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CPFitz14



Joined: 13 Jan 2004
Posts: 309
Credit Card Bill of Rights  Reply with quote  

I hope I'm misunderstanding this, but it looks like its leaving college students out to dry. Hard. I'm really hoping this affects new cards only.

http://www.mint.com/blog/finance-core/what-the-credit-cardholders-bill-of-rights-means-for-you/


Quote:

Students:
For college students that donít have a co-signer, the max amount of credit extended will be limited to the greater of 20% of the studentís annual gross income or $500 dollars. The aggregate amount of credit extended from all of their credit cards will be limited to 30% of the studentís annual gross income (for the recently completed calendar year).
Creditors are prohibited from opening a credit card account for any college student who does not have any verifiable annual gross income or already maintains a credit card account with that creditor, or any of its affiliates.
Post Fri May 22, 2009 10:25 pm
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redball



Joined: 12 May 2006
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Location: Northern New Jersey
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What's your gripe with that? The idea is to stop predatory credit practices on college campuses. If you don't have a cosigner then you can't get some ridiculous limit. Aren't student loans enough debt to worry about?

I'm still really upset about the gun provision on that bill and how they managed to get both through in such a way that they can claim to have voted against whichever part their constituents may not like.
Post Fri May 22, 2009 11:58 pm
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metachronos



Joined: 27 Mar 2007
Posts: 454
Location: Green Bay, WI
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Yeah I hope this only affects new cards. I got a "student card"with a $250 limit when I started college and now I have a platinum visa with a jacked limit and all sorts of sweet rewards-type shit. I'd hate to get all that taken away. $500 is also not a lot( I made jack shit this year) I've spent more than that in one month on textbooks alone, not counting other stuff.

On the other hand, one of my buddies has like four cards all maxed, they're probably low limit, I didn't ask. Mostly because he lives off student loans. This would probably be good for him.
Post Sat May 23, 2009 12:26 am
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Jesse



Joined: 02 Jul 2002
Posts: 6166
Location: privileged homeless
 Reply with quote  

Watch the documentary Maxed Out and you might just fall on your KNEES thanking them for that shit.
Post Sat May 23, 2009 5:03 am
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the mean
Certified O.G.


Joined: 31 Jul 2003
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Location: philly/sacto/kauai/ohio
 Reply with quote  

What Redball and Jesse said.
Post Sat May 23, 2009 8:17 am
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Embryo



Joined: 31 Dec 2002
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Location: http://www.myspace.com/pogopark
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no shill, but this bill is AWESOME, speaking as someone who has taken a few spins around the event horizon of the singularity that the credit card industry has become.

here are the 4 rules I heard first, which basically made my day:

1. if you have multiple APRs on different parts of your balance, payments will apply to the higher rate first (the opposite of what happened before)
2. You have to be 60 days late on a payment before they can raise the interest rate on your existing balance (before if you were so much as an hour late they could jack up your APR, and would) -- and if you get current for 60 days they have to drop it back down!
3. If you go over your credit limit, no fee can be levied unless you are specifically informed the purchase will bring you over your limit and you approve it anyway
4. Bills have to be sent 21 days before the due date, so for a lot of people not using the Internet there will be a lot less opportunity to play tricks.

awesome.
Post Sat May 23, 2009 8:27 am
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CPFitz14



Joined: 13 Jan 2004
Posts: 309
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The rest of it is definitely good. And I understand that predatory credit practices are bad. But some responsibility needs to fall on people as well. Also, because of the way credit scoring works, it could put me (and a lot of other students) in a bad situation.

Right now I have somewhere around 15,000 in available credit. I have about 1,000 on my credit card that I'm slowly paying off. I make the payments on time, and have an awesome credit score. If my credit drops to $1000, i'm now utilizing 100% of my available credit, and my credit score will tank.
Post Sat May 23, 2009 8:36 am
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the mean
Certified O.G.


Joined: 31 Jul 2003
Posts: 6498
Location: philly/sacto/kauai/ohio
 Reply with quote  

Embryo wrote:
here are the 5 rules I heard first, which basically made my day:

1. if you have multiple APRs on different parts of your balance, payments will apply to the higher rate first (the opposite of what happened before)
2. You have to be 60 days late on a payment before they can raise the interest rate on your existing balance (before if you were so much as an hour late they could jack up your APR, and would) -- and if you get current for 60 days they have to drop it back down!
3. If you go over your credit limit, no fee can be levied unless you are specifically informed the purchase will bring you over your limit and you approve it anyway
4. Bills have to be sent 21 days before the due date, so for a lot of people not using the Internet there will be a lot less opportunity to play tricks.
5. I can bring my gat to Yellowstone to protect me from Yogi.

awesome.
Post Sat May 23, 2009 8:38 am
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bbreakz



Joined: 08 Apr 2008
Posts: 948
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Jesse wrote:
Watch the documentary Maxed Out and you might just fall on your KNEES thanking them for that shit.


Agreed.

That is a good thing. Too many college students, including myself, which were not responsible enough to have 7,000 limits or whatever got screwed by getting in over their heads. This is a good thing.

Also Credt Card companies should not be allowed to sell Credit Cards on Campuses. I got two on my campus.
Post Sat May 23, 2009 8:58 am
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Embryo



Joined: 31 Dec 2002
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hahah -- sorry, I meant to address the gun amendment.

although first, you guys are dour as hell. the gun thing sucks, but the rest of the bill is really, really good. why are you more concerned about a gun amendment, which can quite possibly be repealed, than the awesome consumer protections that were passed in large part because they let Coburn drop that shitty amendment in?

anyway that's what i was going to say about the amendment: none of this law takes effect until Februrary. we have plenty of time to get rid of that rule, or for the department of the interior to come up with some way to avoid changing their policy. but no let's freak out about this one thing instead of celebrating the rest of it! *riots*
Post Sat May 23, 2009 12:33 pm
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the mean
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Joined: 31 Jul 2003
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Location: philly/sacto/kauai/ohio
 Reply with quote  

Agreed. Overall, this is a great bill.
Post Sat May 23, 2009 12:41 pm
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Embryo



Joined: 31 Dec 2002
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the mean wrote:
Agreed. Overall, this is a great bill.


word! hahah. i'm still chuckling over number 5.
Post Sat May 23, 2009 12:45 pm
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redball



Joined: 12 May 2006
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Location: Northern New Jersey
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I do love the credit card part of the bill. The only thing that's bad about it is that most interest rates will probably go up. That's good, though, because people should use less credit (or at least pay it off every month).

As for the other part of the bill... It's not that I'm too worried about guns in parks, although I can foresee a rise in poaching, but I'm concerned with how it passed. I really hate when completely unrelated provisions are tagged onto bills. It's how most of the backdoor shit gets done in Washington. It almost always favors special interests, and usually those are conglomerate interest that don't want an up and down vote on some legal change that will only benefit them. In this case it was the gun lobby getting an anti-poaching law changed.

BUT! That's not all. First they put the amendment on there. Then they split the bill and voted separately on each part. The bill would only pass if both parts won but you could vote for one part and against the other, and there wasn't a vote on the entire bill.

This bill was bad for the banks, yet the Democrats pushed it. They should have been able to push it without the crappy provision. Why, when the financial lobby is so weak, do we have to involve the gun lobby in order to pass legislation like this? It's bullshit. I don't think the ends justify the means because the same end was achievable via other means.

Also, I thought Maxed Out was a pretty decent documentary.
Post Sat May 23, 2009 1:54 pm
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Jesse



Joined: 02 Jul 2002
Posts: 6166
Location: privileged homeless
 Reply with quote  

redball wrote:
Also, I thought Maxed Out was a pretty decent documentary.
Yeah, I mean I have to admit that some of it was heavy-handed and oversentimentalized or made personal to the exclusion of the big picture, but the parts that didn't do that and really laid out the cold, hard facts of the predation in that field just turned my blood to ice. And rightfully so, I think.
Post Sat May 23, 2009 1:59 pm
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