US Senate committee investigates credit card practices

Wednesday, December 5, 2007

On Tuesday, the United States Senate Committee on Homeland Security and Governmental Affairs‘s Permanent Subcommittee on Investigations held a hearing titled “Credit Card Practices: Unfair Interest Rate Increases.” The hearing examined the circumstances under which credit card issuers may increase the interest rates of cardholders who are in compliance with the terms of their credit cards. It was a follow-up to a March 2007 hearing.

Subcommittee Chairman Carl Levin said in his opening statement: “Today’s focus is on credit card issuers who hike the interest rates of cardholders who play by the rules — meaning those folks who pay on time, pay at least the minimum amount due, and wake up one day to find their interest rate has gone through the roof — again, not because they paid late or exceeded the credit limit, but because their credit card issuer decided they should be ‘repriced’.”

Present to testify on behalf of credit card issuers were Roger C. Hochschild of Discover Financial Services, Bruce L. Hammonds of Bank of America Corporation, and Ryan Schneider of Capital One Financial Corporation.

Much of the 90 minute hearing focused on specific cases where interest rates were raised, allegedly because credit scores of the debtor dropped, and not because they were delinquent or otherwise behind on payments. According to Levin, this practice made it so that almost all payments went towards finance charges with almost none toward repaying the principal. This, he felt, is an unfair practice, as the credit card companies were negligent in informing their customers of the rate hikes and the reason for such hikes.

The collective credit card debt of Americans totals an estimated US$900 billion. Issuers have come under pressure to disclose their policies in regards to setting fees and interest rates. The US Truth in Lending Act requires that terms of a loan be set forth up front. Fluctuating interest rates on credit cards would, on the surface, appear to violate this act.

Roger C. Hochschild disagreed, arguing that “every card transaction is a new extension of credit … This makes it difficult — and risky — to underwrite, and price, the loan based solely on the borrower’s credit-worthiness at the time of application [for the card].”

Ryan Schneider, agreed: “The ability to modify the terms of a credit card agreement to accommodate changes over time to the economy or the credit-worthiness of consumers must be preserved.”

“Attempts to interfere with the market here … will inevitably result in less credit being offered,” warned Bruce Hammonds. “Risk-based pricing has democratized access to credit,” he added.

All three credit card executives also mentioned an ongoing Federal Reserve System review of credit card rules that already proposes a 45-day notification ahead of any rate changes.

Committee members criticized the industry for varying practices. Included in the criticism was the practice of mailing checks to card-holders, failing to notify applicants that obtaining additional cards could lower their credit score and raise their rates, and “ambushing” card-holders with raised rates.

Ranking minority member of the subcommittee, Norm Coleman said, “families find themselves ensnared in a seemingly inescapable web of credit card debt. They particularly report being saddled with interest rates that skyrocketed on them seemingly out of the blue.”

Thursday, August 25, 2011

The United Kingdom electoral commission has been asked to investigate whether payments made by News International to Andy Coulson amidst the recent phone hacking scandal were illegal.

Labor MP Tom Watson, who has been a driving force in the phone hacking scandal, called for the investigation after he believed that payments and benefits made to Coulson, including private health benefits and a company car, should have been declared as a political donation. Mr Watson has reportedly been trying to uncover whether Coulson declared these payments to the cultures committee upon applying for access to parliament.

MPs are bewildered by Prime Minister David Cameron’s hiring of Coulson without anyone looking into his financial history, and many have expressed outrage as the reports contradict evidence given by the former News of The World editor to the culture committee in 2009. He allegedly told the committee that he had received a salary of £275,000 and that he did not have a second income.

Coulson is expected to face further questioning from the committee about the payments after he is cleared from the phone hacking scandal.

Robert Peston, a journalist for the BBC, claimed that Mr Coulson had received several hundred thousand pounds from News International after he began working for the Conservative Party. Despite his ousting in 2007, Mr Coulson received his severance pay in installments from News International until the end of that year.

Coulson was known to have received a payoff after his resignation from News of the World in 2007. The resignation came after the conviction of journalist Clive Goodman for phone hacking.

The Culture, Media and Sport Select Committee has stated that both Coulson and News International should have informed the committee about the payments. The investigation will decide whether or not the electoral committee has been misled by Coulson, and whether the payments should be considered as a political donation.

The committee is expected to meet in early September to decide on a plan of action.

Tuesday, August 29, 2006

A man named George Schultz in Parksville, British Columbia is selling the boat from old TV series Gilligan’s Island at the cost of $99,000. The cruiser, originally cost about $290,000 in the 1960s.

“There have been a couple of modifications, so it doesn’t look exactly like the original,” said Shultz, a boat broker who’s selling the 36-foot Wheeler Express Cruiser for fellow Parksdale resident Scotty Taylor. “But it’s still the original boat.”

Originally, the boat’s name was The Blue Jacket.

“Just for the show, for a stage name, it was called the S.S. Minnow,” Shultz said. The name was a reference to Newton Minnow, once chairman of the FCC.

“He just liked the boat, he wanted to restore it, it was a nice looking boat, a wooden boat, a classic and he likes classic boats,” said Shultz. “The hole in the hull was actually the least of the repairs – the interior needed a lot more work”.

Someone later stole the plaque on the boat, but the 46-year-old boat still has the round life preserver with S.S. Minnow emblazoned on it and the skipper’s chair.

Saturday, March 26, 2005

Beijing’s city legislature has approved a bill, one year in the making, to safeguard the historical and cultural heritage of old Beijing. The new 41-article set of regulations will come into effect May 1, requiring the city to protect listed heritage sites and unlisted sites deemed of historical or cultural value. It also guarantees protection for the area within the city’s Second Ring Road.

Director of the Beijing Administrative Bureau of Cultural Heritage, Mei Ninghua, said “the most encouraging content of the regulations is that Beijing will pay more attention to protecting the old city’s landscape in its entirety, rather than just focussing on scattered heritage sites.” This means the old city layout, colours of buildings, and the names of houses and lanes will have legal protection.

“We took measures to protect the city’s siheyuan courtyard houses by tagging protection plates on more than 650 of them in 2003, preventing them from being demolished or damaged during the city’s massive housing reconstruction projects,” said Mei.

“Now the new regulations give legal buttress to the protection of siheyuan courtyard homes, as well as other unmovable ancient treasures, that have yet to be listed but are at risk of being demolished during urban renovation.”

Modern Beijing, capital of China for 850 years, was built by Mongul Emporer Kublai Khan in 1267 AD. In the vicinity of the current city once was Ji (?), the capital of the State of Yan (?), a power of the Warring States Period – but it has been lost in the mists of time.

Sunday, January 27, 2013File:Australian Mitre 10 logo.jpg

Wednesday, an over-90-year-old Manns Mitre 10 hardware store, run by Alex P Mann Pty Ltd, closed until further notice after a rent dispute in Port Adelaide, South Australia. The rent dispute involved $315,060.70 of rent for months of September 2012 to January 2013 unpaid to the landlord, Fourteen Sails Pty Ltd. The site was distrained. The store had to fire about 40–50 employees without a warning in advance.

The store was closed three days before Australia Day, January 26, Saturday.

The store administrator, Tim Clifton, said they had to ring the workers out of the blue: “I was advised the landlord had distrained for unpaid rent over the business and that left the directors in the position where the business was untenable. I presume at this stage trading was poor and the company just didn’t have the money to pay the rent. … Unfortunately they had to terminate their employment this morning and we’ve rung them all. We’ll do our best to get them their entitlements under the government schemes, and we calculate what they’re owed in the next few days and hopefully get that underway for them. … It’s a sad day. It’s a sign of the times isn’t it. Things are tough out there.”

Construction, Forestry, Mining and Energy Union state secretary Dave Kirner said workers were not allowed to collect their personal belongings left inside of the store: “I spoke with a worker who said the locks have been changed, they were asked to leave and all their personal belongings are in there”.

On Saturday, Wikinews took photos of the documents available at the store entrance. The rent dispute details and an inventory were available for everyone to read. During the ten minutes of taking photos, around seven people visited the closed entrance and read the documents a first time. One of them commented, “oh hey, Bunnings will be stronger”.

The store owner, Jarred Spearman, reported negotiations ongoing with the landlord and said he would “hopefully try to work [our] way out of this … We are pretty lucky to have the customers and staff we had”.

Port Adelaide Mayor Gary Johanson said the loss of the store is a significant loss as Port Adelaide is being redeveloped: “Their staff were extremely good, the service levels were high, the store was always well stocked and it was a great example of a family business. That will be a great loss to the Port.” “The landlord is not at fault here. The landlord is acting within their rights. … This is the sort of thing we cannot afford to lose if we’re serious about the Port being redeveloped. This is not a multinational company. This is a franchise of a bigger company but it is a family franchise and it employs a lot of staff. The staff that they employ are local people and they’re employing large amounts of staff in relation to their turnover. We need to take stock of what local businesses we have left and say, how can we ensure they stay with us?”

Tuesday, December 8, 2009

State media reported earlier today that a stampede in a school in China has killed at least eight people and injured an additional 26.

The accident occurred at 21:10 local time at the Yucai Middle School, a privately-run institution in city of Xiangxiang, located in the Hunan Province. Reports say that several students were leaving their studies when one fell down a staircase, causing others to lose their balance and tumble down as well.

Those hurt in the incident were treated at three hospitals in the town, and eight other students were being observed by medical personnel despite appearing not to have been hurt.

Chinese officials are investigating the incident and have been questioning the city educational bureau and local school authorities, according to the Xinhua news agency.