Steve Syre- Credit Card Regs

" News late word that Governor Deval Patrick he. Is headed to the White House amid speculation. He is a candidate for the Supreme Court vacancy it's absolutely disgusting right."

" It's time for Fred Aaron Small or Omar or sought out. There are a moron directing your goals and 6172666. -- sixty year."

" Lot of people right now. Are gathering they're not sort of like god that I think I really -- the only thing you know fact that."

" Tom turner and Adam hello Feinberg a day."

" the anger at good morning news and data but I'd one on a road here what you've got mile sled dog but god buddies."

" News forum."

" And modem Boston. What do you look at I was looking at the screen which has -- at the and so wanted to make sure that I was about to amounts of rumored to podcast who are balanced world headquarters and we were looking for that Australia on it doesn't say yeah it does not -- And I just like to remind myself that Iran broadcast this always bring brought to by law from I should say the new balanced world headquarters building yet. In beautiful downtown -- the -- makes you feel proud without reviewed the east and it's a bright sunny day so -- good to see this side we're talking. Last hour about Barack Obama -- in America crowd always applaud Tony Harris then Crittenton thunderous ovation and -- ended new regulation these are in the auto industry. So changing the regulation in new rule with regard to credit cards and congress system in this you know this legislation there his -- all -- somewhere he wants."

" I don't I don't think it's quite -- I really don't I don't think it's great daddies and so it but -- what evidence and point one visit our goal is to create more points hot hot hot hot hot and you do that when you move those month's salary -- The browser out there Annapolis and him by god eyes so to outline the credit -- situation forests we're joined by the amazing the delightful and always edifying Stephens sire business reporter for the Boston Globe which is as of today still. Printing and you're right absolutely Steve's site good morning to reassert."

" Is that he -- reading the script that I got sentenced. Have a question this. So so -- Put up a podcast for the past hour yeah but it is firing up a new recordings like in the podcast for the."

" All the noise on the podcast do you go. You're drives me crazy -- in the morning I -- I'm checking out my my my iPod in there you are every day sire. But. Let's just varieties despite his it's been good stuff."

" I think you can have them for -- hours that I understand that correctly."

" You -- the -- I do whatever he wants."

" And I can that you guys pretty much in my at all they're wrong about."

" How exciting is that I thought you try to restrain yourself. The founders straight -- so credit got legislation now lurking in the wings in done in the United States senate I think is about to it breaks throughout this going to be big stuff give us our line on this he wouldn't. Can you give us an outline of legislation."

" Yes this has pretty similar houses have already and it did got a bunch of different things that it takes I think some of the most sort of aggressive egregious things. Credit card companies do whether it's increasing. Interest rates very quickly with and a thirty day period on. Some balances balances that get behind and make it essentially gives you more time 45 days before they Jack up the rates it's. Very much oriented toward. Plain English understanding what's going on in terms of -- your your right your rates your fees they did that anybody who's. God for the last six months as. More likely than not seen. Things suddenly change and that you end up with an envelope with a -- print that tell you that. Like in your credit card is changing it does other things as well it limits. How they can market credit cards younger people. Under eighteen and also kind of colleagues college age. Customers it does. I think a lot of things that are reasonable and commonsensical. One last thing it doesn't and this is I think the worst things some credit card companies do not all of them do it but they have this. Double cycle billing. Particularly for people who are carrying larger balances if you're paying him down. What they do it they don't charge for the current balance they've sort of average the last two months together. And so you can actually be paying interest on principle you or keep it off. That you won't be able to do. And so -- there's a whole sort of laundry list of things like this that are either. Curtailed or or eliminated. One thing that had been discussed the one time was an actual interest rate cap on credit card rates that is not in this."

" Do we know what the effect of these changes is going to be."

" Well I think benefit from a consumer point of view I think you have a more rational less abusive. System from a bank and credit card company point of view you know they're out there banging that drum right and right now saying well. All this stuff is you know going to change the way the system works and that all you people who you know basically got a free ride because you paid your. Your balance off every month well that's going to change we're gonna. Start -- charging annual is that rates are going to go up. Your credit is going to be restricted they have kind of doomsday scenario but -- Both are gloomy outlook for Iraq for those customers particularly the ones that stay in the industry called deadbeat."

" But we'll win that we -- You're dead you're a deadbeat in their eyes because they weren't making any money -- oh -- that's understandable when you think about their business abolish use them as -- charge Cardin not as credit card they make their money off the credit not off you do in the charging. -- make a little off of that but the big -- when you screw up and I wonder if this will make it more expensive. To operate -- wit with the pork customers the real deadbeats the ones who can't make the payments can even make the twenty dollar month payment. And if they can't make as much money off of them will it make it harder for them to get credit cards which would probably be a good thing."

" I think it would be a good thing based in many cases and did you know obviously -- there isn't universal answer this but yes I think. Credit war customers who are. Basically have a harder time paying off large balances that that. Credit out there will be curtailed or in some cases eliminated. And give you know it is stepped back and you look at this. And they say well you know way back when you view you know you have limits on how much you could charge and -- you pay to see it. You know frankly the old system made sense it was rational. Banks provided this service that they charge work and they were careful not to overextend people over a period of years. It grew and grew and grow to become something where you know a banker credit card company. Didn't mind that there card would be 81 in somebody's wallet -- make no sense whatsoever and it became -- also aware. Late fees and other special charges became a bigger and bigger percentage of the amount of money they were making because. That was how they can continue to grow the business they had. Saturated the country with so much credit in credit card credit that you couldn't grow it that much faster anymore you know at this point. The average family who has balances on their card. It's an average you know 78000. Dollars a household and -- I edit the sign of the times that maybe that doesn't seem that shocking but if you went back. Five or ten years ago you know that did you said 8000 dollars in household would have been up and art pop."

" Yeah I think it's even higher number like 10000. Per averages still that's not -- how does this legislation not the embodiment of again the nanny state IC. You know for years and years and years Woodruff talked about the difficulty of powerful low income people and gaining access to credit so on and so forth so the banks -- doing it. And then all of a sudden this DMD you know damned if when they weren't and now DM that they out. Providing it if in the end the consumer -- Applies for the caddie uses the Qaeda has a balance on -- not."

" it -- of the department yet it any company that wants to do that from doing it."

" Well if in fact they're going to be -- these restrictions put in place they will now stop. I I assume I think you and you and -- red reached the same cancer that this will read Bruce."

" I I think what this would do that in most commonly is to restrict. Some of the worst practices. That took place as a result of that saturation of credit and it I don't think unlimited credit to anybody is a good solution for anything that effect. Well you know -- it was going to be able to afford this well to be able to get access to this the truth is that there is no limit to what a credit card companies can charge for interest right now. You know. You want to charge 25% to somebody. Who is of that risk well you can do that that's legal you know some of the other things that used to what we're talking about that. The saturation of credit what are -- of the big things that I think was really. Kind of pernicious was the the the attempt to really infiltrate. And place credit inside a very young population whether it was. College kids to engage."

" High school seniors drill yup."

" And that it goes to cover things liberty in -- net -- that we're talking about so you know I don't think is that. That we're talking about anything horrible and turned in I don't consider that in nanny state I consider -- But it is it's -- you should spur of the purposes of its growth at. Created kind of an abusive. Didn't charge environment and reforming -- if if if the result of that is some of the the -- credit is extended is no longer in existence that I can live with."

" I must know we had people because most of the people that I know get these solicitations are actually the cod comes in the mail and on have to do is sign something off. As you know column number and activated but the people I know just cut those things up well let's that is on there live now they are evil you know get one of our two of those every day. Well -- tedious after our."

" I mean -- get I can't even count in the course of the week that the credit card come on they used against you bail you know a bike get. Water to it maybe I don't own a month we -- for the out."

" Now maybe that's because you're working at the blow by still got like one of them."

" Hey Steve -- said the interest rate increases that -- Will this legislation require them to give you notice of the the change in plain. English."

" Plain English I think is a is a big portion of this. So there is a opportunity to understand and see exactly what --"

" that sounds like a racist rule. Remains they're into a plain English yeah planet I believe it or not kinda sounds -- abusive option you know what's going to be very very have been what a great deal of fun to watch. Will be to -- Todd have to say into utter some words of praise and and thanks to Chris Dodd his leadership on this Steve's site what do you think."

" Good god thank thank you Chris -- and the president."

" The Obama can you get high if they you don't really know what I'm. Why Kennedy has the right time I'm thrilled. I."