The markup resumes at 9:30 this morning.  You can watch here.

From the story:

Gina Correa is a woman on a budget, now more than ever. The interest rate on her credit card increased 7 percent.

“I have noticed my interest rate has gone up over the last couple of months,“ said Correa. “I don’t know if it’s because of a late payment that I did. I don’t know.“

She is now paying with cash, trying to keep her credit card bills down.

“With your interest rate going up, instead of moving forward, you’re paying bills from behind,“ said Correa. “You’re kinda stuck!“

Sally Borie with Consumer Credit Counseling Service has seen several clients shocked at their skyrocketing interest rates. One reason is the economy.

Credit card companies are trying to squeeze as much money out of customers as they can. Another reason is that companies are scrambling to raise their rates before the Credit Card Accountability, Responsibility and Disclosure Act goes into effect February 2010, which will make it harder for companies to increase their rates.

We’re so confused!   From the story:

Federal Reserve Chairman Ben S. Bernanke warned Congress this week about efforts to move up the effective date of tough new rules for credit card companies, saying such action could hurt consumers as much or more than help them.

Mr. Bernanke’s comments may pose difficulties to the House Financial Services Committee as it anticipates marking up a bill this week that would move up enactment of credit card protection regulations to Dec. 1 – weeks earlier than scheduled.

While the new deadline could benefit consumers by providing protections earlier than scheduled, it also would force the Federal Reserve to implement the new rules without giving the public and the credit card industry time for comment, “which could lead to unintended consequences.”

So far, so good for payday lending industry.  A few unkind words were said, but no amendments offered….so far.   Today should be the last day of the markup.

From a letter in yesterday’s Augusta Free Press from the Center for Consumer Freedom:

Following restrictions that limit short-term payday lending access for borrowers, many cash-strapped Virginians are left wondering where to turn (”Shannon releases plan to protect consumers on payday lending,” Oct. 16 AFP). As payday lenders close their doors, their former customers are forced to resort to more expensive alternatives to make ends meet.

That’s the crux of it.  People need credit and will seek it where ever they can.

Consumer groups get behind Sen. Dodd’s overdraft bill.  They never met a regulation they didn’t like.

From the AP:

Congress wants another government regulator to cut through the red tape and protect your pocketbook. But there’s plenty of fine print that will limit the new agency’s reach.

The House Financial Services Committee was on track Thursday to approve the creation of a new Consumer Financial Protection Agency that would regulate popular financial products like mortgages, credit cards and savings accounts.

The vote would be a victory for President Barack Obama, who has made the agency a top priority in his effort to tighten the rules governing Wall Street and prevent another economic crisis.

Democrats have hailed the plan and said the agency would help to reach across various businesses to stop fraud and abusive practices. That regulators didn’t monitor nonbank institutions like mortgage brokers was considered a major factor in subprime lending abuses that led to the housing market crash.

But under pressure from industry, the Financial Services Committee has carved out numerous exemptions to the industries subject to agency oversight. Among those exempt are retailers, real estate brokers, lawyers, cable companies and accountants.

From Credit Union Times:

The $804 million Nevada Federal Credit Union, headquartered in Las Vegas, has apparently written its last payday loan.

A call to the credit union confirmed that the Nevada stopped offering the loans as of Thursday, Oct. 15 and any mention of the controversial short term loans had disappeared from its Web site.

Nevada Federal had been offering a loan called AdvancePay, which charged an application fee up front whether a borrower got the loan or not.  The credit union had defended the loans by arguing they were less expensive for members than other payday advance loans offered by other firms, but an NCUA letter to credit unions made it clear the regulator took a dim view of the lending.

They had the option of cutting the rate, but decided not to offer it instead.

A very vigorous debate just occurred on an amendment to ban the CFPA from imposing usury or fee caps.   The vote was postponed.  There will be more discussion today, but votes will take place tomorrow.  Stay tuned.

Usury amendments to being any minute now.