Sunday, May 17, 2009

Lieberman Votes In Favor of 41% Credit Card Rates

While Dodd Disagreed, calling the predatory practice Usury Lieberman disagreed. The big credit card companies had their most powerful guns at the Senate Banking Committee chaired by Chris Dodd. These malevolent bankers, intent of preserving their profits cited a record 8.8% delinquency rate as reason to keep interest rates high.

Other members of the Senate Banking Committee argued that a person paying 30%-41% interest (not including late fees and over limit fees) was in fact loan sharking and a self defeating counterproductive loan. I personally agree that under such circumstances these terms and conditions are predatory and a mitigating factor, if not the reason defaults spiked to 8.8%.

The bank lobbyists warned that if such a measure passed, and banks had to limit their credit card rates to 15% like the credit unions that the financial markets would retaliate with negative action at the market opening. Sadly the bill was defeated with almost all Republicans (and Lieberman) voting with the Banks.


To See The Entire Vote Click Here

If you are thinking about giving Chris Dodd a "pat on the back" don't because Dodd is a supporter of the much more predatory "Pay Day Loans" or those loans aimed at the poor. Those interest rates are virtually unlimited. Suzy Orman represented that Pay Day loans can exceed a whopping 5,000 percent interest. In my opinion, Dodd has a dying career and is playing the game to get his numbers up. Do not think for a second that he somehow cares about your financial problems because he does not.

See the LINK

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