The Washington Independent
The Washington Independent

Senate Panel Approves Credit Card Reform, Minus One Democrat

The Senate Banking Committee today approved legislation forcing banks to make credit cards more consumer friendly, but don’t mistake this for a strictly

Elisa Mueller
News
Last updated: Jul 31, 2020 | Apr 01, 2009

The Senate Banking Committee today approved legislation forcing banks to make credit cards more consumer friendly, but don’t mistake this for a strictly partisan issue. While it’s true that most Democrats support the legislation and most Republicans oppose it (the panel vote was 12-11), there are regional nuances in this debate as well.

Take Sen. Tim Johnson. The South Dakotan was the lone Democrat on the banking panel to vote against the bill.

The reason? Well, officially, Johnson said the bill “goes too far in prohibiting lenders from adjusting prices to account for increased risk.” (Among other things, the bill requires companies to give 45 days notice when raising interest rates and prohibits issuers from applying rate increases to existing balances — the types of things that would prevent rates from jumping 20 or 30 percent overnight because of a single late payment.)

Yet South Dakota also happens to be a hub for some of the largest credit card operations in the country, including Citibank. Johnson is clearly protecting the regional industry here, and his opposition to the bill forecasts a tough fight ahead for reform supporters. Indeed, Delaware — another center of credit card activity — is home to Sen. Tom Carper, another Democrat with a history of protecting the industry.

As the stalled cramdown bill has shown, the finance industry has plenty of influence even when the issues aren’t regional. With two Senate Democrats already defending the industry over consumers, the race to 60 is sure to be close.

Elisa Mueller | Elisa Mueller was born in Kansas City, Missouri, to a mother who taught reading and a father who taught film. As a result, she spent an excessive amount of her childhood reading books and watching movies. She went to the University of Kansas for college, where she earned bachelor's degrees in English and journalism. She moved to New York City and worked for Entertainment Weekly magazine for ten years, visiting film sets all over the world.

Related

Rep. Paul Ryan to deliver SOTU response

Chairman of the House Budget Committee Rep. Paul Ryan (R-Wis.) will deliver the Republican response to the State of the Union Tuesday, according to Mike Allen

Rep. Paulsen allies with medical device industry to relax FDA oversight

Source: Flickr; Republicanconference (www.flickr.com/photos/republicanconference) On the heels of the Minnesota Independent story last week about U.S. Rep. Erik Paulsen’s cozy financial relationship with the medical device industry, the New York Times reported Tuesday that some health professionals are alarmed by Paulsen’s push to relax Food and Drug Administration (FDA) oversight

Rep. Paulsen touts balanced budget constitutional amendment

In a post for the conservative blog True North , U.S. Rep

Rep. Patrick McHenry: Please, Conservatives, Fill Out Your Census Forms!

The conservative congressman from North Carolina, a constant critic of the census -- one of the people who sounded the alarm about politicization when the

Rep. Paulsen, Karl Rove the latest to get ‘glittered’

Rep. Erik Paulsen and former Bush staffer Karl Rove were both showered with glitter at the Midwest Leadership Conference Friday

Rep. Perlmutter to hold constituent meet-up in grocery store

Colorado Congressman Ed Perlmutter will hold a Government in the Grocery constituent meet-up this evening from 5-7 at the Safeway at 38th and Wadsworth in Wheat Ridge. The address is 3900 Wadsworth. The meeting, where Perlmutter typically sits at a folding table and talks to whomever shows up, is free and open to the public

Rep. Perlmutter criticizes House measure that would eliminate 800K federal jobs

Congressman Ed Perlmutter today issued a scathing statement criticizing the House of Representatives for passing a spending bill that could put nearly a million federal employees out of work. The Colorado delegation voted strictly on party lines, with all four Republicans voting in favor of the bill and the three Democrats voting in opposition. Perlmutter’s statement: “My number one priority is to get people back to work because that’s the best thing we can do to pay our debt and move forward toward economic stability

Rep. Pete Stark Won’t Dignify Constituent by, er, Micturating Upon His Leg

In the tradition of Rep. Barney Frank (D-Mass.), California Democratic Rep. Pete Stark revealed at a recent town hall gathering that there are limits to what

Rep. Peace, ACLU seek investigation of soldier’s allegations of racial discrimination in Afghanistan

Both Rep. Steve Pearce (R-NM) and the American Civil Liberties Union agree: There needs to be an investigation into Spc.

© Copyright 2021 The Washington Independent All Rights Reserved

Terms & Privacy | twi.news@washingtonindependent.com