AUGUST 19, 2008 --

LPR was surprised to find that The New York Times, , in its lead editorial, August 6, calling on Congress to take action against "abusive credit card practices." The editorial reported that the banks have declared that 56,000 credit card complaints received by the Federal Reserve "are just 'anecdotal."

LPR visitors should be aware that this website has been calling attention to predatory credit card interest rates for a long time. Here, for the banks, is LPR's anecdote.

LPR was bringing books to the Sherman library because it must clear out the apartment it has lived in since 1983. LPR must sell the apartment to pay off the considerable debt it has accumulated, debt bloated in part by predatory, punitive thirty percent interest rates.

LPR suggested earlier this year that the demoralizing impact of predatory practices by banks, combined with acceptance of these practices by government officials, could have a demoralizing impact that mght well lead to people living in HSBCvilles, WAMUvilles, and so forth.

The silent support given by Congress to "abusive credit card practices" indicates that our representatives and senators either have no knowledge of the advice contained in Federalist Paper No. 57, or choose to ignore that advice to serve the common good and stay close to the people.

The Times editorial reported that a bill was introduced in the House Financial Services Committeee by Rep. Carolyn Maloney (D.-NY) to prevent banks from "raising rates on balances incurred under the old rate."

The Times might have noted that these punitive increases give the banks a return far in excess of any damages that might have been incurred due to a late payment.

This writer was informed by an agent for HSBC, recently, that he might be able to settle his debt but the settlement will be reported to credit bureaus and will prevent borrowing from 7 to 10 years. (Actually I don't expect to use credit cards anymore.) And so, in paying off my credit card interest rate, I must give HSBC a balance including the windfall predatory interest rates. In a sense, these predatory bank practices are a form of redistribution of money -- indeed, this might be called a welfare program for banks.

The Times is to be commended for its editorial. A number of years ago, an editorial in the paper defended high credit card interest rates (then ranging from 18% to 24%) in part because this would make credit cards available to the poor. That explanation was puzzling, unless it meant that the poor would have credit cards and if they defaulted, losses could be made up from other cardholders.

The August 6 editorial called the current credit card legislation "heartless" to "beleagured consumers" and noted that the Democrats, now in control of congress, have taken no action.

LPR poses this question for Congress and President Bush: Would you describe thirty percent credit card interest rates as compassionate?