how credit card companies sell their lending products to college students -- sometimes at rates as high as 16 percent:

Students also live in a culture of debt. Many of them are borrowing tens of thousands of dollars to go to school, tapping low-interest loans to pay tuition. "The primary way we help students pay for college is by telling them to take on more and more student loan debt," says Tamara Draut, director of the Economic Opportunity Program at Demos. The message is clear, she says: "Debt is O.K., and you are going to have lots of it." In that context, [Central Washington University student Seth] Woodworth and other students think little of charging another $50 for dinner or groceries.

I know I've linked to Elizabeth Warren's article in Democracy before, but it's worth linking to again. She explains how consumers have essentially abdicated all their negotiating power to big companies, who can refuse their products if customers don't agree to their ridiculous terms.

More Expensive Private Loans More Popular

Kay Steiger — Wed, 22 Aug 2007 12:58:03 EDT

Via the Chronicle. It appears that in the latest development on student loans that students are more likely to sign on with devastatingly higher loan rates with private firms rather than fill out the (roughly) 20-page long federal aid form which offers lower rates. This is unsurprising to me. I remember filling out that form. It was painful, to say the least, and when private firms are offering forms where more or less all you have to provide is your social security number and your parents' address.