April 05, 2005
Calling All Democrats
This should be high on your agenda. Rep. Bernie Sanders (I) from Vermont has introduced a 'Anti Loan Shaorking' law, which aims to restrict the crazy lattitude the banks and creditcard companies are currently enjoying.
For the fifth consecutive year, the credit card industry posted record breaking profits totaling more than $30 billion, an increase of 144% over the last decade. How did they do it? Credit card companies collected $21.5 billion in fees last year compared to only $7.3 billion in 1994. Revenue from late fees has jumped from $1.7 billion in 1996 to an amazing $11.7 billion today. Over the past eight years, late fees have risen from $10 to as high as $39. Experts are predicting that late fees could balloon to as high as $50 this year.
The bill aims to do several reasonable things:
- Cap interest rates at 8% above what the IRS charges income tax deadbeats. (Currently 14%)
- Cap bank and credit card fees at $15
- Ban the credit card interest rate bait and switch. IE, when they raise your interest rates crazily, because you missed your cable bill due date by three days.
This bill will provide a sharp contrast to the 'screw you' bankruptcy bill and help remind people that Dems are looking out for them.
Comments:Posted by Henry at 12:29 PM
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