when are people going to start realizing that FEDERAL GOVT intervention is not the answer to everything..

you know another country where the federal government can control what you eat, what you see on tv, what you hear on the radio, what you say, knows how much money you have in your bank account at all times, regulate how you act, can walk in on your house, can spy on you thru the internet and wire taps, punishes people without a court, tells you what you can do with your own land?

most people would say china, BUT HELLO ITS AMERICA TOO, WAKE THE *** UP ...

has anyone woken up and realized when the FEDERAL GOVERNMENT gets involved in matters, it makes them worse?

Can we just stop letting facebook people on?

They never have anything good to say and 7 out of 10 are ignorant idiots.

Why in the hell should we need to call the idiots in the House & Senate to let them know that we don't like being screwed? Are they blind? deaf? We know they're stupid, but does anyone really think that they sit around thinking "Hmmm, I wonder if people are enjoying being gouged by the credit card companies?" Maybe I should call my congress person and tell them how much I hate paying unbelievably stupid taxes? Perhaps I should have called ole GWB and told him how much I was enjoying seeing all my tax dollars being wasted on a worthless war? Think he cared any more about that than the idiots in the House and Senate care about us? Yeah.

WiglyWorm for the knockout !~

@Chong Soh: "when are people going to start realizing that FEDERAL GOVT intervention is not the answer to everything.."

After they realize that naked capitalism is not the utopia Ayn Rand prophesied?

That's right lets protect the 10-20 percent of those in this country who screw it up for the rest of us. If you don't want screwed by the CC companies, don't use their product.

@Red_Flag: Too bad government regulation isn't going to make that utopia, either.

@Chong Soh: While you mischaracterize the level of it, I also believe that the Feds have been overreaching for a long time. States should have all the powers not specifically granted to the Federal gov't and be able to exercise them freely within their borders. I think if we had 50 super strong state governments and not just 1 big fat federal one, lobbying would die and companies would have much less power.

About 500 people commanding all of the political power in this nation of 300+ million. Unbelievable, and too juicy a target. I think at that point we begin to face the same practicality issues as communism - the laws only apply to those without access to the top people. There is hardly ever enough rage to unseat a U.S. Rep. or Senator, no matter what they do. So they are essentially immune to recall.

While there is something to be said for consistent laws across the land, I'd rather have states compete like nation-states for residents, resources and good will. Let states make their own rules, and may the one that is most generous to the needs of its people succeed on its merits rather than through 18,000 riders on every bill that goes through Congress. Local representation, accountable to local people.

right instead of thinking for yourself, you have someone else do that for you

and I thought facebook users were idiots

Chong So,

So instead we should depend on the credit card companies to offer rates consistent with their cost of borrowing? We can expect them to use our payments to decrease the highest interest rate balance portion of our bill first? The money made off the cards would go to create jobs in a US based call center? They would recognize that 35% APR is loan sharking?
Oh, wait! We gave them that opportunity and they blew it. This is what you get when private industry gets greedy.
Put down the Kool-Aid before you permanently damage yourself!

lawl Chong Soh, I've looked @ your comments and they seemed to be filled with you bashing out against other people being ignorant. What makes you this high and mighty self-assured person that seems to know what is right and wrong. FYI, the world is not black and white, and yes, sometimes its OKAY to be in between the spectrum. Yes, full federal govt intervention is bad, but sometimes varying amounts are necessary. What do you say about financial aid to poor college students? or the new tax credit thats going out to students who cannot afford text books? Are those bad? Is china doing that? If you don't like living here, move to China.

Do you know why government is spying on us? Because we pissed off a bunch of muslim extremists that want to blow us to kingdom come.

@Erwos: Yah, because that unabashed, zealous overregulation of the subprime mortgage market totally tanked the economy.

@Chong Soh: Think for ourselves? Ha, this is America. We Americans don't think for ourselves. We have the 24-hour news pundits and armchair analysts to do that for us.

"right instead of thinking for yourself, you have someone else do that for you

and I thought facebook users were idiots"

---> LOL, its called voting.

@m1k3g:

You've never heard of lobbyists have you?

Quick explanation: Most of our congressional representatives know that being screwed over by credit card companies is bad for consumers. So credit card companies hire lobbyists who then persuade our representatives, though campaign donations usually, that this screwing over isn't so bad after all and can actually help businesses. The only way consumers can fight back is to tell our representatives that if they choose to support the credit card companies over us then we won't vote for them during the next election and they will be out of a job. So, yes, please call your House and Senate reps and tell them to support this or lube yourself real good before you bend over.

JB

This measure is not about limiting CC companies. It's about requiring them to adhere to basic standards of conduct. Through their use of binding arbitration and other tactics, they've stacked the deck. They actually change the terms of a loan contract AFTER you've borrowed the money. It's time the law protected consumers from such tactics.

While they're at it, they need to ban mandatory binding arbitration, PERIOD! The law should govern the resolution of commercial disputes and not be outsourced to dishonest third parties.

Oh, wait! We gave them that opportunity and they blew it. This is what you get when private industry gets greedy.

so your solution is to eliminate the private sector because its too greedy and let the government control it?

Hi, everyone (*Chong Soh*)

Before making any angry comments, it's crucial that you educate yourself about the credit card reform: [www.creditcardreform.org]

Chong Soh's raging is based on political ideology rather than focused on the main issue, "credit card reform". It's easy to become angry when you have been (maybe) negatively impacted by the federal government in any way, but hey---- you aren't the only one. Also, the governement was not founded to destroy but rather to protect the country and its civilians.

How about you read the bullets of credit card reform, analyze it, and then evaluate whether or not it will help the country.

As for "facebook" users being "idiots"... that was quite ignorant of you to comment. You have essentially stated that non-facebook users like you are the intelligent population... but from how you are arguing against many who post on this article, I'm only led to believe you might be one of those idiots, as well.

Whats your suggestion? Many Americans do not have a stable income and job like you. It's only natural for you to bash, blame, and point fingers at those with credit card debts because you have a nice cushion to lean on. The income gap is huge man, and the natural american way of life/lavish spending has put people in a bad spot. And some people take on debt because its their only mean. If government doesn't intervene, how else would companies survive? Well, they'd do what they are doing now, drain whatever money they can from people that are owing money.

Go talk to someone that is about to retire in a year, but got laid off, and seen his 401k drop like a rock, and still has a mortgage to pay.. what would they say huh?

@god_forbids: The states compete, but not for their residents. There's a reason why all the credit card companies are in states like Delaware -- there was a race to the bottom to see how business-friendly their statutes could be. That's one of the reasons why credit card companies have been getting away with all the crap they've been getting away with.

I can't believe there are people who actually want individuals to be able to buy health insurance across state lines. The exact same thing will happen -- some state legislature will write industry-friendly rules, and we'll all be stuck with even worse terms than we have now.

@Angela Kim: His comment on facebookers is somewhat ironic, considering his posts also come from a facebook account. (At least, that's what the little facebook icon in his profile picture seems to indicate).

I partially wonder if his rants and subsequent (arguably self-hatint) facebook criticism is all a satirical look at the depth of hypocrisy through the human conditi... nah.

LOL I like this! *PROPS*

God this is so similar to that article from a while ago about that boss who thought generic medicines are inferior...

or how about half the american population can't readily define what DNA is or understand some basic scientific processes, but at the same time pass criticism on key decisions that affect the scientific community

WHAT IS THIS

ITS EVERYWHERE

i guess Chong, you're not so special after all

He's just pouting and throwing a fit as would a little boy who cannot get his candy.

HERE, BOY, HERE'S THE CANDY

@Angela Kim:

haha so mean, yet so true. i think you missed though

@Chong Soh: Is that you Rush?

lawl Chong Soh, I've looked @ your comments and they seemed to be filled with you bashing out against other people being ignorant. What makes you this high and mighty self-assured person that seems to know what is right and wrong. FYI, the world is not black and white, and yes, sometimes its OKAY to be in between the spectrum. Yes, full federal govt intervention is bad, but sometimes varying amounts are necessary. What do you say about financial aid to poor college students? or the new tax credit thats going out to students who cannot afford text books? Are those bad? Is china doing that? If you don't like living here, move to China.

you are right I am not the answer man and I know there are many factors that go into anything.. which is exactly my point.. if i cant and you cant..what makes you think anyone in washington can!?

if you dont like credit card fees, dont use them, save your money, save capital, spend as you see fit..thats capitalism. wealth and prosperity comes from hardwork and saving money, buying things with your own money..that is the american dream, not thru credit lending, if youre a business and you rely on credit to RUN (not START) your business, than you probably dont have a good business model

and to your point about text books and all that educational tax credits.. yes i do think its bad..

americans from one part of the country should not have to pay for tax credits and scholarsihps and books for others in other parts of the country.. why should etnrpreneurs who make it in the business world and didnt go to school have to pay higher taxes so their neighbor can get a college education? what bout parents who send their kids to charter schools and private schools? why should they have to pay the federal government ? isnt that taxation with out representation? last time i checked that was part of how america came to be.. why not reduce taxes.. put more money back in our pay checks... let us save for college and text books ourselves.. instead of throwing money to washington to manage it and only getting a fraction of it back.. ?

do you not think our forefathers were educated? you think they just let any schmuck back then write the constitution .. education was not a guaranteed right in the constitution, it was a choice, now a choice we lost..whether the intentions are good or not is irrelevant..we lost a choice.. the founding forefathers decided that education should be left to individuals to deecide whether they want to go get an education.. this power was left to the states.. and it shouldnt be a federal law for a child to go to school.. that should be handled by your local authority... 20 years ago they wanted to end the deparment of education.. now they tripled the size of it.. are americans that much smarter? id have to say no. is it the lack of money thats the problem with our education or the people who thhought they could solve the problem in washington that messed it up the problem? and no reelecting someone isnt going to solve the problem either..the problem is we lost the choice to control our education

if you have issues with your childs education and the material theyre learning.. what can you do about it? nothing .. because the federal govt has set a curriculum for them to follow.. do you see a problem with that ? before you were able to take it up with your state and local government to get things like this fixed... guess what youre never going to get that power back.

do i think the fed govt is out to get us? no.. but i dont think theyre the answer to every problem we have..

After reading the basis summary, I don't really think this is a big deal. For one, I don't think it will accomplish much. I suppose it has symbolic significance, but it doesn't really seem to do much in the way of actually stopping the most deceptive practices (changing the terms of the agreement after you've run up a balance). The only provision that seems really useful is the ban on universal default.

I'm generally against governmental intervention in private business. However, if they're going to get involved, it should at least really accomplish something. This appears to be a half-hearted attempt at pleasing those who want more protection, while not really pissing off the credit card companies. I HATE pandering, and that's what this seems to be. In my eyes, the biggest issue with credit card companies is their ability to change the contract at any time they want. That's what poses the biggest threat to consumers. I have no problem at all with credit card companies creating whatever terms they want, but it all needs to be clear in the contract. What precisely will trigger a default interest rate? What is the interest rate? When is my bill do? Once a customer signs the contract, they should feel confident that it's not going to change on them. This bill doesn't seem to fix that.

@dfwguy:
I disagree. I don't think that their cost of borrowing is even remotely relevant. They're a business; they shouldn't have to justify their prices. We don't tell companies how much they can charge for their services in the US (save for a utilities in some areas). If they want to charge, and a customer agrees to pay, 300% interest, they should be able to do so, provided everything is disclosed and there is no deception. As I've said before, I'm wholly against usury laws. They are paternalistic and serve no purpose other than the protect people from their own bad decisions. If I want to take a 200% loan, I should be able to do so.

Can we NOT ban Facebook folks? It makes the consumerist more accessible to a wider range of people thus allowing a larger pool of opinions as well as helping educate a larger pool of consumers. You may not like us much but I've seen lack of useless opinions from regular members here along with facebook folks. I don't think making this site less accessible will really solve that issue.

Narrow minded answer... how old are you?
College education = future country success.
Students are valuable human capitol, it's too bad you're not aware of that. Without investing into education and supporting our students, America will struggle to produce future hopes of America.

Entrepreneurs... ironic how you, yourself, are part of the wealthy and criticize the wealthy. Does this mean that "as long as you, individually, are financially safe and secure, it doesn't matter what happens to the rest of America"?

The government is not the answer to every problem we have, and that's the only part of your reply I agree with. However, tell me if anarchy is the solution, then? Shall we nominate and elect you as dictator of America?

The problem, Chong, is that credit cards are nice to have but for the average consumer (of most anything, not just credit cards) is stacked against them.

As someone mentioned, most every credit card company is based in deleware because they have the most lax laws on credit cards. The least consumer friendly. When every credit card can (and does) offer terms that include the ability to bind you to mandatory, binding, biased arbitration.... when every credit card company can and does bind you to a contract that allows them to change the terms at any time and gives you no recourse but to cancel your account (and thus damage your credit rating)... when every credit card can and does engage in practices design to make life harder for the consumer and more profitable for the business, who is going to step in?

That is why the federal government can and SHOULD pass simple common sense regulation from time to time.

@WiglyWorm: @Crystal Wojcinski: *No lack.

You're right of course. The actual request should be "can we please institute Kotaku-like weekly banhammer sessions?"

As the community grows, you have to keep it in check or the trolls will only multiply and make this place useless. It's already happening.

Kudos, well-said.

The credit card companies blew their chance to be self regulating by abusing that right and simply gouging their customers . And it's just not those who have credit problems . Even those who have paid on time have less money that could be spent on the economy because of exhorbitant fees and interest .

I read the annual report of Citi Bank for 2007 which the last year before the collapse . Citi made 32 Billion dollars in interest and fees ALONE domenstically . How the frack can you take in 32 Billion dollars in just interest and fees and be financially unstable . Besides gouging the public and rewarding your buddy executives and boards of directors with contrived bonuses and stock options how the frack do the major players quite literally break the bank ?

Sounds like someone got more than a little too big to fail .

Do not cry and sniff for the credit card industry they will find ways to skirt around the reform laws and will be gouging the public and filling their bank account before you know it .

sorry angie i didnt realize you were trolling this forum and refreshing every 5 seconds, i did not even know you were engaged in this discussion..

College education = future country success.

really go tell that to all the college graduates with loans they cant pack back with the jobs they dont have

Entrepreneurs... ironic how you, yourself, are part of the wealthy and criticize the wealthy. Does this mean that "as long as you, individually, are financially safe and secure, it doesn't matter what happens to the rest of America"?

America was based on protecting our rights, our right to choose, our right to free speech, our right to live our own life they way we see fit..

NOT PROTECTING GROUPS.. America is based on protecting individual rights.. not a certain group..

The government is not the answer to every problem we have, and that's the only part of your reply I agree with. However, tell me if anarchy is the solution, then? Shall we nominate and elect you as dictator of America?

Really? did I say anarchy anywhere? I said leave it back to the people and the local governments because the same problem and solution does not fit everyone in that same scenario.. that is wrong with nationalization..

@Chong Soh:

if you have issues with your childs education and the material theyre learning.. what can you do about it? nothing .. because the federal govt has set a curriculum for them to follow.

Where do you get this stuff? States maintain their own curricula, which is why -- frankly -- a second-grade education in Minnesota isn't the same as a second-grade education in Mississippi.

But shoot, 3 seconds of Googling should disabuse you of this crazy notion:

[www.fox13now.com]

[www.guardian.co.uk]

[www.mercurynews.com]

Or did you mean something else?

@plj: What exactly is screwed up for the rest of us? The provisions (at least the ones The Consumerist lists) are godsends for all credit card users. The consequential higher rates and lower limits may seem harsh (they're not), but there's always the option to use less credit, and the freedom from debt that usually comes with that, which you advocate.

@Chong Soh: The credit card companies aren't being nationalized.

The problem, Chong, is that credit cards are nice to have but for the average consumer (of most anything, not just credit cards) is stacked against them.

As someone mentioned, most every credit card company is based in deleware because they have the most lax laws on credit cards. The least consumer friendly. When every credit card can (and does) offer terms that include the ability to bind you to mandatory, binding, biased arbitration.... when every credit card company can and does bind you to a contract that allows them to change the terms at any time and gives you no recourse but to cancel your account (and thus damage your credit rating)... when every credit card can and does engage in practices design to make life harder for the consumer and more profitable for the business, who is going to step in?

That is why the federal government can and SHOULD pass simple common sense regulation from time to time.

CREDIT IS NOT AMERICAN RIGHT.. its a luxury..

Trust me, I have been screwed by my fair share of credit card companies, boa, citibank you name it but you have to be aware the implications of forcing a private sector business to act in a certain way. We have already seen evidence of that, obama has already fired company ceo's, boa bought merrill by force, we are treading a very dangerous line.

What we think are no brainer solutions have always come with long term problems that bite us in the end when we allow the federal govt to control the private sector..

restricting increases on apr on existing balances may sound find and dandy now but thing of long term market impacts.. what happens when inflation hits.. and the market is tellin us that cc rates need to be higher.. but since the govt said no you cant do that.. banks that issue cc's lose money.. then they need a bail out.. we bail em out.

as someone said here before.. the free market is stronger and smarter than any human being, you or i..

so for you and i to dictate what rules others should follow as a whole is wrong.. the same can be said for someone in washington making these laws.. i mean the govt cant even run a profit what makes u think that they can tell a cc company how to run a business? not everyone is in the same situation..the notion is good but things like these have dire impacts.. it may not be evident today , the next day, or the day after, but consequences always come...

instead of everyone calling me stupid, misinformed, or wrong, i challenge you to study something austrian economics.. not just transcend keynsian theories in my face and shrugging me off as misinformed or angry..

thanks

@lannister80: You sir, have made my day. Excellent comment.

@Chong Soh: The credit card companies aren't being nationalized.

BOA, Citibank, AIG, GM, Chrysler?

Oh ok, I better leave now.

@Chong Soh: Good sir, "BOA, Citibank, AIG, GM, Chrysler" are not credit card companies. Though BOA and Citibank do back cards, I believe. But it's moot as neither have been nationalized.

:) Called my two senators :)

Who here has a credit card they didn't sign a contract for? I don't like credit card companies anymore than the next guy that gets screwed over by them. I think the easy solution to these problems is to stop spending more than you make. You are making deals with loan sharks, what the heck do you think is going to happen? We're lucky we don't get our kneecaps shot off if we miss a payment. We sign the contracts, we spend more than we should, and somehow big brother needs to come in and legislate? I don't think so Scooter...

@Chong Soh:
Consumers have no recourse against many of the unscrupulous practices the banks are engaging in. How is putting the law on their side for a change going to make anything worse?

@Chong Soh:
"instead of thinking for yourself, you have someone else do that for you"
That's the Modus operandi of every Rush Limbaugh listener!