“The Most Dangerous Credit Card in the History of the World”

By Michael Ruhl, University of New Mexico – Talk Radio News Service

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House Minority Leader John Boehner (R-Ohio)
Photo by Michael Ruhl

House Minority Leader John Boehner (R-Ohio) called congressional voting cards “the most dangerous credit card in the history of the world”, because then enable Congress and the president to engage in reckless spending. This was not Boehner's first criticism of Obama, but his statement came on the 101st day of the Obama Administration, a time which Boehner has criticized as being pock marked with excessive borrowing, reckless spending and a massive growth in government.

Boehner said that Democrat’s “record on spending and debt is staggering, but our economy is growing weaker, and it’s not going to get any better by growing the size of the government here in Washington.”

Boehner believes that the Democratically controlled Congress has enabled and contributed to the recklessness, and thinks it is up to the Republicans to put a stop to it. Republicans must be “the party of better solutions” if they are going to stand up to the Democrats in Congress, Boehner said, adding that he hopes Democrats will be committed to a bipartisan policy approach..

Citing the elections of 2008, Boehner said “out brand has been tarnished”, but to help the party serve the American people, Republicans must stand up to the Obama Administration when disagreements arise, and to offer alternative solutions.

Leader Boehner applauded President Obama on his strategy towards Afghanistan and Iraq, but showed concern at Obama’s greater national security policy.

“The big question continues to be: what is the Administration’s overarching plan to fight terrorism? Judging from their recent decision to release 30 terrorist detainees with no plan on where to put them, it continues to beg the question,” referring to Obama’s closure of the Guantanamo Bay detention center without knowing where the detainees will be sent.

Pelosi and Maloney talk plastic

by Christina Lovato, University of New Mexico-Talk Radio News Service

This morning at a press conference on Capitol Hill, House Speaker Nancy Pelosi addressed the public on the H1N1 flu and the 'Credit Cardholders' Bill of Rights that is being voted on today.

Pelosi said the recent outbreaks of the swine flu are a high concern and advised people to use common sense.

“Wash your hands, wash your hands, wash your hands,” said Pelosi.

Congresswoman Carolyn Maloney (D-NY) also attended the conference and spoke about the 'Credit Cardholders’ Bill of Rights Act of 2009”
saying that it will provide consumers protection from consumer fraud and deception.

Maloney said that the bill will help level the playing field between credit card issuers and consumers and will ban some abuses like raising interest rates on existing balances and double cycle billing where they are charging interest rates or balances that have already been paid.

“This bill will provide 45 days notice if they’re going to raise an interest rate going forward so consumers can move on to another card, putting more competition into the system. It stops many of the tricks and traps of changing the terms and changing the due dates that trap consumers and very importantly, it stops the any time, any reason, the unrelated activity which they then say cause a rate increase and it will help many many consumers,” said Maloney.

Maloney called Molly Gordy, a working mom who lives in Manhattan and has two credit cards, a model consumer.

Gordy who has always paid her credit card bills on time recently received a notice from her card company that the interest rate on her card would increase from 13 percent to 19 percent on her existing balance along with new purchases.

“I called and yelled at the company and asked them ‘Why are they doing this? This is not what I signed up for!’ The customer service representative told me ‘Its because of the tough economy.’ That made me really mad because when I lost my job a few years back they didn’t
lower my rate.”

A week later Gordy says she received another letter from a different division from the same company offering her a new credit card with a zero percent interest on balanced transfers for the next 16 months.

“I had to laugh, well one part of the company is telling me there is no money to lend to me, as an existing customer, another party is offering me free lending as a new customer. In my world we call that bait and switch.... If I make a contract with someone they should not be able to change it just because they can.,” said Gordy.

Committee introduces legislation on credit card regulation at press conference

Senator Christopher Dodd (D-CT), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, introduced legislation to improve credit card billing, marketing and disclosure regulations and practices today at a press conference. The Credit Card Accountability, Responsibility, and Disclosure Act (C.A.R.D.), is set to strengthen industry regulation and supervision, prevent increases in interest rates and terms, and prohibit exorbitant and unnecessary rates and fees, among other things.

Upon becoming chairman, Dodd put credit card companies “on notice” in 2007 and with this legislation is hoping to create “fairness and transparency for consumers.” Last year 700 million credit cards were given out that allocated about $9,000 of debt per household, due to, as Dodd said,“mostly excessive fees and exorbitant interest rates.”

Sen. Carl Levin (D-MI), at the press conference in support of Dodd’s legislation, noted “With all the economic hardships facing folks today, from falling home prices to rising gasoline and food costs, it is more important than ever for Congress to act now to stop credit card abuses and protect American families from unfair credit cared practices.”