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Credit Card Legislation


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#1 Panthro

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Posted 22 May 2009 - 09:57 AM

Greed and predatory lending wasn't only confined to the mortgage industry...this personally hits closer to home and has been going on for too long.

Thanks Obama!

The new rules, which would go into effect in nine months, would prohibit credit card companies from giving cards to people under 21 unless they can prove they have the means to pay the debt or a parent or guardian co-signs for the card.


http://news.yahoo.co...ma_credit_cards

#2 cookinwithgas

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Posted 22 May 2009 - 10:12 AM

But...but don't credit card companies have the God Given Capitalistic Right to screw over whomever they like in the name of Free Markets?

#3 Panthro

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Posted 22 May 2009 - 10:13 AM

I have a $15k Belushi "College" shirt...lol

#4 Fireball77

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Posted 22 May 2009 - 10:23 AM

Both the consumer and the CC companies are at fault for the mess, IMO.
And for a similar reason I would bet: spending unwisely to begin with.
To me, it's bad business to take on poor credit risks as customers, so I think this is a good thing, the cosigning. But it's something a smart big picture company should have already been doing, not lending to very risky customers. When the article says PROVE they have the means to pay, I assume they are talking about secured credit cards? Because one would think that current income would already be a required piece of info.
I think it's good to make sure consumers get maximum notice as well.

#5 pstall

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Posted 22 May 2009 - 10:27 AM

But...but don't credit card companies have the God Given Capitalistic Right to screw over whomever they like in the name of Free Markets?


Ever hear no such thing as a free lunch or if it's too good to be true it probably is or don't look a gift horse in the mouth or don't write a check your arse can't cash or money for nothing and the chicks for free?

Sorry. A very small% of people use credit cards wisely.

Not you wanna talk universal default policy or double cycling billing or changing the payment date etc...I'm with ya.

#6 MyDrunkardNC

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Posted 22 May 2009 - 11:15 AM

But...but don't credit card companies have the God Given Capitalistic Right to screw over whomever they like in the name of Free Markets?


Yes, as long as the shareholders are happy.

#7 natty

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Posted 22 May 2009 - 11:40 AM

Both the consumer and the CC companies are at fault for the mess, IMO.
And for a similar reason I would bet: spending unwisely to begin with.
To me, it's bad business to take on poor credit risks as customers, so I think this is a good thing, the cosigning. But it's something a smart big picture company should have already been doing, not lending to very risky customers. When the article says PROVE they have the means to pay, I assume they are talking about secured credit cards? Because one would think that current income would already be a required piece of info.
I think it's good to make sure consumers get maximum notice as well.


But risk is where the money is.

#8 SCP

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Posted 22 May 2009 - 12:32 PM

I think every credit card application should have in big, bold letters at the top of the application:

Hey f*cktard, this is not free money!


Good job The Barry. However, he needs to hammer home that there is some personal responsibility in this world.

On a side note, Libs and their "corporate greed" stuff trip me out. LOLZ

#9 Panthro

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Posted 22 May 2009 - 12:35 PM

people smoke even with the warnings. they prey on college kids....that is all

#10 SCP

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Posted 22 May 2009 - 12:41 PM

people smoke even with the warnings. they prey on college kids....that is all


I saw it first hand. These credit card "reps" came to the football dorm at WCU my freshman year. They actually walked down the halls knocking on the doors and talking to the brothers, most of whom came from less privelaged families. Their sales line was "I can get you a $5,000 credit limit today if you sign up right now." I'll bet they signed up 30 new clients on my floor alone.

Sadly, most these guys blew there Pell Grant money on beer and weed also. I used to give this guy a ride home when we went home for a weekend or something. Dude spent his entire Pell Grant (which was like $1300) in one weekend. Bought a hotel room and booze and whatever else for all his boys.

Personal responsibility.....not just credit card predators.

#11 Fireball77

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Posted 22 May 2009 - 12:47 PM

But risk is where the money is.

I see your point, and concede that it true, but I worked for a CC bank and that's not how they were successful. It's not that I think they have a moral obligation to people to protect them from themselves, it's more that I think it's foolish long term to make bad loans.

I am not a big regulations or protecting people from themselves person at all as long as things are disclosed up front, so I am a bit torn on MAKING them do that with the cosigner. I would rather see the companies have to pay the price for being stupid by going out of business. However I see no problem with making sure they warn people of everything, and think everything should be disclosed in plain language. I feel that if that is done, people have nothing to whine about when they get into trouble with the CCs. Bankruptcy is pretty easy to file for/get and it sucks for stiffed creditors.

#12 Snake

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Posted 23 May 2009 - 12:48 PM

I see your point, and concede that it true, but I worked for a CC bank and that's not how they were successful. It's not that I think they have a moral obligation to people to protect them from themselves, it's more that I think it's foolish long term to make bad loans.

I am not a big regulations or protecting people from themselves person at all as long as things are disclosed up front, so I am a bit torn on MAKING them do that with the cosigner. I would rather see the companies have to pay the price for being stupid by going out of business. However I see no problem with making sure they warn people of everything, and think everything should be disclosed in plain language. I feel that if that is done, people have nothing to whine about when they get into trouble with the CCs. Bankruptcy is pretty easy to file for/get and it sucks for stiffed creditors.






See the thing is that in past the banks would allow people to take out more and more loans and string along so they would not go out of business. My fam is in the restaurant business and I can tell you for sure it takes a while for anyone to go out of business and it hurts all the other business they are competing with. Really its a kamikaze attack because you know they are gonna fail but they all try to take you with them. This is why our country is in such a bad mess right now because banks just let them keep getting more and more and more till they defaulted.

#13 Delhommey

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Posted 23 May 2009 - 01:53 PM

Obama should realize that capitalism works best when there are no rules. Only the strong survive, baby!

#14 Go To Girl

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Posted 23 May 2009 - 10:50 PM

I wonder if that will affect people under 21 who have a card now. I made my son get one before he left home to go to college so he could learn to use it responsibly. He does. I did not want the first place he encounter credit card to be the vultures at clllege who suck kids in by giving them something free.

When he was applying for it, they almost made me co-sign (at the credit union), but in the end did not. He was pretty stable financially. He only asked for a $500 limit so that probably helped too. That's plenty for him.

#15 Snake

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Posted 24 May 2009 - 12:33 AM

I wonder if that will affect people under 21 who have a card now. I made my son get one before he left home to go to college so he could learn to use it responsibly. He does. I did not want the first place he encounter credit card to be the vultures at clllege who suck kids in by giving them something free.

When he was applying for it, they almost made me co-sign (at the credit union), but in the end did not. He was pretty stable financially. He only asked for a $500 limit so that probably helped too. That's plenty for him.




If he has a job he should be fine. Lots of people under 21 prob will get dumped and there credit will go down with the new laws.


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