The federal government recently passed a bill which places restrictions on how and when a bank can increase the interest rates on credit cards. It also requires that banks give customers 45 days notice before the rates are raised.
Sen. Carl Levin, D-Mich, an advocate of the bill, says this bill is “a good first step, but they don’t prevent a number of unfair, deceptive and predatory practices that saddle many American families with crushing debt.”
Oddly enough, this bill which so many congressmen says is vital and important step to protect citizens from capricious rate increases, which many fear will stem from the banks’ efforts to increase profits even more than they currently enjoy.
Levin says: “Every day, the taxpayer is being asked to foot the bill for our biggest banks’ irresponsible lending practices.” “America’s banking giants can’t be allowed to dig themselves out of the hole they are in by loading up American families with unfair fees and interest charges.”
Levin, you may remember, voted for the massive bank handout, and also championed the auto company handout, which will not only devalue our dollar, but place an enormous tax burden on every man, woman, and child alive today, in addition to every citizen for decades to come.
Here’s a link to the article:
I guess Carl is more concerned with his credit card bill than he is with multi-trillion dollar federal deficits and the stunning debt burden he has helped place on us and our descendants. While he may have saved us from a couple of hundred dollars of interest on our credit card bill, simultaneously, he was helping straddle us with the 700 BILLION dollar handout which was supposed to ‘buy’ bad debt from the banks so that it would free up their money so they could then start loaning to consumers again. Once the money was handed out, that goal changed, of course, and the banks immediately used the money to start buying up other banks. Once you’ve been rewarded for failure, it’s time to spread your failures to more and more institutions. Now, part of that $700 Billion is being given to the car companies who have run themselves into the ground. It is not technically a “loan,” since the government says it must be (ha ha) “paid back within three years” (nudge nudge). Of course, the auto companies claim that they are losing many billions of dollars EVERY MONTH, so paying back a multi-billion dollar loan in three years shouldn’t be a problem, eh?
If the car companies’ claims that they are losing a combined $21 billion each month is true, then the federal government is the definition of “fool” for being suckered into what will undoubtedly end up being a bad loan, if indeed it was ever intended to actually be a loan.
But, with a backdrop of this staggering situation, Levin and his ilk are concerned with rules regarding when your credit card company can raise its interest rates.
Anyone ever hear the term “Penny wise and Pound foolish?”