The End of Universal Default?

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I forgot to blog about this earlier, but here’s the latest news on Chris Dodd’s bill to bring a little common sense to the credit card industry:

Dodd’s original bill had sought to ban all interest rate increases on existing balances.

Under the compromise measure, agreed to over the weekend by Dodd and Sen. Richard C. Shelby (R-Ala.), card issuers would be allowed to retroactively bump up rates for any borrower at least 60 days behind on payments. However, if the borrower subsequently paid on time for six months, the card issuer would have to restore the original rate.

The bill also would prohibit card issuers from increasing rates during the first year a credit card account was opened and would require them to get a customer’s permission to process transactions that would push the account balance over the credit limit. Another provision would require card issuers to post credit card agreements online.

It’s good to see that the credit card industry still has a friend in Richard Shelby.  We certainly wouldn’t want to pass a law that completely prevents a company from retroactively raising the interest rate on a loan it’s already made, would we?

Eh.  At least it’s something.  Presumably this means that credit card companies can no longer retroactively increase your rates just because you were a few days late paying your water bill, either.  Though I think I’d want to read the fine print before I was sure of that.

In any case, now it’s time to see if any Republicans will vote for this bill.  They might!  Constituents are pissed at credit card companies, after all.  In the past Republicans could prevent bills like this from even coming to a vote, but now that they’re going to be forced to take a public position they just might decide that discretion is the better part of valor.  Cozying up to your finance industry pals is one thing, but losing your seat over it is quite another.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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