The Stop Unfair Practices in Credit Cards Act of 2007 may be some of the best news consumers have had in a long time.

Introduced by Senators Carl Levin and Claire McCaskill, the bill would put legislation in place to halt the most abusive practices of credit card lenders, some of which actually prevent a consumer from ever paying off the debt. The legislation could save consumers millions of dollars in unfair penalties, fees and interest.

If a credit card holder pays off a portion of the debt during a grace period, the bill would prevent the lender from charging interest on the paid-off portion of the charges. It also restricts the charging of repeated over-limit fees for a single instance of exceeding the credit card’s limit. Additionally, lenders would be prohibited from charging interest on over-limit and late fees.

As to penalty rates on interest, those that are incurred by late payments, there is a cap that prohibits lenders from raising the interest rate by more than 7 points, eliminating double and triple interest rate hikes that could be charged after only one late payment.

Read the provisions of the proposed bill:

Stop Unfair Practices in Credit Cards Act of 2007

419 scams have been going on for years, emails from deposed heads of state and African princes looking for help to move large sums of money out of the country and into your bank account. Of course, there are no vast sums of money to be transferred, unless you count the billions of dollars these con artists have bilked from gullible recipients.

The newest 419 scam adds a little twist. It purports to be from an American soldier in Iraq who is hiding millions of Saddam Hussein’s money and trying to smuggle it out of the country before the next troop surge causes him and his co-conspirators to be discovered.

As always, the advice is NEVER to give out any personal information or bank account information. Do not advance money for fees and expenses in arranging the money transfer. The only money that changes hands will be from you to the scammer.

Read the story at Consumer Affairs:

419 Scammer Claims to Be US Soldier

At a Congressional hearing of the House Financial Services Committee on Tuesday, speakers explored ways to clear up the subprime mortgage mess.

ARMs (Adjustable Rate Mortgages) have fueled the foreclosure increase when, after the initial fixed part of the loan ends, rates balloon into payments borrowers can no longer afford.

In addition to setting up a rescue fund for borrowers who face short-term problems due to illness or job layoff, recommendations included establishing a bond fund to help pay for borrowers switching out of their ARMs and into traditional fixed-rate mortgages. In cases where consumers fall victim to predatory lenders, the government would refinance loans through Fannie Mae.

Lenders may be willing to go along with these recommendations due to the cost of foreclosures. Typically, a bank loses money on a foreclosure because of costs involved in keeping the house on the books, maintenance and sales commissions. Additionally, houses that have been foreclosed upon sell for less than market value.

Panelists at the hearing included spokesmen for the FDIC, HUD, Fannie Mae and Freddie Mac, various consumer groups and lenders.

The price of a gallon of gasoline is closing in on the $3 range over much of the country with prices in five states, California, Hawaii, Oregon, Nevada and Washington, over $3 per gallon.

This time around the $3 mark, consumers aren’t complaining as much and seem to accept the rising prices as normal and expected.

California drivers are hit hardest with the average gasoline price at $3.35 per gallon. The lowest price in the nation is in North Carolina, where in Winston-Salem you can fill up at only $2.47 per gallon.

For those who have purchased hybrid vehicles to help them avoid the gas-crunch, there is more bad news. Traction control problems haunt Toyota’s Prius with consumer complaints increasing. Consumers living in snowy or hilly areas have had problems when the traction control, which is computer-operated, shuts down engine power in slippery conditions. Toyota maintains that the traction control is operating properly, reducing or shutting down power to the engine when it detects wheel spin. This can happen even if the car goes over a bump. Toyota has been reluctant to make any changes, causing consternation for owners.