Credit cards

Hall co-sponsored legislation would end credit card companies' tricks on Dec 1

November 2, 2009 --
Washington, DC – With credit card companies doubling interest rates on consumers and ramping up other unfair practices in advance of the Credit Card Holders Bill of Rights taking effect in February, U.S. Rep. John Hall (D-Dover) is pushing to speed up the effective date to December 1st to give consumers badly needed relief in time for the holiday season.    » read more »

Washington, DC - 10/28/2009 - One hundred percent of credit cards offered online by the leading bank card issuers continue to include practices that will be outlawed once legislation passed in May takes effect next year, according to a new report by the Pew Health Group’s Safe Credit Cards Project. The report also found that advertised credit card interest rates rose an average of 20 percent in the first two quarters of 2009, even as banks’ cost of lending declined.

With the Federal Reserve currently developing rules to ensure penalty charges are “reasonable and proportional” as required under the Credit CARD Act, the report also includes policy recommendations for regulators.    » read more »

Debt-strapped consumers would get relief from unscrupulous industry practices

November 3, 2009 -- Consumer Federation of America (CFA) and 18 other consumer organizations filed joint comments with the Federal Trade Commission (FTC) supporting amendments to the Telemarketing Sales Rule that would protect debt-strapped consumers from unscrupulous practices by companies that offer to arrange payment plans with their creditors, get their interest rates or fees reduced, or settle their debts for pennies on the dollar.

In their comments, the consumer groups agreed with the FTC that some debt relief companies mislead consumers about the results they can expect and the impact that such services can have on their credit.    » read more »

November 2, 2009 -- WASHINGTON – U.S. Senator Debbie Stabenow (D-MI) today announced her support for the Credit Card Rate Freeze Act of 2009, by signing on as a co-sponsor. This legislation will immediately freeze credit card interest rates on all existing balances for consumers. The bill serves as a supplement to the consumer protection measure, the Credit CARD Act, which passed earlier this year.

Under that law, beginning February 2010, credit cards can no longer arbitrarly raise interest rates, fees and finance charges on a customer’s existing balance. Credit card companies are currently using the grace period as an opportunity to raise interest rates and fees before the Credit CARD Act goes into effect.    » read more »

Congressman joins colleagues in urging bailed out Wall Street firms to stop taking advantage of responsible customers

WASHINGTON, Oct 30 - Today Congressman Mark Schauer (D-MI) co-sponsored the Credit Card Rate Freeze Act, legislation that would immediately freeze interest rates on consumer credit card accounts ahead of federal credit card reform legislation slated to go into effect early next year.

Earlier this week, Schauer joined 45 of his House colleagues in sending a letter to the CEOs of Bank of America and Citigroup, which together have received $45 billion in federal bailout funds, urging them to reconsider their decision to charge new credit card fees on customers in good standing.    » read more »

October 29, 2009 -- WASHINGTON, DC - U.S. Rep. Michael Arcuri (NY-24) called on the CEOs of Bank of America and Citigroup to end the unreasonable new credit card interest rates and fees that the two banks are allegedly going to be charging consumers for not carrying a consistent balance on their credit card.

"To see two companies that came before Congress only a year ago and asked for federal funding to save their banks and gouge the consumer is despicable," Arcuri said, "The American people have done more than their fair share to rescue our country from this economic downturn and it is time for these banks to recognize that they are in the business of customer service and are not set up to prey on the consumer, but rather help them succeed."    » read more »

October 29, 2009 -- WASHINGTON, March 31 –The Senate banking committee today narrowly approved and sent to the Senate legislation to ban abusive credit card practices.

Senator Bernie Sanders (I-Vt.) cosponsored the bill that cleared committee, but he said that when the legislation reaches the Senate floor he will press for a nationwide cap on credit card interest rates.

Sanders on March 12 introduced a measure to place a 15 percent ceiling on interest rates on credit cards and loans to consumers and businesses.

Banks that have received the largest taxpayer bailout in U.S. history, he said, should not be allowed to slap consumers with heavy fees on top of interest rates that have shot up to 30 percent or more.    » read more »

Bill Aims to Prevent Credit Card Issuers from Squeezing Americans in Final Months Before New Consumer Protections Take Effect

October 29, 2009 -- WASHINGTON, D.C. – Although landmark legislation protecting consumers from abusive and predatory practices used by credit card companies was enacted in May, credit card companies across the nation have been jacking up rates in an effort to squeeze customers before all of the new bill’s provisions can take effect.

In response, U.S. Senator Sherrod Brown (D-OH) has joined his colleagues on the Senate Banking Committee in introducing a bill that would immediately freeze credit card interest rates, fees, and finance charges on existing balances.    » read more »

October 26, 2009 -- Today Senate Banking Committee Chairman Chris Dodd (D-CT) will introduce a bill to immediately freeze credit card interest rates on existing balances.

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act enacted in May prevents arbitrary interest rate, fee and finance charge increases on a customer’s existing balance. Unfortunately, credit card companies have been jacking up rates in a last ditch effort to squeeze customers before all of the bill’s provisions can take effect.    » read more »

October 15, 2009 -- Washington, DC -- Congressman Paul Hodes, a member of the House Financial Services Committee, released the following statement after a telephone press conference on reforming financial services and credit card company practices. Congressman Hodes was joined on the call by Dartmouth Professor Karl Griswold.

Professor Griswold’s credit card company arbitrarily lowered his credit limit while he was seeking to purchase his first home. This lowered credit line resulted in a deduction in his overall credit score and has hurt his buying power as he continues his search for a first home.    » read more »

WASHINGTON, DC- On the heels of a strongly-worded letter to the CitiGroup CEO requesting major credit card companies, including Citigroup, avoid changing credit card account terms before federal regulations on the industry take effect early next year, U.S. Congressman John Boccieri (D-Alliance) today with 17 of his House colleagues sent a letter to the Chief Executive Officer of Wells Fargo bank, calling on him to reverse his bank's recent decision to suddenly increase rates on their customers by 3 percent, and join other credit card companies who have pledged to not increase rates in advance of the effective date of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act).    » read more »

October 13, 2009 -- Washington, DC -- Today, Congressman Paul Hodes announced his support for legislation that would prevent credit card companies from arbitrarily increasing interest rates. He is a cosponsor of H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009, which would speed up new credit card regulations and put them into effect on December 1, 2009, instead of next year.

Congressman Hodes supported legislation that would prevent interest rate increases and certain contract changes beginning in February of 2010. In response to the passage of this legislation, some credit card issuers have raised interest rates in an effort to skirt the new regulations.    » read more »

Congressional Letter Already Has Some Credit Card Companies Promising Not to Raise Rates

WASHINGTON, DC - On behalf of 16th Congressional District constituents, U.S. Congressman John Boccieri (D-Alliance) along with eighteen of his House colleagues recently sent a letter to Citigroup Chief Executive Officer Vikram Pandit requesting major credit card companies, including Citigroup, avoid changing credit card account terms before the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act) takes effect in February 2010.    » read more »

October 13, 2009 -- Washington, D.C. -- Discover Financial Services CEO David Nelms has assured U.S. Representatives Neil Abercrombie (HI), Betsy Markey (CO) and a group of House Members that Discover “will not initiate any change in terms” on credit card accounts to beat a new federal credit card reform law into effect.

Markey, Abercrombie and sixteen other representatives wrote the Chief Executive Officers of JP Morgan Chase & Co., Bank of America, Discover Financial Services, American Express, Capital One Financial Corp. and Citigroup asking them not to change the terms on credit card accounts ahead of federal reform legislation. Discover joins Bank of America in announcing that no change in consumer credit card accounts will be made.    » read more »

Begich Co-sponsors Act to Save Taxpayer Funds and Ensure Efficient Spending

October 8, 2009 -- In an effort to end irresponsible and illegal expenditures of taxpayer money by federal employees the U.S. Senate has passed the Government Charge Card Abuse Act S.942, co-sponsored by Senator Mark Begich. A bipartisan piece of legislation passed by unanimous consent, the law will work to increase levels of accountability for federal employees, create new policies to improve transparency, and provide training to federal employees.    » read more »