In the Durango Herald today:
A Durango woman has become part of the push for credit card reform in Washington, D.C.
Melissa Mosley, a local business owner, contacted Sen. Michael Bennet, D-Colo., to complain about the 32.99 percent interest on her small-business credit card.
Bennet was impressed by her story and used Mosley’s situation to urge credit card reform in a speech on the Senate floor Thursday.
“In my travels around Colorado, I’ve been struck by stories of unfair, undeserved credit card practices hitting consumers at exactly the hardest time,” Bennet said. “Melissa Mosley of Durango, Colo., told me about how tough economic times forced her to use several credit cards for purchasing supplies and day-to-day expenses for her small business.
“After a stretch of making minimum payments, Melissa’s interest rates suddenly rose – one even reaching 32 percent. The company is refusing to negotiate, making it even more difficult for Melissa and her husband to make ends meet,” Bennet said.
Mosley and her husband, Chuck, own Buffalo Creek Remodel in Durango.
“This is a really humiliating situation to be in,” Melissa Mosley said in an interview Thursday. “But I know if they don’t use real situations, many people can’t relate.”
Bennet was speaking in support of a proposed bill that would require credit card companies to give 45 days notice before increasing rates and would prohibit them from doing so on existing balances.
It’s a great story for Bennet every bit as much as it is for fellow Sen. Mark Udall, but obviously 2010-minded Bennet has a more immediate interest in being on the front lines of this very popular issue. It’s particularly good for Bennet in terms of base relations to support this bill, as it helps blunt the “in the pocket of the banks” meme that slipped into circulation recently.
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I recently wrote to Senator Bennett regarding his no vote on S.896 which was an amendment that would have allowed bankruptcy judges the authority to modify mortgages when it was financially cost effective for banks to do so. His response used right wing talking points to explain his position which sounded just like State Senator Greg Brophy’s response to me when I wrote to him on HB09-1276 which also had the “cram-down” provision.
Greg Brophy’s response to an inquiry regarding Colorado HB09-1276 – Foreclosures
“I did not vote for the bill for this reason: The bill limits flexibility for lenders and borrowers who find themselves in this situation and increases expenses on the over 90% of people who are paying their mortgages.” “Notice that the bill forces a cram-down payment rate”.
Senator Bennett’s response to a comment I made on his website on his no vote on S896 – Foreclosures
“As you may know, Senator Durbin of Illinois introduced an amendment to S.896 that would allow bankruptcy court judges to modify the terms of a mortgage for borrowers participating in bankruptcy proceedings, a process often referred to as “cramdown.” The amendment, which needed 60 votes to pass, failed by a vote of 45-51. I voted against the amendment because, though well intentioned, it was far too broad and not sufficiently focused on the middle class. The amendment posed the risk of unfairly punishing small lenders and local bankers who have been making a good faith effort to provide credit to their communities. In addition, it very likely would have had the unintended consequences of raising interest rates for all homeowners, potentially delaying real housing recovery.”
The real problem is the mortgage crisis is not going away and it is costing us more money than if these loans were modified. One thing to keep in mind is that unless we restore the middleclass to prosperity the banks will not recover and neither will this country and that means livable wages for all and higher taxes for the filthy rich. It really doesn’t matter if you are Republican or Democrat, conservative or liberal we will not recover unless these things happen. I like to say to the rich and the banks that when you took out the middleclass you took out your best customers for without a middleclass there is no one to buy your products. And the decline in our economy will continue.
I think Senator Bennett has some explaining to do.