Al Franken’s been holding press conferences, roundtables and events around the state about where he stands on tons of issues. On Wednesday, via Kevin Duchschere at the Star Tribune:
To change the credit industry, Franken said he would back a “credit card bill of rights,” crack down on predatory lenders and repeal the 2005 bankruptcy bill, which Coleman supported.
The credit bill of rights, among other things, would ban interest on late fees, require that credit applications be intelligible and mandate that credit companies disclose the long-term costs of making only the minimum payment.
With $2.5 trillion in consumer debt, the average household’s credit card debt is over $8,500. I’m not sure why this isn’t more of a hot topic this political season as it probably should be. It’s great to see Franken on the forefront of this issue.
Mark Drake, a Coleman campaign spokesman, called Franken’s proposals “rhetoric.”
Well, that’s a lie, unless you consider “rhetoric” to be an actual plan to get things done:
A Credit Card Bill Of Rights
- Ban “universal default” and other unilateral changes to repayment terms.
- Guarantee that prompt credit is given for payments made, and prohibit interest on late fees.
- Require that applications use plain language and at least size-12 font.
- Ban mandatory arbitration clauses.
- Require that credit card companies inform borrowers on each bill about the long-term costs of paying only the minimum balance – and how much they’d have to pay each month to eliminate their balance within three years.
Crack Down On Predatory Payday Lenders
- Cap the interest rate on “payday” loans at 36 percent, as twelve states and the District of Columbia have already done, saving vulnerable consumers as much as $1.5 billion a year.
- Require lenders to provide clear and simple information about loan fees, payments, and penalties during the application process.
- Require proof of income before a cash advance is approved.
Repeal The 2005 Bankruptcy Bill
- Repeal the bill written by the banks and credit card companies.
- Mandate an exemption in bankruptcy law for individuals who can prove they filed for bankruptcy because of medical expenses.
- Require prioritization of child support and alimony payments before credit card debt in bankruptcy proceedings.
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When in doubt, introduce a “Bill of Rights”. Really makes it sound like you’re fighting for the little guy.
I don’t think Franken is in doubt. Unlike Coleman, he understands that the people are getting screwed. Well…maybe coleman understands….but he certainly doesn’t seem to care.
The bottom line is that the credit crisis is 30 years of Regonomics/supply side economics come home to roost.
Under supply side econmics, the idea is to redistribute the wealth created by labor to the welathy and corporations, and then the corporatations and wealthy will automatically invest this in infrastructure and more procuction, thus creating more widgets and jobs to make more widgets.
Supply side economics has never worked, because to drive the economy you need money in the hands of consumers first. With all the wealth of the country redistirbuted to the wealthy and the corporations, the only way to get money into the hands of the consumer was to make credit easier, and easier to get. It is the corporate pushers of credit that have caused this problem, because it was the only way to make Reganomics works.
Progressives and conservatives both need to wake up and realize that understanding economics is the way out of this mess. Every economist I have ever heard of has agreed that consumers drive the economy. Redistributing the wealth to the top through deregulation, tax cuts for the wealhy, and anti-labor policies has not “trickled down”. Even if the corpoartions did invest all that wealth in infrastructure, there would still be the problem of no money in the hands of consumers.
The solution is good jobs at a good wage with good benefits, and fair trade policies abroad. The solution is to get as far away from supply side/vodoo economics as possible. The problem is the Dems do not try to understand that the underlying economics of our country are the keys to social justice. In not understanding economics, we always seem to lose to Republicans, who just get it completely wrong, but sound convincing.
I don’t think a credit card bill of rights would have changed a damn thing. People who wanted to buy, buy, buy beyond their means still would have glanced at the new and improved documents, tossed them aside, signed and gotten their money.
I actually agree with capping payday lender rates. Doing so would not want the lenders to take on the most risky loans, which would have been a good thing. But should we really feel sorry for someone who got a bunch of money that they cannot pay back by making up their income or deceiving the lender on their assets?
I agree that changing the bankruptcy bill would be good, but there are a hundred ways to change it and I have a feeling I’d disagree with Al.
Half of bankruptcies are due to health care bills, Dan.
@ DtM
“I have a feeling I’d disagree with Al.”
I have a feeling you’d disagree with Al if he said the sky was blue.
Another Chris’ point is well taken.