In just a little over a week, the CARD Act will go into effect, and a new set of rules will apply to credit card issuers. Here’s a great summary of what will change and what won’t, so you’ll know what to expect. For instance, did you know that cards issued to business entities rather than individuals are exempt? [More]
The credit card reform bill will go into effect at the end of February, but that doesn’t mean you should stop paying attention to what your credit card company does with your account. There are lots and lots of loopholes, notes WalletPop. For example, your card issuer can still raise rates on future purchases any time and for any reason. In addition, there’s no limit to the number of fees that can be invented and applied to your account. The only way to make sure you don’t get screwed by a profit-hungry card issuer is to read every single thing that’s mailed to you, and closely review your statement for evidence of any changes that you may have missed. [More]
According to the Wall Street Journal, Senator Chris Dodd, a Democrat from Connecticut, has offered to abandon the Consumer Financial Protection Agency (CFPA) proposal in exchange for Republican support on other legislation. Nobody is saying anything official right now, but the WSJ reports that “the offer is conditional on the creation of a stronger consumer protection division within another federal agency.” [More]
In case you missed it, Senate Democrats managed to succeed at their goal of pushing through some sort of health care reform bill before Christmas Day–the chamber voted this morning 60-39 along party lines and passed the bill. Up next: the Senate and House have to get together and negotiate some final version. If you want to compare what’s in the House and Senate versions, the New York Times has put together an excellent side-by-side comparison tool.
The Baseline Scenario has written a pitch-perfect article that pretends financial industry types are now speaking for the airline industry. It’s filled with appeals to the free market, and lots of threats about how the American Way of Life will collapse if we can’t let passengers sit for more than three hours on tarmacs. [More]
Senate Democrats have just hammered out a new version of their proposed health care reform proposal, and as a compromise they’ve removed the part about requiring a government-run insurance program. The public option is still part of the proposal, but now it will only be triggered if the private sector doesn’t create some new national nonprofit policies as spelled out by the government. [More]
Last week the Senate cooked up a Scooby Snack for the FDA. The Health, Education, Labor and Pensions Committee unanimously approved a bill that will make the FDA run around all hyper and bestow it with super strength and ghost-catching ability, the LA. Times reports, though not in those words. [More]
There’s been so much resistance to the proposed Consumer Financial Protection Agency that Rep. Barney Frank, the chairman of the House Financial Services Committee, has proposed a less powerful version of the agency in an attempt to get it passed. Here’s what’s changed:
Today, Reps. Barney Frank and Carolyn Maloney are going to request that the implementation date for the rest of the Credit Card Act‘s rules be moved to December 1st of this year instead of February 2010, after seeing companies “jacking up their rates and doing other things to their customers in advance of the effective date” all summer, reports Mary Pilon at The Wall Street Journal.
Back in June we noted that the FDA was about to get a lot more say over the tobacco industry if the Senate approved a new bill. Well they did, and so yesterday the FDA flexed its new muscles by banning fruit, herb, spice, and candy flavorings from cigarettes. That’s right: clove cigarettes were just banned by the FDA, which is bad news for gothy teens and great news for everyone else.
If Senator Barbara Boxer has her way, the Senate’s Federal Aviation Administration Air Transportation Modernization and Safety Improvement Act will soon require airlines to “deplane passengers after three hours and would require [the airlines] to provide basic services such as food and water while they are waiting on planes.” The requirement is in the current version of the bill, and Boxer and another Democrat, Senator Amy Klobuchar, have threatened to filibuster it if the language is removed.
Remember Burr Oak this past summer? That was the Chicago cemetery that dug up bodies and resold the graves to new customers. Well, yesterday a U.S. Representative from Illinois introduced the Bereaved Consumers Protection Act, a bill that would standardize record-keeping, make cemeteries accountable to federal officials as well as state, and protect consumers from shady business practices.
New legislation proposed in Congress today would require the U.S. Department of Education to study the nutritional value of foods available in schools, as well as the forms of food marketing. Sponsored by Representatives Carolyn McCarthy (D-NY) and Todd Platt (R-PA), the National School Food Marketing Assessment Act has a large roster of supporters, including the American Academy of Pediatrics, National Parent Teacher Association, American Heart Association, and the Center for Science in the Public Interest.
Sen. Chris Dodd plans to introduce legislation that would require banks to get permission before allowing fee-generating overdrafts. Banks are on track to earn $38.5 billion in overdraft fees this year and, according to a study by the Federal Deposit Insurance Corp, most banks offer the “service” automatically. Common “features” of the programs include not notifying customers when an overdraft is about to occur, not offering them a chance to cancel the transaction, and processing the transactions in ways designed to increase the number of fees.
Banks now make more on debit card overdraft fees than credit card penalties—they’ll rake in about $27 billion in 2009 alone, according to the New York Times. They obviously have zero incentive to curb the practice. In fact, one economist told the paper that “45 percent of the nation’s banks and credit unions collect more from overdraft services than they make in profits.”