Posted on 10/14/2008 9:27:09 PM PDT by Libloather
UPDATE: US Sen Dodd To Introduce Consumer Protection Bill
By Patrick Yoest
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Senate Banking Committee Chairman Christopher Dodd said Tuesday that he plans to unveil a legislative package including consumer protection measures pertaining to credit cards, predatory lending, bankruptcies and subprime mortgages.
Dodd, D-Conn., said that he will seek passage of the package - either on its own or as part of an economic stimulus bill - as soon as mid-November, when the Senate will hold a lame-duck work session after the Nov. 4 election Dodd framed the package as a counterpart to a $700 billion Wall Street rescue package signed into law earlier this month.
"It seems to me appropriate that we take some steps to provide for the consumer as well," Dodd said.
Dodd said that he had contacted House and Senate leaders to discuss the package, but hadn't spoken to anyone yet.
The package would include a 90-day moratorium on foreclosures and a provision allowing homeowners to protect their first property through bankruptcy proceedings, according to Dodd. While many congressional Democrats wanted to include a bankruptcy provision in the rescue bill passed earlier this month, the proposal faced strong opposition from congressional Republicans and the White House.
Dodd said a credit card reform provision would also be a part of the package, suggesting that "in light of recent events, there'll be more of an interest in some reform in this area." Dodd in April introduced credit card legislation that banned a number of practices he deemed "abusive," such as universal default and double-cycle billing.
The last part of Dodd's package would deal with predatory lending, which he said would in large part put regulations promulgated by the Federal Reserve into law.
(Excerpt) Read more at nasdaq.com ...
charles schumer had his ideas in the wsj today.
si.
this turkey needs to be tarred and feathered
Something about a barn door comes to mind here.
Not TAX foreclosures, though. Private lenders can be robbed at will, but government, like a Mafia family, must get its cut.
Dodd should be doing the perp walk. Not introducing Consumer Protection Bills. He’s a crook!
Bet he’ll try to get that provision requiring credit card companies to turn report all transactions to the irs.
ALL RIGHT THE CONGRESSIONAL PERP WALK OF 2008!!!
It may be an unpopular view [here], but I wish they would put a cap on credit card interest rates. Why can’t the Republicans be proactive about something like that?
You know, the CYA act!
CYA? and barney frank? (snicker)
The consumer has 1000% too much protection now!!!!
While the libertarian in me would oppose rules that would restrict people's right to decide what contract terms they'll accept, and while there may be a reasonable basis for extremely high interest rates on speculative investments, I would think that someone whose default rate was so high as to require punitive interest rates shouldn't be getting non-collateralized consumer credit. To my mind, the biggest function of some of the massive interest rates is to maximize the lender's share of whatever gets recovered in bankruptcy. Consequently, the issue isn't just between lender and borrower, but between the lender and the borrower's other creditors.
Say goodbye to what’s left of the mortgage business. Any of you who are thinking about buying a new house or refinancing had better do it now.
I only pay cash for property.
I'm basing my opinion that I think it is criminal and immoral to charge such high usury on anything. You can get sick and somebody not take over your affairs for quite awhile. Then you've racked up all those horrible interest charges. Also, young people should have some protections.
The whole thing is set up like they want you to screw up so they make more money. Bankruptcy, and I know people who have abused it in the past, is not something most people would want to go through. Plus I think it costs money to do it, I don't know, never did it.
| 0 | 100.00 | 100.00 | 0.00 | |
| 1 | 118.00 | 105.00 | 20.00 | |
| 2 | 139.24 | 110.25 | 41.00 | |
| 3 | 164.30 | 115.76 | 63.05 | |
| 4 | 193.88 | 121.55 | 86.20 | |
| 5 | 228.78 | 127.63 | 110.51 | |
| 6 | 269.96 | 134.01 | 136.04 | |
| 7 | 318.55 | 140.71 | 162.84 | |
| 8 | 375.89 | 147.75 | 190.98 | |
| 9 | 443.55 | 155.13 | 220.53 | |
| 10 | 523.38 | 162.89 | 251.56 | |
| 11 | 617.59 | 171.03 | 284.14 | |
| 12 | 728.76 | 179.59 | 318.34 | |
| 13 | 859.94 | 188.56 | 354.26 | |
| 14 | 1014.72 | 197.99 | 391.97 | |
| 15 | 1197.37 | 207.89 | 431.57 | |
| 16 | 1412.90 | 218.29 | 473.15 | |
| 17 | 1667.22 | 229.20 | 516.81 | |
| 18 | 1967.32 | 240.66 | 562.65 | |
| 19 | 2321.44 | 252.69 | 610.78 | |
| 20 | 2739.30 | 265.33 | 661.32 |
The table at the right shows the cost of $100 for 20 years, both at an 18% compounding interest and at 20%+5% split interest (add the right two columns together). Note that in the short term, the 25%+5% would cost more, but after 20 years the $100 would cost $927 rather than $2,739.
Such a split system would not only increase the likelihood that debts would get paid back, but it would also yield to more equitable asset divisions in bankruptcy.
How would that seem as an idea?
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