Diane Rehm Show looks at new credit card regulations

New restrictions on credit card companies take effect. What the new law means for consumers and banks, and loopholes to watch out for. Click here to listen to a recording of the program.

Guests:

Robert Manning, author of "Credit Card Nation" and "Living With Debt," and the founder of the Responsible Debt Relief Institute.

Edmund Mierzwinski, Director, U.S. PIRG Consumer Program

Nessa Feddis, Senior Federal Counsel, American Bankers Association

Nancy Trejos, Washington Post correspondent and author of the book "Hot Broke Messes: How to have your latte and drink it too."

____________________________________________

Subscribe to MCRC blog updates via email; click here.

A cautionary tale about debt settlement

National Consumer Protection Week continues, and below is a video from Consumers Union that shows just what can happen when people turn to debt settlement firms. To see more about MCRC's work on debt settlement, click here.

____________________________________________

Subscribe to MCRC blog updates via email; click here.

Del. Frick on Ben Stein's "Dirty Money"

Del. Bill Frick and Del. Sheila Hixon have introduced a bill to regulate "negative option marketing." Del. Frick has this piece on Charm City Current:

"Unfortunately, Stein has a new starring role – ripping off consumers. Stein now can be found on TV’s across our area as a pitchman for FreeScore.com, a site that urges consumers to obtain a “free” credit score from their website. The problem is, it isn’t free. FreeScore requires consumers to sign up for a credit monitoring service, at the bargain price of $29.95 a month. Anyone that does not want to get this service – which, incidentally, no one needs – must take affirmative steps to cancel the agreement." -- read more

____________________________________________

Subscribe to MCRC blog updates via email; click here.

Baltimore Sun editorial urges regulation of payday loans

Today marks the first day of National Consumer Protection Week, so it was heartening to see The Baltimore Sun's editorial this morning about the need to close a loophole in Maryland law that allows payday lenders to charge outrageous fees. This is one of MCRC's top legislative issues.

"... Take, for instance, the Anne Arundel County cancer survivor paying 682 percent interest on $578, or the city resident who took out an $875 loan last June on an interest rate of 675.77 percent and still owes most of the principal.

Officials don't know exactly how much money is changing hands under those kinds of terms in Maryland, but this much is clear: Even the poorest, most downtrodden soul should not have to pay that much for a personal loan. Lawmakers need to end this disgraceful practice immediately." -- full editorial

____________________________________________

Subscribe to MCRC blog updates via email; click here.

MCRC consumer reception featured in Daily Record

____________________________________________

Subscribe to MCRC blog updates via email; click here.

Fed proposes limits on credit card penalty fees

Ylan Q. Mui reports: The proposed regulations represent the Fed's latest efforts to comply with the sweeping credit card reform legislation passed by Congress last spring. The final phase of the legislation, slated to take effect in August, requires that any penalty fees be "reasonable and proportional" -- and lawmakers left it to the Fed to determine exactly what that meant. -- full story

____________________________________________

Subscribe to MCRC blog updates via email; click here.

Consumer bills move forward in General Assembly

Three of MCRC's top legislative priorities -- debt settlement, payday lending and refund anticipation loans -- moved forward in the legislature on Tuesday. Read details here.

____________________________________________

Subscribe to MCRC blog updates via email; click here.