Senate Rejects Limit on Credit-Card Interest Rates

Source: NY Times

May 13, 2009, 5:49 pm

Senate Rejects Limit on Credit-Card Interest Rates
By Carl Hulse

Despite complaints that banks and credit card companies are gouging customers by charging outrageous interest rates, the Senate on Wednesday easily turned back an effort to cap interest rates at 15 percent.

The effort by Senator Bernie Sanders, the Vermont independent, drew only 33 votes and needed 60, with a bipartisan group of 60 senators opposing it as the Senate pushed its credit card overhaul toward the finish line. Some Democrats and consumer groups have said that an interest cap is needed to put real teeth into an otherwise solid bill.

Other backers of the measure calculated that an interest rate ceiling would doom the popular legislation. The banking industry, which had some heavy-weight representatives monitoring the vote off of the Senate floor, warned that an interest rate limit could cause a sour reaction in the financial markets.

But Mr. Sanders said the card companies and banks were engaged in conduct that could get others hauled into court. He said one-third of all credit card holders are paying interest above 20 percent and as high as 41 percent.

“When banks are charging 30 percent interest rates, they are not making credit available,” said Mr. Sanders, who noted credit unions are limited to 15 percent. “They are engaged in loan-sharking.”



Read more: http://thecaucus.blogs.nytimes.com/2009/05/13/senate-re...

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Meanwhile, the banking industry whores in the Senate want to impose a tax on the soda we drink:

http://www.democraticunderground.com/discuss/duboard.ph...

Remember these scum on election day.

Now we know for sure the banks own congress -- as if any proof was needed.

It's been around for centuries apparently, and for many years it was a good as cash.

The only major drawback was that it required operating a writing instrument and formulating the words to describe the amount of money to be paid, along with a date, the recipients and ultimately your signature.

Just think about it for a minute. As I mentioned in my previous post, personal and business checks have been around since the invention of money. Money was originally a receipt for gold on deposit at the moneychangers.

Today, we have rampant Credit Card fraud, where milllions of credit card numbers are compromised and traded for other purposes. Additionally, many companies have been caugt double billing credit cards.

The whole idea that Handwritten cheack are any less secure than credit cards is a lie. In fact, a fraudulent check in many case is easier to identify and get a conviction than credit card fraud, namely because you have physical writing that you can examine and perhaps track down to the writer of the check. People passing bad checks were subject to the law as well as the forger.

Now, here is the good part. The banks years ago passed legislation that they no longer have to prove the identity of the receiver of the check. For example, if a check is written to and individual, then they are liable for any amount if the check is cashed out for anyone other that the person writtten on the check. However, when the check is written to a corporation, they have no liability whatsoever, and will pay it regardless. The check will be paid no matter what, and it is up to the accountholder to be alert and catch the fraudulent transaction. From there it is a dance between banks, law enforcemnet and ultimate liability, but the banks are more or less insulated from any responsibility in that case.

The banking system is systematically removing our ability to write personal checks, and one has to ask yourself "Why? A personal check is private property. They cannot confiscate or deactivate a checkbook. A check require no electricty or infrastructure to process. It allows a personal interaction between the payor and the payee when those situations arise in daily life, yet all of a sudden, we see the big banks marketing that checks are bad, Credit Cards and plastic money are good.

They market checks are somehow less secure than Credits Cards, which is a lie. The only reason that Credit Cards may have any advantage, is due to the fact that you can use the bargaining power of the Crtedit Card company to resolve any Differences, never mind that in a normal world you used to be able to do it yourself, for less cost. Now, they do it for you, Guaranteed, which create a false sense of security on part of consumers, and increases costs overall. 20% interest rates? Multiple Tiers of Interests rates amalagamated into one monthly payment? Principal applied to Higher Tiers before the Lower interest rate tiers see one nickel? ( I believe thats a Capital One innovation )

Sure, there are places that won't take checks anymore. Don't shop there. Find places that honor checks and execise your right.

10 years ago I would have never dreamed of defending the Personal Check, but after I learned of Check 21, and then found that the banks are making it more and more difficult to write a personal check, I use it as my first means of paying for anything. Usually, the scenario is I get to the cashier, get the bill and pay it with a check. Nine times out of ten, there will be some initial difficulty in processing the check. The manager is called, who pushes a button on the register, and the check is ultimately accepted, and I see it on my statement.

The reality is that there is usually some "Problem" in accepting a check, from businesses that have been accepting checks for decades. Something is up, and the removal of Personal Checks is a bad trend in our economy. Don't fall for it.

I remember in 2001-2002 that California was subjected to rolling blackouts caused by manipulation of the energy market by Enron. When the blackouts hit, there were numerous stories on the news that showed supermarkets shutting down, because they had no way of processing the sales. Since I was a software engineer at the time, I was absolutley horrified that the clerks and managers of these stores could not use pen and paper to support their business. They would rather shut down than make an error that would most like be a few cents at the end of the day.

This is the world we live in today. Madison Avenue is selling you a bill of goods and is slowly, inexorably taking your rights away, and the human public believes them and skips along without a care or thought in a world.

Write Checks! Retain this most basic function of the economy. The banks hate personal checks, and they are trying their best to make them disappear.

spend only what you have, even where checks are not accepted. Even better than checks, in fact. Debit cards don't bounce.

If every American exploited by the credit unions REFUSES to pay the post-contract inflated interest; that would be a true American Act against "taxation without representation"

The banking industry has the bucks to wait you out. And then they would find a way to retaliate
against you for doing so. Get use to it gang - money and power rules this country.

Congress and the Corporate world or the pimps and the american population is their whores.

And when the whores start getting uppity - the pimps will Bitch-Slap-Em. IMHO of course.

Starting to get the picture?

...to bring these corporate monoliths to their knees?

Fuck these assholes. What are they doing in our senate, dictating governmental policy. Oh, that's right I forgot. They control EVERYTHING, and WE ALLOW THEM TO DO SO!

I know easier said than done but how would people start this movement?

They can't garnish wages, take your primary residence, or your car. It's best to turn off your phone ringer, hire a consumer lawyer & make the companies sue you (you can then decide whether to fight them - often the bottom feeder suing you does not have the paperwork to prove their case), or settle with them at a reasonable rate that takes off some of their hideous rates/late charges.

It's really a racket and one of the main reasons I'm not a big fan of Joe Biden. I can understand banks making a profit, but this credit card thing is a scam. I have kept a few small cards and car loans to rebuild credit and use Am Ex (pd monthly) for unexpected expenses. Other than that we pay cash for everything, and pay/settle/etc... on those old cards until the statute runs. With the caveat that small payments don't cut it - they keep the clock running - so talk to a lawyer to see about settling some out or how to best go forward. It ruins your credit for awhile, but if you have no other option for paying them back this is a way to go.

I'm not a lawyer so again you must talk to a consumer lawyer in Texas to get advice for your particular situation. I also don't advocate using this to get rid of old debt and take on more. The best move is to cut up most of those cards (I did in 2003), keep one maybe for emergencies, and pay cash going forward. You'll be glad you did, I know.

Just my opinion of course, but I've been through all this and have seen a lot.

Of course at the moment who wants it? In Texas or anywhere else. Who has any equity to cover the debt with?

The biggest fraud perpetrated today is "Debt Consolidation", where the banks suggest that you take adavantage of the conveinience of turn all your bills into one manageable payment.

What they are asking you to do is to Transform unsecured debt, from which they can recover nothing, to a Secured debt, where they can take you home or real property. As soon as you take that second mortgage, or refinance and increase you monthly payment, you have now basically put another foot into the bear trap.

The whole financial industry wins big, and the sucker that fell for the "Debt Consolidation" Myth loses by becoming more deeply mired in the perpetual struggle of Debt Slavery.

No offense to anyone that fell for this. I fell for it and it led to ruin and I will never fall for any "Suggestions" like that from any bank ever again.

As far as equity, I have tons, but it still doesn't matter. The Banks have clamped down and are forcing a deflationary event in order to weaken America for the next attack, which will be inflation, shortages and fewer rights.

Filing bankruptcy in Texas has it's own laws as well. It's really state by state. We chose to not do that, and don't own a house (although we will inherit eventually), so we're better off in our case letting it go. Some banks were reasonable to work with & would take payments/lower rates. Those I worked with. Others seem to have this scam where they jack up your rates, others see it on your credit and do as well, and then refuse to work with you - pretty much forcing you to declare bankruptcy. It's a really horrible racket, and one that should be stopped.

leave the banks and go to credit unions, cut up the credit cards and only use debit or AmEx, SOMETHING. The banks take and take and give so little in return. Enough already!

I use my debit card, but I use it as credit since it gives me points. Do I need to use it as a debit card instead?

believe that if you use a debit card as either debit or credit it still comes out of your checking account only. Unless of course you have an actual credit line of overdraft protection attached to your checking account but those are very rare now most banks use the savings overdraft protection where they will move money from savings into checking to cover an overdraft of your checking.

We just need about 20% they would cry uncle in about 2 months - maybe less...

Stop paying those bastards and make them spend some money to get their money through the legal system.

The Senate is owned by the banks.

so why would we expect health care reform or one-payer-system?We wouldn't need health insurance companies..So with the banks and insurance companies having very high stakes in treasury bonds we can only dream about real health care reform.Take the profits away from these companies?...Don't think so

An idea:

Rather than a 15% national limit, the legislation should nullify the Marquette decision of 1978.
Then state usury laws could be enforced against national banks.

This approach would garner more votes.

Democratic and Republican to pass bi-partisan bills written by corporatist lackeys.

You will need a Bolivarian Revolution in America if you want real change!

Then they bribed the people's representatives in Washington and the people ignored their loss.

And the only jobs left were in the U.S. Foreign Legion, defending the worldwide assets of those who had taken the people's jobs and stolen the people's government.

The people shouted, "We the people are dead, long live the corporation."

And the high priests of Mammon laughed about how easy it was to destroy the world's longest running, most successful experiment in democracy.

And the thirsty and hungry and sick and imprisoned and naked prayed to Mammon to have mercy on their wretched. miserable bodies because the people had lost the very soul of democracy,

http://www.democraticunderground.com/discuss/duboard.ph...

give me a call. Till then, I think I will tend to my garden.

The government now behaves as if it is a Corporation. They don't believe that Corporations have more power then the Government, which has the inconvenient attachment to the Constitution, so they ignore the Constitution and run it like a Big Corporation.

This is the cancer that has infected America.

http://www.senate.gov/legislative/LIS/roll_call_lists/r...

If only 33 Senators supported Sanders bill, then the other half of Dem Senators favor the practice of credit card companies charging loan shark rates on their credit cards.

Senators for Sale.

How about a sour reaction in the consumer's pocket book? We've always had caps on consumer interest rates in the past and the interest was tax deductible until the repukes got in to control!

The lobbyists would cut off the donations and perks to politicians.

Money talks.

We don't have a democratic option in the current one party system.

n/t

other conclusion?

Fuck them. They all deserve to be voted out.

http://www.senate.gov/legislative/LIS/roll_call_lists/r...

33 democrats voted for it. 6 did not vote (including Kennedy and Milkusky who were not there for the day), 20 voted against it.

The Bayhs and the Nelsons and the rest of them. How can they sleep at night?

On a big ol' pile of credit card company and lobbyist money, that's how.

May they burn in hell with the bastards that fund them.

They have the assumption that they will be part of the chosen few to entire that magical realm of the Undisclosed Secure area when the people finally decided enough is enough and refuse to operate the function of Government for them.

I think it's time America took a nice long vacation, fix up the house, spend time with the family and relax. Let the beauraucrats run washington without their flunkies for a while.

Never saw that coming.

* Debbie Stabenow, but only if they need her.

What a POS!

Our one great senator from Pa- Casey voted yeah along with Senator Kerry. This is good to know.

That dink needs to get tossed out and replaced with Jenny when her term's up.

Alphabetical by Senator Name
Akaka (D-HI), Nay
Alexander (R-TN), Nay
Barrasso (R-WY), Nay
Baucus (D-MT), Nay
Bayh (D-IN), Nay
Begich (D-AK), Yea
Bennet (D-CO), Yea
Bennett (R-UT), Nay
Bingaman (D-NM), Nay
Bond (R-MO), Nay
Boxer (D-CA), Yea
Brown (D-OH), Yea
Brownback (R-KS), Nay
Bunning (R-KY), Nay
Burr (R-NC), Nay
Burris (D-IL), Yea
Byrd (D-WV), Nay
Cantwell (D-WA), Nay
Cardin (D-MD), Yea
Carper (D-DE), Nay
Casey (D-PA), Yea
Chambliss (R-GA), Nay
Coburn (R-OK), Nay
Cochran (R-MS), Nay
Collins (R-ME), Nay
Conrad (D-ND), Yea
Corker (R-TN), Nay
Cornyn (R-TX), Nay
Crapo (R-ID), Nay
DeMint (R-SC), Nay
Dodd (D-CT), Yea
Dorgan (D-ND), Yea
Durbin (D-IL), Yea
Ensign (R-NV), Nay
Enzi (R-WY), Nay
Feingold (D-WI), Yea
Feinstein (D-CA), Yea
Gillibrand (D-NY), Yea
Graham (R-SC), Nay
Grassley (R-IA), Yea
Gregg (R-NH), Nay
Hagan (D-NC), Nay
Harkin (D-IA), Yea
Hatch (R-UT), Nay
Hutchison (R-TX), Nay
Inhofe (R-OK), Nay
Inouye (D-HI), Yea
Isakson (R-GA), Nay
Johanns (R-NE), Nay
Johnson (D-SD), Nay
Kaufman (D-DE), Nay
Kennedy (D-MA), Not Voting
Kerry (D-MA), Yea
Klobuchar (D-MN), Yea
Kohl (D-WI), Yea
Kyl (R-AZ), Nay
Landrieu (D-LA), Nay
Lautenberg (D-NJ), Yea
Leahy (D-VT), Not Voting
Levin (D-MI), Yea
Lieberman (ID-CT), Nay
Lincoln (D-AR), Nay
Lugar (R-IN), Nay
Martinez (R-FL), Nay
McCain (R-AZ), Nay
McCaskill (D-MO), Yea
McConnell (R-KY), Nay
Menendez (D-NJ), Yea
Merkley (D-OR), Yea
Mikulski (D-MD), Not Voting
Murkowski (R-AK), Nay
Murray (D-WA), Nay
Nelson (D-FL), Nay
Nelson (D-NE), Nay
Pryor (D-AR), Nay
Reed (D-RI), Yea
Reid (D-NV), Yea
Risch (R-ID), Nay
Roberts (R-KS), Nay
Rockefeller (D-WV), Not Voting
Sanders (I-VT), Yea
Schumer (D-NY), Yea
Sessions (R-AL), Nay
Shaheen (D-NH), Nay
Shelby (R-AL), Nay
Snowe (R-ME), Nay
Specter (D-PA), Nay
Stabenow (D-MI), Nay
Tester (D-MT), Nay
Thune (R-SD), Nay
Udall (D-CO), Yea
Udall (D-NM), Yea
Vitter (R-LA), Nay
Voinovich (R-OH), Not Voting
Warner (D-VA), Nay
Webb (D-VA), Yea
Whitehouse (D-RI), Not Voting
Wicker (R-MS), Nay
Wyden (D-OR), Yea

Everyone will forget they voted no on this and return them to Congress. Just because they have the little (D) next to their name. And of cousre most of them have the political machine at home in their control to block anyone else with a little (D) next to their name from challenging them. Oh, people do challenge them. And then are literally run out of town. The party supports the incumbent. And the party demands you support the candidate the party supports.

Once again, something for Wall Street. Nothing for Main Street.

One, (Kohl) is a surprise. I expected him to vote with the big business crowd. I'll have to call him in the morning and tell him thanks for trying to stick up for us.

He's not all that bad on economic matters.

Given his voting record lately, I'm quite surprised. Thanks for the link.

WHEN DOES IT STOP?

It will never change.

Socialists will always take the side of the working class.

Except when it comes to losing campaign donations from the financial sector.

I suspect if we made a chart, we could show that the "no" votes are beneficiaries of campaign donations from the very industries they've been asked to police.

And of those who voted 'yeah', we would likely find that they too accept campaign donations and lobbying money from corporate interests; pharmaceutical, insurance, defense, etc (I hate using the term 'defense' in reference to war profiteers).

I don't know how we will ever escape from the cycle of quasi legal bribery of 'our' representatives.

and he turn gave same to his handmaid Gillibrand. They must have known it was in the bag.

Get your personal congress votes here! Credit cards accepted!

Them credit card people don't spend money to lose money

You can smell the filthy money from here

Gee, big surprise.

They really are trying very hard to get the people to rise up with pitchforks and torches. Economic devastation plagues this country, and BOTH parties offer nothing but a nod to the banks?

I have said this many times and will say it again...the reason power returns back to Republican hands regularly is because the Democrats are feckless and cowardly. They rarely do anything at all for anyone but the same entrenched interests the Republicans love so much. People lose heart and do not vote, and then the next Republican asshole takes office.

We've been in this repeating cycle for my entire life.

Vote the goddamned DLC assholes out and replace them with Democratic populists whom conservative districts will vote for. If that is not allowed to happen, then pitchforks and torches are all that is left. People are fucking starving these days!

elections. Today is just one of countless cases in point.

What a travesty of democracy this credit card vote was.

I tend to agree with the late Aaron Russo, that the 2 party political system is a fraud

I highly recomend the movie "Freedom to Fascism", which makes some very good points. His interview with Alex Jones is very interesting as well. These videos are freely available in their entirety on the web, Youtube and Google video for those that are interested.

So apparently there are only 32 democrats in Congress.

knowing that it was not going to pass, so that number is pretty fuzzy.

http://www.youtube.com/watch?v=aBJAkCjjz1Y

They care only about themselves and their BENEFACTORS who with their Corporate Lobbyist campaign contributions funnel corporate cash to those who are willing to "work with" their "corporate sponsors." That's HOW IT works folks and THAT is WHY WE R F*CKED! then

http://www.johnrussellforcongress.com/page.asp?PageId=5...

Taken from John Russell on the Economy as appears in the link from John's website during the 2008 election cycle...

A Tax Cut Targeted At Those Who Need IT Most

The decline in the U.S. as well as regional economies such as ours has resulted in great financial pain for working Americans. Consequently, many Americans have resorted to debt in order to finance everyday expenses due to declining incomes. Much of that debt has been incurred via credit cards. Credit card debt has risen tremendously over the course of the last decade as a percentage of income with no relief in sight. Credit card interest rates are at levels previously only seen wben dealing with loansharks. A remedy is required and fast!

I can remember when credit card interest was deductible from your Federal income tax. I am sure that many readers can remember this as well. I will when elected to congress advocate for and author a bill aimed not only at restoring Federal income tax deductibility for credit card interest, but one which is also focused on targeted regulatory reform of the banking industry. Thirty percent interest rates on credit cards in addition to assorted fees charged have become usurious and must be addressed. Legislation to restore Federal income tax deductibility for credit card interest expenditures will represent a tax cut that for many people will be substantial and will be targeted at those citizens most in need of tax relief.

Tax loopholes that favor corporate tax dodging, whether those corporations operating on U.S. soil are foreign or domestic, must be closed. Those corporations who place a P.O. Box in Cancun must be held accountable, and perform according to their income and ability to support this nation upon which they depend for safe harbor, as well as profits. The IRS must be funded and staffed appropriately! Those who are most able… need to pay their fair share!

Wish there was a way for it to be a mandatory viewing type of thing.

If not, they will go to Hell with the rest of these people who have ruined this Country!

The Senate is the brakes on the House -- slowing down the will of the people --

and they do it well!

.... When agriculture subsidies were threatened farmers drove their tractors to D.C.

There are a lot more than a million credit card holders affected by this, they need to mass at the US Senate and demand that the Senators voting against this measure come out and face them to explain their votes.

We are getting close here .... 40-60 million uninsured, 15% real unemployment, predatory banks and mortgage companies, etc.

Won't be long, because the people have little left to lose...

We need an American version of the storming of the Bastille, or the Winter Palace. Heads must roll!

Good gosh, I haven't been teargassed since 1971.....

These Dems are not doing anything to help the people of this country or of their respective state.

They need to be called out, shamed and thrown out of office.

and great health care benefits.'

We should make sure that whatever health care "reform" is passed, Congress gets

to enjoy it with us!!! And pay for it themselves!

just cancel all my cards and tell them why...

If you can, pay off your balance every month, and in the memo line of your check, write "Thanks for the free loan!"

Both of my (supposedly) progressive Democratic senators, Patty Murray and Maria Cantwell, bot voted nay! Imma send them some nasty letters!!!

http://murray.senate.gov/news.cfm?id=312879


So what am I not understanding here...she made a speech supporting the act, told all sorts of nightmare stories about "her constituent's cc experiences"... encouraged the Senate to pass the bill this week, then voted against it??? What the hell??? I haven't read the bill, but is it one of those that if you vote NO, you actually vote Yes???....otherwise this speech, and then a No vote, are confusing as hell...wb

the Seventh Amendment to have civil disputes settled by a jury of our peers.

SCOTUS has approved that infringement upon our rights but congress can pass a law that prohibits credit card companies from putting binding arbitration clauses in credit card agreements.

so the politicians have little incentive to help these folks through legislation. I'm quite sure that for most, if not all, their "Nay" vote proved quite lucrative.

do some House cleaning...and Senate cleaning. People need to start voting their pocketbooks and their self interest.

leader who is not afraid to kick some ass and round up these strays. There is no majority leadership in the senate....hasn't been for quite a while.

if we start looking at some of these 'DEM' and GOP voting records and cast them out accordingly, It won't matter much whose in charge because WE, not the lobbyist will be in charge. OMG what a concept-Congress responding to the will of the people.

Frankly, at this point I don't see a nickles worth of difference between the DEM and GOP so I don't see how a DEM majority would mean squat. They have reneged on so much that they ran on. Obama may be popular at the moment but he'll lose his base if he doesn't get back to his DEM POPULIST ROOTS.

People are angry, hungry, losing their homes and livelihood-IN AMERICA. A large number are slipping into poverty. A large, hungry, homeless, armed populace can develop a life of their own. Folks don't remember the riots that took place in the Depression (actually not much was written on purpose). People here laugh and make fun of the tea baggers but through their misguided way-they bring up a point-anger is just below the surface. Riots will happen again if action is not taken quickly. We need real positive concrete action-like Credit card companies being called to the carpet and bankruptcy judges being able to set terms to help people keep their houses. The DEM have a choice-they can ride the wave or get crushed by it. Right now, my money is on them getting crushed-unless Obama gets more aggressive for the people.

The banking industry, which had some heavy-weight representatives monitoring the vote off of the Senate floor, warned that an interest rate limit could cause a sour reaction in the financial markets.


Assholes.

This shouldn't surprise anyone. The congrass whores always take money from the banking industry and do as they're told.

The banking assholes probably found a way to funnel the BS TARP $$$$ back to these clowns.

whores are up for reelection.

Ha, ha. Fuck you. Loan sharks love us.