Christopher Dodd - Credit cards are "gouging" customers

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Mogul of Pineapples
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Christopher Dodd - Credit cards are "gouging" customers

Postby Mogul of Pineapples » Thu Feb 12, 2009 10:58 pm

.The Chairman of the Senate Banking Committee (Dodd) ranted about credit card companies gouging customers and it sounds like reform is going to happen much, much sooner than the July 2010 reform that was recently passed by the Fed. Dodd said "These practices are wrong, and they're unfair" in regards to interest rate hikes and other questionable billing practices. He went on to say "Mark my words... in the coming months, they will end."

This is a real victory for consumers. At the same time I think it's a blessing in disguise for the credit card companies even if they don't realize it yet. With these practices no longer going on the credit industry will have a much more favorable image overall in our culture when they become "fair" again.

Here's one brief article about it if you didn't hear about it The Associated Press: Credit card protections considered by lawmakers
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AnthonyBarone
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Postby AnthonyBarone » Fri Feb 13, 2009 1:09 pm

These folks over did it. Banks get an inch and they go a mile. Ya know I cant say I feel too sorry for these folks. The credit party came crashing down because banks were raping and pillaging too many. This new era of reform is a welcome that's for sure.

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Postby Cucumber » Fri Feb 13, 2009 8:47 pm

I love how in this country it takes a major crisis before we will ever admit anything is wrong that we need to change.
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Postby fffresh » Sat Feb 14, 2009 9:01 pm

The unfortunate consequence I believe we will see from this will be higher interest rates and less great balance transfer offers out there whenever this reform takes place. One can bet that the banks will pull credit card promotions if they must cut their profit margins to comply with regulations.

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Postby Cucumber » Mon Feb 16, 2009 3:43 am

fffresh wrote:The unfortunate consequence I believe we will see from this will be higher interest rates and less great balance transfer offers out there whenever this reform takes place. One can bet that the banks will pull credit card promotions if they must cut their profit margins to comply with regulations.


But maybe we NEED to have less of those 0% balance transfer offers for a gazillion months out there because they encourage many people to get into credit card debt! I mean I think all this sux big time but it will probably be better for our country overall if we all don't have endless supplies of credit. Plus when you think about it excess credit drives up prices for the rest of us. Because instead of only the people affording the items suddenly everyone can afford them with credit so that drives up demand. This could actually help us non-credit people out in that way :D
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Postby KC95 » Tue Feb 17, 2009 3:42 am

why do interest rates have to go up just because of the reform?? you know two or three decades ago 15% was considered usury and now its considered the norm. if they didn't have to charge 20 and 30% APR back then i dont see why they have to charge interest rates like that now



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