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.
When you send disgusting things back in the reply envelopes, you aren't hurting the company, you're only make some poor envelope-unstuffer woman's day even worse that it was when she woke up.
Oh I dare say there’s more to her story than that. I know; been with BofA for a good while, have a platinum VISA with ‘em, etc. Never seen such behavior and wouldn’t tolerate it if I did. There ARE contractual terms with any c.c. provider. I’m guessing she got an introductory rate or some such.....
“In his most recent book, “The Audacity of Hope,” Barack Obama describes the financial trouble he faced after losing a 2000 race for a seat in the U.S. House of Representatives. He said that the campaign’s demands “had left me more or less broke,” and he described difficulty renting a car when in Los Angeles for the 2000 Democratic National Convention because his credit card was initially rejected.”
I’m shocked that he didn’t sue the car rental company for their blatant example of racial discrimination. How dare they deny the credit card of an African American, A Democrat, A lawyer, And a Community organizer all at the same time. What an outrage. The real outrage. Barack Hussein trying to use a maxed out credit card in the first place. Is he too stupid to check his balance before traveling to such an event. Let’s see if he really want’s to help people cut their credit card use. Go to www.BarakHusseinisntqualifiedtobepresidentmuch lessdogcatcherinasmalltown.com (obviously not his actual campaign website) and see if he will accept a credit card donation to his campaign. After you realize your over the credit limit from donating to Barack you simply follow his plan and file bankruptcy. See Below.
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.”)
Hussein Obama hits another populist home run. Every voting age teen has a credit card.
His biggest populist teen theme is a refund of Social Security/payroll tax that is just about the only tax paid by teenie boppers.
Even if you are too young to vote, it is worthwhile to contribute a pittance to Hussein if he will rebate your part time job SS tax.
yitbos
The text messages are flying, "Max out your credit card and be sure to send some to Obama because when he is president, he is going to cancel all credit card debts."
yitbos
"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."
Hey O-man, it's called cut up the card, cancel it, and find a new card company. The Individual is responsible for their own life.
I want that kind of deal on political promises.
Dear BO,
Like millions of Americans, I have credit card debt. I have a lot of it. Guess what? I put it there. Yes, me. No one made me. Oh - and I came up with a budget to pay it off. Again, me. I did it all on my own.
FWIW, Mr. BO - I just looked at my paycheck. The high cost of gas AND the payment on my credit cards (substantially more than the minimum to pay them down) combined still do not add up to the money the Federal gov’t steals from me every month. In fact, the Fed. gov’t takes more than my mortgage, even with a variable rate.
So given my financial situation Mr BO, the best way you can help me is CUT MY TAXES. Not interfere with contracts I entered into with private companies of my own accord, not conducting investigations into corporations, just cutting the portion YOU take every paycheck.
Sincerely,
Hoodie
Whatever happened to personal responsibility and binding legal contracts? This guy is a Marxist, pure and simple!
***********************************************************
There is no such thing as a binding legal contract with a credit card company ,, at least as far as it being binding on both parties ,, you have your hands tied while they are free to change any fees , interest rates or terms at will...
If you think that is a reasonable arrangement I’d love to play poker with you ... you see my pair of 7’s beats your full house based on the rules that I enacted immediately before I went all in ...
They will raise the rate for a variety of reasons, many may having nothing to do with one’s payment history with that particular company. But certain activities that get put on your credit report may cause them to raise your rates, or even simply taking on additional debt they will raise the rate. Sometimes they just raise it for the heck of it. Many rates are simply usurious and these companies are no better than loan sharks.
That said, I think the smart thing (since raising the rate if they feel you may have trouble paying off the debt is rather counterintuitive) would be to make credit a little more difficult to get, certainly the ability to get multiple cards, but keep rates reasonable so people actually can keep up and pay the debt in a reasonable time frame. When that’s the case they are less likely to default. IMHO anyway lol
I believe deeply in personal responsibility, but it's just too coincidental that the bankruptcy laws were changed and suddenly people with crappy credit scores are inundated with credit card offers. There is a reason for determining creditworthiness prior to lending credit or money. If the credit card companies, like the mortgage companies, are greedy enough to lend to people who cannot or will not repay, they deserve to suffer for it, too. It takes two to tango.
Personal responsibility has no place is socialism...the ruling elite wants it's constituents to be dependent children and government to be seen as a benevolent all-knowing parent....
Yeah; we'll all have to get second and third jobs, just so the government can provide all the "free" stuff !
(I don't want to even THINK about the REPARATIONS that is not a subject anyone will mention as his agenda, either......)
Another thing we need to think about with this idiot being elected is the leftists he will appoint to SCOTUS. The stupid ruling yesterday should make everyone who cares for the future of this country think about who will occupy the WH in 2009.
That was my FIRST thought on the ruling yesterday.
Reading Scalia's comments in his dissent, he easily explained how this was purely a political decision, contrary to the clear language of the Constitution, and contrary to PREVIOUS Case Law.
Yet, the Liberal majority of the SCOTUS today is purely agenda-driven, and the Constitution's co-equal 3 branches of Gubmint is now skewed to the dictatorship of Judges appointed to destroy it (the Constitution), disregarding ANY of the will of the majority of American Citizens. Seeing Judges over-rule referendum's approved by the people of a State, for example, CLEARLY shows that what is the Will of the People can be easily circumvented by a tortured, out-of-context, selective interpretation of the Constitution (such as exclusion of consideration of the "and subject to the jurisdiction, thereof" in regards to anchor babies of Foreign Nationals), providing citizenship to Foreigners who happen to be illegally on U.S. soil for "Los Freebies".
However on earth, in this economy, was I able to cancel and cut up my credit cards? (Doubly bad in MI) Financial peace is possible when individuals take personal responsibility for their own lives.
I’m sure glad that I don’t depend on DC for my happiness.
Yep, and then they'll sue the credit card companies for racial discrimination.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.