BGN Entrepreneur

For consumers trying to figure out what the financial and overhaul bill means to them, that legislation in the Senate Thursday offers some tantalizing possibilities.

A last-minute Senate would also lower the fees that merchants pay to process many debit card transactions. If the banks revenue as a result, they could make up for it by charging for current accounts or compromising bonus programs. Dealers say falling, that once free card, they will hire more staff and hold the line on prices. It is a good deal of disagreement about who has the better arguments.

It is not clear until a final bill – and perhaps not for later years – how much money the measures will be in your pocket or whether to preserve it before it picked up. But the broad outlines are clear, so here are the areas to see a final account is created:
Debit, credit cards

The Senate bill contains an amendment of provisions that affect how you could use your credit card. You are more than $ 10 probably encountered this annoying signs of use that prohibit hand-written card when you spend or so, even though stores are generally not accepted to do so. The bill would allow such minima, as long as does not save settings were minima for, say, Bank of America credit card, but not Chase. Merchants would also be allowed, various credit cards spending say for minima, we set a Visa and MasterCard.

However, it would be able to offer commercial discounts are based on a customer uses the card. So someone with an American Express card, which costs the dealer more often than other cards to pay, could cost the full price of the label to an element, which is $ 100, while Visa and Master Card holders could get a $ 1 discount.

The bill provides that are acceptable to use discounts as well as lower prices for the people, the debit cards. The stores could not charge a price for Visa debit cards from one bank to another and Visa debit card from another bank.

Why does the bill includes this provision? Because it also orders the Federal Reserve set rules that would lead to lower fees for merchants that accept debit cards lead. Smaller community banks and credit unions would still get the same amount of revenue merchant fees that they are now. This could be a merchant to accept the less expensive Visa cards have led, during the rejection of the more expensive (or the establishment of minimum standards for the more expensive purchase amounts).

You would think that small banks would with a sales advantage. You do not believe that a two-level system can charge at last, though, and figure the big banks, which produce much of the revenue for Visa and MasterCard would the two companies a cut of the fee pressure that would be the small banks collect as well. And they line up with the big banks to oppose the bill and keep the higher charges intact.
Mortgages

The Senate bill will be three new changes, many of which echo the House Bill.

First, mortgage lenders would impose restrictions, if they can require borrowers a penalty for paying off their loans before the term of the mortgage’s face. They would not be able to prepayment penalties at all for the Mortgage, the balloon payments or for those that make man the payments so low that the mortgage balance instead of rises and falls (so-called negative amortization loans), have to allow, among other things free. Other standard plain-vanilla mortgage, would be permitted only in ERFs the first three years.

Second, the law prohibits those who set up accept mortgages for customers in compensation that would vary depending on the type of loan. This is to protect the consumer from a few games that went to protect a few years ago when banks, mortgage brokers paid extra money for marketing customers in the form of loans with high fees and terrible conditions.

Finally, it requires banks applicants income, assets and credit history before it to consider a loan.
Credit Scores

In a question that is not addressed in the House bill, the Senate bill, requires a change who is a credit score used as a reason for the adverse action against a consumer, the guests present to that person free. So, if you do not get the best mortgage, credit card or car loan interest rate or the lowest premium, you would just be able to see you hurt. In general, you can cost about $ 15.
Brokers and duty of care

Senators would have had no luck installing a change in their bill that require brokers to represent the best interests of clients. Currently many of these professionals have only to investments that are appropriate to recommend. The House bill contains the “best interests” request, and if there would be many more brokers – and insurance sales representatives, however, some types of pensions are expensive – to meet a higher standard.
Office of Consumer Protection

Both bills call for the creation of a consumer financial-Protection Agency, which many consumers would be to monitor loans and to make the products work more transparent.

It is difficult to precisely predict how much power the agency will ultimately be tried to the new rules.

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