Credit cards

Expedited CARD Reform for Consumers Act of 2009

hmoroz — Wed, 04 Nov 2009 18:57:51 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Effective date of most provisions of the originally introduced version of the Credit Card Accountability, Responsibility, and Disclosure Act: 3 months after passage

Effective date of most provisions of the version of the Credit Card Accountability, Responsibility, and Disclosure Act that was signed into law: 9 months to 15 months after passage

Percentage of credit cards from the 12 largest banks that use practices deemed “unfair or deceptive” by the Federal Reserve: 100

Median advertised range of APRs for credit cards issued in December of 2008: 9.99%-15.99%

Median advertised range of APRs for credit cards issued in July of 2009, after the Credit Card Accountability, Responsibility, and Disclosure Act’s passage: 12.24%-17.99%

Maximum annual fee instituted by Citigroup in August that is imposed when a cardholder does not spend enough: $90

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. The Credit Card Accountability, Responsibility, and Disclosure Act was a major step forward for consumer protections. The legislation ended the most insidious practices employed by credit card companies, protecting consumers from policies that can keep them mired in debt despite their best efforts to dig themselves out. However, the Act delayed implementation of these vital consumer protections for over a year in some cases, allowing card companies to raise interest rates, increase fees, and jack up minimum payments in the meantime. The Pew Safe Credit Cards Project finds that many credit card companies worsened their treatment of consumers in anticipation of the legislation. The Expedited CARD Reform for Consumers Act would ensure that these unfair and deceptive practices end immediately. Although the bill will not aid consumers whose interest rates and fees have been raised in recent months, the Act will prevent card companies from continuing to intensify the financial strain on households already struggling to make ends meet.

Quotes from Experts

Beyond this Bill

Additional Resources

“H.R. 2382, the Credit Card Interchange Fees Act of 2009 and H.R. 3639, the Expedited CARD Reform for Consumers Act,” Hearing of the House Financial Services Committee

“Still Waiting: ‘Unfair or Deceptive’ Credit Card Practices Continue as Americans Wait for New Reforms to Take Effect,” from Pew Safe Credit Cards Project

“Modernizing Consumer Protection in the Financial Regulatory System: Strengthening Credit Card Protections,” from the Senate Committee on Banking, Housing, and Urban Affairs

Expedited CARD Reform for Consumers Act of 2009

hmoroz — Wed, 04 Nov 2009 18:57:51 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Effective date of most provisions of the originally introduced version of the Credit Card Accountability, Responsibility, and Disclosure Act: 3 months after passage

Effective date of most provisions of the version of the Credit Card Accountability, Responsibility, and Disclosure Act that was signed into law: 9 months to 15 months after passage

Percentage of credit cards from the 12 largest banks that use practices deemed “unfair or deceptive” by the Federal Reserve: 100

Median advertised range of APRs for credit cards issued in December of 2008: 9.99%-15.99%

Median advertised range of APRs for credit cards issued in July of 2009, after the Credit Card Accountability, Responsibility, and Disclosure Act’s passage: 12.24%-17.99%

Maximum annual fee instituted by Citigroup in August that is imposed when a cardholder does not spend enough: $90

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“H.R. 2382, the Credit Card Interchange Fees Act of 2009 and H.R. 3639, the Expedited CARD Reform for Consumers Act,” Hearing of the House Financial Services Committee

“Still Waiting: ‘Unfair or Deceptive’ Credit Card Practices Continue as Americans Wait for New Reforms to Take Effect,” from Pew Safe Credit Cards Project

“Modernizing Consumer Protection in the Financial Regulatory System: Strengthening Credit Card Protections,” from the Senate Committee on Banking, Housing, and Urban Affairs

Consumer Financial Protection Agency Act of 2009

hmoroz — Tue, 04 Aug 2009 12:05:27 -0400

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Consumer Financial Protection Agency Act of 2009

hmoroz — Tue, 04 Aug 2009 12:05:27 -0400

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Credit Card Accountability, Responsibility, and Disclosure Act of 2009

hmoroz — Fri, 15 May 2009 14:31:08 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Total revolving debt – made up mostly by credit card debt – in January of 2003: $756 billion

Total revolving debt in January of 2009: $976 billion

Number of mailed credit card offerings in 1990: 1.1 billion

Number of mailed credit card offerings in 2005: 6.06 billion

Number of mailed credit card offerings in 2008: 3.8 billion

Minimum percentage increase in the average late fee between 1995 and 2005, adjusted for inflation: 80

Amount of fees charged to credit card customers in 2002: $10.7 billion

Amount of fees charged to credit card customers in 2007: $33 billion

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Many middle-class Americans rely on credit cards to meet daily expenses. Revolving debt – which mostly stems from credit cards – has increased 66% since 2000 . 80% of U.S. households have at least one credit card and more than 55% of households carried an outstanding balance in 2004. Since credit is increasingly necessary to fund a middle-class standard of living, credit card companies have been able to take advantage of their customers. As credit has become scarcer and card companies more concerned about maintaining their bottom line during the financial crisis, card companies have hiked interest rates even on cardholders with excellent credit.

Consumers have been slapped with excessive and obscure fees and interest charges that, if they are explained at all, are described in small text and confusing language. It is now common practice for credit card companies to apply finance charges twice in a billing cycle (double-cycle billing); to raise interest rates on a credit card for credit problems not associated with that card (universal default); to charge multiple over-the-limit fees; and to apply payments on balances with multiple interest rates to the balance with the lowest rate, all practices banned or restricted under this bill. The Credit Cardholders’ Bill of Right ends the most insidious practices employed by credit card companies, protecting consumers from policies that can keep them mired in credit card debt despite their best efforts to dig themselves out.

Quotes from Experts

Beyond this Bill

Additional Resources

“Modernizing Consumer Protection in the Financial Regulatory System: Strengthening Credit Card Protections,” from the Senate Committee on Banking, Housing, and Urban Affairs

“Reining In Credit Card Abuses,” from U.S. Public Interest Research Group

“The Credit Cardholders’ Bill of Rights,” by Adam Levitin of CreditSlips

Credit Card Accountability, Responsibility, and Disclosure Act of 2009

hmoroz — Fri, 15 May 2009 14:31:08 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Total revolving debt – made up mostly by credit card debt – in January of 2003: $756 billion

Total revolving debt in January of 2009: $976 billion

Number of mailed credit card offerings in 1990: 1.1 billion

Number of mailed credit card offerings in 2005: 6.06 billion

Number of mailed credit card offerings in 2008: 3.8 billion

Minimum percentage increase in the average late fee between 1995 and 2005, adjusted for inflation: 80

Amount of fees charged to credit card customers in 2002: $10.7 billion

Amount of fees charged to credit card customers in 2007: $33 billion

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Modernizing Consumer Protection in the Financial Regulatory System: Strengthening Credit Card Protections,” from the Senate Committee on Banking, Housing, and Urban Affairs

“Reining In Credit Card Abuses,” from U.S. Public Interest Research Group

“The Credit Cardholders’ Bill of Rights,” by Adam Levitin of CreditSlips

Credit Cardholders’ Bill of Rights Act of 2009

hmoroz — Wed, 01 Apr 2009 17:08:41 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Total revolving debt – made up mostly by credit card debt – in January of 2003: $756 billion

Total revolving debt in January of 2009: $976 billion

Number of mailed credit card offerings in 1990: 1.1 billion

Number of mailed credit card offerings in 2005: 6.06 billion

Number of mailed credit card offerings in 2008: 3.8 billion

Minimum percentage increase in the average late fee between 1995 and 2005, adjusted for inflation: 80

Amount of fees charged to credit card customers in 2002: $10.7 billion

Amount of fees charged to credit card customers in 2007: $33 billion

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Many middle-class Americans rely on credit cards to meet daily expenses. Revolving debt – which mostly stems from credit cards – has increased 66% since 2000. 80% of U.S. households have at least one credit card and more than 55% of households carried an outstanding balance in 2004. At the same time, middle-class households are constantly bombarded with misleading credit card offers even when they cannot afford to take on additional debt. But since credit is increasingly necessary to fund a middle-class standard of living, credit card companies have been able to take advantage of their customers. As credit has become scarcer and card companies more concerned about maintaining their bottom line during the financial crisis, card companies have hiked interest rates even on cardholders with excellent credit.

Consumers have been slapped with excessive and obscure fees and interest charges that, if they are explained at all, are described in small text and confusing language. It is now common practice for credit card companies to apply finance charges twice in a billing cycle (double-cycle billing); to raise interest rates on a credit card for credit problems not associated with that card (universal default); to charge multiple over-the-limit fees; and to apply payments on balances with multiple interest rates to the balance with the lowest rate, all practices banned or restricted under this bill. The Credit Cardholders’ Bill of Right ends the most insidious practices employed by credit card companies, protecting consumers from practices that can keep them mired in credit card debt despite their best efforts to dig themselves out.

Quotes from Experts

Beyond this Bill

Additional Resources

“Hearing to Reignite Debate on Credit Cardholders’ Bill of Rights & Consumer Overdraft Protection,” from the House Financial Services Committee

“Reining In Credit Card Abuses,” from U.S. Public Interest Research Group

“The Credit Cardholders’ Bill of Rights,” by Adam Levitin of CreditSlips

Credit Cardholders’ Bill of Rights Act of 2009

hmoroz — Wed, 01 Apr 2009 17:08:41 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Total revolving debt – made up mostly by credit card debt – in January of 2003: $756 billion

Total revolving debt in January of 2009: $976 billion

Number of mailed credit card offerings in 1990: 1.1 billion

Number of mailed credit card offerings in 2005: 6.06 billion

Number of mailed credit card offerings in 2008: 3.8 billion

Minimum percentage increase in the average late fee between 1995 and 2005, adjusted for inflation: 80

Amount of fees charged to credit card customers in 2002: $10.7 billion

Amount of fees charged to credit card customers in 2007: $33 billion

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Many middle-class Americans rely on credit cards to meet daily expenses. Revolving debt – which mostly stems from credit cards – has increased 66% since 2000. 80% of U.S. households have at least one credit card and more than 55% of households carried an outstanding balance in 2004. At the same time, middle-class households are constantly bombarded with misleading credit card offers even when they cannot afford to take on additional debt. But since credit is increasingly necessary to fund a middle-class standard of living, credit card companies have been able to take advantage of their customers. As credit has become scarcer and card companies more concerned about maintaining their bottom line during the financial crisis, card companies have hiked interest rates even on cardholders with excellent credit.

Consumers have been slapped with excessive and obscure fees and interest charges that, if they are explained at all, are described in small text and confusing language. It is now common practice for credit card companies to apply finance charges twice in a billing cycle (double-cycle billing); to raise interest rates on a credit card for credit problems not associated with that card (universal default); to charge multiple over-the-limit fees; and to apply payments on balances with multiple interest rates to the balance with the lowest rate, all practices banned or restricted under this bill. The Credit Cardholders’ Bill of Right ends the most insidious practices employed by credit card companies, protecting consumers from practices that can keep them mired in credit card debt despite their best efforts to dig themselves out.

Quotes from Experts

Beyond this Bill

Additional Resources

“Hearing to Reignite Debate on Credit Cardholders’ Bill of Rights & Consumer Overdraft Protection,” from the House Financial Services Committee

Credit cards

Expedited CARD Reform for Consumers Act of 2009

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Expedited CARD Reform for Consumers Act of 2009

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Consumer Financial Protection Agency Act of 2009

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Consumer Financial Protection Agency Act of 2009

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Credit Card Accountability, Responsibility, and Disclosure Act of 2009

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Credit Card Accountability, Responsibility, and Disclosure Act of 2009

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Credit Cardholders’ Bill of Rights Act of 2009