We've all played the game. You close your eyes and count to ten while someone hides, then the hunt begins. The House is playing hide and go seek these days, as it threw a bone to consumers by passing legislation aimed at curbing unfair practices by banks--then closed its eyes and counted to ten. The bill will not take effect for a full year!
The bill was intended to rein in bank policies on credit card lending, such as double cycle billing, arbitrary rate hikes, high interest, exorbitant fees, applying your payment to the lowest interest rate balance first, raising interest on balances you rang up years and years ago, slashing credit lines and punishing cardholders in lock step when they miss a single payment, a policy known as 'universal default.' You can read all about the dirty little tricks the banks have used for years to politely rob you here. The bankers fought the bill tooth and nail, but when it became apparent that Obama was going to push the legislation in a recent meeting, they huddled to lobby instead for a "cooling off period," and got their wish. It's like the cops giving a burgler a few hours to get well away before they go after him. The new law will not take effect for a year, which gives the banks another 12 long months in the heart of the deepest recession of modern times to squeeze cardholders as never before.
Interest rates are being hiked across the board, credit lines decapitated, dormant accounts closed, fixed rates converted to variable rates, fees increased. This is the banker's way of saying "thanks" for the billions US taxpayers provided for the purpose of simulating lending--and bear in mind that even after all those bailouts lending is still down, foreclosures are up, fees are through the roof. In effect, the House, the "people's chamber," has just told the criminals they are going to be arrested for their crimes--next year. See you in the Caymans!
It's a little like old Bernie Madoff relaxing in his Manhattan penthouse after being caught with his hand in the til to the tune of $50 billion. Some guy robs a 7/11 and gets identified on camera. The police stop by his house to tell him they'll be by, sometime next year, to arrest him. This is the kind of latitude that money buys when your elected representatives need lots and lots of money to get re-elected. You don't give it to them, the bankers do, and that is the whole of it in one little rotten nutshell. The House action was cowardly and shameful. We should just forget state elections for representatives and simply have each bank send a rep to the House instead. Those 'too big to fail' will staff the Senate chamber. That's pretty much what we have now anyway.
So, the banking lobby fought a skillful delaying action on the Hill, and won another 12 long months to continue their shameful and usurious practices concerning credit card lending, just like the mortgage bank lobby killed the "cramdown" provision intended to bring relief to homeowners and ease foreclosures. It's what prompted Senator Dick Durbin, sponsor of the defeated cramdown provision, to throw up his hands in exhasperation and exclaim: "It's the bankers who run the place." These things happen because the bankers, in nice three piece suits, are up on the Hill every day bending the ears and stuffing the pockets of our elected representatives--while we sit around watching American Idol and eating cheeze doodles. Well, a lot can happen between now and the next election cycle in the House. A year delay on this bill takes us right into prime time campaign contribution season. It will be my bet that the credit card reform bill will be watered down again before it ever takes effect--if it ever takes effect at all.
Isn't democracy wonderful?
The bill was intended to rein in bank policies on credit card lending, such as double cycle billing, arbitrary rate hikes, high interest, exorbitant fees, applying your payment to the lowest interest rate balance first, raising interest on balances you rang up years and years ago, slashing credit lines and punishing cardholders in lock step when they miss a single payment, a policy known as 'universal default.' You can read all about the dirty little tricks the banks have used for years to politely rob you here. The bankers fought the bill tooth and nail, but when it became apparent that Obama was going to push the legislation in a recent meeting, they huddled to lobby instead for a "cooling off period," and got their wish. It's like the cops giving a burgler a few hours to get well away before they go after him. The new law will not take effect for a year, which gives the banks another 12 long months in the heart of the deepest recession of modern times to squeeze cardholders as never before.
Interest rates are being hiked across the board, credit lines decapitated, dormant accounts closed, fixed rates converted to variable rates, fees increased. This is the banker's way of saying "thanks" for the billions US taxpayers provided for the purpose of simulating lending--and bear in mind that even after all those bailouts lending is still down, foreclosures are up, fees are through the roof. In effect, the House, the "people's chamber," has just told the criminals they are going to be arrested for their crimes--next year. See you in the Caymans!
It's a little like old Bernie Madoff relaxing in his Manhattan penthouse after being caught with his hand in the til to the tune of $50 billion. Some guy robs a 7/11 and gets identified on camera. The police stop by his house to tell him they'll be by, sometime next year, to arrest him. This is the kind of latitude that money buys when your elected representatives need lots and lots of money to get re-elected. You don't give it to them, the bankers do, and that is the whole of it in one little rotten nutshell. The House action was cowardly and shameful. We should just forget state elections for representatives and simply have each bank send a rep to the House instead. Those 'too big to fail' will staff the Senate chamber. That's pretty much what we have now anyway.
So, the banking lobby fought a skillful delaying action on the Hill, and won another 12 long months to continue their shameful and usurious practices concerning credit card lending, just like the mortgage bank lobby killed the "cramdown" provision intended to bring relief to homeowners and ease foreclosures. It's what prompted Senator Dick Durbin, sponsor of the defeated cramdown provision, to throw up his hands in exhasperation and exclaim: "It's the bankers who run the place." These things happen because the bankers, in nice three piece suits, are up on the Hill every day bending the ears and stuffing the pockets of our elected representatives--while we sit around watching American Idol and eating cheeze doodles. Well, a lot can happen between now and the next election cycle in the House. A year delay on this bill takes us right into prime time campaign contribution season. It will be my bet that the credit card reform bill will be watered down again before it ever takes effect--if it ever takes effect at all.
Isn't democracy wonderful?
