Yes on H.R. 627, in spite of the CRL’s support
I am not a fan of the Center For Responsible Lending. It isn’t because I’m against responsible lending, it’s because at the root, they do not in fact advocate responsible lending. Any group whose leadership supports toxic housing market activities of Herbert Sandler, Golden West Financial, World Savings Bank, Self-Help, Inc. and the ugly organization of our times – ACORN – cannot be trusted as an honest authority on responsible lending. I’ll take installment loans as needed, regardless of their dubious claims backed by flawed research.
However, that being said, they do have some reasonable things to say. In a recent press release, the CRL encourages citizens to tell their Senators to support H.R. 627, legislation that would help millions of credit card holders.
Consumers have been held hostage
The United States Senate is in the process of voting on credit card legislation that could help customers “avoid hidden fees and penalties,” as well as “unfair retroactive interest rate increases.” The CRL takes the high road and encourages consumers to act now by telling elected officials to support H.R. 627 in the Senate. If you aren’t sure who to talk to, try Visible Vote, a handy app for the iPhone, Blackberry and Facebook.
The Senate bill, according to the CRL, is “even stronger than what the House passed on April 30.” H.R. 627, aka the Credit Card Accountability Responsibility and Disclosure Act of 2009 (or the “Credit CARD Act“) would take long overdue measures to guard multitudes of consumers against abusive practices that credit card companies have had on the books as business as usual for some time. During this difficult economy, it’s all the more important for legislators to look after the populace and protect them from nefarious policies. President Obama believes H.R. 627 will help steer the country in that direction; now’s it’s time for the vote.
According to the CRL, here are the key things H.R. 627 would accomplish in the bloated credit card market:
- Allowing increased interest rates on existing balances only after borrowers are 60 days late in making a payment
- Prohibiting over-the-limit fees unless consumers affirmatively take steps to allow over-the-limit transactions to be approved
- Requiring payments above the minimum payment to be allocated to the highest-interest rate balances first
They even provide a link where consumers can take action and make their elected officials aware of their opinions about credit card companies. For those who prefer to call, the Senate switchboard number is (202) 224-3121.
A CRL study? OK, just go with it this time…
Selective Interpretation?, a recent study commissioned by the CRL, points out that the top eight credit card companies – representing 80 percent of balances – are raising interest rates and increasing fees right before our eyes. The Federal Reserve has issued new rules to regulate this, but it won’t go into effect until July 2010. In the interim, H.R. 627 is absolutely necessary to stem the tide of greed on the part of credit card companies.
The study continues to hold credit card companies’ heels to the fire:
In the last six months, all continue to hike interest rates on existing balances on an “any time, any reason” basis; CRL estimates at least 10 million account holders received rate hikes. Five of the top eight increased transaction fees, late fees, or fees for account maintenance. At least one top issuer broadened the definition of several other fees – over-the-limit, returned payment, and convenience-check fees – so more customers are required to pay them.
We can’t afford runaway fees and limitless credit card company greed. Tell your Senator to vote yes on H.R. 627.
Related Video:
Well finally. It’s about time they did something that didn’t amount to them being rank hypocrites. Granted – they are. They most certainly are, and their buddies over at ACORN are just as bad. Voter registration fraud is not a for profit enterprise, as the election process isn’t either, and to mess with it is not an offense anyone should take lightly. But for them to say that only payday lenders were usurious or predatory all this time is rank hypocrisy. Credit cards have always been far worse, and will continue to be so, along with student loans, and are responsible for far more bankruptcies than payday loans ever will be. In fact, I don’t think payday loans have EVER been cited in a bankruptcy filing. Credit cards, however, have.