I have been away for awhile and did not have time to sit down and write. While traveling, I did receive an email from Senator Barbara Mikulski of Maryland, one of my state's two senators, responding to my concerns about how credit card companies are wrecking havoc on the middle class.
Her response follows. I found it very disheartening to see that an attempt to limit interest rates at 15% failed, what does that tell you about the relationship between our legislators and the banks?
Dear Mr. Wolfe:
Thank you for getting in touch with me about the CARD Act (Public Law 111-24). It's good to hear from you.
I voted for the CARD Act because it protects American consumers. Families who saved for their retirement, have been faithful in paying their mortgage, and have worked hard to pay for college are wondering why the cost of groceries, health care, and energy are going up while their pay checks are going down. They are worried about their jobs, about taking care of their families, and about their kids' school. They shouldn't have to worry about unfair credit card practices.
Banks invented new ways to engage in casino economics. At the same time, they have contributed to getting American consumers into debt traps. They arbitrarily raised interest rates on consumers, and applied higher interest rates retroactively. They charged fees without any legitimate purpose - and then charged interest on top those unfair fees. And they marketed their products to college students who they knew couldn't afford the credit they were providing.
This legislation says "no more". No more raising interest rates for no reason and with no notification. No more applying higher interest rates to balances that have already been paid off. No more unfair sky-high fees with no recourse for the consumer. And no more targeting college kids to weigh them down with debt before they even graduate.
I support limiting interest rates on credit cards. Unfortunately, an amendment capping interest rates at 15% was not included in the final legislation. However, this bill will help families who have gotten into debt get out if it, lower monthly credit card bills, and help consumers avoid the predatory debt traps in the first place. Because these important protections were included, I cast my vote in favor of the bill.
The CARD Act was recently passed by Congress and signed by the President. Knowing of your views was helpful to me, and I will keep them in mind.
Thanks again for getting in touch with me about this issue.
Please let me know if I can be of any assistance to you in the future.
Sincerely,
Barbara A. MikulskiUnited States Senator
Showing posts with label Credit Card Interest Rates. Show all posts
Showing posts with label Credit Card Interest Rates. Show all posts
Friday, August 7, 2009
Sunday, April 26, 2009
Bailouts, Credit Card Interest Rates, Congress
Like most of you, I am getting angry about the bank?credit card company solution to paying back their bailout money. They expect us the consumer to pay ourselves back our tax money that we "lent" to them, so they could get out of the poorly managed situation.
Frustrated with the government's response or lack of, I decided it was time once again to get a letter off to Capital Hill. The letter to my representatives follows. Pleas feel free to us all or part in writing to your own representatives. We the people need to run the government, not the banks. Let's make sure that those we voted into office clearly understand who they are working for.
Its Common Sense!
Dear Senator,
As you know there has been a lot in the news recently regarding banks/credit card companies increasing their fees and interest rates. A spokesperson for the industry stated that the reason for the increases is so the banks/credit card companies can repay the government as quickly as possible.
Here is my confusion. The bailout money is our tax dollars. The banks are expecting us to pay back our tax dollars. Where is the bank's/credit card companies' responsibility in all of this? I have seen nothing about executive salary limits, elimination of bonuses and other perks. I saw the President meet with the various CEO's but did not get the impression that any of them were going to change the business practices.
Therefore, what I want to know is just what conditions, restrictions and protections you and the rest of Congress put into place before sending out the bailout money?
From what I have seen thus far it appears that nothing was done to protect the US taxpayer. Our money (and the tax dollars of the next two or three generations) was carelessly thrown out to various financial institutions with a smile and a "we know you'll do the right thing."
Frankly, I am very disappointed in the current Congress. First you send out a trillion in bailout. Then you pass a budget that is full of pork, come on railroads from Disneyland to Vegas, give me a break. Now there are rumors of even more bailouts to the banks.
It needs to stop. The taxpayers need relief. Those of us who are employed can only take so much. I know the President has promised no new taxes. Maybe from the federal government. But have you noticed that state taxes and fees are on the rise? Going to the grocery store has become more expensive because growers and sellers have more taxes and fees to pay.
What is needed is a just tax plan. Do not give me back $20.00 a pay from federal income tax, when the state I live in has doubled the price of license registration, increased property taxes, as well as the state income tax.
What we need to see from Washington are concrete solutions. We need to see the banks/credit card companies, and other industries held accountable. Why not inform the banks that CEO's need to cap their salaries at $400,000.00 a year, just like the President of the United States? That left over salary money would go a long way to paying off the bad debt the bank acquired when they were being greedy going after mortgages.
Do not talk in generalities. We do not need more feel good phrases that mean nothing. We need Congress and the President to take charge, hold those who screwed up accountable (I am tired of hearing that the employees at AIG most responsible for that company's collapse are the ones they can not afford to let go. There is no such thing as irreplaceable; there are probably at least ten overly qualified candidates for every position at AIG and the other financial institutions who can do better at a lower cost.)
Help us now! Take action! The American public needs to be protected. If the current Congress can not provide us with the support and protection we need, then come the next election we will have to review other alternatives.
Thank you.
Frustrated with the government's response or lack of, I decided it was time once again to get a letter off to Capital Hill. The letter to my representatives follows. Pleas feel free to us all or part in writing to your own representatives. We the people need to run the government, not the banks. Let's make sure that those we voted into office clearly understand who they are working for.
Its Common Sense!
Dear Senator,
As you know there has been a lot in the news recently regarding banks/credit card companies increasing their fees and interest rates. A spokesperson for the industry stated that the reason for the increases is so the banks/credit card companies can repay the government as quickly as possible.
Here is my confusion. The bailout money is our tax dollars. The banks are expecting us to pay back our tax dollars. Where is the bank's/credit card companies' responsibility in all of this? I have seen nothing about executive salary limits, elimination of bonuses and other perks. I saw the President meet with the various CEO's but did not get the impression that any of them were going to change the business practices.
Therefore, what I want to know is just what conditions, restrictions and protections you and the rest of Congress put into place before sending out the bailout money?
From what I have seen thus far it appears that nothing was done to protect the US taxpayer. Our money (and the tax dollars of the next two or three generations) was carelessly thrown out to various financial institutions with a smile and a "we know you'll do the right thing."
Frankly, I am very disappointed in the current Congress. First you send out a trillion in bailout. Then you pass a budget that is full of pork, come on railroads from Disneyland to Vegas, give me a break. Now there are rumors of even more bailouts to the banks.
It needs to stop. The taxpayers need relief. Those of us who are employed can only take so much. I know the President has promised no new taxes. Maybe from the federal government. But have you noticed that state taxes and fees are on the rise? Going to the grocery store has become more expensive because growers and sellers have more taxes and fees to pay.
What is needed is a just tax plan. Do not give me back $20.00 a pay from federal income tax, when the state I live in has doubled the price of license registration, increased property taxes, as well as the state income tax.
What we need to see from Washington are concrete solutions. We need to see the banks/credit card companies, and other industries held accountable. Why not inform the banks that CEO's need to cap their salaries at $400,000.00 a year, just like the President of the United States? That left over salary money would go a long way to paying off the bad debt the bank acquired when they were being greedy going after mortgages.
Do not talk in generalities. We do not need more feel good phrases that mean nothing. We need Congress and the President to take charge, hold those who screwed up accountable (I am tired of hearing that the employees at AIG most responsible for that company's collapse are the ones they can not afford to let go. There is no such thing as irreplaceable; there are probably at least ten overly qualified candidates for every position at AIG and the other financial institutions who can do better at a lower cost.)
Help us now! Take action! The American public needs to be protected. If the current Congress can not provide us with the support and protection we need, then come the next election we will have to review other alternatives.
Thank you.
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