Click here to check the ultimate guide to learn how to leverage your PC and internet to make money online.
The Washington Independent
The Washington Independent

Dems Reaping What They Sowed on Rising Credit Card Rates

Congressional Democrats this week have been publicly incredulous that the credit card industry would have the temerity to raise rates and limit lending in the

Camilo Wood
News
Last updated: Jul 31, 2020 | Jul 02, 2009

Congressional Democrats this week have been publicly incredulous that the credit card industry would have the temerity to raise rates and limit lending in the months before legislation restricting those practices takes hold. Indeed, Sen. Charles Schumer (D-N.Y.), who in April asked the Federal Reserve to step in to prevent card issuers from raising rates on existing balances before the law takes effect, renewed that request yesterday:

This is what many of us feared about a law that didn’t take effect right away. It was never going to take this long for the credit card companies to get ready for the new reforms. Instead, issuers are using the delay in the effective date to wring more dollars out of their customers. It is against the spirit of the law and it is just plain wrong.

Omitted in the criticisms, however, is the inconvenient fact that it was the Democrats themselves who bowed to banking industry demands to delay their reforms for nearly a year after the bill was signed into law.

Indeed, the original Senate bill would have implemented the changes immediately, but the timeline was stretched to nine months by Democratic leaders, including Banking Committee Chairman Christopher Dodd (D-Conn.), during the markup of the bill.

A similar scene unfolded in the House, where the initial proposal, sponsored by Rep. Carolyn Maloney (D-N.Y.), called for the reforms to kick in 90 days after the bill’s passage. During a subcommittee markup of the bill, however, Rep. Luis Gutierrez (D-Ill.) extended the implementation timeline to 12 months.

The final bicameral compromise adopted the Senate’s nine-month window, meaning the changes — including that which Schumer has requested of the Fed — don’t take effect until February.

The irony here is that, as a chief justification for adopting credit card reforms as legislation, Democrats had cited the need to expedite similar reforms adopted by the Federal Reserve, but which won’t go into effect until July 2010. The Democrats’ legislation beats the Fed’s rules by a few months — but as supporters of that bill are finding out the hard way, that’s leaving plenty of time for the card companies to cash in on the legal leniencies currently in place.

Camilo Wood | Every day, to make a conscious decision to do something, say something, or act in a way that will improve my work experience. I assist organisations in disrupting the status quo of transition. I teach them how to turn their community from enduring change to evolving through change using a realistic and repeatable structure.

Related

$1.89 billion given to states to fight HIV

The federal government Monday announced more than $1.89 billion in funding to states to fight the HIV epidemic with access to care and with more cash for the failing AIDS Drug Assistance Program. According to an HHS press release , $813 million of that money will go directly to the ADAP programming. An additional $8,386,340 will be issued as a supplement to 36 states and territories currently facing a litany of unmet needs and access issues.

Army Data Shows Constraints on Troop Increase Potential

If President Obama orders an additional 30,000 to 40,000 troops to Afghanistan, he will be deploying practically every available U.S. Army brigade to war, leaving few units in reserve in case of an unforeseen emergency and further stressing a force that has seen repeated combat deployments since 2002.

1. Brian Schweitzer

As governor of Montana, Schweitzer doesn’t represent one of the most highly populated, high-profile electoral states in the country. But this

$1.3 Million for Brown

The GOP’s candidate in the Massachusetts special election raised more than one million dollars -- double the goal -- in a 24-hour moneybomb on the Ron Paul

$1.3 trillion in federal spending unaccounted for, report finds

Despite calls for independent bodies to keep government accountable, the Sunlight Foundation’s most recent Clearspending report has found the federal

#1 in Conspiracy Theories

Andrew Young’s tell-all biography of John Edwards, hitting shelves next week, is surging in one Amazon.com category in particular. #1 in Conspiracy

1 Brigade and 1 Battalion

ISTANBUL – It’s 10 p.m. in the lowest level of the Istanbul airport. In 20 minutes I’ll be allowed to board my plane to Kabul, bringing me to the

$1 Million for Toomey

Pat Toomey, the former Club for Growth president and leading Republican candidate in Pennsylvania’s 2010 Senate race, has announced a $1 million haul in the

1. Lindsey Graham

Sen. Graham (R-S.C.) is typically regarded as a reliable vote for his party, but he took the bold step of breaking with his fellow Republicans to join Kerry

Bachmann uncomfortable over earmarks ban

Republicans appear to have boxed themselves into a corner with their portrayal of earmarks as wasteful spending, as many of them have backed a moratorium on

Troubled mine holds hope for U.S. rare earth industry

China currently controls 97 percent of the world’s rare earth production. The Mountain Pass Mine could change that -- if it can overcome serious environmental concerns.

© Copyright 2021 The Washington Independent All Rights Reserved

Terms & Privacy | twi.news@washingtonindependent.com

Click here to check the ultimate guide to learn how to leverage your PC and internet to make money online.