What a crock.
I have close to $4,000 in credit card debt - because I went through a tight time. I’m now paying it down, and I sure as heck don’t blame the companies who were nice enough to extend me credit.
Posted on 06/12/2008 1:14:35 PM PDT by 2ndDivisionVet
Burdened by credit card debt? It may not be your fault. Sen. Barack Obama says in many cases, the credit card companies are to blame for "pushing" financially strapped Americans "over the edge." The banking industry disagrees.
In a speech in Chicago Wednesday, Obama outlined his plan to "build an economy that works for all Americans." He spoke mostly about personal credit card debt, which he views as a problem with a government solution.
Obama says the sour economy is forcing Americans to put more and more of their debt onto credit cards. (The American Banking Association on its Web site debunks a number of "myths," including the notion that Americans are "up to their eyeballs" in credit card debt. In fact, the ABA says, only about 46 percent of all families carry a credit card balance while 54 percent pay their outstanding balance in full each month. The ABA also points to a Government Accountability Office study showing that credit card balances as a percentage of total household debt have been declining since the mid-1990s.)
Obama noted that while some people make "reckless decisions" -- buying luxury goods they know they can't afford -- many more Americans aren't falling into debt because they made an irresponsible decision -- they're falling into debt because credit card companies are forcing them into it. He accused the credit card companies of using "unfair and deceptive" practices to trick Americans into signing agreements they can't afford." Or understand.
Obama said card-holders must sign long, complex contracts that are filled with "traps and fine print that only a credit card executive could understand."
He said "Washington" has let the companies get away with it -- because those companies have "spent millions" on political campaigns and lobbyists who influence legislation beneficial to the card companies.
"This has to stop," Obama said. "We cannot let the rules of the game continue to be rigged against ordinary Americans. We need a president who will look out for the interests of hardworking families, not just their big campaign donors and corporate allies."
Obama accused Republican John McCain of siding with the credit card companies by supporting a bankruptcy bill that Obama opposed. (The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made it more difficult for Americans to escape their debts through bankruptcy protection. McCain called the bill "an important step toward a fair and balanced approach to restoring personal responsibility to our federal banking system.")
Pending legislation in Congress -- a "Credit Cardholders' Bill of Rights" -- would protects cardholders against arbitrary interest rate increases, due-date "gimmicks" and misleading terms. Obama on Wednesday proposed his own "bill of rights."
"I'll protect the rights of ordinary Americans by cracking down on companies that are trying to deceive them," Obama promised. He said his plan begins with transparency -- helping Americans understand the risks involved in signing up for a credit card. To that end, he said he'd create a five-star rating system. "That way, Americans can compare credit card companies and avoid those that are stacking the deck against them."
Obama said he'll propose a credit card bill of rights that would ban unilateral changes to credit card agreements. "You should pay the rate you signed up for. If the credit card company wants to raise that rate, you should be able to opt out of the agreement."
According to the American Banking Association, if consumers are unhappy with the interest rate or other terms, "there are thousands of issuers that would be happy to accept their business." The ABA says the consumers' "power of choice" to transfer outstanding balances "cannot be overstated." It notes that hiking the interest rate allows credit card companies to "avoid taking on risks that are too high to maintain."
Obama also wants to ban rate changes on past debt. "If a credit card company wants to raise interest rates, then that new, higher rate should apply to the debt you add going forward, not what you already owe." And he would ban interest charges on transaction fees. "If you're late in making a payment, you have to pay a late fee. But you shouldn't be paying a fee for paying a fee."
"It's time Washington established some rules of the road to level the playing field for hardworking families," Obama said. "It's time we had an economy that worked for companies and consumers alike. That's what my campaign is all about."
He said Americans have a "clear choice" in November -- "you can choose an approach that sides with the credit card companies...or you can choose to finally have a President who looks out for Main Street, not just Wall Street..."
"Consumers are in complete control of how they use their credit cards," the ABA says on its Web site. It also says most bankruptcies in this country are not caused by credit card debt, but by life crises such as divorce, job loss, or uninsured illness.
Well then, I guess we're all fools for not prepaying all our bills, for buying a house using a mortgage, and for taking out student loans to get a degree that will double annual income. Hell, even companies borrow by ordering inventory and asking employees to work while not paying them immediately.
The fact of the matter is that responsible, prudent credit is the lifeblood of the U.S. economy...and believe me, that's not foolish at all.
Obama is right!
Someone should start making the Credit card companies live up to their original offers instead of allowing them to use bait and switch tactics and change the terms and rates once you’ve got a balance.
It's hard to disagree with that part.
Yes, ignorance has a price, it always does. It's not your fault people, your just to dumb to understand. Who knew that you would get a bill at the end of the month.
It’s true this is a political gimmick, but it’s also true that rising costs of fuel, medicine and other necessities has thrown budgets out the window, and this can wreak havok on people just starting out, who haven’t had a chance to build up any savings.
Once you get in a hole financially it is hard to get back out, especially if you want to maintain any semblance of a life (meaning something more than bread alone).
That said, the credit card companies will turn around and sell the debt of defaulters to rapacious collectors for pennies on the dollar, and then they will sue the debtor in justice court with absolutely no way to prove up their case, getting default judgments in 75% of cases, and dismissals in the rest.
Not in a rat world. The only people at fault are eeeeeeeevil corporations.
As opposed to those (a minority) who spend their money on property or investments. Ramsey makes the point that if a person begins at the age of 26 and invests $100.00 per month he will have $1,000,000 at age 65. Certainly a reasonable goal but not for those who drop $200 a month for Latte’s at Starbuck’s every month. Mencken was right. It’s astounding how much the typical Americano spends on crap. No generation in history has ever lived above subsistence levels as this one. I have a friend whose son sends text messages to the tune of over 2,000 a month. I think this money could be put to better use. People need to get a life and quit mortgaging their future to CC debt. Most of this prodigality is a trait of naive youth. This is indisputable. Fully ninety nine percent of advertising is addressed to this prehensile (Mencken’s term) morons.
And don’t forget about Obama wanting the government to pay more of peoples higher education bills. If they get their way they will bankrupt our country.
What a crock.
I have close to $4,000 in credit card debt - because I went through a tight time. I’m now paying it down, and I sure as heck don’t blame the companies who were nice enough to extend me credit.
What a crock.
I have close to $4,000 in credit card debt - because I went through a tight time. I’m now paying it down, and I sure as heck don’t blame the companies who were nice enough to extend me credit.
He is trying to put the idea into the heads of those that are desperate and in debt because of living being their means that he will be their savior in order to get their votes, if they fall for it they are more stupid than I imagined.
BTW I have a good video link here all about Obama, you may want to pass along to those who are “living in the Obama fog” it may open their eyes
This video on Obama was sent to me this morning—a good one to pass around:
http://www.eyeblast.tv/public/video.aspx?RsrcID=2036
“The nine most terrifying words in the English language are “I’m from the government, and I’m here to help.”
Speaking as someone who is currently paying off student loans, I can say that the weight of private education loans may itself contribute to bankrupting the economy.
It’s true I am responsible for making the decision to accept the loan so as to go to post-graduate education, in the hopes of procuring higher-paying work, and it’s also my fault for not being able to obtain that higher-paying work, but rather a job that pays much less than might be hoped for. But accepting all that, it is a real strain to make the minimum payment to Sallie Mae each month and have any left over to pay towards any other purchases, other than costs of room, board, and such. I believe that my situation is not all that uncommon. That is going to have a profoundly negative effect on the economy, with people paying off these loans until well into their 50s.
Furthermore, the very existence of education loans is leading to the rapid rise in the cost of college and graduate studies. It’s a scheme in which the universities benefit, the loan companies benefit, and the borrower finds himself in the proverbial pickle.
And bottom line, Sallie Mae is an evil company. I was dealing with another company that I liked and treated me well, and lo and behold Sallie Mae buys up my loans and now “accidently” assesses all sorts of fees every month (until I call and complain, wasting an hour of time on the phone, of course).
Please forgive the rant.
my girlfriend has a bank of america credit card that started out at 9.99%..they raised it, for some unknown reason to 14.99%..she called them and asked them why (she’s never been late on a payment, has a credit rating over 700 etc. etc.)..when they really couldn’t give her a reason, but refused to back the rate back down, she told them she wanted to close they account. they told her that if she did that, the account would automatically revert to “charge off” status since they couldn’t be sure she’d pay the balance (which she would) AND the interest rate would rise to 32.99%..
needless to say, she simply tore the card up and has only $300 more to pay till it’s paid off at 14.99%..
Nice observation. His whole campaign has mirrored that of Chavez in 1998, when he took over the country. There is not a dime's worth of difference. You could pull quotes from Hugo's campaign that would sound for all the world like Baraq's very own.
Why do Marxists love to blame those who take risk and profit?
I wish Obama would just crawl back to his Rezko-purchased home with his shrill Omaros—esque wife and spend the weekend with Bill Ayers...don;t forget worship on Sunday with the girls and Rev. Wright.
Yup, appeal to the Poor masses who are willing to believe that “The Government can and will and should take care of your every need from birth to death”, and blamo. Socialism. Unfortunately there is NO government on earth that has EVER made that work.
Another member of my family had a card with Wachovia that was part of a portfolio bought by MBNA and then Bank of America. After twenty plus years of on-time payments, never going overlimit, etc., Bank of America lowered his credit limit to $100 below his balance, defaulted him (increased his rate from 8.99% fixed to 22.99% variable), and then restored his credit line.
Stay out of my kitchen, leave my car alone...and stay away from my visa...I don't need YOU as the Village King!!
He's saying the same thing as Hillary...we're all stupid!!
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