Credit Card Overhaul

[SubGod22]

Here's what the new bill would do

[BostonWu]

There's an unintended consequence (I'm trying to give the dems the benefit of the doubt) in that this represents another example of wealth redistribution.

[Maggie]

There's an unintended consequence (I'm trying to give the dems the benefit of the doubt) in that this represents another example of wealth redistribution.

Now where did you get a silly idea like that BostonWu? :sarcasm:

[WuDrWu]

I believe this is a sticky situation.

Many in the credit industry have preyed upon a variety of consumers for years with predatory lending practices. The fine print and one sidedness of some of their practices are not consumer friendly and borderline on thievery.

Now, I do believe that we should have a free market, but when we have something as widespread as the credit market is, and the Fed has their hand in it (and the banks willing take the low interest loans) then I don't have a problem with curtailing some of the rediculous predatory fees and changes that are often charged. Things like setting a credit limit and then penalizing the cardholder for going over the limit either due to an approved charge or interest rates seems to make little sense and take advantage of those least likely to figure that out. The banks have done everything to see "what they can get away with".

While I am on the subject.....the insurance field needs to be reeled in as well. Finding new reasons that keep driving rates up (when you are forced to have insurance) 2 and 3 fold that have little to do with insurability. Randomly increasing my HO insurance because now my zipcode has had some undesirable activity, when I have zero claims, is a bogus rate bonus plan, nothing else. If they actively were to seek reasons to lower my rates, I'd have no problem. They do not seem to be as willing to do this.

[rrshock]

While I am on the subject.....the insurance field needs to be reeled in as well. Finding new reasons that keep driving rates up (when you are forced to have insurance) 2 and 3 fold that have little to do with insurability. Randomly increasing my HO insurance because now my zipcode has had some undesirable activity, when I have zero claims, is a bogus rate bonus plan, nothing else. If they actively were to seek reasons to lower my rates, I'd have no problem. They do not seem to be as willing to do this.

This is a huge problem. Your credit takes a ding, they raise your insurance now. Like when I bought my house, my credit was good. Then it showed having that loan, so 6 months later, my insurance rate went up because my credit score went down. It's absolutely assanine what they will do to make an extra buck.

Like you said if something happens in your area, they raise your rates. It is absolute bs. Like you can control someone 3 miles away getting their house broken into or a water pipe broke and flooded. Or a tree falls on something. But they seem to think that you can.

The only thing that you can hope for to lower your insurance for your home is that the fire department manages to get a lower ISO rating. And if you live in Haysville, that can't happen because it is already as low as it can go.

[Ixiah]

While I am on the subject.....the insurance field needs to be reeled in as well. Finding new reasons that keep driving rates up (when you are forced to have insurance) 2 and 3 fold that have little to do with insurability. Randomly increasing my HO insurance because now my zipcode has had some undesirable activity, when I have zero claims, is a bogus rate bonus plan, nothing else. If they actively were to seek reasons to lower my rates, I'd have no problem. They do not seem to be as willing to do this.

Doc - we agree completely on something - dunno if that has ever happened before :D !

Btw - I used the insurance agent as my dad had for years through Farmers for both auto and home. This year I was told by my agent that I would get two rate increases (essentially because Farmers lost their shirt in the stock market). I started looking around and ended up getting my auto through Progressive (for $20 less/month) and my home through Farm Bureau (for about $80 less / year before the rate increases).

[Maggie]

While I am on the subject.....the insurance field needs to be reeled in as well. Finding new reasons that keep driving rates up (when you are forced to have insurance) 2 and 3 fold that have little to do with insurability. Randomly increasing my HO insurance because now my zipcode has had some undesirable activity, when I have zero claims, is a bogus rate bonus plan, nothing else. If they actively were to seek reasons to lower my rates, I'd have no problem. They do not seem to be as willing to do this.

Doc - we agree completely on something - dunno if that has ever happened before :D !

Btw - I used the insurance agent as my dad had for years through Farmers for both auto and home. This year I was told by my agent that I would get two rate increases (essentially because Farmers lost their shirt in the stock market). I started looking around and ended up getting my auto through Progressive (for $20 less/month) and my home through Farm Bureau (for about $80 less / year before the rate increases).

The power of a free market.

[SubGod22]

So, if what I keep hearing is accurate, this bill is yet another example of Obama and his lovely Democrat Congress bailing out those who aren't responsible and making those of us who are pay more? I don't know all the little details of this bill but I keep hearing that it's bound to lead to more annual service charges for the responsible to help pay for the irresponsible. Someone even mentioned recently that it'll do away with the rewards that some companies give to their customers.

I thought this whole bill was a bad idea when it first came out but the more I hear it discussed the worse I feel. I guess it's too late to do anything now since PBO signed it yesterday as soon as it landed on his desk.