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Credit cards have the OK to rob you blind
If your out of work lost your job home or apartment, don't worry the credit card company will let you pay them back for the rest of your life once you get back on your feet. with a much higher interest rate.
here is the story
Staff and wire reports • May 20, 2010
WASHINGTON -- As the U.S. Senate debate on sweeping financial industry reforms stretches on, Delaware officials learned Wednesday evening they can exhale once again.
A provision that targeted the very heart of a banking law that lured major credit card companies -- and tens of thousands of jobs -- to Delaware 20 years ago was rejected 60-35.
The amendment to the financial reform bill would have allowed all 50 states to impose individual interest rate caps on out-of-state lenders -- meaning card companies would not be able to use one national rate set in the state where they are chartered.
States such as Delaware and South Dakota attracted credit card firms in droves 20 years ago when they removed credit card interest rate caps, allowing banks such as JPMorgan Chase, Bank of America and Discover to establish state charters and charge rates of their own choosing nationwide.
If the proposal by Sen. Sheldon Whitehouse, D-R.I., had been enacted, it would have "significantly" constrained the Delaware credit card industry's "ability to export interest rates from Delaware to some other state, and that would put Delaware at a competitive disadvantage," said Delaware Secretary of State Jeffrey Bullock.
Before the vote, Sen. Tom Carper, D-Del., said the amendment posed a "real and palpable" economic threat to the state. It also would have been "the wrong thing to do" because it would have undermined the banks' ability to price according to risk, he said. Carper and Sen. Ted Kaufman, also a Democrat, opposed the measure.
Full Story
Senate preserves unlimited card rates | delawareonline.com | The News Journal
If your out of work lost your job home or apartment, don't worry the credit card company will let you pay them back for the rest of your life once you get back on your feet. with a much higher interest rate.
here is the story
Staff and wire reports • May 20, 2010
WASHINGTON -- As the U.S. Senate debate on sweeping financial industry reforms stretches on, Delaware officials learned Wednesday evening they can exhale once again.
A provision that targeted the very heart of a banking law that lured major credit card companies -- and tens of thousands of jobs -- to Delaware 20 years ago was rejected 60-35.
The amendment to the financial reform bill would have allowed all 50 states to impose individual interest rate caps on out-of-state lenders -- meaning card companies would not be able to use one national rate set in the state where they are chartered.
States such as Delaware and South Dakota attracted credit card firms in droves 20 years ago when they removed credit card interest rate caps, allowing banks such as JPMorgan Chase, Bank of America and Discover to establish state charters and charge rates of their own choosing nationwide.
If the proposal by Sen. Sheldon Whitehouse, D-R.I., had been enacted, it would have "significantly" constrained the Delaware credit card industry's "ability to export interest rates from Delaware to some other state, and that would put Delaware at a competitive disadvantage," said Delaware Secretary of State Jeffrey Bullock.
Before the vote, Sen. Tom Carper, D-Del., said the amendment posed a "real and palpable" economic threat to the state. It also would have been "the wrong thing to do" because it would have undermined the banks' ability to price according to risk, he said. Carper and Sen. Ted Kaufman, also a Democrat, opposed the measure.
Full Story
Senate preserves unlimited card rates | delawareonline.com | The News Journal
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