Castle: Don't rush credit card reforms
Democrats in Congress want to speed up the Federal Reserve's pro-consumer credit card rules so they take effect this year instead of mid-2010.
Castle: Don't rush credit card reforms
Democrats in Congress want to speed up the Federal Reserve's pro-consumer credit card rules so they take effect this year instead of mid-2010. Those rules would slow interest-rate hikes by requiring 45-day warnings, limit card fees for subprime borrowers, and end "double-cycle" and other compound fees.
Don't rush, says U.S. Rep. Mike Castle, whose Delaware district includes Bank of America's and JPMorgan Chase & Co.'s credit card headquarters in Wilmington. "There's a lot of politics to this," Castle told reporters in a conference call. For banks, "the date is a major issue." He wants "a way the credit card industry can live with this."
"If they have to put it in place too quickly, and they haven't worked out and tested all their models, and they're not confident in what they're doing, it could end up further constricting credit," warned Sandra Braunstein, director of the Federal Reserve's Consumer and Community Affairs division, who joined Castle for the call.
Haven't banks already cut back? We keep hearing from borrowers that card companies are jacking up rates and cutting credit limits. Is that because they're getting ready for the new rules -- or just because they can't sell ("securitize") old credit card loans, to finance new ones, in today's bond markets?
"It is very difficult to say whether part of this is because of the (Fed) rules, versus economic conditions," Braunstein acknowledged? Different agencies still produce different kinds of data for different banks. "There's a lot of piecemeal information," said Castle. I told them it sounds awful tough to make policy from "piecemeal" information instead of hard central data.
Castle's not sure less credit is a bad thing: "We've allowed credit to run away with itself," and some people may just have to get used to borrowing less.
Consumers deserve to be treated fairly by Credit Card corporations - especially those that are getting taxpayer TARP dollars - and then gouge the consumer with higher interest rates. Rep. Castle (R-DE) got almost $200,000 in campaign contributions from the Banks in 2008 - even while the banks were collapsing and begging for a Bailout - they contributed to Reps like Castle to stop any regulation. Castle is a joke. Credit Card Legislation Vote tomorrow March 31st - Call your Congress Reps - - Toll Free Capitol switchboard 1-800-828-0498— pal- As a long time veteran of MBNA/Bank of America, I can safely say that Rep. Castle and Ms. Braunstein are full of it. "Working and testing models" is not rocket science and 60 days is plenty of time to implement the programming changes required. Want proof? They rolled out the changes in higher interest rates and lower credit lines without too much difficulty, so why is this a big deal? Castle is right about one thing..."there is a lot of politics to this", mainly in his campaign contributions for his re-election if he doesn't support the banks in DE.— jimmymack
Comment removed.- Credit card companies are RAVAGING the consumer. There needs to be a STOP put to this IMMEDIATELY! One credit card company we dealt with was going to charge us 37.18% interest on our account and we've NEVER BEEN LATE ON ONE PAYMENT!— Stanley Levin
- Comment removed.
- We could get a cheaper rate from a loan shark in South Philly than we could from some of these credit card companies. This is USERY! Have you ever wondered why credit card companies set up only in certain states? (ie...Delaware, Nevada, South Dakota) It's because there are no usery laws and they can legally charge whatever interest rate they see fit to charge the poor consumer. Let me tellya, this REALLY SUCKS! Mike Castle is merely defending his own state which harbors some major credit card companies. No more, no less. Mike Castle is a political pig.— Stanley Levin
- Comment removed.
- mikey is from the rendell don't bite the hand that feeds you school of politics. maybe he can be appointed to the drpa— natedog
- At what point does the credit card issuer have to accept responsibility to treat it's customers fairly? I think that should be from DAY ONE! In todays modern society people simply cannot survive without using credit cards. You know it and I know it. Why should responsible, frugal, good paying customers be penalized and financially RAPED by these GREEDY PIGS? Riddle me that one, riddler!— Stanley Levin
- You know this legislation is appropriate, the greedy pigs at the trough are squeallllin...— surfbear
- I"M DEBT FREE! Reason #1 is I dont use credit cards! They are in business to make money. Buyer should read the fine print not blame the banks. Also lets not forget, pay your bills!— ahjros
- Some people are smart......some people are dumb..........ILUVPHILLYCITYOFCHAMPIONS!!!!!!!!— ILUVPHILLYCITYOFLOSERS
- Comment removed.
- sillybilly -You should be very happy that the Dems are looking out for your well being.— Malachy
- Mike Castle KNOWS where his bread is buttered! Yes indeed he does! Kiss a little MORE BUTTS Mikey! Why dont'chya!— Stanley Levin
