Credit cards

Calls on companies to provide relief for middle class families

07 October 2009 -- Washington DC - Congressman John Adler, a member of the House Financial Services Committee, sent a letter to the country's major credit card companies, calling on them to pledge to not change the terms on consumer credit card accounts ahead of federal credit card reform legislation slated to go into effect early next year.

The letter came in response to claims that credit card companies are unfairly hiking their interest rates before the Credit CARD Act takes effect.    » read more »

October 6, 2009 -- WASHINGTON — Four Members of Congress who played key roles in enactment of the Credit CARD Act, Sen. Carl Levin, D-Mich., Rep. Barney Frank, D-Mass., Rep. Carolyn Maloney, D-N.Y., and Sen. Claire McCaskill, D-Mo., sent a letter today to Federal Reserve Chairman Ben Bernanke urging him to strengthen collection of credit card data to enable policymakers to monitor changing credit card practices and evaluate the impact of the new law. A copy of the letter is attached and available below.

October 6, 2009

The Honorable Ben Bernanke
Chairman
Board of Governors of the Federal Reserve System
Twentieth and Constitution Avenue, NW
Washington, DC 20551

Dear Mr. Chairman:    » read more »

Groups call for enactment of a Consumer Financial Protection Agency (CFPA) to oversee shifting credit card practices

September 28, 2009 -- Washington, DC – A Consumer Action and Consumer Federation of America analysis of recent credit card industry practices found that card issuers are using a variety of costly, unfair tactics that will not be eliminated under an impending new law. These expensive and exploitive practices demonstrate the need for ongoing oversight of the credit card industry by a new consumer agency.

Card issuers are also hitting consumers with charges that will be forbidden under the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, which takes effect in February, 2010.    » read more »

July 8, 2009 -- Connecticut Governor M. Jodi Rell today announced she has signed a bill that regulates credit card marketing on campus to college students and restricts debt collection actions that can be taken by credit card companies against parents.

“Students are already burdened with education loans by the time they leave college. They risk taking on even more financial pressure when they give in to the lure of credit cards made available to them right on campus,” Governor Rell said. “This bill will set strict parameters for credit card companies on when, where and how they can market to students.”    » read more »

Rhode Island Senator Discusses Legislation to Crack Down on High Interest Rates

June 8, 2009 -- Providence, R.I. - On the heels of sweeping credit card reform legislation recently passed by Congress and signed into law by President Obama, U.S. Senator Sheldon Whitehouse (D-RI) met today with Rhode Islanders affected by unfair credit card practices at the John Hope Settlement House in Providence. Whitehouse heard from consumers and small business owners about the impact of high interest rates and other tricks and traps on their families and businesses.    » read more »

President Obama signs Credit Card Accountability, Responsibility, and Disclosure Act

May 22, 2009 --
WASHINGTON – Today, President Obama signs the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees.    » read more »

Washington, DC - 05/20/2009 - A full 82 percent of credit cards allow penalty interest rate hikes that could last indefinitely, giving responsible cardholders no right to return to the originally agreed upon interest rate, according to a new issue brief from The Pew Charitable Trusts’ Safe Credit Cards Project. A unique Senate proposal known as a “cure period” will help curb penalty interest charges that add billions to Americans’ credit card debt. Pew’s analysis also found:

* Americans are on track to pay credit card penalty interest charges of more than $7 billion annually.
* The median allowable penalty rate was 28 percent (double the average non-penalty rate), adding $500 in penalties per year to a typical cardholder’s account.    » read more »

Member of Banking Committee crafted provision in bill that would protect consumers under 21, and require credit card companies to verify consumer's financial situation before approval

May 22, 2009 -- Hoboken, NJ – U.S. Senator Robert Menendez, a member of the Senate Banking Committee, today visited Stevens Institute of Technology in Hoboken to discuss credit card reform legislation currently being debated in the Senate.    » read more »

May 22, 2009 -- WASHINGTON – In a White House ceremony this afternoon, President Obama will sign the Credit Card Accountability, Responsibility and Disclosure Act or Credit CARD Act of 2009, which offers a comprehensive approach to protecting consumers from unfair credit card practices. The bill builds on groundwork laid by Sen. Carl Levin, D-Mich., in hearings and legislation over the past four years.

“Credit card companies have crossed line after line with outrageous practices that hurt American families and businesses,” Levin said. “They underestimated the ability of Congress to turn public outcry into public policy. We faced powerful forces against this effort, but we prevailed.    » read more »

May 22, 2009 -- New York Governor David A. Paterson and New York State Consumer Protection Board Chairperson and Executive Director Mindy A. Bockstein today issued the following statements in support of the federal Credit Card Accountability, Responsibility, and Disclosure Act of 2009:

Statement from Governor David A. Paterson:    » read more »

Washington, DC - 05/19/2009 - Statement of Nick Bourke, manager of the Safe Credit Cards Project at the Pew Health Group:

“The Senate today joined the House in coming together to pass smart, strong, bipartisan legislation that puts an end to many unfair and deceptive credit card practices. This is a tremendous victory for the millions of credit card carrying consumers, many of whom will be able to avoid hundreds, even thousands of dollars in unfair fees and interest rate hikes.    » read more »

May 19, 2009 -- This afternoon, the United States Senate passed the Credit Cardholders’ Bill of Rights Act (H.R. 627) with huge bipartisan support by a vote of 90-5. The bill would curb some of the most arbitrary, abusive and unfair credit card lending practices that trap consumers in a vicious cycle of debt, including:    » read more »

Amplified Oversight of the Credit Card Industry Will Help Protect the Rights of Consumers Who Are Experiencing Economic Hardship

May 19, 2009 -- Washington, D.C. – AARP today hailed the passage of the “Credit Card Accountability Responsibility and Disclosure Act of 2009” as a vital step forward to further protect consumers who are facing serious financial difficulties.

At a time when consumers are increasingly relying on credit cards to pay for basic necessities, this legislation provides a welcome opportunity to improve transparency and accountability within the credit card industry.    » read more »

May 19, 2009 -- WASHINGTON, DC -- SEIU Secretary-Treasurer Anna Burger released the following statement after today's overwhelmingly bipartisan vote in the Senate to pass the Credit Card Accountability Responsibility and Disclosure Act:

"It's not only unethical to trap people in an unending cycle of credit card debt--it's also fundamentally unsustainable. Today, we are seeing the outcome of a financial system that has put expedient, short-term profits over long-term economic growth. Until we hold credit card companies accountable for intentionally trapping consumers into debt from which they cannot recover, we will continue to put the overall health of our economy at risk.    » read more »

CARD Act Cracks Down on Exorbitant Fees and Interest Rates

May 19, 2009 -- Washington, DC – Senator Jim Webb (D-VA) today supported the Senate passage of legislation to protect consumers and crack down on unfair and deceptive credit card company practices that result in undisclosed fees and rate increases. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (the “CARD Act”) passed with bipartisan Senate support.    » read more »